The Nigerian Government has unveiled plans to float a $10 billion Nigeria Diaspora Fund as part of efforts to attract and accelerate inflow of foreign currency into the economy.
Nigeria’s Minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anite, said at the weekend that the move was expected to improve foreign exchange liquidity in the system as well as strengthen the exchange rate of the Nigerian currency, the Naira.
The Minister said in her official X handle (formerly Twitter), on Friday, that the Nigeria Diaspora Fund Multi-sectoral Investment Initiative would be designed and managed by fund managers selected through an Expression of Interest (EOI) exercise where winners are expected to emerge.
She explained that her ministry has issued an EOI Expression Of Interest to fund managers for the development and establishment of a multi-sectoral, multilateral private sector-led investment fund to form the $10 billion Nigeria Diaspora Fund.
Uzoka-Anite that the 10-year fund, which would be extendable by two years, offers an expected investment period of three to five years with follow-on investments thereafter.
The report by Arise news on Sunday quoted the Minister as saying that the proposed fund would be managed by fund managers that satisfy the criteria set out in the EOI and that the latter would propose fund structures that will focus on various sectors and stages of investments.
It added that subject to the preferences indicated by the managers, the fund would contain multiple investment platforms designed to offer investors different mechanisms for participating in the country’s economic transformation.
The Minister also explained that the fund is intended to encourage remittances, attract investments and facilitate philanthropic endeavours aimed at supporting various sectors, including infrastructure, healthcare, education and entrepreneurship in the country.
It will be recalled that Nigeria’s Minister of Finance and Coordinating Minister for the Economy, Mr. Wale Edun, recently said that Nigerians living in diaspora remained a key source of foreign capital projection and that a diaspora bond would be launched by June.
GIK/APA
Nigeria eyes $10bn Diaspora Fund to boost Forex inflow, strengthen Naira
