By Adedapo Adesanya
The federal government has announced the launch of a $10 billion Nigeria Diaspora Fund, a multi-sectoral investment opportunity to encourage remittances, attract foreign investments, and facilitate philanthropic endeavors aimed at supporting key sectors crucial for Nigeria’s economic growth.
This was disclosed by the Minister of Industry, Trade and Investment, Mrs Doris Uzoka-Anite, noting that the initiative, spearheaded by her ministry, follows extensive consultations with stakeholders in the capital markets, the investment community, and diaspora investors after which a committee was formed to conceptualize and develop the structure of the Diaspora Fund.
The project aims to attract private sector and foreign direct investments into Nigeria.
She also called on eligible firms to express their interest in managing the fund, which will be guided by an Advisory Board comprising Limited Partners.
“The fund will be managed by Fund Managers that satisfy the criteria set out in the Expression Of Interest (EOI). The fund manager will propose structures that will focus on various sectors and stages of investments.
“Subject to the preferences indicated by Fund Managers. The fund will contain multiple investment platforms designed to offer investors different mechanisms for participating in Nigeria’s economic transformation.
“This fund is a way of encouraging remittances, attracting investments and facilitating philanthropic endeavors aimed at supporting various sectors such as infrastructure, healthcare, education and entrepreneurship in Nigeria.
“The launch of The Diaspora Fund is part of broader efforts to strengthen ties between Nigeria and its diaspora, promote national development, and harness the potential of The Diaspora Community as agents of change and development for Nigeria
“The National Launch of The Diaspora Fund will serve as an opportunity to raise interest in and awareness of the Fund: towards mobilizing capital investment from the diaspora community.”
The Minister added that the fund managers will be responsible for designing investment platforms focused on various sectors such as infrastructure, healthcare, education, and entrepreneurship.
The launch of the fund underscores the government’s commitment to strengthening ties with its diaspora community, recognizing them as pivotal agents of change and development to catalyze Nigeria’s economic development and empower citizens residing abroad to actively participate in driving the nation’s economic growth.
With an investment period of three to five years and a lifespan of ten years, extendable by two years, the fund presents an opportunity for diaspora investors to contribute meaningfully to Nigeria’s socio-economic advancement.
“As part of this process, a committee was set up to design and develop the structure for a Diaspora Fund. Various stakeholders in the capital markets, investment community and diaspora investors were engaged and also consulted on the establishment of the $10 billion Nigeria Diaspora Fund. The Ministry therefore issued this call for Expression of interest (EOI) to Fund Managers for the development and establishment of a multisectoral, multilateral private sector-led investment fund to form the $10 billion Nigeria Diaspora Fund.
“This Fund will be designed and managed by the Fund Managers selected during the Expression of Interest process. The expected investment period is for three to five years with follow on investments thereafter. The life of the fund will be 10 years (extendable by 2 years)
“The Federal Ministry of Industry, Trade, and Investment now Invites eligible Firms to indicate their interest in providing services as Diaspora Fund Manager. The Nigeria Diaspora Fund will operate under the guidance. of its Advisory Board comprising Limited Partners of the Fund,” she stated.