The Impact Investors Foundation (IIF), has revealed that more than 65% of private capital inflows into Nigeria are concentrated in Lagos and the Southwest region, leaving other parts of the country underfunded.
The Foundation disclosed this in its ‘Nigeria Impact Investing Ecosystem Mapping and Market Sizing Report’ unveiled during the 8th Annual Convening on Impact Investing held in Lagos on Wednesday.
According to the report, Lagos and the Southwest account for between 65% and 70% of total capital inflows, largely in fintech and digital services.
By contrast, the North and North-West regions receive just 10–12%, mainly in agriculture and microfinance, while social sectors such as health, education, and sanitation continue to attract minimal funding.
Poverty deepens amid uneven investment flows
The IIF report also noted that 56% of Nigerians were living below the national poverty line in 2024, up from 49% in 2023.
- It linked this increase to persistent inflation, currency volatility, and low productivity in key job-creating sectors.
- The Foundation cautioned that unless capital is deliberately directed into enterprises that create jobs and expand access to basic services, poverty levels could continue to rise.
- The report also identified a “missing middle” financing gap, where small and growing businesses seeking between N10 million and N500 million in funding face barriers such as high collateral demands, short loan tenors, and high interest rates.
Pushing capital to the right place
Speaking at the event, CEO of the Impact Investors Foundation, Etemore Glover, said the report, which builds on the 2019 baseline, provides a comprehensive mapping and market sizing of the impact investing ecosystem.
“The launch of the 2025 Nigeria Impact Investing Ecosystem Mapping and Market Sizing Report is a critical piece of the work that provides evidence-based data and critical market information for policymakers, DFIs, and investors,” she said.
Glover added that the data would assist in guiding capital to where it is needed most, translating availability into impact-aligned growth and a more resilient investment ecosystem.
According to her, the convening’s objective was to galvanize a diverse ecosystem of policymakers, global and local investors, development institutions, and entrepreneurs to accelerate Nigeria’s impact-ready economy.
Experts urge local capital mobilisation
Chairman of the Foundation and Publisher of BusinessDay, Frank Aigbogun, called for stronger mobilisation of domestic capital sources, including pension funds, diaspora remittances, and corporate reserves. He stressed that Nigeria must reduce its dependence on foreign aid and concessional finance, which are increasingly unreliable.
- Aigbogun noted that global trends have shown that businesses with social impact can still deliver competitive returns, urging investors to embrace sustainable and inclusive models of growth.
- Also speaking, Country Director of the UK–Nigeria Tech Hub, Oyinkansola Akintola-Bello, reaffirmed the UK government’s commitment to supporting inclusive financing in Nigeria.
- She said ongoing UK-backed initiatives in gender-responsive investing and enterprise development reflect a long-term partnership but added that “Nigeria must prioritise mobilising its own domestic capital to ensure resilience.”
Bridging the regional investment divide
The IIF report highlighted progress in local-currency financing from institutions such as the Development Bank of Nigeria (DBN), Bank of Industry (BOI), and InfraCredit, which have extended long-term funding to sectors like infrastructure, renewable energy, and manufacturing.
It also acknowledged support from international partners including the IFC, AfDB, Afreximbank, BII, and FMO, which continue to anchor major development investments.
However, the Foundation warned that the current regional imbalance in capital flows poses a structural challenge to inclusive growth.
