In a bid to increase the level of investment in Nigeria, the President, Afreximbank, Dr Benedict Oramah, has suggested that dual and cross boarder listing would attract more investment into country.
Speaking on how Nigeria can attract more investment, he noted that listing between the Nigeria Stock Exchange (NSE) and other exchange would drive deeper markets that will enable capital formation for businesses through the creation of larger liquidity pools.
Similarly, the Chairman, State of Mauritius Bank Group, Kee Chong Li Kwong Wing, in an interview with The Guardian during the launch of the $300 million equity offering issued through the Stock Exchange of Mauritius, said Nigeria need some facilitation and incentives to make it become more attractive for investment.
He also explained that in other to boost investment in the capital market, the NSE must make the listing requirement more flexible, stressing the need to work out regulations in a way that removes complication from the process.
In terms of sectors, he noted that developing countries grant tax incentives to investments in areas such as manufacture, exploration and extraction of mineral reserves, promotion of export, tourism among others, adding that tax incentives helps stimulate foreign investment.
While citing Mauritius as a typical example of a country that have harnessed the use of incentives to enhance investments in the country, he said that the county has flexible regulation for listing.
“We have a few facilitations and incentives to do to make Nigeria attract huge investment. For example, in Mauritius, we do not have capital gain start; we do not have tax on dividend; we do not have exchange control. We also have very flexible regulation for listing because very often, listings take a lot of time and a lot of legal issues to clear; this keeps it for a very long protracted process. But in Mauritius, we have what we call, the fast track; and no tax, no exchange control, everything is electronic, things can be done very quickly.”
The bank chief also urged Nigerian government to identify the comparative advantage it has in various sectors compared to other countries in its drive to diversify the economy.
“Diversifying Nigerian economy entails diversifying out of oil and gas. Nigeria is a huge country with huge resources, population and dynamic demographics. Nigeria has a lot of comparative advantage in many sectors. Nigeria should just sit down and identify which comparative advantage in which sector plays in its favour compared to other countries, and just capitalise on that and grow the economy.”
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