Federal Govt Seeks Managers For $10bn Diaspora Fund

The federal government is seeking fund managers for a planned $10 billion diaspora fund that is aimed at attracting dollar inflows and foreign investment into the economy, a tender document showed.
The fund seeks to pool together billions of dollars remitted monthly by its citizens overseas for local investments, including infrastructure, healthcare and education.

Last year, Nigeria is estimated to have received in excess of $20 billion in diaspora remittances, according to the World Bank.

The Ministry of Industry, Trade and Investment, said in a public notice that it was seeking “fund managers for the development and establishment of a multisectoral, multilateral private sector-led investment fund to form the $10 billion Nigeria Diaspora Fund.”

The fund manager’s role includes designing and setting up the fund, including legal, operational, financial and administrative structures, the tender document said.

The expected investment period is for three to five years with follow on investment thereafter. The life of the fund will be 10 years and could be extended for a further two years, the government said.
The trade ministry tender said prospective fund managers must have had verifiable business in Nigeria in the past five years, have a record of raising capital and managing large and profitable venture capital funds.

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Minister of industry and trade, Doris Anite, in a statement said it is an “unprecedented opportunity for our citizens in diaspora to drive Nigeria’s economic growth.”

Foreign currency shortages due to lower crude oil exports have put the naira currency under pressure, forcing businesses and individuals to buy dollars on the black market.

Nigeria plans to issue diaspora bonds, opening a new tab later this year to further raise foreign exchange inflows into the country.

The minister emphasised that the fund is part of several initiatives aimed at attracting and accelerating private and foreign direct investments into the Nigerian economy.