As part of endeavors to attract and expedite the inflow of foreign currency into the economy, the federal government has revealed plans to establish a $10 billion Nigeria Diaspora Fund.
This initiative is anticipated to, among other objectives, enhance FX liquidity within the system and fortify the Naira exchange rate. According to a notice shared by the Minister of Industry, Trade, and Investment, Dr. Doris Uzoka-Anite, on her social media handle (formerly Twitter), the Nigeria Diaspora Fund Multi-sectoral Investment Initiative will be formulated and overseen by fund managers chosen through an Expression of Interest (EOI) process, with winners expected to emerge.
In light of this, the ministry has issued an Expression of Interest (EOI) invitation to fund managers for the development and establishment of a multisectoral, multilateral private sector-led investment fund to constitute the $10 billion Nigeria Diaspora Fund.
Furthermore, the Minister of Finance and Coordinating Minister for the Economy, Mr. Wale Edun, recently emphasized that Nigerians residing in the diaspora remain a significant source of foreign capital infusion, noting the imminent launch of a diaspora bond by June.
These developments coincide with the Naira’s appreciation to N1,380/$1 on the parallel market yesterday, marking a significant gain of N70 in a single day compared to Thursday’s closing rate of N1,450/$1.
On the flip side, the local currency saw a depreciation to N1,339.23 per US dollar on the Nigerian Autonomous Foreign Exchange (NAFEM) window, marking a decline of N29.42 compared to its closing rate of N1,309.81 per dollar on Wednesday.
Nevertheless, the daily turnover on the NAFEM decreased by 2.85 percent to $309.01 million, down from $318.08 million the previous day. The highest spot rate reached N1,410, while the lowest was recorded at N1,051.
In the meantime, Uzoka-Anite elaborated that the proposed 10-year fund, extendable by two years, offers an anticipated investment period of three to five years, with subsequent follow-on investments. The minister noted that the fund would be overseen by managers meeting the criteria outlined in the Expression of Interest (EOI), who would propose fund structures focusing on various sectors and investment stages.
She further clarified that the fund aims to incentivize remittances, attract investments, and facilitate philanthropic efforts to support sectors such as infrastructure, healthcare, education, and entrepreneurship in the country, depending on the preferences indicated by the managers.
