THE GROWTH IN NIGERIAN ECONOMY

Benefits of govt, private sector partnership.

FOR the country to play active role in global economy, compete favourably and eventually become the financial hub of the continent, there is a dare need for a stronger collaboration between the government and the private sector.
This was the view of Mr. Simon Harford, the chief executive officer (CEO), Actis West Africa during a workshop on private equity 101 in Lagos recently.
Harford said serious infrastructural decay has been a cankerworm that has hindered the speedy growth of the Nigerian economy, stressing that improving the infrastructural states will go a long way to build a sustainable economy.
According to him: "If the economy is to be better, to the extent of it having positive impact on the people, an enabling environment, improved infrastructures, social security must not be found wanting."
"Jobs, I mean better paid job and the development of necessary social amenities like motorable roads, well equipped hospital, improved power sector must be worked upon with all seriousness."
For all these to become achievable, the Actis CEO said a collaborative efforts between the private sector and the government will do the magic.
His words: "Research over the years had shown that the private sector was more successful in an enabling environment for growth than the public sector.
"So, to me, everything has to be done to support initiatives of the private sector in their quest to help develop the economy. The capacity and strength to grow the economy is embedded in them."

To him, more private equity firms like Actis West Africa, would be interested in investing in the Nigerian economy, if the enabling environment to absorb such investments are created.
Speaking on private equity, Harford said when companies were funded by private equity funds from investments, such economies performed better than if they were funded by other means like stock market listings and bank facilities.
He said in less developed markets, the PE is more diverse, e.g. minority and/or stakes in public companies and/or earlier stage companies.

According to him, private equity is growing globally and emerging in Nigeria because of the following: Investor pressure for asset diversity and better returns; evidence of better returns from active majority investors; attractions of being non-quoted; executives favouring PE roles over public companies; more buoyant businesses available etc.