FG Extends Deadline for Expression of Interest for Managers of Proposed $10bn Diaspora Fund

James Emejo in Abuja

The Federal Ministry of Industry, Trade, and Investment yesterday announced a seven-day extension of deadline for the submission of Expressions of Interest (EOI) for the proposed $10 billion Nigeria Diaspora Fund.
According to a notice from the Office of the Minister of Industry, Trade, and Investment, Dr. Doris Uzoka-Anite, the deadline was shifted to May 13, 2024 from May 6, 2024 to allow for more participation in the process.

The minister explained that the extension was intended to accommodate stakeholders who required more time to prepare their applications in accordance with the guidelines provided for the fund.
The EOI is open to fund managers interested in the development and establishment of a multisectoral, multilateral private sector-led investment fund.
“We encourage prospective applicants to use this additional time to finalise their submissions that meet the outlined criteria, ensuring comprehensive and competitive proposals,” the notice added.

As part of efforts to attract and accelerate the inflow of private sector capital and Foreign Direct Investments (FDIs) into the economy, the federal government recently unveiled plans to float a $10 billion-Nigeria Diaspora Fund to among other things, improve FX liquidity in the system as well as strengthen the Naira.
According to a tender shared by the minister on her X handle, formerly Twitter, the Nigeria Diaspora Fund Multisectoral Investment Initiative will be designed and managed by the fund managers selected through an Expression of Interest (EOI) exercise where winners are expected to emerge.

The minister explained that the 10-year fund, which is extendable by two years, offers an expected investment period of three to five years with follow-on investments thereafter.
The ministry has therefore issued an EOI Expression to fund managers for the development and establishment of a multisectoral, multilateral private sector-led investment fund to form the $10 billion Nigeria Diaspora Fund.

The minister explained that the proposed fund would be managed by fund managers that satisfy the criteria set out in the EOI, adding that the latter would propose fund structures that will focus on various sectors and stages of investments.
She said subject to the preferences indicated by the managers, the fund will contain multiple investment platforms designed to offer investors different mechanisms for participating in the country’s economic transformation.

Uzoka-Anite further clarified that the fund was intended to encourage remittances, attract investments and facilitate philanthropic endeavours aimed at supporting various sectors including infrastructure, healthcare, education and entrepreneurship in the country.
She noted that the intervention remained part of broader efforts to strengthen ties between Nigeria and its diaspora, promote national development, and harness the potential of The Diaspora Community as agents of change and development for Nigeria.
The minister also pointed out that the national launch of the fund would serve as an opportunity to raise interest in and awareness of the fund towards mobilising capital investment from the diaspora community.

Among several other requirements, the tender stated that greenfield funds may apply provided the promoters demonstrate a deep experience in fund management, investment execution, multilateral development, and a detailed understanding of the Nigerian environment.
Foreign firms are also encouraged to participate, preferably by partnering with reputable local fund managers that meet any or all the requirements.
However, interested foreign firms must be able to demonstrate an ability for frontier and emerging market investment experience.