The Federal Government of Nigeria has appointed 23 fund managers to oversee the $10 billion Nigeria Global Investment Fund (NGIF). This initiative is a cornerstone of Nigeria’s industrial revitalization strategy, aiming to attract both local and international capital to key sectors, including agriculture, manufacturing, energy, infrastructure, and fintech.
The NGIF, established by the Federal Ministry of Industry, Trade, and Investment, is designed as an umbrella entity encompassing multiple sub-funds, each dedicated to a sector critical to Nigeria’s economic growth. The selection of fund managers followed a rigorous evaluation process, conducted by the Securities Exchange Commission (SEC). Out of 55 applications, 23 managers were chosen based on their expertise in managing public-sector partnerships, financial stability, international investment experience, and adherence to Environmental, Social, and Governance (ESG) principles.
Notable among the selected fund managers are AFC, Coronation Asset Management, Stanbic IBTC, AIICO Capital, and FBNQuest Asset Management. These managers will each oversee specific sub-funds within the NGIF, which has been structured to house 14 distinct sub-funds and 49 individual funds. The sub-funds will focus on priority sectors such as Automotive/Light Manufacturing, Agriculture, Pharmaceuticals/Healthcare, Oil & Gas, Energy, Fintech/Banking, Heavy Industries, Real Estate, Mines/Solid Minerals, Creative Economy/Tourism, Aviation, Infrastructure, Education, and IT. Each sub-fund is expected to raise an average of $500 million, contributing to the NGIF’s goal of raising $10 billion in its first phase.
In addition to the selection of fund managers, the government has secured significant backing from Development Finance Institutions (DFIs), including a $3 billion country risk guarantee from the African Export-Import Bank (Afreximbank). Furthermore, $2 billion has been earmarked for direct investments in key industries, with the funding supporting projects through mechanisms such as project finance, equity investments, risk insurance, and advisory services.
The NGIF is expected to play a critical role in addressing Nigeria’s infrastructure deficit, estimated to require $14.2 billion annually over the next decade. By mobilizing private capital, the fund aims to target sectors with the highest potential for economic transformation and job creation, aligning with Nigeria’s broader agenda to create a $1 trillion economy within the next ten years, as outlined in the Renewed Hope Agenda.
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In April 2024, the Federal Ministry of Industry, Trade, and Investment (FMITI) invited eligible firms to express interest in managing the Nigeria Diaspora Fund, a multi-sectoral, multilateral, private sector-led investment fund contributing to the $10 billion NGIF. The ministry extended the application deadline from May 6 to May 13, 2024, to allow more companies to participate in this significant initiative.
