Sir: The trend in the global financial markets is a wake-up call for those who manage the Nigerian economy. In Nigeria, inflation rate hit 26.72 per cent in September, but this is a mere official figure. The Naira has been devalued by almost 1000 per cent. Exchange of the Naira to Dollar and other convertible currencies is always a sore point. Many Nigerian youths are in dire need of jobs while millions of Nigerians live below one Dollar per day. The question that recurs like a decimal point is how did we get here?

It is not a rocket science to say that inflation, international transactions, government policies, demand and supply of goods and services, speculation and expectations, generally shape every financial market. Our financial market has been integrated into the global market since the abrogation of the Exchange Control Act of 1962 and its replacement with some investment Acts.

A global leader in digital transformation, Capgemini Consulting, identified four basic trends that impact the global capital markets, particularly the intermediary firms: Increased regulatory reforms; effects of dark pool trading on the total volumes of trading; likelihood of increased consolidation in the financial intermediary industry and focus on technology upgrades by the firms. Despite the myriad headwinds plaguing the Nigerian economy and the financial market, regulators and operators have been working tirelessly to further integrate the market. Expectation is high that the Bola Tinubu administration shall revive the economy. Nigeria has never been bereft of ideas, but implementation.

I had some conversation with one of the most cerebral chief executive officers in the Nigerian financial market recently. He has just returned from Ghana where he made a brilliant presentation to distinguished audience on how African countries can address some impediments to trade among themselves. He was particularly perturbed about the needless devaluation the Naira without any justifiable reason. He lamented that Nigeria was neither in recession nor depression.

“Ghana’s economy went bankrupt and the country defaulted in its bond obligations. Mali was plunged into coup while Ukraine has continued to slug it out with Russia on the battlefield. The currency of each country has not suffered huge devaluation. Why did Nigeria which has no similar challenge devalue its currency with reckless abandon?

“I was in Ghana recently, it was sad that I have to convert the Naira to Dollar before I can change it to Cedi. Ghana imports many things, including cow and rice. While the members of European Union take joint position on trade, African countries operate in silos. The minimum that the Nigerian government should do to strengthen trade relationship among African countries, is to review tariffs at the Nigerian port. Our tariffs must be competitive with that of the global community: This will significantly minimise smuggling, and other vices that are plaguing import and export trade. Government should liberalise export and import trade.

“Other countries protect their economy by not allowing foreign investors to own 100 per cent stake in a company. But Nigeria had at a period in the past opened up its economy to foreigners by allowing them to own100 per cent in a company registered in Nigeria. No country allows such, hence the Nigerian law has become trite. It has become necessary to protect the Nigerian economy from capital flight,” said the CEO.

The issues raised by the CEO were expected to be addressed at the 2023 Annual Conference of Chartered Institute of Stockbrokers (CIS) held in Abeokuta, an ancient city and capital of Ogun State from last weekend.

Sola Oni, an integrated communications strategist, chartered stockbroker and commodities broker, is the chief executive officer, Sofunix Investment and Communications.