Nigerians Abroad Set to Launch SME Bank, N100 Billion Venture Capital Fund

• Nigerians in the diaspora are set to launch an SME bank to help small and medium-scale businesses in Nigeria
• The Nigerians are also set to found an N100 billion Venture Capital Fund to spur growth in the SME sector in Nigeria
• Reports say the financial institutions have been registered in Nigeria and will commence operations in the coming months

Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.

Nigerians in the US, Canada, the Caribbean, Europe and South Africa are set to establish an N100 billion Venture Capital Fund and a specialised bank targeted at Nigeria's Small and Medium Enterprises sector.

The move is due to the market-friendly reforms introduced by the Nigerian government and the need for more foreign direct investment (FDI) to boost domestic production in Nigeria.

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The SME Bank will fast-track remittances

FDI sources into Nigeria are drying up, but annual diaspora remittances are set to grow by over $20 billion, per a World Bank Migration and Development report released in 2023.

A BusinessDay report quotes a financial consultant in the US and chairman of the group, Ekwo Omakwu, as saying that the steady inflow of funds from diasporan Nigerians reflects the solid connection for supporting families and contributing to the economic development of Nigeria.

Omakwu said:

"What you will see in the coming months is the development of the venture capital fund and specialised SME bank."

"The two financial institutions 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, "Omakwu added.

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Companies already registered in Nigeria

The group has reportedly achieved its objectives by registering the SME Investment Limited in Nigeria.

According to the group, the goal is to partner with the regulatory agencies and the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) to establish a robust financial services operations to boost employment lift many Nigerians out of poverty.

Another commercial bank begins operation in Nigeria

Legit.ng reported that NOVA Merchant Bank, one of the leading merchant banks in Nigeria, announced that it was set to begin conversion to an entire commercial banking business after getting a license from the Central Bank of Nigeria (CBN).

The bank also appointed Adebowale Oyedeji as the new managing director and chief executive officer to manage the bank's operations.

The bank also appointed Adebowale Oyedeji as the new managing director and chief executive officer to manage the bank's operations.

Source: Legit.ng