How Nigeria is Reengineering Its Investment Climate for Strategic Capital Growth

Nigeria is redefining its investment narrative by shifting from a reactive approach to capital attraction toward actively shaping how capital is mobilized, allocated, and reinvested for sustainable growth. Speaking at the 21st Annual Africa Venture Capital Association (AVCA) Conference and VC Summit in Lagos, Jumoke Oduwole, Nigeria’s Minister of Industry, Trade, and Investment, outlined a comprehensive reform agenda aimed at transforming Nigeria into a competitive, data-driven, and investor-friendly economy.

“Our vision is not simply to respond to capital, but to shape how it flows, where it lands, and how it grows,” Oduwole told a gathering of global investors and fund managers. A major plank of this strategy involves tapping into underutilized pools of domestic capital, particularly pension funds.

As of February 2025, Nigeria’s pension assets totaled ₦23.26 trillion (approximately $14.58 billion), yet only a fraction of that is invested in infrastructure or private equity. Recognizing this gap, the National Pension Commission (PenCom) is working to diversify pension fund investments into more impactful sectors that align with national priorities. Oduwole described this as “intentionally unlocking capital that is closer to home,” a move seen as critical in addressing Nigeria’s projected infrastructure deficit of up to $878 billion by 2040, according to the African Development Bank. To create a more enabling environment, the Nigerian government is also building a structured and transparent investment architecture that supports investors across all stages from capital mobilisation to value creation and exit. “Capital doesn’t just come in. It must circulate. And our role isn’t just investment, it’s reinvestment,” she added.

Technology is at the heart of this transformation. Nigeria has deployed a series of digital public infrastructure tools, digitized business registries, authentication systems, and investment-based standards to improve transparency, reduce risk perception, and enhance investor decision-making. These innovations are complemented by regulatory reforms aimed at streamlining capital market processes. In 2024, the Securities and Exchange Commission approved nine new issuances valued at ₦1.228 trillion, while the Net Asset Value of mutual funds rose by over 111% to ₦3.335 trillion, highlighting growing investor appetite. The government is also prioritizing clean and credible exit pathways, recognizing that investor confidence depends not just on entry but also on the ability to exit. A recent industry report showed that 84% of private capital exits in Africa are through trade sales, while public market exits remain underutilized. To address this, Nigeria is working with NGOs and market operators to expand its growth board and create more inclusive platforms for small and medium business listings.

Nigeria, which accounted for 16% of Africa’s total venture capital deals in 2024, is now broadening its investment focus beyond high-growth tech to include climate solutions, agribusiness, and manufacturing. These efforts are backed by the Structured Capital Flow Platform (SCFP), a mechanism that blends trade agreements with portfolio hedging to attract strategic capital. Further enhancing its global investment footprint, Nigeria will host the UAE Flagship Investment Conference in Lagos this September—the first time the event will take place in Africa. This aligns with Nigeria’s ambition to diversify its investment sources, engaging not just with Western economies but also with emerging partners from the Gulf, Asia, and across the African continent. As part of its continental agenda, Nigeria is fast-tracking its implementation of the African Continental Free Trade Area (AfCFTA), offering domestic businesses access to a $3.4 trillion unified market.

Oduwole concluded with a powerful call to action: “Let’s not just invest in Nigeria. Let’s invest differently.”