FG Establishes $10 Billion Diaspora Fund To Draw In Capital

Doris Uzoka-Anite

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.

The federal government is soliciting proposals from asset managers to establish the fund, according to a post made on X on Thursday by Minister of Industry, Trade, and Investment Doris Uzoka-Anite.

According to the minister, the program is anticipated to help vital industries like infrastructure, healthcare, and education 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.”

According to Uzoka-Anite, the fund managers would be in charge of creating investment platforms that are targeted at the aforementioned industries.

The minister stated that the investment phase is between three and five years, with a ten-year lifespan that can be extended by an additional two years.

Uzoka- Anite said: “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 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.”

Additionally, Uzoka-Anite mentioned that venture capital, credit, and infrastructure funds might be included in the planned asset offering.

The ministry said that by May 6, interested businesses—including joint ventures and greenfield funds—are urged to apply.

The federal government said on April 3 that, as of the second quarter (Q2) of 2024, it will begin issuing bonds denominated in local foreign currencies.

The federal government said on April 21 that plans to issue a diaspora bond to increase remittances are in the works.