Nigerian firms to bid for $10 Billion Diaspora Investment Fund management

The Nigerian Federal Ministry of Industry, Trade, and Investment (FMITI) has extended an invitation to firms to bid as managers for its $10 billion Diaspora Fund. This announcement was made by the Minister of Industry, Trade, and Investment, Doris Nkiruka Uzoka-Anite, through an official statement. The managers will be tasked with identifying and nurturing ventures with high impact. The fund, set to run for three to five years, was set up to attract capital. The plan is to channel the capital into developmental challenges. According to the announcement, eligible firms are to submit their interest independently or as part of a consortium. 

This is not the first time the government has sought to leverage the diaspora’s financial resources for its economic development. In the last few years, there has been a growing recognition of the significant role of diaspora remittances in Nigeria’s economy. According to the World Bank’s Migration and Development Brief, Nigeria consistently ranks among the top recipients of remittances globally. In 2021 alone, Nigeria received an estimated $24.3 billion in remittances, making it the largest recipient of remittances in Sub-Saharan Africa and the sixth-largest globally. These remittances represent a significant source of foreign exchange inflows for the country, contributing to its external reserves and supporting macroeconomic stability.

However, Nigeria has typically focused on diaspora engagement through channels such as remittances, diaspora bonds, and diaspora investment forums. For instance 2017, the Nigerian government launched the Diaspora Bond program. The aim was to raise funds from Nigerians living abroad to support the government’s development agenda and budget deficit. An explicit call for eligible firms to manage a dedicated Nigeria Diaspora Fund represents a new strategy for leveraging diaspora resources for economic development. It signals a more structured and institutionalized approach to diaspora engagement. It could also mean the government is trying to utilise the private sector’s expertise, mitigate risks, and attract more foreign investment.