Nigeria Unveils $10 Billion Diaspora Fund To Boost Economic Growth

Nigeria has announced plans to establish a groundbreaking $10 billion diaspora fund. The fund aims to attract investments from its substantial overseas population to bolster key sectors such as infrastructure, healthcare, and education.

Naija News understands that the initiative, spearheaded by the country’s Ministry of Industry, Trade, and Investment, is designed to tap into the economic potential of Nigeria’s diaspora community, comprising nearly 20 million citizens worldwide.

In a statement released late Thursday, the ministry revealed that it is inviting bids from investment managers to facilitate the fund’s establishment. The fund’s primary objective is to strengthen ties between Nigeria and its diaspora, leveraging the expertise and financial resources of overseas Nigerians as catalysts for national development.

The ministry stated, “The fund is part of broader efforts to strengthen ties between Nigeria and its diaspora, promote national development, and harness the potential of its citizens living abroad as agents of change and development for Nigeria.”

This ambitious move comes amidst a series of economic reforms initiated by President Bola Tinubu’s administration, which took office in late May. These reforms are aimed at revitalizing investor confidence in Nigeria’s economy and stabilizing the national currency, the naira, which has experienced significant depreciation in recent months.

Key reforms include the relaxation of foreign exchange controls, the easing of rules governing international money transfers, and efforts to narrow the gap between the central bank’s policy rate and yields on short-term government securities.

The World Bank estimates that Nigerians living abroad remitted a substantial $20.1 billion in 2022. However, a significant portion of these remittances occurs through informal channels, known as the parallel market, bypassing the official foreign exchange market. This has contributed to persistent scarcity of dollars in official channels, leading to currency volatility and naira depreciation.

The proposed diaspora fund is envisioned to encompass various investment opportunities, including infrastructure projects, credit facilities, and venture capital initiatives. The ministry encouraged interested firms, including joint ventures and greenfield funds, to submit their applications by the deadline of May 6.

The establishment of the $10 billion diaspora fund represents a significant milestone in Nigeria’s efforts to mobilize resources for sustainable economic growth and development. By tapping into the expertise and financial contributions of its diaspora community, Nigeria aims to foster innovation, create employment opportunities, and strengthen key sectors crucial for long-term prosperity.