Following the market-friendly reforms being introduced by President Bola Ahmed Tinubu’s administration and the critical need for more foreign direct investments to stimulate domestic production in the country, a group of Nigerians based in the US, Canada, the Caribbean, Europe and South Africa are taking steps towards the establishment of a N100 Billion Venture Capital Fund and also a specialised bank targeted at the Small and Medium Enterprises SME sector in Nigeria.
Sources of foreign direct investments into Nigeria are becoming hard to find but annual diaspora remittances to the country is expected to grow over $20 billion according to the World Bank’s Migration and Development Brief released at the end of 2023.
According to the Chairman of the group, Mr Ekwo Omakwu- a financial consultant based in the United States of America, “The steady inflow of funds from the Nigerian diaspora reflects the continued strong connection to supporting family and contribute to economic development of the country. What you will see in the coming months with the development of the venture capital fund and specialised SME Bank are two financial institutions that will leverage on the extensive financial networks and expertise of diaspora Nigerians to invest in the productive sectors of the Nigerian economy- especially the non-oil sectors.”
The diaspora group has taken steps towards the realization of its objectives with the incorporation of SME Investments Limited in Nigeria. The immediate goal of the company is to collaborate with the regulatory agencies of government namely- the Central Bank of Nigeria (CBN), the Securities Exchange Commission (SEC), and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) to put in place robust and innovative financial services operations that will boost employment and lift millions of Nigerians out of poverty.
