The Impact Investors Foundation (IIF) has revealed that more than 65 percent of private capital inflows into Nigeria are concentrated in Lagos and the Southwest region, reaffirming the state’s dominance as the nation’s investment hub.
The finding is contained in the newly released “Nigeria Impact Investing Ecosystem Mapping and Market-Sizing Report”, unveiled during IIF’s 8th Annual Convening on Impact Investing held in Lagos. The report underscores Lagos’s continued appeal to investors, especially in technology-driven and digital sectors.
According to IIF, the fintech and digital services industries account for the largest share of the investments flowing into the country, reflecting the sectors’ resilience and attractiveness to both local and international investors.
However, the Foundation warned that while Lagos continues to lead, other regions are being left behind, creating a widening regional imbalance in private capital distribution.
The report also highlighted a significant decline in overall venture capital and private equity investments in Nigeria over the past three years. Investment volumes dropped from $1.14 billion in 2022 to $939.5 million in 2023, and further plunged to $211.4 million in 2024.
IIF attributed the decline to factors such as foreign exchange reforms, exit challenges, and macroeconomic uncertainties, which have made investors more cautious about deploying funds in the country.
Despite these headwinds, Lagos’s dominance remains undisputed, with the city maintaining its status as the gateway for impact and venture investments into Nigeria.
“Lagos has shown remarkable capacity to attract and sustain investment activity, but to unlock Nigeria’s full potential, we must foster enabling environments in other regions,” the IIF noted in its presentation.
The report calls for stronger regional collaboration, improved infrastructure, and policy consistency to spread the benefits of impact investing beyond Lagos and the Southwest. Visit www.jocomms.com for more news.
