Roseau, March 02, 2023 (GLOBE NEWSWIRE) -- The increased economic and political uncertainties amongst the Nigerian community on the pre-elections, growing numbers of businesspeople are weighing their options to either invest their wealth back into the country or seek to invest elsewhere.
There is the latest trend of Nigerians are relocating abroad for a better livelihood, security and safety for their families and businesses. And in doing so diversifying risk is top of mind for investors, and exploring risk investments outside of Nigeria may have positive outcomes back home, in Nigeria.
How the diaspora has been supporting Nigeria
As much as Nigerians are travelling abroad for work, live and investment opportunities. These opportunities do not stop Nigerians from investing back in Nigeria, while abroad.
According to the World Bank 2022 report remittance grew an estimated 5.2 per cent to US$53 billion in 2022, as compared to 16.4 per cent in 2021 in Sub-Saharan Africa. Although, Nigeria remains in the lead as the highest recipient of remittance in Sub-Saharan Africa during 2022, followed by Kenya, Ghana and Senegal. The 2023 remittances are projected to have a 3.9 per cent growth, as the volatile global environment and regional source countries persist. Remittances is money being sent, in this case, money sent to Nigeria from abroad.
The World Bank anticipates the “Naira for Dollar” scheme to support the diaspora remittance inflow, and that the launch of Nigeria’s digital currency, the e-Naira, will assist migrants and remittance service providers to gain access to banking.
In a PwC Nigerian Brain Exports report of August 2022, it stated that “Nigeria has a significant Brain Capital advantage with a large youthful population of an average age of 19 years. Considering the ageing population in the countries such as Germany, Japan, Italy and the United States, it is estimated that the worldwide working-age population will see a 10 per cent decline by 2060. Japan in particular tops this list with 28 per cent of its population above 65 per cent and Italy comes second with 23 per cent. In contrast, only 2.7 per cent of the Nigerian population is above 65 per cent; which means Nigeria is strategically positioned to supply labour to the global market, a strong comparative advantage.”
Nigerians living abroad significantly impact the economic development of Nigeria on a greater scale, than realised. Nigerians that are multitalented across various sectors, use their skills to compete in global markets and use their cash earnings to remit a lump sum back to their home, Nigeria.
Diversify risk through citizenship by investment
A way in which astute investors can diversify their portfolios is through dual citizenship programmes. There are a limited number of countries around the world that offer dual citizenship programmes, and the Caribbean offers the most credible and oldest Citizenship by Investment (CBI) Programmes globally.
There are more benefits of having dual citizenship, which include new economic opportunities, joining a global community, improved quality of living and personal security. Growing numbers of entrepreneurs and families are looking into CBI programmes, as alternatives to expanding and securing their investment portfolios.
Although, these countries that offer dual citizenship require each qualifying applicant to undergo a stringent vetting process, prior to obtaining their citizenship. This vetting process is a prerequisite to ensure that the eligible applicant meets the CBI programme standards and is compliant with the national and international standards that support safety and security, with background checks included in the vetting process. The Commonwealth of Dominica has one of the best due diligence processes in the world.
Countries with the CBI programme offer dual citizenship in their unique ways. Various countries offer citizenship by birth in that country, descent from a parent who holds citizenship, or through naturalisation. An example of this is through marriage to a citizen or a resident in the country for an extensive period. The CBI Programme allows investors to acquire their citizenship by contributing an amount to the country’s government.
An example of this is Dominica’s CBI due diligence process which is separated into five steps: know-your-customer checks performed by local authorised agents; internal checks including anti-money laundering and counter-terrorism financing vetting by the Citizenship by Investment Unit (CBI Unit); mandated external international due diligence firms perform digital and physical checks, and the regional and international crime prevention authorities check if the applicant is not sanctioned or a fugitive on any lists.
There is additional security, such as Dominica’s local banks that perform their own vetting on each CBI applicant prior to receiving the applicant's funds to enter the local banking sector. Since this is an important step in the vetting process, this vetting process is done before the applicant submits their application to Dominica’s CBI Unit for processing. These vetting processes from both the bank and CBI Unit heighten the level of security in Dominica’s CBI Programme.
Investors can support their homes from Dominica
Nigeria is one of the Caribbeans' influential cultures, with over 6 million people tracing their heritage back to Nigeria. The Caribbean region has remained one of the most attractive tourist destinations for hundreds of years.
The Government of Dominica invests substantially in their tourism sector, as it efficiently impacts the development of the economy, all while preserving the island’s spectacular nature and rainforests.
Nigerian investors have the advantage of using the Dominican banks, as the banks are fully equipped to manage international transfers and business needs, including in Nigeria and other countries around the world.
Another added benefit to the Dominica CBI programme is that there are tax incentives for Nigerian investors they will not be taxed on gifts, inheritance, income, corporate, estate, or any withholding taxes.