Assessing the Role of the Nigerian Diaspora in Facilitating Foreign Direct Investment Into Nigeria

This study assesses the role of the Nigerian diaspora in facilitating foreign direct investment inflows into Nigeria, examining the mechanisms through which diaspora networks, capital, and social connections translate into concrete investment activity in the domestic economy. With an estimated 1.7 million Nigerians residing abroad in high-income countries, the diaspora represents a strategically underutilised resource for investment mobilisation beyond remittance flows. The research employs a mixed-methods design combining a survey of 60 diaspora investors with documented Nigeria investment activity and interviews with investment promotion officers at the Nigerian Investment Promotion Commission and diaspora-focused investment associations. Descriptive statistics and thematic analysis are applied. The theoretical framework draws on diaspora entrepreneurship theory, social capital theory, and the knowledge-based theory of investment. The study investigates the sectors favoured by diaspora investors including real estate, healthcare, fintech, and agriculture, the role of diaspora networks in reducing information asymmetries about investment opportunities, and the regulatory and operational challenges that constrain greater diaspora investment participation. Findings are expected to reveal that while diaspora investors are motivated by patriotic and financial returns, complex land titling, poor corporate governance standards among potential investee firms, and limited diaspora-specific investment vehicles reduce actual investment volumes. Recommendations include a dedicated diaspora investment bond programme, investment matchmaking platforms, and diplomatic commercial services tailored to diaspora investor needs. Keywords: diaspora investment, FDI, Nigerian diaspora, investment promotion, social capital