The Federal Government of Nigeria has announced its intention to establish a $10 billion Nigeria Diaspora Fund aimed at attracting dollar inflows and bolstering the country's foreign exchange liquidity. This initiative is part of broader efforts to stabilize and strengthen the Nigerian Naira, which has recently shown signs of appreciation in the parallel market.
Dr. Doris Uzoka-Anite, the Minister of Industry, Trade, and Investment, revealed the plan on her X social media platform, stating that the fund will target investments from Nigerians living abroad. The fund is designed to be a multisectoral, multilateral private sector-led investment initiative. To ensure its effective management, the ministry has issued a call for Expressions of Interest (EOI) from qualified fund managers.
The proposed 10-year fund, which may be extended by two additional years, aims to provide an investment period of three to five years with possibilities for follow-on investments. According to Uzoka-Anite, the fund will incorporate multiple investment platforms focusing on various sectors and investment stages, tailored to meet the preferences of fund managers and investors.
The Nigeria Diaspora Fund Multi-sectoral Investment Initiative hopes to not only enhance remittances but also attract investments and support philanthropic efforts in critical sectors such as infrastructure, healthcare, education, and entrepreneurship. This aligns with the government's broader objective to fortify connections with the Nigerian diaspora and leverage their potential as agents of change and development.
The Minister of Finance and Coordinating Minister for the Economy, Mr. Wale Edun, has highlighted the significant role the diaspora plays as a source of foreign capital. In support of this initiative, a diaspora bond is expected to be launched by June.
This announcement comes at a time when the Naira has experienced a notable appreciation, trading at N1,380/$1 on the parallel market—a significant improvement from N1,450/$1 the previous day. Meanwhile, the Naira faced a slight setback in the Nigerian Autonomous Foreign Exchange (NAFEM) window, where it weakened to N1,339.23/$1.
The establishment of the Nigeria Diaspora Fund is set to be a pivotal step in Nigeria's economic strategy, aiming to tap into the vast potential of its global diaspora community to drive national development and economic transformation
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