…Says CBN N10Bn Capital Mandate For ICG Firms Not Adequate
The National Co-ordinator of Independent Shareholders Association of Nigeria, ISAN, Anthony Omojola has urged the Nigerian Deposit Insurance Corporation, NDIC, and Bank of Industry, BOI, to play their expected roles in the international credit guarantee, ICG, turf as a way of boosting foreign direct investment into the Country as well as the export sectors of the economy.
According to him the Nigerian economy has lost trillions of dollars in FDI over the years as a result of the absence of international Credit Guarantee firms in our system, saying that foreign investors normally require guarantees before the could invest outside their own shores.
Therefore, he thank the Central Bank of Nigeria, CBN, for the ongoing effort to license International Credit Guarantee, ICG, firms, expressing the hopes that the lope- hole that have limited investment activities in our economy will some be plugged in the overall interest of the nation.
Speaking to the media in Lagos Omojola doubted whether the N10billion capital base requirement for ICGs to be licensed would be adequate, given the deep pockets required for such activities across other parts of the World, saying although the minimum requirements may not be adequate but that its apparently the starting point.
He posited that the nation’s economy is expanding and time is therefore right for BOI and NDIC to play roles in the afore-mentioned areas of the economy in-order to further boost activities in the Nigerian export sector, hinting that with the African Continental Free Trade Area Agreement, AfCFTA, that much can be achieved by the two financial and developmental organisation in the overall interest of the country.
He said giving loans is not the only way BOI can support businesses, but can also help them by providing ICG services for them to ensure their survival.
On economic performance, the ISAN leader was sure that economy will perform better this year, maintaining that the major let-down was the skyrocketing prices of goods and services in the Country. He therefore call for concrete effort to further check the inflationary figures.
Omojola is however worried at the rising levels of fraud in the system, hinting that a lot of banks have been losing a lot of money via online fraud. He therefore called on Nigerian banks to make needed effort to curb the trend in the ecosystem.
Also, going forward ,he enjoined the federal government that time was apt to boost security in the country, maintaining that the Nigerian Police needs more good hands as well as the army and that there is no way we could be expecting better economy without reigning in the escalating violence across Nigeria.
On the recent decision of the CBN to withdraw the supply of foreign exchange to Bureau de Change operators in the Country, Omojola said the move should enable the operators to operate more professionally and independently.
But he doesn’t see the exchange rate improving until we can do something about boosting the capacity of our economy to export more goods and services.
