The 8th Nigeria Diaspora Investment Summit (NDIS), held November 11-13, 2025, in Abuja, announced multiple government-backed investment vehicles specifically designed to address diaspora concerns about transparency, security, and returns.
Here are three investment channels offering Nigerians in the diaspora legitimate pathways to convert remittances into wealth-building assets.
1. Diaspora National Housing Fund (NHF) Mortgage Scheme
The Diaspora National Housing Fund Mortgage Scheme, launched by the Nigerians in Diaspora Commission (NiDCOM) in partnership with the Federal Mortgage Bank of Nigeria (FMBN), provides diaspora Nigerians access to mortgage financing for residential property purchases in Nigeria. This initiative addresses one of the diaspora’s most sought-after investment categories, real estate, while eliminating common pitfalls like title fraud and construction mismanagement.
How It Works
Investors in the diaspora register through the NiDCOM platform, provide identity verification and proof of income from their country of residence, contribute to the National Housing Fund through monthly deductions (2.5% of basic salary or lump sum contributions), and gain eligibility for mortgage loans of up to ₦15 million at concessionary interest rates (currently 6% annually). The Federal Mortgage Bank handles loan processing, property developers deliver homes, and legal title transfers occur through formal channels with government oversight.
The Home and Abroad Housing Platform introduced under this scheme connects diaspora investors with approved property developers offering verified properties across Nigeria. Projects undergo government vetting before listing, reducing fraud risk significantly compared to dealing with independent agents or developers.
Risks to Consider
Currency risk remains significant; naira depreciation can erode dollar-denominated returns despite property appreciation in naira. Another risk is that liquidity is limited; selling property in Nigeria takes months or years, making this suitable only for long-term investment. Rental income management from abroad requires trusted property managers. Still, government involvement dramatically reduces the fraud and title risks that destroy most independent diaspora property investments.
How to Participate
Visit the NiDCOM website to register for the Diaspora Housing Platform. Complete KYC requirements and income verification. Begin NHF contributions (available through designated banks or lump sum payments). Browse verified properties on the platform. Apply for mortgage financing through FMBN. The Federal Mortgage Bank processes applications, typically within 60-90 days for qualified applicants.
2. Nigeria Diaspora Bond (Launching Soon)
The Nigerian government is finalising plans to issue diaspora bonds; government securities specifically designed for Nigerians living abroad. These sovereign bonds allow Nigerians in diaspora to lend money to the Nigerian government in exchange for fixed interest payments over specified periods (typically 5-10 years), with principal repayment at maturity. The government uses proceeds to fund infrastructure projects like roads, power generation, and port development.
How It Works
When issued, diaspora bonds will be available through designated international banks and Nigerian banks with diaspora operations in major countries (UK, US, Canada, UAE). Investors purchase bonds in dollar or pound denominations (likely minimum $1,000-$5,000), receive fixed coupon payments (interest) semi-annually or annually, and get principal back at maturity. The bonds may trade on secondary markets, providing liquidity before maturity if needed.
Nigeria successfully issued a $300 million diaspora bond in 2017 that was oversubscribed by 130%, demonstrating strong diaspora demand for government-backed instruments. Interest rates were competitive with international markets while offering diaspora direct participation in Nigeria’s development.
Expected Returns
Based on Nigeria’s sovereign bond yields and the 2017 diaspora bond precedent, expect interest rates of 6-8% annually for dollar-denominated bonds. This compares favourably to US Treasury yields (currently 4-5%) while supporting Nigerian development. A $10,000 investment at 7% annual interest generates $700 yearly income, with the full $10,000 principal returned at maturity.
Risks to Consider
Sovereign risk is the primary item of concern for this type of opportunity. Nigeria’s credit rating (B- from S&P) reflects default risk, though Nigeria has never defaulted on sovereign bonds. Currency risk applies if bonds are naira-denominated (dollar-denominated bonds eliminate this). Political risk could affect bond terms or repayment reliability. However, Nigeria’s 2017 bond paid all scheduled coupons and was redeemed at maturity, establishing a positive precedent.
How to Participate
Monitor announcements from the Debt Management Office (DMO) and NiDCOM regarding bond issuance dates. Register with participating banks (likely to include major Nigerian banks’ international operations: GTBank UK, UBA, Zenith Bank diaspora services). Complete KYC requirements and provide proof of funds. Submit bond purchase applications during the subscription period. Bonds are allocated on a first-come or pro-rata basis if oversubscribed.
3. Diaspora Investment Trust Fund
The proposed Diaspora Investment Trust Fund, announced as a key initiative at the 2025 NDIS, will function as a professionally managed investment vehicle pooling diaspora capital for diversified investment across Nigerian opportunities.
Think of it as a mutual fund specifically for diaspora, investing in vetted businesses, real estate projects, infrastructure developments, and government securities.
How It Works
Diaspora invest minimum amounts (likely ₦1 million or $1,500 equivalent) into the fund. Professional fund managers, licensed by the Securities and Exchange Commission (SEC), invest pooled capital across diversified opportunities. The fund holds stakes in multiple ventures, spreading risk that would be unmanageable for individual investors. Quarterly or annual distributions provide returns to investors based on fund performance.
This structure addresses diaspora investment’s core challenges: individual investors lack time, expertise, and networks to vet opportunities properly. Professional management provides these capabilities, while diversification reduces single-investment risk that destroys typical diaspora ventures.
Expected Returns: Target returns likely range 12-18% annually based on Nigeria’s investment landscape. The fund would invest across risk-return profiles: conservative allocations to government bonds (6-8% returns), moderate allocations to real estate (10-15% returns), and growth allocations to businesses (20-30% returns, higher risk). Blended portfolio targets double-digit returns while managing downside risk through diversification.
Risks to Consider
Fund performance depends on the manager’s expertise; poor investment decisions reduce returns. Management fees (typically 2-3% of assets under management) consume a portion of gains. Lock-up periods may prevent early withdrawal.
Currency risk remains if the fund invests in naira-denominated assets. However, professional management and diversification dramatically reduce risks compared to individuals investing directly in Nigerian ventures without expertise or networks.
How to Participate
The fund structure is still being finalised. Once launched, registration will likely occur through NiDCOM’s platforms or participating financial institutions.
Action Step
If you are looking for a trusted avenue to invest in Nigeria, investing in any of the highlighted government-backed opportunities is your best bet.
But there are more. If you need to learn about other government-backed investment opportunities in Nigeria or are just looking to invest in Nigeria as a whole and don’t know where to start, you can book a 30-minute free consultation call with Mr Ted Iwere today.
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