BY PETER EGWUATU

The Securities and Exchange Commission, SEC has tasked stockbrokers to restructure the entertainment industry to enable it access funds from the Nigerian capital market and act as catalyst to the development of the industry.

Ms Arunma Oteh, DG, SEC

The Director General, SEC, Ms Arunma Oteh, who gave the advice at the 18th annual Chartered Institute of Stockbrokers conference held in Lagos said the entertainment industry following the rebasing of the country’s Gross Domestic Products, GDP contributed about 4.2 per cent.

So, the stockbrokers and other operators in the capital market have to find a way to restructure the entertainment industry to make it attractive for investors to invest in the sector. The industry has huge potentials and needed to be unlocked.

According to her “The entertainment industry projects Nigeria very positively and provides jobs for the teeming youth. So funding is key to its growth and development.

On how the capital market can support the entertainment industry, she said “It can be done through Asset based lending and securitization. It is only when the industry is structured very well that it will be able to access the market, just like what J.P Morgan did in America.”

Corroborating her view, the Minister of Tourism, Chief Edem Duke, said “There is need for the capital market to connect the entertainment industry.

If the capital market can provide funds to the sector, it would explode and become a major source of revenue for Nigeria. Duke, who was represented by a top official in the ministry, Mr.Akin Adejuwon said “ I want to encourage the stockbrokers to package the entertainment industry in order to make it realize its potential.

The President Jonathan’s administration is committed to boosting the industry and that was why he created the $200 million “intervention” fund for creative industries two years ago.”

Mr. Ben Murray Bruce commended the CIS for choosing the topic “Capital Market: The key catalyst to the development of the entertainment industry in Nigeria” . According to him “The entertainment industry on its own developed itself, even with bad policies of government in the past. The finance industry has in the past not been supporting the entertainment industry.

If the finance industry supports the entertainment industry, the sector would grow faster and even explode to contribute meaningfully to the growth of the economy. The finance industry is conservative in investment and that has affected the entertainment industry negatively.

There are abundant talents and ingenuity in the industry and these people need to be encouraged so that they can further create job opportunities.

In his remark at the conference, the President of CIS, Mr. Albert Okumagba said “The institute is undergoing rapid transformation and would do all it can to encourage its members to connect the entertainment industry to the capital market.

According to him “We would like to see the entertainment industry raise funds from the capital market. We would like to have a larger capital market where we would have private sector driven exchanges. such as commodity exchanges.”

There is long term investment that must be made to make the nollywood industry grow. We want the capital to be an integral part of the entertainment industry.