In order to draw foreign investment and dollar inflows into the economy, Nigeria is looking for fund managers for a proposed $10 billion diaspora fund, according to a tender document.
To finance local initiatives in areas like infrastructure, healthcare, and education, the fund aims to combine billions of dollars that its citizens contribute each month.
The World Bank estimates that Nigeria received more than $20 billion in remittances from its diaspora last year.
A public notice was released by Nigeria’s ministry of industry and commerce announcing its search for “fund managers for the development and establishment of a multisectoral, multiateral private sector-led investment fund to form the $10 billion Nigeria Diaspora Fund.”
Laptops 1000The bidding document specified that the fund manager’s responsibilities would encompass planning and establishing the fund, including its operational, financial, legal, and administrative frameworks.
Three to five years are the anticipated investment period, with more funding coming in after that. According to the government, the fund’s 10-year lifespan may be extended for an additional two years.
According to the commerce ministry’s solicitation, potential fund managers needed to demonstrate that they have successfully raised cash and managed sizeable venture capital funds, as well as having verified business in Nigeria for the previous five years.
In a statement, Minister of Industry and Trade Doris Anite remarked that it is an “unprecedented opportunity for our citizens in disapora to drive Nigeria’s economic growth.”
Due to shortages of foreign currency brought on by a decline in crude oil exports, businesses and people are being forced to purchase dollars on the black market, undermining the value of the naira.
Nigeria intends to increase foreign exchange inflows into the nation by issuing diaspora bonds later this year.
