Skip to main content

Nigeria plans to establish a $10 billion diaspora fund, inviting investment from its citizens abroad. This fund aims to bolster key sectors such as infrastructure, healthcare, and education, propelling economic growth.

The West African nation, via its ministry of industry, trade, and investment, announced its intention on Thursday. They are soliciting proposals from asset managers to initiate the fund.

This initiative reflects Nigeria’s broader strategy to enhance connections with its diaspora and foster national development. The ministry regards its nearly 20 million overseas citizens as pivotal contributors to Nigeria’s progress.

As Africa’s primary oil producer, Nigeria has implemented various reforms since President Bola Tinubu’s inauguration in May. These reforms aim to lure investors back and stabilize the depreciating naira.

The reforms involve loosening foreign-exchange restrictions and simplifying international money transfers. Moreover, efforts are underway to narrow the gap between the central bank’s policy rate and yields on short-term government bonds.

According to the World Bank, Nigerians abroad remitted $20.1 billion in 2022. However, a significant portion of these transactions occurs outside the official foreign-exchange market. This situation exacerbates dollar scarcity, contributing to currency volatility.

The proposed fund may encompass infrastructure, credit, and venture capital projects. Interested parties, including joint ventures and greenfield funds, are invited to submit proposals by May 6, as per the ministry’s announcement.

Related Article here

More News here