LCCI calls for accountability from NGIF fund managers

• Published On: 30 August 2024 at 18:17

The Lagos Chamber of Commerce and Industry has urged the newly appointed managers of the $10 billion Nigeria Global Investment Fund to maintain accountability.

According to The Punch, the LCCI emphasized that the 23 selected companies must adhere to rigorous standards as they develop frameworks to drive investment.

On Tuesday, the Federal Government announced the selection of 23 fund managers from 55 applications submitted by the Ministry of Industry, Trade, and Investment.

The Securities Exchange Commission conducted the evaluation.

The chosen firms, which include AFC, Coronation Asset Management, Stanbic IBTC, AIICO Capital, and FBNQuest Asset Management, were chosen for their extensive experience managing public-sector partnerships.

The NGIF seeks to direct capital into Nigeria's real sector, thereby reducing the country's reliance on oil.

Fund managers are responsible for raising an average of $500 million across 14 sub-funds spanning industries such as automotive, agriculture, pharmaceuticals, energy, fintech, real estate, and more.

Dr. Chinyere Almona, Director-General of the LCCI, emphasized the importance of a strong implementation framework, recommending direct engagement with businesses in each sub-fund area via business groups and chambers.

She also advocated for regular reporting on the fund managers' activities to keep investors and businesses informed about the NGIF.

Meanwhile, Prof. Segun Ajibola, an economist and former President of Nigeria's Chartered Institute of Banking, expressed similar sentiments about the need for oversight and transparency in the management of the $10 billion investment fund.

According to Ajibola, some of the named institutions have global experience and will approach issues differently than bureaucrats and politicians.

He stated that the fund managers' success would be measured by the amount of funds driven down to direct sector operators.

"It is hoped that the funds will be available, allowing them to drive down to the field workers and foot soldiers who operate in those sectors, thereby impacting the source.

"Not passing funds through a ministry that will go to an agency; that will go to another layer and by the time you are talking about those who are operators in that sector, there will be little or nothing to account for," he argued.

The economist urged fund managers to maintain integrity and ethics in order for the fund to be successful and have a meaningful impact.