Support private sector with capital, LCCI urges NSE
The Lagos Chamber of Commerce and Industry (LCCI) has advised the Nigerian Stock Exchange (NSE) to mobilise investment funds for the private sector.
Its President, Babatunde Ruwase, who spoke during his visit to the NSE, said the such support would facilitate the needed industrialisation. He said the two organisations have a lot to do together to promote private sector development and the advancement of the nation’s economy.
He said: “We seek collaboration with the NSE in making this happen, especially in the mobilisation of capital for investors especially the indigenous ones. As you very well know, the cost of fund in the money market, as well as tenor of funds, are not in tune with the yearning of investors, especially those with a long term perspective. This has constrained the growth of key sectors, including agriculture, manufacturing, property, construction and infrastructure. All these sectors need affordable long term funds.”
He said the capital market window naturally provides the good option for funding investments, adding that LCCI would like to see a better impact of the funding window.
He said there is need to collectively strengthen advocacy to make pension funds available for the long term financing needs of the economy.
“We should also work together to explore options of financing of small businesses. As in many other economies, SME’s are critical to economic development especially the creation of jobs and the promotion of inclusiveness in the Nigerian economy,” he said. Runwase said funding SMEs remains a major challenge in the country. “It has been difficult to unlock the potentials in the sector partly as result of this problem,” he stated.
He said LCCI is concerned about the deterioration of values of trust and integrity in business practices.
According to him, monetary, fiscal and trade policies have significant impact on the performance of the stock market and private sector investments generally. He said it will be useful to collaborate to promote investment-friendly policies in the economy through regular engagements with the relevant authorities of government.
“We need to attract more private capital [domestic and foreign] into this economy, especially now that it is obvious that the government does not have the financial resources to fix the economy,” he said.
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