Delta State Government: $100m Viability Gap Fund for Investors

• Delta State Government announced a $100 million viability gap fund to de-risk investments.
• The fund was unveiled at the ongoing economic and investment summit in Asaba.
• Vice President Kashim Shettima welcomed the healthy cycle of competition among federating units as necessary for Nigeria's economic development.

With an estimated population of six million people, abundant mineral resources, rich vegetation, fertile soil for agriculture, multiple urban centres, an enlightened populace, improving infrastructure, and a business-friendly climate, Delta State remains an investor's haven, with vast opportunities waiting to be explored and harnessed.

Yesterday, Delta State Government announced a $100 million viability gap fund to de-risk investments in the state. This move is part of Governor Sheriff Oborevwori's efforts to attract investors and create a conducive atmosphere for businesses to operate seamlessly and profitably. The fund was unveiled at the ongoing economic and investment summit in Asaba, where Vice President Kashim Shettima welcomed the healthy cycle of competition among federating units as necessary for Nigeria's economic development. Shettima attributed this drive to President Bola Tinubu's reform policies.

The establishment of the viability gap fund is a key component of Delta State's ease of doing business incentives, aimed at creating opportunities for businesses to thrive. The state has also set up the Delta State Ease of Doing Business Council, chaired by Governor Oborevwori, to enhance the ease of doing business in the state. Additionally, investors are granted waivers of payment of tenement rates, fees, levies, and other charges for up to five years after the commencement of business. These measures demonstrate the state's commitment to private-sector-led development and creating opportunities for its teeming youth population.

The $100 million viability gap fund is a significant step towards de-risking investments in Delta State, making it an attractive destination for investors. With an estimated population of six million people, abundant mineral resources, and improving infrastructure, the state has vast opportunities waiting to be explored and harnessed. The goal of the summit was to partner with prospective investors to build a modern, strongly diversified economy that can withstand external shocks in line with the policy imperatives of the MORE agenda administration.

Lawyers advising clients on investments in Nigeria should watch for the implications of the new $100m viability gap fund announced by Delta State, which aims to de-risk investments and create a conducive atmosphere for businesses to operate seamlessly and profitably.

Source: Original reporting via Vanguard