By Babatunde Bayo Lawal
Universally, the diasporas are an important part of foreign investors for developing countries. It is a common practice for people in the diaspora to invest back in their country of origin after migration; depending on individual perspective, diaspora investment in their respective home country can be driven by social factors, ethnic advantage, sentimental values, as well as financial returns.
In lieu of the recent japa trend in Nigeria, and the increasing number of Nigerians living in the diaspora, now is the time to bring home the wealth earned from foreign waters and invest in the homeland.
Diaspora investment is largely encouraged considering the earning power of migrants and the purchasing power of their foreign currencies. According to data from the World Bank, diaspora remittances to Nigeria through official channels in 2017 was $22 billion; $23.63 billion in 2018 and $23.81 billion in 2019. Due to the COVID-19 pandemic, it reduced to $17.21 billion in 2020 but rose again to $19.2 billion in 2021.
Direct Foreign Investment creates new jobs and more opportunities, as investors establish industries, commercial hubs, and residential homes in their country of origin. This can lead to an increase in income and more purchasing power to locals, which in turn leads to an overall boost in targetted economies. It also improves a country’s capital inflow and creates a competitive market.
Nigeria has the third-highest level of Foreign Direct Investment (FDI), making it a great place for investors who access untapped opportunities in which they can invest. According to The World Counts, Nigeria is the most populous country in Africa and the 7th most populous country in the world. It is an attractive consumer market for investors and traders, with an avalanche of untapped natural resources and a low-cost labour pool; for Nigerians abroad, our dear country is fertile soil to invest in and develop a resemblance of the infrastructure and industrial advancements enjoyed in developed countries.
In a report made by Pillowfund, Nigeria is worth US $4441.5 billion, and it is the largest economy in Africa, ahead of South Africa (US $418 billion). It is also estimated that the Nigerian economy is poised to become one of the world’s top 10 economies by 2050, surpassing the economies of countries like France, the UK, Germany, and Saudi Arabia
Currently, now is the right time for Nigerians abroad to invest in their home country because the investment they make now, the industries, commercial hubs, and residential properties they set up now would go a long way in transforming the economic scope of the country. Beyond national benefits, considering the prospects that Nigeria’s large consumer market has, the opportunities for growth and profitability are limitless for investors.
If you are a Nigerian living in the diaspora, one of the popular ways to invest in Nigeria is real estate investment. You can leverage the purchasing power of your foreign currency and buy land properties to either buy and keep for capital appreciation or buy and build for annual rental returns.
Real estate investment is one of the easiest, low-risk investments you can make especially if you are abroad, as it offers you the opportunity to achieve more with less, create an extra source of income, and have a retirement plan.
The potential Nigeria has for massive growth and development will remain untapped if we all japa from the country and choose to enjoy the thrills of foreign waters which are ephemeral at best. Remember, no matter how far one journeys from home, home will always be our roots, and the responsibility of building our home is a collective responsibility, if we don’t take up the task of nation-building, no one will.
Babatunde Bayo Lawal, a real estate mogul and the co-founder of Dukiya Limited writes from Lagos.