…as International Firm Disburses Nearly $3M Over 5 Years to Catholic Entities Serving Vulnerable Communities

By Luminous Jannamike

Catholic Church leaders in Nigeria are advocating for a comprehensive legal and regulatory framework to support social enterprises, highlighting the current absence of policies specifically tailored to organizations focused on both revenue generation and social impact.

At a workshop organized by Missio Invest in Abuja on Wednesday, themed ‘Resilience and Diversification: Weathering the Storm of Unforeseen Risks,’ Fr. George Ehusani, former Secretary-General of the Catholic Secretariat of Nigeria, stressed that outdated laws complicate the operations of social enterprises, which often operate under regulations designed for either charities or profit-driven businesses.

“There are so far no specific legal frameworks guiding the operation of social enterprises in Nigeria,” Ehusani said. “The laws governing these entities date back to independence, with some over a century old. Updating these laws is crucial to reflect current realities.”

He emphasized that the distinction between traditional charities and social enterprises warrants a new legislative framework that better supports entities aiming to address social needs while generating revenue.

“To address this, those involved in social impact might need to collaborate and engage a lawyer to advocate for representation in the National Assembly. Legislators could then sponsor a bill to establish an organization overseeing social enterprises in Nigeria,” he suggested.

Keith Polo, Managing Director of Missio Invest, which provides low-interest loans and technical support to Catholic-run social enterprises, highlighted the need for sustainable investment. He noted that Missio Invest has disbursed nearly $3 million in Nigeria since 2019, supporting enterprises in farming, healthcare, and education to help them thrive despite economic challenges.

“We hope to issue five to six new loans each year in Nigeria, potentially more if conditions stabilize. Despite inflation and other economic hurdles, we are committed to expanding our support for projects that serve vulnerable communities,” Polo said.

A recent survey by the British Council referenced during the event revealed that among the estimated 443,000 social enterprises in Nigeria, only 25% identify as such, largely due to regulatory confusion and a prevailing perception of these enterprises as mere charities.

Catholic clergy and other participants also emphasized the need for social enterprises to implement structural and strategic changes to ensure long-term sustainability. They advocated for stakeholder engagement, income-generating models, and robust accountability systems, urging Church-run social enterprises to explore new areas like advanced agriculture, mental healthcare, and technology to address evolving social and economic needs.

As the demand for sustainable social solutions grows, participants underscored that regulatory reform coupled with strategic operational changes could enhance the capacity of social enterprises to support Nigeria’s vulnerable populations effectively.