Nigeria’s government is initiating the formation of a $10 billion diaspora fund aimed at attracting foreign investment and bolstering dollar inflows into the country.
This fund intends to harness the substantial monthly remittances—totaling over $20 billion in the last year—sent by Nigerian citizens abroad for local investment ventures, including infrastructure, real estate, and education.
The Ministry of Trade and Industry announced plans to engage fund managers in developing and establishing the Nigeria Diaspora Fund, a private sector-led investment initiative spanning multiple sectors.
The selected fund managers will be tasked with setting up the fund’s operational, financial, and administrative frameworks, with an investment period extending up to five years and a potential 10-year lifespan that could be further extended.
Requirements for prospective fund managers include a proven track record of business activity in Nigeria over the past five years, as well as experience in raising and managing substantial venture capital funds.
Doris Anite, Minister of Industry and Trade, highlighted the significance of this initiative as an unprecedented opportunity for the Nigerian diaspora to contribute to the country’s economic advancement.
The urgency behind such initiatives arises from foreign currency shortages exacerbated by reduced crude oil exports, placing pressure on the Nigerian naira and prompting a reliance on black market dollar purchases by businesses and individuals.
