billion diaspora fund to attract investment from citizens living abroad.
In a post on X on Thursday, Doris Uzoka-Anite, minister of
industry, trade and investment, said the federal government is seeking bids
from asset managers to set up the fund.
The initiative, the minister said, is expected to support
critical sectors including infrastructure, health care and education to grow
the economy.
Uzoka-Anite said the fund will be guided by an advisory
board comprising limited partners, calling on eligible firms to express their
interest in its management.
“The fund is part of
broader efforts to strengthen ties between Nigeria and its diaspora, promote
national development,” she said.
“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.”
Uzoka-Anite said the fund managers will be responsible for
designing investment platforms focused on the aforementioned sectors.
INVESTMENT OF TEN
YEARS LIFE SPAN
The minister noted that the investment period is for three
to five years and a lifespan of 10 years — extendable by two years.
“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.”
Uzoka-Anite also noted that the proposed asset offering
could take the shape of infrastructure, credit, and venture capital funds.
The minister said interested firms, including joint ventures
and greenfield funds, are encouraged to apply by May 6.
On April 3, the federal government said it plans to start
issuing domestic foreign currency-denominated bonds from the second quarter
(Q2) of 2024.
The federal government, on April 21, said plans are afoot to
issue a diaspora bond to boost remittances.
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