Very interesting article by Toyin Dawodu on how President Goodluck Jonathan’s new committee tasked with creating 1000 jobs in Nigeria should proceed.
I think Toyin makes a good point on how to use the assets most Nigerians have to gain them credit (their homes) via a viable mortgage industry, but we should tread carefully. Nigeria’s capital markets need to develop a lot further before mortgages become the way people fund businesses. Today people already put property down as collateral for their business loans etc. Memories of the recent financial troubles of the US in particular makes one pause.
There are other ideas in the article that are more actionable now. Toyin’s goal of providing electricity is on point. A huge cost for all businesses in Nigeria is generator/diesel cost. Removing that will immediately free up capital to be spent elsewhere. Let’s see how the new priviatization effort progresses.
Toyin Dawodu is the Managing partner of Capital Investment Group, a California based Diversified Investment Company focused on Infrastructure development in Africa.