Pension funds, diaspora remittances offer untapped impact capital- Stakeholders

Nigeria’s impact investment community has called for urgent action to unlock local sources of finance, particularly pension funds, diaspora remittances, and corporate balance sheets, to fill widening development and startup funding gaps across the country.

Speaking at the 8th Annual Convening on Impact Investment, on Wednesday in Lagos, Frank Aigbogun, chairman of the Impact Investors Foundation (IIF), said Nigeria must begin to look inward for sustainable sources of catalytic capital, rather than depend solely on shrinking foreign aid and concessional funding.

“We still face constraints in mobilizing local capital to fill development gaps, whether in health, education, energy or agriculture. Pension funds, diaspora remittances and corporate balance sheets represent an untapped potential for addressing this important societal gap,” Aigbogun said.

The shift in global development financing patterns had made it increasingly urgent for developing economies like Nigeria to innovate around domestic resource mobilization, impact investment, and blended finance vehicles that can attract patient capital into critical sectors, he affirmed.

According to Aigbogun, the global impact investing market has grown by 21 percent over the last six years, with an 11 percent rise recorded in 2024 alone, reflecting increased appetite among investors to combine financial returns with social and environmental outcomes. Yet, he noted, translating that global momentum into measurable scale within Nigeria remains a challenge.

“It is no longer enough for us to depend only on our foreign partners. We have seen, lately, how it is that support from abroad can indeed be shaken, even by just one country or one person. We must build the structures and incentives that encourage investors to put their capital where their passion lies, investments that create jobs, improve lives, and protect our planet,” he said.

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The two-day event, themed “Strengthening and Scaling the Nigerian Impact Economy,” brought together policymakers, fund managers, investors, and development partners to explore innovative mechanisms for financing inclusive growth.

The Impact Investors Foundation, established in 2019, has positioned itself as Nigeria’s foremost platform for advancing the impact economy through advocacy, market development, and partnerships. Over the years, it has helped drive key initiatives, including the design of the $100 million Wholesale Impact Investment Fund, to mobilize blended finance for local enterprises.

Aigbogun added that the IIF remains committed to working with the National Advisory Board for Impact Investing and other ecosystem partners to strengthen market infrastructure and drive evidence-based policy reform.

“At this convening, we will also be unveiling our 2025 Impact Investing Ecosystem Mapping and Market Sizing Report. It is a critical tool for understanding how Nigeria’s impact ecosystem is evolving and where the opportunities lie,” he said.

As global development funding tightens, stakeholders say Nigeria’s next growth phase will depend on domestic resource mobilization and private capital alignment with public priorities.

“The task before us is significant and urgent. If we sustain our passion and act collectively, we can build the Nigeria and Africa that the next generation will be proud to inherit,” Aigbogun added.

Etemore Glover, the Foundation’s chief executive officer, said the growing participation of subnational governments and federal ministries in impact investment is helping to institutionalize the practice. She cited the Federal Ministry of Budget and Economic Planning’s leadership in setting up the national impact fund and Lagos State’s record in issuing green and infrastructure bonds that have mobilized over N229 billion for housing, agriculture, and innovation.

“These convenings are not just events, they are the foundation of a movement. Our mandate remains clear: to unlock private capital for impactful investment in Nigeria,” Glover said.

Glover also announced IIF’s new 10-Year National Strategy for Gender Equity and Social Inclusion, designed to channel inclusive capital toward women, youth, and people living with disabilities. The Foundation has already secured commitments from 42 institutions to mobilize $8 billion over the next decade for inclusive economic development.

International partners echoed similar sentiments. Oyinkansola Akintola-Bello, country director of the UK-Nigeria Tech Hub, reaffirmed the UK’s support for local impact investment systems.

“We need to catalyze our own capital. We can’t rely solely on external sources because those sources are fragile. The UK remains a steadfast partner to Nigeria in building a vibrant, inclusive, and impactful economy,” she said.