For the Nigerian capital market, are we going to tell the president?

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Friday, January 21, 2022 / 1:35 p.m. / OpEd by Sola Oni / Header image credit: NGX

The title of this piece is a reminder of the classic novel, published in 1977 by English author, Jeffery Archer, titled: “Shall We Tell The President”? The theme is about the plot to kill the President of the United States, Edward Kennedy, but foiled by Federal Bureau of Investigation agent, Mark Andrews, in conjunction with the head of the FBI. Archer then revised the novel, using fictional characters with romance plot structures. This piece has no direct connection with the Theme of Archer’s famous novel. There was no assassination attempt against President Muhammad Buhari. But there are issues the president needs to be aware of to engage relevant government officials on the way forward. Ghana gained freedom from its colonial masters in 1957, and power changed hands from white to black officials. Seven years after independence, the famous Ghanaian novelist Ayi Kwei Armah, published his political satire entitled: “The beautiful ones are not yet born”. The novel traced the political, social and economic challenges of Ghana.


In search of new breeds

Nigeria has no shortage of ‘beauties’,’ corn they are held by chinese walls who have constantly prevented the Belles from playing an active role in direction. Even the few beautiful Politics risk the shame of the pervert group influence (or social proof). Only the super-rich can afford the cost of an election in Nigeria, and the same group of people have always surfaced occupy the choicepolitical positions. At the same time, the country continues to grow without development. Ordinary Nigerians bear the burden of a lack of trust of the ruling class. But when a strategy changes, the resultscash.

Look at pain points

On a daily basis, Nigerians face insecurity, a weak production base, acute unemployment, macroeconomic instability and a hazy political future fueling uncertainties. Over 90 million Nigerians live in abject poverty on less than a dollar a day. Manufacturers struggle with high production costs and low consumer purchasing power. The naira is devalued and analysts predict any further devaluation in 2022 on low oil production and an anticipated increase in interest rates.
Economists have noted that Foreign direct investment (FDI), an important pillar of economic transformation, has shrunk due to the debilitating impact of the rise country risk and lower credit risk outlook. Portfolio investors suspended their quick money like they show up higher risk aversion, depriving the stock market of much-needed liquidity. Concern mounts over oil subsidy policy deletion. The country can no longer attract hedge funds and other private capital.

Growth, real or imagined

The recent unveiling of mega rice pyramids and the celebration of the Central Bank of Nigeria (CBN) Primary Borrower Program (ABP) representpolitical cosmetics. Nigeria cannot feed itself. Weakness in the economy and its underlying asset classes prompted some analysts to sow doubt in the market as aeconomy barometer. commodity exchanges could to be agold mine for the country, but regulatory constraints are holding the sector back. If regulatory handcuffs disappear, commodity exchanges
could be business catalysts.

Consistent prayers

President Buhari can still Polish the credentials of his administration by focusing on the capital market, which channels finance of the surplus economic units in deficit ones. Unfortunately, this is an area where the government atnot paid the the desired attention. Nigerian Capital Market Operators are not without ideas that could transform the economy and support exponential growth. yet, the great elephant of the room is the government’s lack of political will to implement the operators’ consistent recommendations.

Ja Chartered Institute of Stockbrokers (CIS), at Recent webinar on a Economic report and outlook for 2022, do suggestions concerning tomof prevailing economic to managethe winds. The Institute called on the federal government to engage with capital market operators to use the market to finance the 7 trillion naira budget deficit
for 2022. The use of the capital market would replacecontinuous loans, who have had disastrous consequences for debt service obligations. The government was encouraged to review some tricky points of the Petroleum Industry Act (PIA) and rebranding the oil and gas sectors for profitability. The Institute requested the lowering the national
tax burden and not recommended reintroduce controversy VScapital
gain tax (CGT).

The tax is not only a deterrent for investors, but a disadvantage for the overall competitiveness of the market. It is time to consummate the commercialization of the Nigerian National Petroleum Corporation (NNPC) by listing its shares on the stock exchanges to deepen the market. Stock brokers have always sought to align monetary and fiscal policies and to be represented on the Monetary Policy Committee (MPC) for enhanced professional advice on the capital market implications of each policy. The National Assembly should speed up the adoption of the pending capital market bstruggling to further globalize the market.

Before a revolt of stockbrokers

Industry commentators have noted that the trade battlementsmarket, stockbrokers or resellers, have faced rough time. While less than 20% of trading houses that are members of the Association of Securities Dealing Houses of Nigeria (ASHON) are big cats, others operate with loose financial life vest. The latest upward revision of their registration fees by 1,000 percent from N125,000 to N1.2 million per SEC because Marlet worry. the SECOND needs Support trade houses and the six other categories of market operators facing the current economic crisis challenges. The National Assembly should face up to its fiduciary duties and stop bullying the Commission into operating as a for-profit enterprise. for profit goes against the spirit and the letter of the statutory functions of the Commission. Earnings protection is a function of the private sector, not a credo of public regulators.

Sola Oni, an integrated communications strategist, licensed stockbroker and commodity broker, is the Managing Director of Sofunix Investment and Communications.


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