A university lecturer, Dr Austine Nwaeze, on Tuesday advised the Federal Government to create business-friendly environment for growth of venture capitalists in the country.
Nwaeze, who teaches economics at the Pan Atlantic University in Lagos, gave the advice in an interview with the News Agency of Nigeria (NAN) in Lagos.
He stated that that government could provide incentives like tax rebates and concessions on other government charges to facilitate the growth of venture capitalism in the country.
“The economy needs more of the capitalists as they are alternative means of funding and their importance cannot be over emphasised”.
Nwaeze stated.that entrepreneurs would expand and break into new frontiers with more venture capitalists in the system.
“Many entrepreneurs will now have access to credit facilities with such capital providers in place.
“They are completely different from conventional banks which are most times not wired to issue loans on long- term and without collateral.
“They are sort of investors who give out financial assistance to projects with perceived long-term growth potential,’’ he stated.
The don stated.that one of the advantages of the system was that they could provide managerial and technical expertise as well as effectively fund high risk businesses.