Expert urges FG to reform business atmosphere to attact capital importation

A Capital Market Operator, Mr Boniface Okesie, has called on the Federal Government to reform the Nigerian business environment in order to attract more capital importation into the country.

Okesie, also the President Progressive Shareholders Association of Nigeria, made the appeal in an interview with journalists in Lagos on Tuesday.

He noted that despite the nation’s enormous business potentials, the business climate was yet not too attractive for investment.

“The government should permanently resolve the power challenges in order to make business to thrive in the country.

“The irregular power supplies is one of the draw backs responsible for low inflow of foreign direct investment being observed in recent times,’’ Okesie said.

The capital market expert also called on the judiciary to adjudicate and dispense disputes within a short time, adding that such move will regain investors’ confidence.

Okesie undercored the need for government to cut down on multiple taxations in order to improve the country’s ease of doing business.

“Multiple taxes from tiers of government should be reduced so as to serve as incentives for businesses.

“Addressing the series of taxes and levies will improve the country’s ease of doing businesses and makes it a continental business hub,’’ the capital market expert said.

Due to the capital importation report released by the National Bureau of Statistics (NBS) on Sept. 5, the value of capital inflow into the Nigerian economy stood at 5.82 billion dollars in the second quarter of this year.

The data, supplied administratively by the Central Bank of Nigeria (CBN), verified and validated by the NBS, represents a decrease of 31.41 per cent, compared to the first quarter of 2019 and 5.56 per cent increase, compared to the second quarter of 2018.

The largest amount of capital importation was received through portfolio investment, which accounted for 73.76 per cent (about 4.29 billion dollars).

It was followed by other investment, which accounted for 22.41 per cent (1.3 billion dollars) of total capital imported.

Foreign Direct Investment (FDI) accounted for 3.83 per cent (222.89 million dollars) of total capital imported in second quarter 2019.

According to the data, capital importation by banking dominated in second quarter, reaching 1.89 billion dollars of the capital importation within the period.

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