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Nigeria is making efforts to transform its investment environment, moving from reactive capital attraction to actively shaping how capital flows, where it lands, and how it grows.
This is aimed at positioning the country as a more competitive, data-driven, and investor-friendly economy in Africa.
Jumoke Oduwole, minister of Industry, Trade and Investment, disclosed this at the 21st Annual Africa Venture Capital Association (AVCA) Conference and VC Summit on Thursday.
“Our vision is not simply to respond to capital, but to shape how it flows, where it lands, and how it grows,” she said in a room full of global investors and fund managers.
According to her, one of the government’s core strategies is unlocking a new class of strategic investors, particularly domestic pension funds.
Nigeria’s pension assets stood at ₦23.26 trillion ($14.58 billion) as of February 2025, yet only a small fraction of that capital is deployed into infrastructure or private equity.
Recognising this untapped potential, the National Pension Commission (PenCom) is now working to diversify these funds into more impactful sectors.
Oduwole described as “intentionally unlocking capital that is closer to home, and better aligned with national development priorities.”
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This is crucial for addressing Nigeria’s infrastructure deficit, which the African Development Bank estimates will require up to $878 billion by 2040.
Oduwole added that Nigeria is building a more transparent and structured investment architecture one that supports investors through every phase: from mobilisation and value creation to exit.
“Capital doesn’t just come in. It must circulate. And our role isn’t just investment, it’s reinvestment,” she noted.
According to her, the government has prioritised the deployment of digital public infrastructure and market intelligence tools to improve investor decision-making and reduce friction. These efforts include digitised registries, authentication systems, and the promotion of investment-based standards, all designed to reprice risk and improve transparency.
In 2024, Nigeria’s Securities and Exchange Commission approved nine new issuances worth ₦1.228 trillion. The Net Asset Value of registered mutual funds also surged by over 111 percent to ₦3.335 trillion, signalling renewed investor appetite. Reforms such as electronic public offerings and faster listing processes are also making the Nigerian capital market more attractive and accessible.
Oduwole also acknowledged that attracting capital is only one part of the equation as enabling clean and credible exits is just as important.
A recent industry report revealed that 84 percent of private capital exits in Africa are achieved via trade sales, with public markets still underutilised.
“If we want our MSMEs to scale to new heights, they must have a more straightforward pathway to long-term capital,” she said.
To that end, Nigeria is partnering with NGOs and capital market operators to grow its growth board and create inclusive platforms for SMB listings.
“We are focused on enhancing Nigeria’s capital market, diversifying exit strategies, and enabling more strategic capital deployment,” Oduwole added.
While Nigeria remains Africa’s largest venture capital market accounting for 16 percent of all VC deals in 2024, the minister stressed that investment must not be limited to high-growth tech.
The government is now channelling capital toward value-creating sectors such as climate, agribusiness, and manufacturing, backed by programmes like the SCFP (Structured Capital Flow Platform), which acts as both a trade agreement and a portfolio-hedging mechanism.
“We’re formalising the informal, digitising the political, and financing the open,” Oduwole said.
“The message is simple: Nigeria is not just a consumer base, but a skill base.”
The minister shared also that Nigeria will host the UAE Flagship Investment Conference in Lagos this September. She mentioned that it would be the first time the event will be held in Africa.
The event is expected to expand Nigeria’s investment geography, deepening relationships not just with the West but increasingly with the Gulf, Asia, and other emerging capital sources.
Further supporting its pan-African ambitions, Nigeria is accelerating implementation of the African Continental Free Trade Area (AfCFTA), offering local businesses access to a $3.4 trillion integrated market.
“We don’t just want to be a country with the most deals. We want to be the country with the best capital architecture. Let’s not just invest in Nigeria. Let’s invest differently.”
