The Impact Investors Foundation (IIF), has revealed that more than 65% of private capital inflows into Nigeria are concentrated in Lagos and the Southwest region, leaving other parts of the country underfunded.
The Foundation disclosed this in its ‘Nigeria Impact Investing Ecosystem Mapping and Market Sizing Report’ unveiled during the 8th Annual Convening on Impact Investing held in Lagos on Wednesday.
According to the report, Lagos and the Southwest account for between 65% and 70% of total capital inflows, largely in fintech and digital services.
By contrast, the North and North-West regions receive just 10–12%, mainly in agriculture and microfinance, while social sectors such as health, education, and sanitation continue to attract minimal funding.
The IIF report also noted that 56% of Nigerians were living below the national poverty line in 2024, up from 49% in 2023.
Speaking at the event, CEO of the Impact Investors Foundation, Etemore Glover, said the report, which builds on the 2019 baseline, provides a comprehensive mapping and market sizing of the impact investing ecosystem.
“The launch of the 2025 Nigeria Impact Investing Ecosystem Mapping and Market Sizing Report is a critical piece of the work that provides evidence-based data and critical market information for policymakers, DFIs, and investors,” she said.
Glover added that the data would assist in guiding capital to where it is needed most, translating availability into impact-aligned growth and a more resilient investment ecosystem.
According to her, the convening’s objective was to galvanize a diverse ecosystem of policymakers, global and local investors, development institutions, and entrepreneurs to accelerate Nigeria’s impact-ready economy.
Chairman of the Foundation and Publisher of BusinessDay, Frank Aigbogun, called for stronger mobilisation of domestic capital sources, including pension funds, diaspora remittances, and corporate reserves. He stressed that Nigeria must reduce its dependence on foreign aid and concessional finance, which are increasingly unreliable.
The IIF report highlighted progress in local-currency financing from institutions such as the Development Bank of Nigeria (DBN), Bank of Industry (BOI), and InfraCredit, which have extended long-term funding to sectors like infrastructure, renewable energy, and manufacturing.
It also acknowledged support from international partners including the IFC, AfDB, Afreximbank, BII, and FMO, which continue to anchor major development investments.
However, the Foundation warned that the current regional imbalance in capital flows poses a structural challenge to inclusive growth.