” BDCs should not be referred to as parallel or unofficial markets, because they are officially licensed to trade,” said Dr. Michael Olawale-Cole, LCCI President.
Dr. Olawale-Cole, gave this enlightenment during the 2023 Mid-Year Economic Review and Outlook jointly organized by the LCCI and Cordros Capital to point out opportunities for business growth and sustainability in Nigeria and the global market.
At the event, Dr. Olawale-Cole, noted
that the LCCI, over the last 135 years, has consistently engaged the government and advanced the growth of the private sector and the overall Nigerian economy through regular reviews of the business and economic climate and policy advocacy.
The consensus reached at the end of the Mid-Year Economic and Outlook are detailed below.
The consensus of Stakeholders at the 2023 Mid-Year Economic Review and Outlook
1.Government should consider the urgent need for an all-encompassing economic and fiscal plan, full/ partial divestment of state-owned real estate, improved transport sector, and energy assets as post-election priorities.
2.The government must focus more on asset-based and equity offerings to improve revenue.
3.Institutional reorganization is urgently needed in the CBN and the NNPC to improve transparency and accountability.
4.The operating environment of NNPCL is somewhat opaque, which is anti-competition.
The oil sector will attract the desired investment if the government liberalizes fuel import licenses and other vital activities in the midstream and downstream.
5.Government should unlock revenue from assets by complementing tax with rent, fees, dividends, and capital gains. Economies that optimize revenue through equities have recently offset the loss from declining commodity prices.
6.The new administration is advised to borrow better to reduce debt costs by issuing a more asset-linked debt than IOUs.
The non-interest-bearing debt opportunities should be explored as emerging markets tilt towards project equity financing