This picture taken on January 29, 2016 in Lagos shows 1000 naira banknotes, Nigeria's currency. - Nigeria's central bank governor, Godwin Emefiele, on January 26 dismissed calls to devalue the naira in his monetary policy committee statement. Instead he chose to continue propping up the currency at 197-199 naira to the dollar and maintain foreign-exchange restrictions. As a result, the naira on the black market is hovering around a record low of 305, fuelling complaints from domestic and foreign businesses who can't access dollars required for imports. (Photo by PIUS UTOMI EKPEI / AFP) (Photo by PIUS UTOMI EKPEI/AFP via Getty Images)
By David Akinmola
The Impact Investors Foundation (IIF) in alliance with Kuramo Capital has called on the Pension Fund Administrators (PFAs) and stakeholders in the industry to foster collaboration and explore innovative ways to channel local capital toward the Wholesale Impact Investment Fund (WIIF) that would thrive investment ecosystem in the country.
This was revealed at roundtable discussions to engage PFAs and other stakeholders in the sector of Nigeria (WIIF) organised by the group.
They said the initiative is designed to address the critical financing gap faced by Micro, Small, and Medium Enterprises (MSMEs). It is positioned to drive long-term economic growth, job creation, and significant social impact across Nigeria.
The fund is an initiative designed to critalise the thriving impact investment ecosystem in Nigeria and drive long-term economic growth, job creation, and significant social impact.
Aligned with Nigeria’s National Development Plan 2021 to 2025, WIIF provides PFAs with a unique opportunity to invest in an asset class that offers attractive financial returns and aligns with Nigeria’s broader development priorities.
Speaking at the programme, the Chairman of IIF, Afolabi Oladele, said the Federal Government and the National Advisory Board of Impact Investment (NABII) plan to establish a one billion Naira fund to increase the WIIF.
Oladele, put the first tranche of the Nigerian WIIF at 100 million dollars, of which the Federal Government had committed 50 million dollars.
According to him, the government will ultimately invest up to 70 per cent while the private sector to contribute 30 per cent.
The IIF chairman stressed that, as conceptualised, the fund acts as a social investor in social enterprises, and simultaneously as a market builder, while principally targeting MSMEs.
He said that the fund also acts as alternative funding for development to keep a sustainable market for social investment and enable social enterprises.
Oladele said that to lead funds raised and investment in Nigeria, NABII, through an open and competitive bid, had selected Kuramo Capital, an experienced fund manager, with a credible track record.
“Kuramo is not only a known name in Nigerian investment space, but stands to take credit with development of private equity in Nigeria, “he said.
Also speaking at the roundtable meeting, the Chief Executive Officer of WIIF, Ms. Etemore Glover, said that with Nigeria’s growing demand for economic development and job creation, WIIF represents an ideal vehicle for PFAs to participate in the country’s progress while achieving both financial and social objectives.
Glover described WIIF as a transformative step towards bridging the financing gap for MSMEs in Nigeria.
According to her, by engaging PFAs in the investment space, WIIF aligns financial returns with the broader goal of sustainable development, which benefits the entire economy.
She noted that the forum would foster collaboration and explore innovative ways to channel local capital towards impact-driven initiatives.
The Chief Executive Officer, Kuramo Capital, Wale Adeosun, expressed excitement about the partnership, describing it as an opportunity to capture attractive returns and diversify into private investment and knowledge transfer.
Adeosun noted that purchasing power preservation was critical for pension funds and their participants.
Also, the Permanent Secretary, the Federal Ministry of Budget and Economic Planning, Dr Emeka Obi, explained the need for fund managers to deploy capital with sustainability and impact.
Obi noted that the WIIF can create an immeasurable positive impact on the people and the planet.
He said: “The fund is also fully supported by the government through its commitment of 50 per cent of the first tranches of the fund 50 million dollars to help the fund reach first close.
The Director-General, National Pension Commission(PenCom), Mrs Omolola Oloworaran, said there was a need for alternate investment portfolios, noting that the traditional investment class could no longer sustain the PFAs and return on investment.
Oloworaran, who was represented by Dr Abdulqadir Dahiru, Head of Investment Supervision at PenCom, said that the commission was already reviewing investment guidelines for the PFAs. She added that the commission would release an ESG principal to become effective by the end of the year.
“PenCom must put out the framework that allows the PFAs to do their business, but the ultimate decision as to where to invest and how much to invest lies with the PFAs, considering the risk involved and returns on investment.
“This engagement is coming at the right time; it aligns with a lot of business opportunities, “she said. At the roundtable, PFAs shared insights on the current investment climate and explored the potential of collaborating to unlock capital for impact-driven investment.
