Nigeria expects $2 billion Diaspora fund
Investments from Nigerians in Diaspora, is expected to increase Foreign Direct Investment (FDI) target by at least $2 billion (about 300 billion Naira).
The Minister of Trade and Investment, Olusegun Aganga, said the amount is expected from an open ended instrument offered for sales to the Diaspora, for development of the economy.
The Minister, said this in Abuja in a paper titled “Diaspora and Nigeria’s Transformation Agenda” presented at the Diaspora conference.
The Fund protection
The fund, a formal instrument, would be protected by local financial regulations and the possibility of being listed in international markets is being considered.
In his words, “Nigeria has the potential to raise as much as $2 billion according to a research carried out by the African Development Bank (ADB).”
According to Aganga, “the proceeds from the fund will be invested in flagship infrastructure projects in the country as identified in the transformation agenda such as power, housing, roads, airports, transport infrastructure etc. rather than fuelling consumption which tends to lead to an increase in inflationary pressure.”
Investment opportunities
He urged the Diaspora to take advantage of investment opportunities in the country such as the cheap labour to invest. He expressed the belief that the role of the Diaspora is essential in the success of the transformation Agenda and ultimately in the development of the country.
Areas of collaboration
He stressed that apart from funding, the Diaspora could also enhance the country’s economic development through the establishment of large research institutions to help in capacity building via transfer of knowledge.
As a potent force for economic development, he reiterated that the government sees its Diaspora like an” untapped pool of oil” and would put a formal structure to harness them directly to contribute to the transformation Agenda.
The fund management
Aganga explained that the fund would be managed by a private sector fund manager with a good track record that would be in a position to provide shareholders periodic reports on the performance of the fund.
He then called on the Diaspora members to play a major role in the balance of trade and imperfections by acting as links in bringing huge multinational companies to boost manufacturing activities.
CHAMPION/Emma |
