FG Announces $10bn Diaspora Fund To Attract Investment

The federal government intends to establish a $10 billion diaspora fund to draw in investment from residents residing outside, according to a plan revealed on Friday, April 26 by Minister of Industry, Trade, and Investment Doris Uzoka-Anite.

According to the Minister, the diaspora fund would help expand the economy by funding vital industries like infrastructure, healthcare, and education.

It will also be supervised by an advisory board made up of limited partners. She also urged qualified companies to show interest in managing it.

Anite said; “The fund is part of broader efforts to strengthen ties between Nigeria and its diaspora, and promote national development.

“Objective of the Nigeria diaspora fund; 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 Fund 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 endeavours aimed at supporting various sectors such as infrastructure, healthcare, education and entrepreneurship in Nigeria.

“The 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 aforementioned industries will be the focus of the investment platforms that the fund managers will build. The investment period will be three to five years, with a lifespan of ten years that can be extended by two years.

Anite added; “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, the investment community and diaspora investors were engaged and also consulted on the establishment of the $10 billion Nigeria Diaspora Fund.

“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 launch of the diaspora fund is poised to raise awareness and mobilize capital investment from the diaspora community, marking a significant milestone in Nigeria’s journey towards sustainable economic prosperity.”

The suggested asset offering can come in the form of venture capital, lending, or infrastructure funding. By May 6, interested companies—including joint ventures and greenfield funds—are urged to submit an application.

A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.

Nnamdi Okoli