Stockbrokers want government to address fundamental problems preventing growth

stockbrokers

The need for the new administration to address structural problems limiting the country’s economic growth has been emphasized by stockbrokers.

 

 

 

The stockbrokers expressed confidence that the economy, and consequently the capital market, will record considerable growth this year despite the current economic headwinds and market volatility worldwide as they reviewed the country’s economic growth in 2022 and forecast for 2023.

 

The economy is indeed experiencing challenging times, which are characterized by imported inflation, a significant debt service-to-revenue ratio, high exchange rates, a lack of foreign cash, currency depreciation, a projected N12 trillion budget deficit, and insecurity.

 

Speaking at a Chartered Institute of Stockbrokers (CIS) conference with the theme:

 

However, market participants told the investing public in “The Nigerian Economic Review of 2022 and Outlook for 2023” that the economy had a good chance of recovering this year.

 

Professor Uche Uwaleke, president of the Association of Capital Market Academics, specifically stated: “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.”

 

Ayo Ebo, Chairman, Research and Technical of CIS, also spoke at the occasion and predicted that rising crude oil prices would boost government revenue this year.

 

He stated: “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.”

 

He predicts that the growing number of working-class Nigerians living abroad will continue to sustain the transfers account’s excellent performance, particularly its remittance component.

 

He also mentioned that a sustained rebound in portfolio inflows over the medium term is anticipated as a result of political stability after 2022 and the new administration’s more market-oriented policies.

 

Oluwole Adeosun, President and Chairman of Council of the Chartered Institute of Stockbrokers, mentioned numerous accomplishments of the Institute during the review period while discussing “The Chartered Institute of Stockbrokers’ Scorecard” and predicting progress for the Nigerian economy this year.

 

He said that in order to maintain expansion, the institute would vigorously pursue its advocacy tasks.

 

“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.”

 

Additionally, he gave the CIS Academy his word that it would work even harder to provide its members with world-class training that is inexpensive in developing fields like derivatives and other market asset classes.

 

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