Over ₦120 Billion in SEC-Registered Investment Funds Remain Idle in Nigeria’s Capital Market (Q4 2024)
Nigeria’s investment ecosystem continues to grapple with idle capital, as fresh data from the Securities and Exchange Commission (SEC) reveal that ₦120.88 billion in registered private equity and infrastructure funds remained undeployed as of the fourth quarter (Q4) of 2024. Out of a total ₦409.06 billion committed to these funds, only ₦288.18 billion—representing about 70.5% utilization—has been drawn down. The remaining 29.5%, or ₦120.88 billion, sits idle, underscoring the gap between investor commitment and actual economic deployment.
The infrastructure sector leads the pack in undeployed funds, with ₦57.7 billion yet to be utilized out of ₦305.97 billion in committed capital. Despite investor enthusiasm, evidenced by a 12.58% increase in commitments from Q3 to Q4 2024, drawdowns have stagnated at ₦248.27 billion. Top funds with substantial unutilized balances include ARM-Harith Infrastructure Fund (₦4.73 billion undeployed) and Actis West Africa (₦46.61 billion undeployed). Analysts say the lag suggests project delays, regulatory bottlenecks, or readiness challenges, especially in large-scale infrastructure financing.
Private equity funds also contribute significantly to the pile of idle cash, leaving ₦63.17 billion unutilized out of ₦103.09 billion committed as of Q4 2024. Notably, CAN Private Equity Fund LP and Pioneer LLP Fund, both managed by CAN Fund Manager Limited, account for over ₦51 billion of this total. Other funds such as ARM Private Equity Fund and NIG. The Healthcare Development Fund has similarly underutilized their capital. Meanwhile, seven listed private equity funds reported zero drawdowns, raising concerns about limited deal pipelines or weak investment readiness in Nigeria’s private market segment.
Financial experts warn that the ₦120.88 billion in undeployed funds could slow economic growth if not quickly absorbed into productive ventures. While highly committed capital signals investor confidence, delayed disbursements can stall infrastructure delivery, limit job creation, and weaken fund performance. Analysts point to systemic challenges such as bureaucratic approval processes, market volatility, and project execution hurdles as key factors preventing faster drawdowns across both private equity and infrastructure portfolios.
Despite the rise in investor commitments, actual fund utilization remains flat, signaling a disconnect between capital allocation and economic impact. Both infrastructure and private equity managers face increasing pressure to unlock and deploy idle capital to stimulate growth, bridge Nigeria’s infrastructure deficit, and strengthen investor confidence. Market observers note that improved transparency, faster regulatory approvals, and stronger project pipelines could be the key to converting these financial commitments into tangible national development outcomes.
source: Nairametrics