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Stockbrokers want govt to tackle structural issues impeding growth

By Helen Oji
25 January 2023   |   3:55 am
Stockbrokers have stressed the need for the incoming administration to tackle structural issues impeding the nation's economic growth.

Uche Uwaleke

Stockbrokers have stressed the need for the incoming administration to tackle structural issues impeding the nation’s economic growth.

Reviewing the nation’s economic growth in 2022 and forecast for 2023, the stockbrokers expressed optimism that the economy, and by extension, the capital market would record meaningful growth this year, despite the current headwinds bedeviling the economy and uncertainty in the global market.

Indeed, the economy is going through turbulent times, characterised by imported inflation, huge debt service-to-revenue ratio, high exchange rates, foreign exchange scarcity, devaluation of currency, budget deficit of N12 trillion in 2023 and insecurity.

Speaking at a conference organised by the Chartered Institute of Stockbrokers (CIS) with the theme: “The Nigerian Economic Review of 2022 and Outlook for 2023”, the market operators, however, assured the investing public that the economy had strong potential to bounce back this year.

Specifically, the President of Association of Capital Market Academics, Professor Uche Uwaleke said: “Contrary to projections in several quarters, government’s fiscal position is likely to improve in 2023 on account of the following: improvement in crude oil revenue from increase in crude oil production, assuming crude oil price does not disappoint and incidence of oil theft continues to go down. Savings from fuel subsidy removal will increase in government revenue. Implementation of Finance Act 2022 and unification of exchange rates will boost economic growth and development.”

Also speaking at the event, Chairman, Research and Technical of CIS, Ayo Ebo, stated that expected higher crude oil would increase government revenue this year.

He said: “Goods account balance is expected to recover in 2022 due to higher crude oil prices. In 2023, the goods account is expected to benefit from reduced forex outflow on petroleum motor spirit (PMS) importation, following the coming on stream of Dangote’s refinery and promotion of non-oil export.”

According to him, increased spread of working-class Nigerians in the diaspora is expected to continue supporting the strong performance of the transfers account, especially, the remittance component.

He also added that political stability post-2022 and more market-oriented policies of the new administration are expected to drive a steady recovery in portfolio inflows over the medium term.

Speaking on “The Chartered Institute of Stockbrokers’ Scorecard”, the President and Chairman of Council, Oluwole Adeosun, who pointed out that the Nigerian economy would experience growth during the year, also listed many achievements of the Institute in the review period.

He stated that the institute shall pursue its advocacy roles with renewed vigour to sustain growth.

“In 2023, we shall be working to increase the number of Nigerian Universities offering both Post-Graduate and Bachelor’s Degree courses in Securities and Investment / Capital Market Studies. We shall be pursuing more vigorously, activities to promote capital market literacy across the entire geopolitical zones of Nigeria.

“In furtherance of our ‘Catch Them Young’ campaign, we shall make deliberate efforts to penetrate the university campuses more rigorously and effectively.”

He also assured that the CIS Academy will work even harder to bring affordable world class training to its members, in emerging areas like Derivatives and other market asset classes.