The Deputy Speaker of the House of Representatives, Rt. Hon. Benjamin Okezie Kalu, has set up advocacy and legislative teams for the establishment of a legal policy framework for philanthropy and impact investing in Nigeria, saying the framework will help to increase capital flow for development, create jobs and reduce poverty rate in the country.
Kalu nominated the members of the teams at the Stakeholders’ lunch on the development of legislation on philanthropy and impact investing in Nigeria hosted by Impact Investors Foundation (IIF) in collaboration with the Nigeria Office for Philanthropy and the Office of the Deputy Speaker on Wednesday in Abuja.
The lunch had in attendance the Chairperson, Nigeria Office for Philanthropy & Impact Investing (NPO), Thelma Ekiyor-Solanke; the Chief Executive Officer (CEO) Impact Investors Foundation, Etemore Glover; Head of Projects, GIZ, Ms Ana Vinambres, India High Commissioner, Mr. Shri G. Balasubramanian, members of the Finance Committee of the Wholesale Impact Investment Fund (WIIF) and representatives of UNDP, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and other development partners.
He said the teams will work closely with the NPO, IIF and other implementing partners and charged them to immediately begin the process of the legal drafting of the philanthropy and impact investing legislation.
Addressing the delegation, Kalu emphasised that enacting a law will help to mainstream philanthropy and impact investing into the national financial structure of Nigeria and in turn raise the capital inflows to achieve the desired development aspirations and also improve the living standard of the people.
The Deputy Speaker stated that once achieved, the legal framework will drive inclusive economic growth and unlock the potential for innovative financing solutions that will promote multi-stakeholders’ commitment and participation.
Now that Nigeria is open to investors and we must strengthen the confidence of the investors by not only making the laws but by making sure that the implementation framework of their operationalisation is equally strong and by putting in place a post-legislative scrutiny that will be periodically reviewed
He noted that it is the duty of the parliament to observe the existence of gaps in the governance ecosystem and block them through legislative interventions.
Kalu reaffirmed the commitment of the parliament towards national growth and development.
The Deputy Speaker also noted that global philanthropy and impact investing funds are estimated to be trillions of dollars and by creating the right policy environment and frameworks, the nation can attract more funding and drive meaningful change.
Kalu expressed optimism that President Bola Ahmed Tinubu will assent to the bill when the time comes, saying he is working hard to create jobs and reduce unemployment rate.
He said, “At the heart of this conversation lies the need to mainstream philanthropy and impact investing into our national financial structure and enact legislation that unlocks increased capital flows to achieve our development aspirations and improve living standards. Philanthropy and impact investing play a vital role in addressing our nation’s most pressing challenges, including poverty, education, innovation, and environmental protection. Your contributions are pivotal in driving positive social and economic outcomes.
“Small and Medium Enterprises (SMEs) are the backbone of the Nigerian economy, accounting for nearly 96.7% of businesses, 87.9% of the workforce, and 46.31% of national GDP. However, they face significant financial constraints, inhibiting their contributions to our nation’s progress. To achieve the Sustainable Development Goals (SDGs), Nigeria requires $10 billion in annual funding. Today’s agenda is ambitious and necessary.
“The 10th National Assembly is committed to the well-being of our people, and our engagement on this issue demonstrates our leadership’s unwavering commitment to charting a better course for our nation’s growth and prosperity”.
In her welcome remarks, The Chairperson of the Nigeria Office for Philanthropy & Impact Investing (NPO), Ms Thelma Ekiyor-Solanke, said though policy influencing is not the direct mandate of NPO, the wrong policy environment will affect the government’s ability to partner or collaborate with philanthropic or impact investing entities. She stressed the importance of having a conducive policy environment that stimulates, incentivises and safeguards philanthropic giving and impact investing in Nigeria.
Speaking earlier, the CEO, Impact Investors Foundation, Etemore Glover, said that the Impact Investors Foundation is a not-for-profit organisation, at the forefront of unlocking private capital for social investments in Nigeria, and eliminating the barriers to impact investing.
She stressed that Nigeria needs a comprehensive national policy framework for philanthropy and impact investing to address systemic issues, hindering sectoral growths and effectiveness.
According to her, IIF and NPO in collaboration with Nigerian National Advisory Board for Impact Investing (NABII) spearheaded a national framework to mainstream philanthropy and Impact investing in Nigeria, to among others promote policies that enable innovative financial vehicles like the NABIH’s $7 billion Wholesale impact investment Fund (WIIF), NPO’s $200 million Job Creation Fund and other financial models such as gender lens investing and outcome-based contracts.
Also speaking at the lunch, the Indian high commissioner to Nigeria, Mr. Shri G. Balasubramanian said his country has legislations such as the India Companies Act which has helped to make impact investments and philanthropy easier, stressing that such legislations could help Nigeria.
He explained that India Companies Act states that there has to be a corporate social responsibility to the tune of 2 percent of such companies sent to the social impact budget for proper utilisation.
He said, “The India Companies Act very clearly states that there has to be a corporate social responsibility to the tune of 2 percent of such companies. After the company crosses a particular turn over limit, the 2 percent of the profit will have to be sent to the social impact budget and it varies from place to place depending on the requirements: building of hospitals, clinics, climate change, orphanages.
“So, we have the society registration act, India companies act which I mentioned earlier amongst others. These are some of the legislations which have made provisions that enable the individual nonprofit organizations as well as the stock exchange to collect money and utilize the money for social impact. These legislations have helped to make impact investments and philanthropy much easier.”