The federal government has unveiled plans to establish a $10 billion diaspora fund to attract investments from Nigerian citizens living abroad. Doris Uzoka-Anite, the Minister of Industry, Trade, and Investment, announced the initiative, stating that bids are being sought from asset managers to establish the fund.
The fund aims to support critical sectors such as infrastructure, healthcare, and education to foster economic growth. Uzoka-Anite mentioned that the fund will be overseen by an advisory board comprising limited partners, and eligible firms are encouraged to express their interest in managing it.
Fund managers who meet specific criteria outlined in the Expression Of Interest (EOI) will manage the Nigeria diaspora fund. These managers will propose fund structures focusing on various sectors and investment stages. The fund will contain multiple investment platforms to offer investors different mechanisms for participating in Nigeria’s economic transformation.
Furthermore, the fund aims to encourage remittances, attract investments, and facilitate philanthropic endeavours supporting sectors like infrastructure, healthcare, education, and entrepreneurship in Nigeria.
The fund’s investment period is three to five years, with a lifespan of 10 years, extendable by two years. It allows diaspora investors to contribute significantly to Nigeria’s socio-economic development.
Various stakeholders in the capital markets, investment community, and diaspora investors were engaged in designing and developing the $10 billion Nigeria Diaspora Fund structure. Interested firms, including joint ventures and greenfield funds, are encouraged to apply by May 6.
The proposed asset offering of the fund could include infrastructure, credit, and venture capital funds. This initiative aligns with the government’s efforts to issue domestic foreign currency-denominated bonds and a diaspora bond to boost remittances, contributing to Nigeria’s journey towards sustainable economic prosperity.
