The government has recently been advised to strategically allocate pension funds into sectors that possess a direct and tangible impact on the well-being of its citizens, thereby providing a substantial boost to economic development. This pertinent advice emerged during the unveiling of the National Advisory Board for Impact Investing’s (NABII) sixth annual report, titled ‘Investing for Impact in Nigeria,’ a significant event hosted in Lagos.
The comprehensive report, a collaborative effort between the Nigerian Economic Summit Group (NESG) and NABII, underscored key recommendations for directing pension funds towards fostering growth in micro, small, and medium-scale enterprises (MSMEs) and women-owned businesses. Additionally, the report shed light on unlocking pension funds as a means to mobilize capital, thereby stimulating growth in pivotal sectors.
Noteworthy is the report’s acknowledgment of the prevalent trend where a substantial portion of impact investments in Nigeria originates from international investors. Despite this influx, the report highlighted a notable discrepancy between the volume of these international deals and the actual demand within the country. Moreover, the local investor sentiment indicates a perception that these foreign investments do not necessarily translate into satisfactory financial returns, pension funds.
The study, conducted in collaboration with the Global Steering Group for Impact Investment (GSG) and supported by OTT Impact, was made possible through funding provided by the International Development Research Centre (IDRC). It emphasized the imperative for local investors and stakeholders to align their interests with impactful investments for sustained economic development.
A pivotal aspect illuminated in the report is its valuable insights into the strategic deployment of impact investments, particularly offering policy recommendations aimed at unlocking the untapped potential in crucial sectors such as agriculture, education, and health. These recommendations are envisaged to serve as a catalyst for mobilizing capital and driving positive change in these sectors.
Etemore Glover, the Chief Executive Officer of NABII, emphasized the significance of the report as a crucial step towards comprehending the enabling conditions necessary for unlocking investment for impact in key sectors. Glover affirmed the commitment of the Impact Investors Foundation and its partners to enhance awareness, promote stakeholder acceptance, and facilitate the development of enterprises conducive to impact funds.
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Furthermore, the report delineates the requisite policies, interventions, and2 collaborative efforts among key stakeholders that have the potential to elevate the impact investing market in Nigeria to unprecedented levels. Notably, the report divulges that over the past five years, agriculture, with a substantial figure of $799.8 million, along with financial services ($729.69 million) and the energy sector ($372.71 million), have consistently attracted impact investments from development finance institutions. However, it brings attention to a concerning trend where investments in the education and health sectors have experienced a stagnation since 2018, pension fund.
Source: The guardian
