IOM urges Nigeria to convert $20.9bn diaspora remittances into long-term investments

The International Organisation for Migration (IOM) has urged Nigeria to convert the over $20.9 billion remitted by its citizens abroad in 2024 into sustainable, long-term investments that can fast-track inclusive economic development.

Delivering her address at the 8th Nigeria Diaspora Investment Summit (NDIS 2025) held on Tuesday in Abuja, Sharon Dimanche, IOM’s Chief of Mission in Nigeria, described the Nigerian diaspora as one of the nation’s most powerful drivers of growth, innovation, and inclusion.

Dimanche said while remittances continue to serve as a lifeline for many households, Nigeria must now focus on transforming diaspora contributions into structured, productive ventures that create jobs, strengthen industries, and power regional and national growth.

She highlighted that Nigerians abroad sent home $20.93 billion in 2024, representing nearly six percent of the nation’s Gross Domestic Product (GDP), making Nigeria the largest recipient of remittances in Sub-Saharan Africa.

With an estimated 20 million Nigerians living and working abroad, she said the country’s diaspora community is one of the most dynamic and entrepreneurial in the world.

According to her, an encouraging shift is already taking place as many diaspora professionals now invest directly in Nigerian businesses, mentor young entrepreneurs, and finance innovation hubs across sectors such as technology, agriculture, and creative industries.

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“The time has come to move from remittances to long-term, transformative investments. Diaspora capital, skills, and networks must become engines of sustainable development and inclusive growth”, Dimanche stated.

Dimanche reaffirmed IOM’s commitment to supporting the Nigerian government through the EU-funded Support to Migration Governance Programme, which is piloting Diaspora Investment and Innovation Partnerships in Cross River, Abia, and Lagos States.

These initiatives, she explained, are designed to link diaspora expertise and capital to projects in infrastructure, skills development, and enterprise creation.

She commended Nigeria for institutionalising diaspora engagement through the adoption of the National Diaspora Policy, establishment of Nigerians in Diaspora Commission (NiDCOM), creation of state diaspora commissions, and ongoing legislative work on diaspora voting.

Drawing on global best practices from countries such as Rwanda, Ghana, Moldova, and the Philippines, she said IOM seeks to help Nigeria replicate models where structured diaspora investment has generated jobs and strengthened local economies.

Dimanche, however, emphasised the need for policy consistency, transparent governance, and simplified investment procedures to attract and sustain diaspora capital.

She also urged Nigeria to explore innovative financing tools such as diaspora bonds and mutual funds, and to empower state and local governments to align diaspora engagement with local development priorities.

“At IOM, we remain committed to supporting the Government of Nigeria, NiDCOM, and our partners in ensuring that migration and diaspora engagement become engines of growth, innovation, and social cohesion.

“Let us ensure that every Nigerian abroad remains a stakeholder in the nation’s prosperity, and that the bridges built by our diaspora lead not only homeward, but forward, toward shared progress”, Dimanche said.

In his keynote address, Vice President Kashim Shettima called on Nigerians in the diaspora to play a more direct role in the country’s economic transformation by investing in critical sectors and supporting homegrown innovation.

He said the Tinubu administration’s ongoing reforms aim to create an investment environment that guarantees safety, transparency, and competitive returns for diaspora investors.

“The prosperity we seek will come faster when the public sector, private sector, and our diaspora communities work together with a shared purpose.

“Our administration is fully committed to creating an environment where this collaboration can thrive”, Shettima said.

The Vice President highlighted several government-led initiatives designed to support diaspora engagement, including the Home and Abroad Housing Platform, launched by NiDCOM to provide Nigerians abroad with a secure avenue to invest in real estate.

He also mentioned partnerships with the National Agency for Science and Engineering Infrastructure (NASENI) to connect Nigerian scientists and innovators abroad with opportunities at home.

Shettima revealed that the government is finalising plans for a Diaspora Bond to enable direct investment in infrastructure projects.

He said reforms such as the Non-Resident Bank Verification Number (BVN) and improved exchange rate policy have already boosted formal remittance inflows, which reached about $21 billion in 2024.

He underscored that President Bola Tinubu places high priority on diaspora engagement during foreign visits to ensure that Nigerian voices abroad are reflected in domestic policies.

Shettima also highlighted the government’s record ₦4.2 trillion infrastructure investment covering roads and bridges, alongside ₦1.3 trillion to clear power sector debts and enhance electricity supply.

Projects such as the Lagos–Calabar Coastal Highway and Lagos–Ibadan Expressway, he said, exemplify the administration’s commitment to sustainable growth.

“These projects are not mere promises; they are proof that Nigeria is moving forward. But government alone cannot do it. To truly fast-track development, we need synergy the alignment of infrastructure, MSMEs, and diaspora investment”, he said.

He encouraged Nigerians abroad to “come home not only physically, but economically” by investing in local industries and human capital, while assuring that the government will continue to safeguard their investments.

Abike Dabiri-Erewa, Chairman and Chief Executive Officer of NiDCOM, called for renewed efforts to strategically channel the expertise, networks, and resources of Nigerians living abroad into structured investments that can drive sustainable national growth.

Speaking on the theme, “Fast–tracking Regional and National Development By Mobilizing Diaspora Investment,” Dabiri-Erewa said the diaspora community remains one of Nigeria’s most valuable economic and intellectual assets.

“In 2024 alone, Nigerians abroad remitted over $25 billion, making Nigeria the largest recipient of remittances in Africa. This is not just financial commitment; it is loyalty and love for home,” she said.

She urged the country to move beyond dependence on remittances and build systems that channel diaspora funds into productive sectors such as infrastructure, renewable energy, healthcare, education, and digital technology.

Dabiri-Erewa identified key challenges, including regulatory bottlenecks, security issues, and limited access to finance, calling for investor protection frameworks and more transparent processes.

“Public-private collaborations must be prioritised to align national priorities with diaspora innovation,” she said.

She reaffirmed NiDCOM’s commitment to deepening diaspora engagement and ensuring that the Commission continues to serve as a bridge between investors abroad and opportunities at home.

“As we look ahead, the story of Nigeria is still being written, and every Nigerian, at home or abroad, holds a pen in that story.

Together, we can and we will build the Nigeria we all desire a nation worthy of our pride, our sacrifice, and our children’s future”, she said.

Badewa Adejugbe-Williams, Chairperson of the Local Organising Committee for NDIS 2025, described the summit as a growing movement that has evolved into a credible bridge between the diaspora, government, and Nigeria’s Micro, Small and Medium Enterprises (MSMEs).

She said the summit, which began eight years ago as a modest idea, has now become a transformative platform linking diaspora investors with credible ventures at home.

“The diaspora has a role; those of us at home have a role; the government must continue to create an enabling business environment; MSMEs must remain innovative and trustworthy; and diaspora investors must keep believing in Nigeria’s potential,” she said.

Adejugbe-Williams praised NiDCOM and its partners for their commitment, noting that the collaboration between government and private sector stakeholders has helped sustain the initiative and expand its reach.

She urged both diaspora and local entrepreneurs to seize the opportunity to collaborate, innovate, and forge partnerships that will drive inclusive growth across regions.

“Together, we can fast-track regional and national development and build a stronger, more resilient economy that reflects the ingenuity and spirit of Nigerians worldwide,” she said.