Economic experts on Thursday commended the federal government for approving the Nigerian Diaspora Investment Trust Fund (NDITF) to facilitate the inflow of foreign exchange.
The experts who made the commendation in separate interviews with the News Agency of Nigeria (NAN) in Lagos, however, said the government must make the operating environment conducive to attract foreign exchange from Nigerians in Diaspora.
President Muhammadu Buhari had on Jan. 12, approved the establishment of NDITF, a private sector investment window for Nigerians in the Diaspora, to support direct investments in the country.
Prof. Ndubisi Nwokoma, Director, Centre for Economic Policy Analysis and Research (CEPAR), described the approval of NDITF as a good development.
“This is a good development to the extent that it institutionalizes flow of foreign capital into the country through Nigerians in Diaspora. This, however, is not enough to guarantee the inflow.
“The economic environment required for the growth in investments needs to be put in place. Uncertainty in government policy, an unconducive business environment and insecurity, among others would need to be addressed.
“If properly managed, diaspora funds would greatly assist the growth of the Nigerian economy given the large size of the Nigerian diaspora,” he said.
Prof. Hassan Oaikhenan of the Department of Economics, University of Benin, Benin-City, also commended the initiative.
“It is a commendable initiative by the government to facilitate the inflow of the much-needed foreign exchange! But, it is again a reflection of escapism, which has become characteristic of successive administrations in the country.
“The government should think creatively of how to recalibrate the economy to make it productive and export oriented as the sure way to earn foreign exchange on a sustainable basis.
“India is one of the highest beneficiaries of Diaspora remittances; that has not stopped the Indian government from putting in place policies and programmes to make India an export competitive economy,” he said.
Oaikhenan also urged the government to think ingeniously of how to take advantage of the country’s huge natural resource endowment to rev up foreign earnings.
He, however, said the success or otherwise of the initiative depended largely on the incentives embedded therein and very importantly, the patriotic disposition of Nigerians in the diaspora.
“It is paradoxical that the government would be counting on these same set of Nigerians who left the country out of frustration to be patriotic enough to key into this initiative by the government,” he added.
Prof. Akpan Ekpo, a Professor of Economics and Public Policy at the University of Uyo, Akwa-Ibom, spoke in the same vein.
“In theory it is a good idea. But, what happened to the previous Nigerian diaspora bond? Is it still on? How successful was it?
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“The NDITF is meant to attract net worth Nigerians in the diaspora to invest in their country. There is nothing wrong, but the bottom line would depend on the anticipated returns not minding how best they love Nigeria.
“In India those in the diaspora have and continue to invest in their country because the domestic environment is conducive.
“The domestic environment in Nigeria must be conducive to attract citizens in the Diaspora. The security situation must improve coupled with macroeconomic stability etc, to attract diaspora investment,” Ekpo said.
Sheriffdeen Tella, a Professor of Economics at the Olabisi Onabanjo University, Ago-Iwoye, Ogun, described the initiative as a good one.
He, however, said it would only be beneficial in an environment of macroeconomic and exchange rate stability, as well as tackling of corruption and illicit capital flows. (NAN)
