Says CBN N10bn capital mandate for ICG firms not adequate

By Peter Egwuatu

The National Coordinator of Independent Shareholders Association of Nigeria (ISAN),    Dr Anthony Omojola has said that Nigerian Deposit Insurance Corporation (NIDC) and Bank of Industry (BOI) should play their expected    roles in the International Credit Guaranty, ICG and the export sector of the economy.

According to him the Nigerian economy has lost trillions of dollars in FDI over the years as a result of the absence of international ICG firms in our system, saying that foreign investors normally require guarantees before they could invest outside their own shores.

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Therefore, he thank    the Central Bank of Nigeria(CBN) for the ongoing effort to license International Credit Guarantee(ICG) firms, expressing the hopes that the    loophole that have limited investment activities in our economy will be plugged in the overall interest of the nation.

Speaking to the media in Lagos,    Omojola doubted whether the N10billion capital base requirement for ICGs to be licensed would be adequate ,given the deep pockets required    for such activities across other parts of the World, saying although the minimum requirements may not be adequate but that its apparently the starting point.

He posited that the nation’s economy is expanding and time is therefore right    for BOI and NDIC to play roles in the afore-mentioned areas of the economy in-order to further boost activities in the Nigerian export sector, hinting that      with the    African Continental Free Trade Area Agreement(AfCFTA) that much can be achieved by the two financial and developmental organisation in the overall interest of the country.

He said giving loans is not the only way BOI can support businesses, but can also help them by providing ICG services for them to ensure their survival.