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The Development Agenda for Western Nigeria (DAWN) Commission has partnered the Egbe Omo Yoruba North America (EOYNA) to build a structured channel through which Yoruba in North America can invest in Southwest Nigeria.
The partnership, which is being undertaken through EOYNA’s investment arm, Synergy, will direct investments to sectors that can open opportunities to skilled youths as well as real estate and others.
A press release by the DAWN Commission’s Director General (DG) Dr. Seye Oyeleye on Thursday stated that the partnership will channel diaspora capital into three priority areas – start-ups, real estate and Nigerian government bonds.
The DAWN commission has already concluded arrangements to establish a technology hub in Ibadan, the Oyo State capital, where technology-savvy youths will incubate business ideas that can be funded through the Diaspora capital.
According to Oyeleye, bankable business ideas will be funded at a single digit interest rate to ensure survival of such businesses.
The DAWN DG explained that profit is not the primary motivation for the investments by Synergy, stressing that members of the EOYNA want to support economic growth of people in Southwest Nigeria, seek safety for their investments and offer low-cost loans as a better alternative to high-interest commercial bank loans in Nigeria.
Oyeleye said the partnership also answers a complaint he hears directly from Yorubas abroad – money sent home for development gets diverted into social ceremonies with no lasting impact.
“There’s no point in me working 14 hours a day in snow in Winnipeg or in Washington and sending money that someone then spends on Owambe. They want an organization that ensures whatever they send down actually has an impact,” Oyeleye said in the release.
The DG further explained that the offer to help has never been the problem, noting that every time he travels abroad, Yoruba professionals tell him they want to contribute to the region.
“What has been missing is a structure to direct that goodwill toward the people positioned to use it.
“Synergy, which was founded by EOYNA five years ago as its investment operating arm, will manage the funds under a board structure designed to guarantee that money is used exactly as instructed by the investor.” Oyeleye added in the release.
After the signing of the Memorandum of Understanding (MoU) by the DAWN and EOYNA at the commission’s office in Ibadan, the release quoted the representative of the association, Prof. Adeboye Adejare as saying: “Many of us try to do personal investments, and many times the money doesn’t go to where it is expected,”
“This partnership gives us confidence knowing our money is being well managed. We all know there are risks. But it is a risk that is professionally managed.”
Beyond capital, Synergy plans to pair investments with mentorship from board members across relevant industries. Adejare, who is the vice chairman of Synergy Board further disclosed that the board parades an array of experts in different fields who are willing to directly mentor young Nigerian entrepreneurs under the programme.
The project lead at the DAWN Commission, Segun Balogun said the initiative is meant to serve as a proof of concept for Diaspora investment across Yorubaland.
“We want to create a trust layer, an institution they can trust, through which they can channel their investment back home and sleep with two eyes closed,” Balogun said in the release.
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