Nigeria needs $31.5bn annually to meet SDGs, public funding insufficient

By Chinenye Anuforo

Nigeria requires an estimated US$31.5 billion annually to meet its Sustainable Development Goals (SDGs), but public expenditure and donor funding alone are not sufficient to close that gap, the Impact Investors Foundation (IIF) disclosed in a report released on Wednesday in Lagos at the 8th Annual Convening on Impact Investing.

The report also showed that 56 per cent of Nigerians were living below the national poverty line in 2024, up from 49 per cent in 2023, attributing the rise to persistent inflation, currency volatility, weakened household purchasing power and low productivity in job-intensive sectors. The Foundation warned that unless capital is deliberately channelled into enterprises that generate inclusive jobs and essential services, poverty levels could continue to worsen.

The convening, which brought together government officials, private investors, development partners, fund managers, enterprise leaders and academia, was held under the theme “Strengthening and Scaling the Nigerian Impact Economy.” Delegates attended from across Nigeria, the United Kingdom, Israel, Ghana and several African countries to discuss pathways for mobilising more sustainable and socially aligned capital.

Speaking at the opening session, the Chief Executive Officer of the Impact Investors Foundation, Etemore Glover, said the convening had evolved from a policy awareness gathering into a national movement focused on shaping Nigeria’s economic future through impact capital. She recalled participating in the very first convening in 2018, noting that advocacy from that event contributed to policy reforms now supporting the country’s impact investment environment.

Glover announced the establishment of the Nigerian Wholesale Impact Investment Fund, a US$100 million blended finance vehicle designed to support high-impact enterprises, with the Federal Government providing 50 per cent of the initial capital through the Ministry of Finance. She said the fund signalled growing recognition of impact investing as a strategic instrument for national development.

She added that IIF had expanded capacity-building efforts among regulators, fund managers, legislators and enterprise support institutions to strengthen understanding of sustainable financing models and impact measurement practices. According to her, developing a strong impact economy requires both behavioural and structural shifts in how public and private capital is mobilised and deployed. She cautioned that without intentional and inclusive financing, the country risks deepening existing inequalities.

Glover also highlighted the Foundation’s recently launched National Strategy for Gender Equity and Social Inclusion, a 10-year initiative aimed at unlocking US$8 billion in capital for women, youth and persons living with disabilities. She noted that 42 institutions had already committed to advancing the strategy. “Capital must be inclusive, capital must be just, and capital must be impactful,” she said.

Chairman of the IIF and Publisher of BusinessDay, Frank Aigbogun, said Nigeria could no longer depend on declining global aid and concessional funding. He stressed the need to mobilise domestic capital sources including pension funds, diaspora remittances and corporate reserves. He explained that global investment trends had disproved the idea that profit and purpose are mutually exclusive, noting that socially impactful enterprises are increasingly delivering competitive returns.

Also speaking, the Country Director of the UK–Nigeria Tech Hub, Ms Oyinkansola Akintola-Bello, who represented the UK Government, reaffirmed the UK’s commitment to supporting innovation and inclusive investment models in Nigeria. She said ongoing UK-backed programmes in gender-responsive financing and enterprise support reflected a long-term partnership approach, but added that Nigeria must prioritise mobilising its own domestic capital to reduce external dependency.

Meanwhile, the IIF report showed that although Nigeria remains one of Africa’s largest destinations for private capital, investment flows are still concentrated in Lagos and the South-West, particularly in fintech and digital services. Regions in the North received significantly lower investment, mostly in agriculture and microfinance. Social sectors such as healthcare, education, water and sanitation continue to be underfunded.

It also identified a persistent missing middle financing gap, where small and growing businesses require between ₦10 million and ₦500 million to expand but face barriers including high collateral requirements, short credit tenors and elevated interest rates.

The report pointed to progress in local-currency financing driven by institutions such as the Development Bank of Nigeria (DBN), Bank of Industry (BOI) and InfraCredit, which had helped extend long-term financing to infrastructure, renewable energy, manufacturing and logistics projects. International development partners including IFC, AfDB, Afreximbank, BII and FMO continue to anchor major investment commitments.

The two-day convening featured panel sessions, fireside dialogues and technical presentations focused on policy reforms, capital mobilisation, blended finance, gender-lens investing, climate financing and impact measurement. Participants agreed that translating discussions into investment commitments would be critical to sustaining momentum.

The Impact Investors Foundation reaffirmed its commitment to working with public and private stakeholders to ensure that recommendations from the convening lead to concrete financing actions capable of advancing Nigeria’s sustainable development priorities and reversing the rising poverty trend.