Impact investing key to Nigeria’s economic sustenance – AgroEknor CEO

Timi Oke, founder and CEO of AgroEknor, has highlighted the role of impact investment as key to economic sustenance, as Nigeria continues its journey of economic recovery and revitalisation.

Speaking on ‘Starting small, growing big: private equity’s role in nurturing Nigeria’s economic pulse’, Oke said that investment has been a part of human activities for over a millennium and has constantly evolved. He said further that prior to the mid-twentieth century, investment activities were undertaken for philanthropy or financial gain.

Read also:CBN’s unsettled forex forward increases business risks, economic turmoil — MAN

“Given that the Nigerian impact investing market is still evolving, the current macroeconomic environment in Nigeria provides valuable evidence to support investment inflows that will result in both social and financial returns in the three (3) priority sectors – Agriculture, Education, and Health,” Oke said in a statement.

According to him, patient capital can propel SMEs to new heights and lay the groundwork for sustainable growth. “The Nigeria impact investing industry has grown significantly between 2010 and 2025. Coincidentally, Nigeria has experienced two episodes of economic recession during this period,” he said.

Oke said further that many institutions and high-net-worth individuals have moved their investment goals to meet corporate social responsibility (CSR), ethical and socially responsible requirements. According to him, these investing entities are incorporating social, environmental, and financial conditions into their investment criteria and assets portfolio structure which birth impact investing.

Read also: SPILL: Elevating women’s voices for a transformative Africa

On the role of SMEs in nurturing Nigeria’s economic growth, Oke said that SMEs are a critical driver of economic growth and development. He said further that with a contribution of over 45 percent to Nigeria’s GDP, it is safe to say that SMEs are the pulse of Nigeria’s economy.

“Over the past few years, a critical challenge facing and limiting the growth of SMEs in Nigeria is access to funding and also the interest rate of available funding options,” Oke said.