NSIA Backs Private Credit To Deepen African Long-Term Financing

By Jennete Ugo Anya

The Nigeria Sovereign Investment Authority (NSIA), through its Head of Externally Managed Investments, Chinedu Mofunanya, advocated stronger adoption of private credit structures at the recent concluded 2026 African Private Capital Association Conference and Venture Capital Summit themed ‘Break the Mould: Reshaping the Future of African Private Capital.’ During a panel session titled ‘Inside the Allocator’s Mind: What Investors Want from Private Credit,’ Mofunanya stated that investors are increasingly prioritising governance quality, risk-adjusted returns and measurable developmental impact as private capital markets evolve across Africa. The discussions positioned private credit as an emerging financing mechanism capable of bridging long-term funding gaps and supporting sustainable economic growth.

DECISION HIGHLIGHT
The discussions signal increasing institutional movement toward private credit as an alternative financing channel for African infrastructure, enterprise growth and development financing.

DECISION MEMO
The NSIA’s emphasis on private credit reflects broader changes occurring within African capital markets, where traditional financing systems are increasingly viewed as insufficient for meeting long-term infrastructure and productive sector funding requirements.

As commercial bank lending remains constrained by short-term liquidity structures and sovereign borrowing pressures, private credit is gradually emerging as a strategic financing alternative capable of supporting medium-to-long-term investment needs across African economies.

At the conference, Mofunanya highlighted that investors are prioritising “investment structures that combine strong governance, risk-adjusted returns, and measurable developmental impact.”

He further stated that “private credit can play a critical role in bridging financing gaps while supporting sustainable economic growth across African markets.”

The emphasis on governance and measurable developmental outcomes reflects rising investor caution within frontier markets where institutional quality, regulatory predictability and execution credibility increasingly influence capital allocation decisions.

The discussions also suggest that private credit is evolving beyond distressed lending or niche financing into a broader institutional asset class capable of supporting infrastructure, agriculture, healthcare, energy and industrial expansion.

The Nigeria Sovereign Investment Authority’s participation additionally reinforces the growing role sovereign wealth institutions are playing in shaping Africa’s private capital ecosystem through strategic partnerships, blended finance structures and long-term investment platforms.

The Authority’s reported ambition to expand its sovereign wealth fund from approximately $3 billion to $6 billion further indicates rising confidence in deploying institutional capital toward scalable domestic and regional investment opportunities.

The conference theme itself, ‘Break the Mould,’ reflected increasing pressure within African private capital markets to move beyond conventional financing models and create structures more responsive to the continent’s infrastructure deficits, demographic growth and industrialisation ambitions.

DATA BOX

• Event: 2026 African Private Capital Association Conference & Venture Capital Summit
• Conference theme: “Break the Mould: Reshaping the Future of African Private Capital”
• Key institution: Nigeria Sovereign Investment Authority
• NSIA representative: Chinedu Mofunanya, Head of Externally Managed Investments
• Panel session: “Inside the Allocator’s Mind: What Investors Want from Private Credit”
• Moderator: Shruti Chandrasekhar
• Other panellists: Chike Chukwuelue and Gerald Gondo
• Strategic focus areas:
  • Private credit
  • Governance
  • Risk-adjusted returns
  • Developmental impact
  • Sustainable growth
• NSIA sovereign wealth fund target: expansion from $3 billion to $6 billion
• Priority sectors referenced: healthcare, power, agriculture, infrastructure

WHO WINS / WHO LOSES

Winners:

• African businesses requiring long-term financing
• Infrastructure and productive sectors underserved by commercial lending
• Institutional investors seeking alternative asset exposure
• Sovereign investment institutions building regional financing influence

Losers:

• Businesses dependent solely on short-term bank financing
• Markets with weak governance and poor investment transparency
• Economies unable to develop credible private capital frameworks

POLICY SIGNALS
The discussions signal increasing institutional support for diversified financing structures capable of reducing dependence on sovereign borrowing and traditional banking systems. They also reflect stronger alignment between private capital deployment and developmental impact objectives across Africa.

INVESTOR SIGNAL
The growing focus on private credit reinforces investor appetite for structured, yield-generating African investment opportunities tied to governance discipline and measurable economic impact. The Nigeria Sovereign Investment Authority’s positioning may also strengthen confidence around institutional participation in Africa’s evolving alternative investment landscape.

RISK RADAR
Private credit expansion across Africa remains exposed to regulatory uncertainty, currency volatility, enforcement weaknesses and uneven institutional capacity. Long-term sustainability will depend on governance quality, credit discipline, project viability and the ability to balance developmental objectives with commercial return expectations.