Diaspora Investors Shun Nigeria Over Fraud, Weak Safeguards, NiDCOM Raises Alarm

The Nigerians in Diaspora Commission (NiDCOM) has identified fraudulent investment schemes, disputed property ownership and weak investor protection as major factors undermining the confidence of Nigerians abroad in investing in their home country.

The Commission’s Chairman and Chief Executive Officer, Abike Dabiri-Erewa, raised the concerns on Tuesday at the opening of the ninth Nigeria Diaspora Investment Summit (NDIS) 2026 in Abuja, calling for stronger mechanisms to guarantee transparency and protect diaspora investments.

The two-day summit, organised in partnership with the Nigeria Diaspora Summit Initiative (NDSI), is themed, “Bridging the Trust Gap: Connecting Diaspora Capital with Credible Home-based Opportunities.”

It brings together diaspora investors, government agencies, financial regulators and private-sector operators to explore investment opportunities and address barriers preventing Nigerians abroad from committing capital to the domestic economy.

Dabiri-Erewa described the diaspora community as a strategic economic resource, noting that its financial capacity, professional expertise and international networks could contribute significantly to Nigeria’s ambition of building a $1 trillion economy.

However, she said the persistence of fraudulent schemes, unverified investment channels and inadequate information had continued to discourage potential investors.

She maintained that restoring confidence would require transparent investment processes, effective regulatory safeguards and credible platforms through which Nigerians abroad could identify and monitor legitimate business opportunities.

In his keynote address, the Managing Director and Chief Executive of the Federal Mortgage Bank of Nigeria (FMBN), Shehu Usman Osidi, said Nigeria must move beyond encouraging diaspora remittances and capital inflows to building institutions capable of guaranteeing the safety of investments.

He identified weak investment governance, fraudulent property transactions, disputed land titles, abandoned projects, breached contractual agreements and mismanagement of investors’ funds as issues responsible for growing apprehension among Nigerians abroad.

Osidi called for stronger institutional partnerships, improved accountability and effective investor protection, stressing that diaspora investors must be able to verify opportunities and monitor their investments from anywhere in the world.

He cited the National Diaspora Policy and the establishment of NiDCOM as important government initiatives for mobilising diaspora resources through investment, trade, entrepreneurship, public-private partnerships and knowledge transfer.

The FMBN chief also highlighted the investment climate reforms being pursued by the administration of President Bola Tinubu through the Presidential Enabling Business Environment Council (PEBEC), chaired by Vice President Kashim Shettima.

As part of efforts to address challenges confronting Nigerians abroad who wish to acquire properties at home, Osidi showcased the bank’s National Housing Fund (NHF) Diaspora Mortgage Product, launched in London on August 7, 2026.

He explained that the initiative was developed to overcome difficulties associated with accessing mortgage facilities, distance, property transactions and concerns about the security of housing investments.

According to him, eligible Nigerians aged between 18 and 70 years and residing abroad can participate through monthly contributions of $100, $200 or $300 under the Basic, Classic and Premium categories, respectively.

He further disclosed that FMBN had established a dedicated Global Business Strategic Unit to coordinate its diaspora operations, strengthen customer engagement and improve service delivery.

However, Osidi stressed that mortgage accessibility alone would not resolve the confidence challenge, noting that collaboration with regulators, state governments, property developers and mortgage institutions remained essential to ensuring genuine property titles, quality construction and timely project completion.

Earlier, the Chairman of the Summit Organising Committee and NDIS Coordinator, Mobolaji Lewis, said this year’s virtual engagement was designed to sustain diaspora investment discussions despite the decision to scale down the physical summit because of the national election campaign season.

He said the programme would equip prospective investors with practical knowledge on identifying, verifying and accessing credible investment opportunities while strengthening cooperation among relevant institutions.

Lewis added that the engagement would also serve as a foundation for the 10th anniversary edition of the summit in 2027.

The opening ceremony featured panel discussions on investment opportunities in Nigeria and strategies for strengthening the relationship between diaspora capital and the domestic economy.