FG Establishes $10 Billion Diaspora Fund To Draw In Capital
THE federal government intends to establish a $10 billion diaspora fund in an effort to draw in foreign-based people who are interested in investing.
The minister of industry, trade, and investment, Doris Uzoka-Anite, stated in a post on X on Thursday that the federal government is soliciting proposals from asset managers to establish the fund.
According to the minister, the program is anticipated to boost vital industries like health care, education, and infrastructure in order to boost the economy.
Uzoka-Anite said that an advisory board made up of limited partners will oversee the fund and invited qualified companies to indicate their interest in managing it.
She said: “The fund is part of broader efforts to strengthen ties between Nigeria and its diaspora, 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 endeavors 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 fund managers will be in charge of creating investment platforms that are targeted at the aforementioned industries, according to Uzoka-Anite.
The minister stated that there is a three-to five-year investment phase and a 10-year lifespan that can be extended by two years.
Uzoka Anite: “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 fund presents an opportunity for diaspora investors to contribute meaningfully to Nigeria's socio- economic advancement," Uzoka- Anite said.
“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 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.”
Also, Uzoka-Anite pointed out that the suggested asset offering can come in the form of venture capital, lending, or infrastructure funds.
The minister advised interested businesses to submit an application by May 6th, including joint ventures and greenfield funds.
The federal government announced on April 3 that it will begin selling bonds denominated in domestic foreign currency as early as the second quarter (Q2) of 2024.
On April 21, the federal government announced that measures are underway to promote remittances by issuing a diaspora bond.
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