The federal government of Nigeria continues its efforts to sustainable economic growth with a commitment of $50 million investment in the Nigeria Wholesale Impact investment Fund (WIIF).
The Nigeria WIIF is a government initiative aimed at supporting micro, small, and medium enterprises (MSMEs).
According to a press release from the federal Ministry of Finance, the initiative is aligns with president Bola Ahmed Tinubu-led administration of achieving a 7% annual economic growth. The investment covers significant sectors such as: agriculture, infrastructure and digital innovation.
The governments resolve to leverage impact investment as a means to foster job creation and poverty alleviation as WIIF primary function is to channel financial resources into projects and businesses that generate both positive social and environmental outcomes and financial returns.
However, the Honorable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, confirms during a high level stakeholder meeting on Tuesday– that operational framework of the WIIF has been reviewed and agreed on actionable next steps— which includes structured engagement with the Development Bank of Nigeria (DBN) to finalise the fund’s drawdown schedule. Additionally, the WIIF will be strategically aligned with the African Development Bank (AfDB)-supported Youth Entrepreneurship Bank to amplify opportunities for young entrepreneurs.
For the government, honorable minister described the investment is a strategic means of harnessing public-private collaboration to meet the country’s economic needs.
“This partnership exemplifies the power of public-private collaboration in advancing Nigeria’s economic priorities. We are committed to ensuring transparency, efficiency, and measurable impact in deploying these resources to benefit all Nigerians.” Mr. Wale Edun said.
The initiative is projected to unlock significant financing for micro, small, and medium enterprises (MSMEs) and generate millions of jobs across priority sectors.
Nigeria Wholesale Impact Investment Fund.
WIIF aims to increase the volume of impact investing in Nigeria by providing access to capital and promoting the “fund for funds” approach, where various funds are pooled together to support social enterprises.
The investment fund framework is designed to address the barriers that hinder the growth of impact investing, such as regulatory issues, lack of awareness, and limited access to funding, by investing in projects that address social and environmental challenges, the WIIF contributes to Nigeria’s sustainable development goals, including the National Development Plan 2021-2025
WIIF also Mobilizing Private Investment by utilizing its “ABC” model (Accelerate, Bridge, and Co-Invest) to support first-time fund managers and attract private investment into the impact investment sector. The initiative fosters partnerships with various stakeholders, including government agencies, private sector investors, and civil society organizations, to enhance the impact of its investments.
