Imo State Reaps the Benefits of Diaspora Direct Investment (DDI)


Imo State Reaps the Benefits of Diaspora Direct Investment (DDI)

••••• Imo State stands out not only as one of the richest states in Nigeria but also as the wealthiest state in the South-Eastern region of the country.

Prince Eze Ugochukwu

In the last few years, Imo State has been experiencing a major influx of diaspora direct investment (DDI).
It is estimated that over $8 billion has been invested in the state by its diaspora community. This has had a transformative effect on the economy, with new businesses, industries, and infrastructure being established as a result.


Diaspora Direct Investment (DDI) is a term used to describe the flow of capital from members of the diaspora community back to their home countries. In the case of Imo State, the DDI refers to investments made by Imo citizens living abroad in businesses and other projects in the state. These investments are often motivated by a desire to give back to the community and improve living conditions for family and friends back home. The DDI has become an important source of capital for the state, helping to drive economic growth and create jobs.

The state government has been actively encouraging these investments with policies and incentives designed to make it easier for diaspora investors to do business in Imo. As a result, Imo State has become a model for other states in Nigeria, demonstrating the power of diaspora investment.

Governor Hope Uzodimma of Imo State

The state's strong economic growth and business-friendly policies have attracted a growing number of international investments from diaspora citizens. Even citizens of neighbouring states living abroad are investing heavily in Owerri, the Imo State capital. There has been a surge in new businesses owned by Anambra, and Abia state citizens.

Imo State stands out not only as one of the richest states in Nigeria but also as the wealthiest state in the South-Eastern region of the country. The 2022 State of States report released by BudgIT last year revealed that Imo State has an estimated GDP of N7.68 trillion, naira making it the 4th out of the 36 states in the country with the largest GDP. Among its peers in the South-East region, Imo State has the highest GDP, followed by Anambra State with N5.14 trillion. In fact, as of December 2023, Imo state has surpassed Delta,  and Awka Ibom to become the 3rd largest state economy in Nigeria with a GDP of $8,452,776,534,748 billion dollars thanks in part to DDI. It is estimated that about 30% of the state's GDP comes from DDI.

In most cases, Diaspora Direct Investment (DDI) is often overlooked in discussions about Foreign direct Investment (FDI) However, it's important to note that DDI can be just as important, if not more so, than FDI. For one thing, DDI is often more stable and reliable than FDI. This is because diaspora investors have a personal stake in the success of their home country and are therefore more likely to stick with their investments. In addition, DDI tends to be more sustainable, as it is often invested in local businesses and projects that are designed to benefit the community in the long term.

Diaspora investment in Imo State's hospitality, medical, real estate, diagnostics, pharmaceutical, and food processing sectors has been critical in improving these industries and creating jobs for the people of the state. In the hospitality sector, DDI has led to the construction of new hotels, resturants, and conference centers, which has boosted tourism and created jobs. In fact, Imo State is the tourism capital of South East Nigeria. In the medical sector, DDI has resulted in the establishment of new hospitals, clinics, and diagnostic centres, which has improved access to healthcare for the people of Imo State. In the pharmaceutical and food processing sectors, DDI has led to the construction of new manufacturing facilities and the introduction of new technologies.

The largest sector in which DDI has played a major role in the development of Imo State is the real estate sector. Many of the state's housing estates, university hostels, private homes, and other real estate projects have been funded by diaspora investors. This has resulted in the creation of high-quality housing options and improved living conditions for residents of the state. In addition, DDI has led to the creation of thousands of jobs in the construction and real estate industries. Artisans from as far away as Ghana, and Togo are working in Imo State. This has helped to boost the economy of the state and improve the standard of living for its residents.

It is a thing of joy that the management of the Imo economy under Governor Uzodimma has continued to receive commendations and cash grants from the World Bank following the administration’s compliance with international standards in budget planning and execution. Since 2021, 2022, and 2023, Imo State has gotten about $40million in grants through the World Bank SFTAs program.

This is a worthy vote of confidence on Imo State which in turn has bolstered investor confidence.

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