Nigeria’s economic outlook: New initiatives and diaspora engagement

From the desk of Samuel Okocha, curator and editor at 234Digest: As the clock approaches 4 am on Saturday here in Nigeria, I’m dispatching this edition of 234Digest. Our mission is to cut through the noise, delivering non-partisan news and insights about Nigeria’s economy and business environment with unwavering clarity and speed. Although we missed our Wednesday issue, we’re back with a quiet-hour update, brimming with the latest developments from Africa’s most populous nation. Let’s dive in.

Nigeria launches $10 billion fund to harness diaspora’s economic power

The Nigerian government is reaching out to its citizens abroad, unveiling a $10 billion investment fund aimed at boosting the country’s key economic sectors. The Ministry of Industry, Trade and Investment announced the initiative Thursday, targeting infrastructure, health care, and education for growth.

The fund seeks to tap into the wealth of an estimated 20 million Nigerians living outside the country’s borders. It’s part of a broader strategy to deepen ties with the diaspora and leverage their potential as agents of change in Nigeria’s development.

Asset managers are being invited to bid for the setup of the fund, with the aim of offering investors different mechanisms for participating in Nigeria’s economic transformation. The move comes as Nigeria, Africa’s largest oil producer, continues to grapple with a depreciating naira and seeks to attract investment to stabilize its economy.

With an investment period of three to five years and a lifespan of ten years, extendable by two years, the Nigeria Diaspora Fund presents an opportunity for diaspora investors to contribute meaningfully to Nigeria’s socio-economic advancement.

According to the World Bank, remittances from Nigerians abroad reached $20.1 billion in 2022, marking a 3.59% increase from the previous year. This underscores the diaspora’s vital contribution to the nation’s economy. The new fund aims to channel these remittances into productive investments, contributing to Nigeria’s socio-economic advancement.

Long stories short

Government approves consumer credit scheme to enhance financial access

Officials have approved the first phase of the Consumer Credit Scheme, an initiative by the Nigerian Consumer Credit Corporation aimed at broadening access to credit. The programme is part of efforts to improve financial inclusion and support Nigerians in achieving their economic goals.

PZ Cussons may exit African market amid Nigeria sales drop

PZ Cussons Plc is considering a withdrawal from Africa, where it originated 140 years ago, due to declining sales in Nigeria. The British company is reviewing its operations in the region as it faces challenges from the devaluation of Nigeria’s currency.

Naira declines as central bank sells dollars to exchange bureaus

Nigeria’s naira fell 5.3% against the dollar on Tuesday, continuing a downward trend since the currency’s devaluation in January. The Central Bank of Nigeria sold $15.83 million to exchange bureaus at a rate more favorable than the official market, in an effort to increase the availability of foreign currency.

Dangote refinery reduces fuel prices; Nigeria revokes mining licenses

Dangote Industries Ltd. has cut the prices of diesel and aviation fuel for the third time since March. Meanwhile, the government has revoked 924 dormant mining titles, inviting investors to apply for the licenses, as part of a crackdown on “licence racketeering” and to encourage investment in the sector.

Quote of the Day: “Nature does not hurry, yet everything is accomplished.” - Lao Tzu

Stay informed, Stay ahead

We’re committed to keeping you in the know. Thanks for turning to 234Digest for your dose of Nigerian economic and business news. Look out for our next edition on Sunday. Until then, have a wonderful weekend.