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From Adanna Nnamani, Abuja
The Alternative Bank has warned that unstable and unpredictable government policies are discouraging investors and slowing the flow of private capital required to drive inclusive economic growth in Nigeria.
The warning was given by Korede Demola-Adeniyi, Executive Director, Commercial and Institutional Banking (Lagos and South West), The Alternative Bank, at the Africa Social Impact Summit (ASIS) High-Level Policy Engagement held at the State House Conference Centre, Abuja.
Demola-Adeniyi said although blended finance remains a powerful tool for mobilising private capital into development-oriented projects, policy inconsistency continues to weaken investor confidence and threaten transactions already structured and funded.
“Blended finance works when the structure is clear and the risk-sharing is real. “However, private capital will not be committed at scale when the rules can change halfway through execution. If we want investors to show up, policy has to be predictable, she said.
The bank executive explained that Development Finance Institution (DFI)-supported blended finance structures often record stronger repayment performance than conventional lending when risks are transparently shared and execution is actively monitored.
Demola-Adeniyi noted that The Alternative Bank approaches financing as a partnership rather than traditional interest-based lending.
She further cited the Bank’s impact-driven collaborations as proof that blended finance can move from policy discussions to measurable outcomes.
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Referencing an electric mobility project in Kano delivered through the UK government’s FCDO-funded LINKS programme, she said the initiative trained about 100 women, certified 30 mechanics and provided operational support including tools, service centres and battery recharging infrastructure.
Warning against abrupt policy reversals, Demola-Adeniyi said: “When a policy is introduced, stakeholders structure and fund projects around it, and then it changes midstream, the project is put at risk. That is how capital gets stranded on the table.”
She urged policymakers to adopt multi-year blended finance frameworks with clear stabilisation provisions to protect already-approved transactions, stressing that long-term capital planning depends on policy certainty.
“If the goal is a $1 trillion economy, then we need rules that investors can trust long enough to build,” she added.
In his remarks, Vice President Kashim Shettima called for a shift from dependence on public spending to long-term investments in human capital, productive systems, climate resilience, digital infrastructure and inclusive markets.
Represented by his Technical Adviser on Women, Youth Engagement and Impact, Hauwa Liman, the Vice President said:
“The future of this continent will not be financed by aid alone. It will be driven by patient capital, catalytic capital, blended finance and private enterprise deployed with discipline and guided by impact.
He reaffirmed the administration’s commitment to women and youth inclusion, warning that disunity among stakeholders could undermine progress.
