FG advised to move pension funds to critical sector

The federal government has been urged to move pension funds investment to sectors that have direct impact on the citizens to support economic development.

This was disclosed at the National Advisory Board for Impact Investing (NABII) sixth yearly report ‘Investing for Impact in Nigeria’ launched in Lagos.

The report explained the significance of investment in micro, small and medium-scale enterprises (MSMEs) and women-owned businesses and how to unlock pension funds to mobilise capital to drive growth in key sectors.

The study was conducted by the Nigerian Economic Summit Group (NESG) and NABII and supported by the Global Steering Group for Impact Investment (GSG), OTT Impact and funded by the International Development Research Centre (IDRC).

It stated, “These deals are often limited compared to the demand while local investors perceive that these investments do not translate into financial returns."

Also, the Chief Executive Officer of NABII, Etemore Glover, said, “This report is an essential step toward understanding the enabling conditions for unlocking investment for impact in key sectors and the Impact Investors Foundation and its partners are committed to improving the awareness, stakeholders’ acceptance and development of enterprises for impact funds."

She further noted that the report sets out the required policies, interventions and collaboration among key stakeholders that can take the impact investing market in Nigeria to the next level.

According to the report, agriculture (with $799.8 million), financial services ($729.69 million), and energy sectors ($372.71 million) have been the most consistent destinations of impact investment for development finance institutions over the past five years, while deployment into education and health sectors have halted since 2018.