Some financial experts have advised the Federal government on how to tackle Nigeria’s economic situation.
With the decline of economic activities in the country, financial experts like Prof. Uche Uwaleke, a professor of Capital Market at the Nasarawa State University, Owoturo Seyi, the President of the Institute of Capital Market Registrars amongst others have come in separate interviews to proffer solution to Nigeria’s economic crisis caused by the coronavirus pandemic.
According to the experts, the federal government must address insecurity and continuously improve the ease of doing business in the country
Uwaleke said: “CBN should consider scaling up its development finance efforts, especially as they relate to the agricultural value chain.”
In the same vein, he advised companies to leverage RegTech and research to proactively stay ahead of the market.
He stated: “In Nigeria, the containment of COVID-19 and the unlikely possibility of another lockdown will further boost the market. Exchange rate unification will likely improve foreign investments and forex market liquidity. Ongoing Stock Exchange demutualization to improve capital raising ability for infrastructure modernization.
“Finance Bill 2021 provision on unclaimed dividends (S.39) has potential to address the issue and boost market confidence, planned reopening of the borders will reduce inflation rate, planned introduction of financial Derivatives in the capital market to mitigate volatility.”
He however called on the federal government to partially privatise the Nigerian Commodity Exchange and policies to support the commodity trading ecosystem, pursue aggressive export-based diversification to reduce vulnerabilities to external shocks and boost external reserves and also address infrastructure gaps through public-private partnership.
Without mincing words, the Vice President of the Market Architecture, FMDQ Securities Exchange, Jumoke Olaniyan, pointed out signs why the government needs make effort to ensure that the economic crises ends before the first quarter of 2021.
She said: “What we have seen in recent times is that we have seen that the Nigerian economy can be very resilient and which is very critical or the foundation of any capital market.
“It is a situation whereby a capital market can be created to absorb the shock that it goes through and always recover quickly. Therefore, it is very good that there are indicators that we will recover in the first quarter of 2021 and that is testament to the resilience of the economy itself.
“This means we have a very strong foundation but we really need to put building blocks to effect to make sure that we achieve that quick recovery and maintain that quick recovery in all facets of the economy.”
Also, the president of the Institute of Capital Market Registrars, Owoturo Seyi advised the federal government to take a step back at the Nigeria’s economic and review new ways of balancing the effect of inflation on real returns of investments in the capital market.
