SEC Urges Private Equity Firms To Invest In Start-Ups In The Country

The Acting Director-General of the Securities and Exchange Commission, Mary Uduk, has called on Private Equity (PE) firm’s to tap into the investment opportunity in innovative start-ups operating in the capital market.

Uduk who spoke at the Udo Udoma & Belo-Osagie (UUBO) second private equity summit during the weekend  said activities by the PE firms  are key drivers of economic growth and development as they create jobs and pay the taxes that finance services and investments.

According to her, Nigeria is blessed with lots of start-ups with robust business plans who are yearning for investments.

SEC also added that the country had many profitable unlisted companies with established cash-generating capacities, as well as public companies with solid customer bases, proven products, and high-quality management.

“I see an improved investment climate, friendly market rules and regulations as well as increased investor education as essential elements for attracting PE investments in Nigeria.

“Towards this, the Commission is working on Rules and Regulations to ease participation of, and disclosures, by more PE funds. Initiatives in registering and developing the FinTech space in the capital market will also provide good opportunities for PE firms to invest in innovative start-ups operating in the capital market.

Uduk further explained that PE funds can utilise the opportunities provided on the various organised exchanges of the commission when exiting their investments.

“This will increase the quality of our listed public companies, while allowing PE firms benefit from the market liquidity, efficiency and increased participation available on the exchanges,” Uduk said.

However founder of counsel UUBO, Senator Udoma Udo Udoma stressed the need for private sector participation in ensuring economic expansion, noting that government could not do it alone.