Existing Measures by the Nigerian Government to Protect Diaspora Investments

Nigerians in the diaspora contribute significantly to the nation's economy, with remittances reaching billions of dollars annually. Beyond remittances, the government is increasingly encouraging diaspora investments in real estate, agriculture, manufacturing, fintech, and other sectors. To build investor confidence and protect these investments, the Nigerian government has established specific structures and policies.

Below are existing and active measures currently in place to protect diaspora investments in Nigeria:

Nigerian Investment Promotion Commission (NIPC)

The NIPC is a key government agency tasked with promoting and protecting investments in Nigeria, including those from the diaspora. It offers:

• A One-Stop Investment Center (OSIC) that coordinates services from various government agencies.

• Investment incentives and guidance on legal and regulatory procedures.

• Investor aftercare services to help solve post-establishment issues.

The NIPC also maintains an investor grievance mechanism to support the resolution of investment-related complaints.

Nigerians in Diaspora Commission (NIDCOM)

Established by law in 2019, NIDCOM serves as the official bridge between the Nigerian government and the diaspora. Through its programs, it:

• Facilitates Diaspora Investment Summits, where diaspora investors are introduced to credible opportunities and local partners.

• Collaborates with MDAs (Ministries, Departments, and Agencies) to support diaspora entrepreneurs.

• Works on diaspora-targeted projects, such as promoting diaspora bonds and real estate schemes.

NIDCOM plays a watchdog role in ensuring diaspora investments are treated with priority and fairness.

Diaspora Bond Issuance

The Nigerian government, through the Debt Management Office (DMO), issued its first Diaspora Bond in 2017, which was oversubscribed. This provided a secure and regulated channel for Nigerians abroad to invest in national infrastructure projects while earning returns.

The bond is regulated by the Securities and Exchange Commission (SEC) and traded on the Nigerian Stock Exchange and London Stock Exchange.

Ease of Doing Business Reforms

Through the Presidential Enabling Business Environment Council (PEBEC), Nigeria has implemented reforms that directly benefit diaspora investors by:

• Simplifying company registration through the Corporate Affairs Commission (CAC) online portal.

• Reducing bottlenecks in obtaining construction permits, business visas, and tax registration.

• Digitizing business registration processes to improve transparency and reduce fraud risks.

These measures aim to create a more predictable and investor-friendly environment for diaspora engagement.

Bilateral Investment Treaties (BITs)

Nigeria has signed over 30 Bilateral Investment Treaties with other countries, many of which have large Nigerian diaspora populations (e.g., the UK, China, and the Netherlands). These treaties provide legal safeguards such as:

• Protection against expropriation

• Fair and equitable treatment

• Access to international dispute resolution mechanisms

Although enforcement varies, BITs remain a formal layer of protection for diaspora investors operating in Nigeria.

Real Estate and Land Reforms (Ongoing Digitization)

While challenges remain in the real estate sector, several states, particularly Lagos State and the Federal Capital Territory (FCT), have begun digitizing land registries to reduce fraud and improve transparency for property investors—many of whom are in the diaspora.

Efforts include:

• Electronic Certificate of Occupancy (e-C of O) issuance

• Geographic Information Systems (GIS) for land records

These tools are already being used to help investors verify land titles and ownership.

Capital Market Access for Diaspora Investors

The Nigerian Exchange Group (NGX) and Securities and Exchange Commission (SEC) provide frameworks for diaspora investors to invest in listed companies, government securities, and mutual funds. There are also licensed platforms for cross-border investment from diaspora investors, such as:

• Eurobonds

  
  

• Mutual funds regulated by SEC

  
  

• Capital market investment windows

Protecting diaspora investments is no longer just a policy idea , it is a growing reality in Nigeria. With institutions like NIDCOM and NIPC actively engaging the diaspora, and reforms aimed at reducing bureaucracy and improving investor safety, the Nigerian government is demonstrating its commitment to diaspora-driven development.

However, there is room for improvement, especially in the areas of land rights enforcement, consistent policy implementation, and faster dispute resolution. But the foundation is already in place, and diaspora investors have more structured support today than ever before.