Chapel Hill Denham CEO: Nigeria needs more investment in infrastructure

Nigeria, with its vast potential and youthful population, is yet to reach its full capacity as an investment destination, according to Bolaji Balogun, CEO of Chapel Hill Denham. In a conversation with CNBC Africa's Christy Cole, Balogun highlighted the critical need for increased investment in infrastructure as a key driver for improving the ease of doing business in the country. He emphasized that while the government has made strides in enhancing the business environment, a significant acceleration in infrastructure development is essential to attract more investments. Another crucial factor Balogun pointed out is the perception of Nigeria as an investment destination. He stressed the importance of both international and local businesses being successful and long-standing in the country as advocates for the investment climate. If businesses encounter challenges or perceive difficulties in operating in Nigeria, they may not effectively promote the country as a favorable investment location. Balogun urged both the government and the private sector to work collaboratively to enhance the perception of Nigeria as a conducive environment for investments. The discussion took place at an interactive session organized by the Nigerian Stock Exchange, where representatives from various sectors of Nigeria's economy gathered to explore the role of capital markets in unlocking value in the consumer goods sector. Balogun underscored the significance of robust, local capital markets in fostering economic development. He highlighted the need for more listings, tax incentives, and a conducive regulatory environment to facilitate the growth of capital markets. Using Access Bank PLC as a case study, Balogun illustrated the transformative power of capital markets for companies. Through strategic utilization of equity, debt, and M&A deals, Access Bank ascended from a relatively small player in the market to a leading financial institution in Nigeria and Africa. Balogun emphasized the ability of capital markets to provide companies with the necessary resources for expansion and growth. During his presentation, Balogun emphasized the importance of government policies, effective regulation, and the active participation of private capital in financing Nigeria's development. He pointed out that the government's budget, while substantial, constitutes only a fraction of the country's GDP, leaving a significant portion to be financed by private capital and capital markets. Balogun reiterated the critical role of deepening and enhancing the liquidity of capital markets in driving economic growth and development. In conclusion, Bolaji Balogun's insights shed light on the essential components necessary to unlock Nigeria's full potential as a preferred investment destination. By focusing on infrastructure development, improving the perception of Nigeria as an investment-friendly environment, and leveraging the power of capital markets, the country can attract more investments, drive economic growth, and create sustainable development opportunities for its citizens.