The African Private Capital Association has called for increased capital deployment into Nigeria’s economy. This call was made at the 21st Annual Africa Venture Capital Association Conference held on Monday in Lagos.
The event, themed Bold Moves: Powering 10x in Africa, saw industry leaders from various investment firms discuss the current economic climate and highlight key sectors poised for growth.
Speaking at the event, Founding Partner at Ventures Platform, Kola Aina, emphasized Lagos’s role as the heart of Africa’s startup ecosystem.
Aina stated that the city is not only a hub for innovation but also a critical destination for investors seeking to capitalize on Nigeria’s evolving market. He called on local investors to act swiftly and deploy capital into sectors that stand to benefit from Nigeria’s recovery.
The Co-Managing Director at African Infrastructure Investment Managers (AIIM), Olusola Lawson, echoed Aina’s sentiments, underscoring the importance of infrastructure, energy, telecommunications, and logistics as key sectors for investment. Lawson also shared insights into AIIM’s $3.2bn infrastructure portfolio, highlighting the firm’s commitment to long-term investments in Nigeria despite ongoing economic challenges.
Managing Partner at Verod, Danladi Verheijen, spoke about the role of private equity in driving growth in Nigeria.
He noted that while the country faces challenges, sectors such as technology and consumer goods present significant opportunities for investors with a long-term focus. Verheijen urged more local investors to engage in the country’s recovery by focusing on these promising sectors.
Additionally, the Non-Executive Director at British International Investment, Andrew Alli, reaffirmed his firm’s continued commitment to Nigeria, where it has invested $700m in sectors including financial services, agribusiness, and infrastructure. Alli expressed optimism about Nigeria’s future and encouraged investors to remain confident despite the country’s recent economic volatility.
In her remarks, the Partner at Alterra Capital Partners, Genevieve Sangudi, stressed the importance of resilient investments, particularly in emerging sectors such as artificial intelligence (AI). She pointed out that despite current challenges, Nigeria’s potential remains strong, and investors should focus on opportunities that promise long-term growth and sustainable returns.
The conference also addressed the growing interest in artificial intelligence among African venture capital funds, with Nigeria leading the charge. Panelists discussed the infrastructure needed to support AI growth, including data centres and telecoms, while also emphasizing the importance of climate-friendly solutions in developing these sectors.
Also, concerns about secondary exits and liquidity were raised, with investors acknowledging the challenges posed by zombie assets. However, the overall tone of the conference remained optimistic, with a shared belief that Nigeria’s economic recovery presents an ideal opportunity for capital deployment in the country’s most promising sectors.
In a recent development, the African Private Capital Association and the Private Equity and Venture Capital Association of Nigeria have announced a strategic merger aimed at strengthening Nigeria’s private capital ecosystem.
The merger, which brings together AVCA’s global reach with PEVCA’s local networks, is set to drive new investment opportunities and boost sub-regional and continent-wide growth.
The PUNCH reported that the African Private Capital Association has revealed that the African continent secured $3.6bn in venture capital funding, including $1bn from venture debt, in 2024.
