Business-Friendly Environment Key to Boosting Diaspora Remittances – OPS

The Organized Private Sector (OPS) has emphasized the need for a more business-friendly environment to attract increased diaspora remittances and spur economic growth. This call comes as Nigeria continues to experience a significant inflow of funds from its diaspora, which remains a vital source of foreign exchange and economic support.

Speaking at an economic summit, representatives of the OPS highlighted that creating a stable and conducive business climate would encourage Nigerians abroad to invest more in the country. They stressed that policies fostering transparency, ease of doing business, and investment security are crucial for leveraging diaspora funds effectively.

“Remittances from Nigerians in the diaspora have proven to be a critical pillar of our economy,” a spokesperson for the OPS stated. “However, to fully harness this potential, we must address the systemic issues that discourage long-term investments and channel these inflows into productive sectors.”

The OPS identified several barriers currently deterring diaspora investments, including inconsistent government policies, multiple taxation, infrastructure deficits, and foreign exchange volatility. They urged policymakers to focus on creating a predictable regulatory environment and improving access to credit for entrepreneurs to inspire confidence among the diaspora community.

In addition, they recommended expanding digital infrastructure to facilitate seamless remittance flows and investment processes. Leveraging technology, the OPS argued, could help reduce transaction costs and enhance financial inclusion, particularly for rural communities that rely heavily on remittance inflows.

Diaspora remittances have been a significant contributor to Nigeria’s foreign exchange reserves, with recent data showing annual inflows exceeding $20 billion. While much of this money is directed toward household expenses, such as education and healthcare, the OPS believes that a portion can be redirected toward business ventures if the right conditions are in place.

Experts also highlighted the role of public-private partnerships in fostering a business-friendly environment. By collaborating with the government, the private sector can help address infrastructural deficits and create opportunities that attract diaspora investments.

The OPS further called for initiatives to engage the diaspora community directly, such as investment forums and platforms showcasing viable business opportunities in Nigeria. Providing clear incentives, such as tax breaks and access to special economic zones, could also encourage Nigerians abroad to bring their capital home.

According to economic analysts, boosting diaspora investments can have a multiplier effect on the economy. Beyond providing much-needed foreign exchange, these investments can create jobs, enhance technology transfer, and promote sustainable development in critical sectors like agriculture, real estate, and manufacturing.

The OPS concluded by urging the government to prioritize reforms that align with global best practices, ensuring that Nigeria becomes an attractive destination for both local and foreign investors. “The diaspora represents a vast and underutilized resource,” they noted. “With the right policies and a stable economic framework, we can transform remittances from a consumption driver into a catalyst for national development.”

As Nigeria looks to strengthen its economic position, harnessing the full potential of diaspora remittances remains a critical strategy. By creating an environment conducive to business growth, the country can unlock new opportunities and drive sustainable economic progress.