Nigeria’s government is seeking fund managers for a $10 billion diaspora fund designed to attract dollar inflows and foreign investment.
The fund seeks to aggregate billions of dollars remitted monthly by its citizens overseas for local investments, including infrastructure, real estate, and education.
According to the World Bank, Nigeria is estimated to have received more than $20 billion in diaspora remittances in the last 12 months.
Nigeria’s Ministry of Trade and Industry said in a statement 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.”
According to the tender document, the fund managers will set up and design the fund, including the establishment of the legal, operational, financial, and administrative structures it will function with.
The expected investment period is up to five years with an option for further investment thereafter. The life span of the Fund will be 10 years with the option to extend for a couple of years, the document said.
The Trade Ministry tender said prospective fund managers must have had verifiable business in Nigeria over the previous five years, and have a record of raising capital and managing large and profitable venture capital funds.
Doris Anite, Minister of Industry and Trade, stressed that the idea was 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.