The Federal government of Nigeria has selected 23 firms to manage the $10 billion Nigeria Global Investment fund. The investment fund was set up to attract international and local capital into critical sectors of the country.
The investment fund was created by the Ministry of Industry, Trade and Investment. It seeks to reduce over reliance on oil revenue by driving capital into fintech, agriculture, manufacturing, energy and infrastructure sectors in the country.
In addition, the fund is divided into various sub-categories, each dedicated to specific critical sectors in Nigeria. Also, each of the sub-category is tasked with raising an average of $500 million to address the various challenges in the designated sectors.
The Federal government selected 23 managers across different thematic areas to manage the funds. The managers were selected based on their experience in each of the priority areas after a rigorous application process. Some of the fund managers are AFC, Coronation Asset Management, Stanbic IBTC, AIICO Capital, FBNQuest Asset Management among others.
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These fund managers will have the responsibility of developing and establishing a multi-sectoral private sector-led investment campaign to form the $10 billion Nigeria Diaspora Fund. Also, each manager will not only raise funds but ensure the money is properly utilised under each sector.
In addition to selecting the fund managers, the Federal government has also secured a $3 billion risk guarantee fund from the African Export-Import Bank (Afreximbank). This fund will target sectors that have the potential to bridge the infrastructure gap and create jobs for the youths.
The government says it is part of the drive to create a $1 trillion economy as outlined in its Renewed Hope Agenda.
