How SMEs can attract equity investment, list on NGX
Former President and Chairman of Council of the Chartered Institute of Stockbrokers (CIS), Olutola Mobolurin said Nigeria needs more venture capital funds to support small businesses that have significant growth potential.
According to Mobolurin, who is also the Chairman of NASD OTC Plc, there is a need to attract huge investment into the sector to attract more listings, reduce the rising unemployment rate, and maximise Nigeria’s economic growth.
He stated that with the ongoing COVID-19 crisis if nothing was done urgently to revitalise this market segment, the rate of unemployment would worsen in the next few years.
In addition, he said these investors would support start-ups from growth phases, strengthen their corporate governance structure to enable them to list on larger exchanges.
However, he categorically stated that these venture capital and private equity funds must be Naira denominated to boost the economy.
Chief Executive Officer, Enyo Retail and Supply, Abayomi Awobokun, at a forum held on the exchange, also stressed the need to create more awareness on the existence of venture capital in Nigeria, to boost SMEs operations.
“A lot of people do not know that venture capital does exist, so more people have to talk about venture capitalists and their activities.
“Again, for these start-ups, management is still young in the job. More so, in the area of governance, these start-ups need to get aboard, and get people on board who can guide the management,” he said.
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