A group of Nigerians residing in the US, Canada, the Caribbean, Europe, and South Africa is embarking on a groundbreaking initiative to establish a N100 billion Venture Capital Fund and a specialized bank aimed at bolstering the Small and Medium Enterprises (SME) sector in Nigeria.
Driven by the government’s market-friendly reforms and the pressing need for increased foreign direct investments to spur domestic production, this initiative seeks to tap into the potential of diaspora remittances, which are expected to surpass $20 billion annually, according to the World Bank’s Migration and Development Brief released in 2023.
Ekwo Omakwu, a financial consultant based in the USA and chairman of the group, underscored the significance of diaspora contributions to economic development, highlighting the steady inflow of funds as a testament to their commitment to supporting families and fostering growth in Nigeria.
Omakwu emphasized that the forthcoming establishment of the venture capital fund and SME bank will harness the extensive financial networks and expertise of diaspora Nigerians to invest in the non-oil sectors of the Nigerian economy, catalyzing sustainable development.
The diaspora group has taken concrete steps towards realizing its vision by incorporating SME Investments Limited in Nigeria. The immediate focus of the company is to collaborate with regulatory agencies such as the Central Bank of Nigeria (CBN), the Securities Exchange Commission (SEC), and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) to establish innovative financial services operations. These initiatives aim to stimulate employment opportunities and uplift millions of Nigerians out of poverty, aligning with the government’s poverty alleviation goals.
