The Chartered Institute of Stockbrokers (CIS) and Association of Securities Dealing Houses of Nigeria (ASHON) have outlined ways to sustain economic growth and development in Nigeria as COVID-19 pandemic has put the global economy on the brink of recession.
They enumerated the various measures the Federal Government could evolve to manage the economy in separate interviews with the News Agency of Nigeria (NAN) in Lagos, Wednesday.
ASHON’s Chairman, Chief Onyenwechukwu Ezeagu, called for effective handling of the economic stimulus initiatives and policy direction.
” The economic stimulus and policy direction of Nigeria must be effectively handled. We need a robust enlightenment and pursuit of complementary policy direction and aggressive economic diversification agenda. This is the way to go coupled with consistency of purpose,” Ezeagu stated.
According to him, the fiscal and monetary policy initiatives must be expansionary in planning and execution to target job creation, sustenance, and diversification. He added that the private sector must dovetail to complement government’s efforts to give the economy the muscle to fight the looming economic headwinds.
Speaking on the capital market performance in the face of COVID-19, Ezeagu stated that the market had outperformed all expectations despite the odds. He explained that capital market was an integral part of Nigeria’s economy which is currently under the huge weight of the COVID-19 pandemic and the twin scourge of oil glut, saying the consequences are that foreign exchange is going northwards by adjustment and a weakened Naira has brought in its wake inflation.
The ASHON chairman, however, expressed optimism that the Nigerian capital market would outperform most other investment windows considering the looming recession.
“Astute investors that intend to preserve the value of their assets should be talking to their stockbrokers right away,” Ezeagu maintained.
Speaking with NAN, the President, Chartered Institute of Stockbrokers (CIS), Mr Olatunde Amolegbe said the capital market had been able to cope very well with the COVID-19 pandemic. Amolegbe posited that trading activities had not been impaired due to the pandemic.
According to him, this has been possible because of the business sustainability measures that the market had long embraced. Amolegbe, however, urged the Federal Government to support in building a strong capital market with necessary structures and liquidity to generate long-term investment capital for infrastructural development.
“There is a compelling need for the Federal Government to support the capital market, especially in terms of trading liquidity and grants for the CIS to enhance implementation of its Capital Market Literacy Programme which is a national assignment. The Institute is in dire need of huge capital to executive financial literacy. It would not be out of place for the Federal Government to extend a grant to the institute for this laudable programme.
“The most assured path to sustained and consistent economic growth and development is to build a strong capital market with the necessary structures and liquidity. This will generate long-term investment capital for infrastructural development and private sector business expansion.
“The Central Bank of Nigeria (CBN), is maintaining the appropriate Monetary Policy stance, regarding keeping systemic liquidity at the appropriate levels. We believe there is a need to initiate other fiscal policy measures that can stimulate demand and encourage resumption of production. This will go a long way in heading off potential recession. Government should also reinvigorate the ease of doing business in Nigeria,” Amolegbe added.