The Chief Executive Officer, Eczellon Capital Limited, an investment bank, Mr. Diekola Onaolapo, has said foreign investors are rushing to invest in Nigeria and other emerging markets in Africa because of the high returns they offer.
Contrary to the general belief that foreign investors are leaving the country, Onaolapo said foreign investors were actually queuing up to invest in the country.
He said Nigeria and other emerging markets in Africa offered attractive returns on investments that were not available in other markets across the globe.
The Eczellon capital boss, who spoke in a briefing with journalists in Lagos, stressed that getting finance for most businesses should not be a difficult exercise.
He said, “Finance is actually not difficult. It is how it is put together that determines the ultimate success in this area. Contrary to the belief that capital flight out of Nigeria is imminent, what we in the investment banking industry know (because we engage external parties or foreign investors) is that capital is actually queuing up to come to Nigeria.
“People are interested in coming to invest in this market because the kind of opportunities they have here in terms of returns is enormous; they don’t have it in other markets. Yes, those other markets may be relatively safer for their funds but you will probably not want to stay away from the huge opportunities that you have in emerging markets like Nigeria and the rest of Africa.”
According to the investment banker, Africa still has a long way to go in terms of development.
For the continent to deliver real socio-economic promise for its people, particularly the Millennium Development Goals, Onaolapo said investment bankers had a lot of roles to play.
While noting that the role of investment bankers had yet to be at the optimum level, he said there was a need for them to partner with government to provide solutions to the numerous problems facing the continent.
Onaolapo said, “The government alone cannot deliver the promise for our country and continent. Professionals will need to support by creatively leveraging their expertise to generate the required. Investment bankers are central to that. Investment bankers have a big role to play in deepening the economy by assisting businesses, governments and even individuals to create innovative ideas and implementing them.”
The Eczellon boss said investment bankers needed to assist governments by facilitating project development through project advisory, management and project finance for infrastructure and developmental projects.
Also, he said they needed to develop creative ways for governments to generate revenues – especially state governments.
For businesses, the expert said investment bankers should be the businessman’s best friend.
He said, “Investment bankers are professionals who should assist businesses by providing the tools required for the achievement of the economic objectives of businesses. One of the most important of these tools is finance. Investment bankers in Africa should rise up to tackle the epidemic of ‘entrepreneurial premature death’.
Source: Punch (by Oyetunji Abioye)
