The federal government has unveiled plans to establish a Nigeria Diaspora Fund worth US$10bn to attract foreign investments. Led by the Federal Ministry of Industry, Trade, and Investment (FMITI), this initiative stems from thorough discussions with capital market experts and investment stakeholders. The fund aims to consolidate the billions of dollars remitted into the country, estimated at around US$20bn by the World Bank last year. The fund provides a structured platform for Nigerians living abroad to invest in their home country, channelling their resources into various sectors such as infrastructure, healthcare, education, and more.

According to the honourable Minister of Industry, Trade, and Investment, Doris Uzoka-Anite, the ministry is actively seeking fund managers for the Nigeria Diaspora Fund, and there are plans to issue a call for Expression of Interest (EOI) from potential fund managers. The responsibilities of the fund manager will encompass designing and establishing the fund, covering legal, operational, financial, and administrative aspects. 

The investment horizon is projected to span 3 to 5 years, with potential follow-on investments after that. The fund's duration is ten years, with the option of a 2-year extension. Eligible fund managers must demonstrate a track record of conducting business in Nigeria over the past five years and a proven ability to raise capital and effectively manage sizable and profitable funds. 

In our view, this is a laudable initiative, as the fund's primary aim is to support critical sectors such as infrastructure, healthcare, entrepreneurship, and education, ultimately driving economic growth. The Fund will catalyse sustainable development, leveraging the diaspora community's financial resources, expertise, and networks to drive socio-economic progress in the country. Remittances from Nigerians living abroad are a significant source of foreign exchange inflows. By leveraging these remittances through the fund, Nigeria can potentially boost its foreign exchange reserves and stabilise its currency.