Nigeria has emerged as West Africa’s leading destination for impact investment, accounting for an estimated 15% of Africa’s private capital transaction volume, according to the new Nigeria Impact Investing Ecosystem Mapping and Market Sizing Report. The findings were unveiled at the 8th Annual Convening on Impact Investing in Lagos, themed “Strengthening and Scaling the Nigerian Impact Economy”, organized by the Impact Investors Foundation (IIF).

The report shows that Private Equity and Venture Capital (PE/VC) deals in Nigeria reached approximately $3 billion across 404 transactions, with fintech dominating the landscape. Emerging sectors for impact investment include energy, agriculture, and education, while health, education, and water, sanitation, and hygiene (WASH) remain the most underfunded SDGs.

Iffat Mahmud, Africa Regional Representative for Innovision Global, highlighted the scale of the financing challenge:

“Nigeria has an estimated annual SDG financing need of $47.6 billion, leaving a shortfall of about $31.5 billion. While Nigeria attracts the most private capital on the continent, the investment climate faces challenges, including FX volatility, high inflation averaging 28% in 2025, and a shallow market for long-term investments.”

Investment flows remain heavily concentrated in Lagos and the South-West, which receive 65–70% of total capital, illustrating regional disparities in access to private funding.

To close the financing gap, the report recommends implementing a National Policy Framework for Impact Investing and mobilizing domestic capital, targeting ₦100–₦200 billion in local currency impact funds through blended finance instruments. Plans are also underway to introduce green and gender bond windows between 2026 and 2027.

Etemore Glover, CEO of IIF, emphasized the importance of the report:

“The 2025 Nigeria Impact Investing Ecosystem Mapping and Market Sizing Report provides evidence-based data and market insights for policymakers, DFIs, and investors. This information will guide capital to where it is needed most, translating availability into impact-aligned growth and a more resilient investment ecosystem.”

The report also underscored the role of international partnerships in driving sustainable investment. Dr. Andrea Ruediger of the EU-VACE TARED Programme, represented by Mr. Ojeifo Chukwueku, highlighted the EU’s commitment to transforming Nigeria’s agricultural value chains, including cocoa, dairy, tomatoes, and ginger. Partnerships with organizations like GIZ and IIF aim to leverage blended finance and green bonds to attract diverse capital into sustainable agriculture.

The 2025 report builds on the 2019 baseline, offering a detailed mapping of Nigeria’s impact investing ecosystem, its trends, structure, and opportunities, providing a strategic guide for investors and policymakers to strengthen the country’s impact economy.