By Chinwendu Obienyi
Democratising Nigeria’s capital market by promoting the inclusion of private companies will unleash untapped pools of available capital as well as enhance the Federal Government’s capital mobilisation drive towards developing the infrastructural sector.
According to economic experts, the introduction of a stable comprehensive tax policy framework, fiscal responsibility across states, government and exchange rate policies will play a key role in encouraging capital mobilization.
Although, private credit on a global observation has reached $0.88 trillion in the last five years but the success story has been private equity which has hit $4.5 trillion in assets under management, this means global funds are finding their way into Africa especially Nigeria.
Despite this, there remains a growing concern that the macroeconomic environment remains uneasy and it is not as conducive as it should be for one to encourage capital mobilization with the experts hinging this to structured issues as well as weak economic framework.
Speaking during an investment forum titled; “Capital Mobilisation through Private Markets” which was organized by Coronation Merchant Bank in Lagos on Monday, the Chief Executive Officer, FMDQ Group, Bola Onadele, noted that there has been a long shift towards private capital as banks and public markets have transitioned from serving SMEs to larger companies as tightened regulations has prevented private companies from accessing capital from banks.
Onadele who was represented by the Head, Private Capital Division at FMDQ Private Markets Limited, Yemi Osinubi, said the growth in private equity market has gone up four times since 2002 and since 2015, private equity deal has exceeded public equity deal in volume.
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Source: Nigerian Newspapers Online