Evolution of proper economic management system Market solution-Ohiwerei


In making a review of the Nigerian Capital Market (NCM), Proshare NI in its usual manner sought to find out more about this development in the Nation's Stock Market; more especially as year 2009 has just started..

In this interview with PETER OBIORA of Proshare NI, Felix Ohiwerei, Marketing Colossus, a man with larger than-life image in Corporate Nigeria and some quoted companies of the Nigerian Stock Exchange (NSE),  reviews year 2008 in the Nation's Stock Market, commenting on the role of investors and the Government in the Meltdown.

The current Chairman, Fidson Healthcare Plc also discusses solutions to the problem and Market outlook for year 2009. Excerpts:



Review of 2008 in the Nigerian Capital Market

We all know that investors received surprises and shocks in year 2008 in the Capital Market. The level of surprises was very high and to say that it was unexpected may not be the whole truth; because before then, questions were been asked how long the Stock Market will remain bullish.

Some people had predicted a decline would take place, from my own experience and information, nobody knew it was going to happen so soon and the magnitude would be so great. It has happened and what is important is the way forward; and it is not a Nigerian problem, it is international.

Solution to the Market Meltdown

It is not a problem that would be resolved by the Stock Market itself, it is a problem that would respond to the way the economy is being managed. Therefore, it is important at this point in time to evolve a system of management that would first bring about stability and subsequently growth in the economy.

This is a serious matter and it calls for serious consideration and analysis; before we can proffer a solution. However, I may not have a enough information to point the way forward.

Role of the Investors on the Market Meltdown

The investors saw an opportunity of making good returns in the Stock Market and they rushed for it and in the process, it was possible and very likely that a few things were overdone.
    

It is not a question of what the investors did; but how the system was managed. Thus, we come back to the question of management. One of the things that came out of all this is that no sector of the economy should be allowed to self regulate itself. So we now know that Capitalism has one or two question marks and we should look at them and workout a system of moving forward that does not encourage greed, if we do that, I believe that the way forward would be clearer.

On the role of Government

We have to be careful not to start to make all the tough recommendations; we need to consider all the factors; before we can determine the way forward in our Nation’s Stock Market. But now we are just looking at only one of the factors.

The Capital Market is very fundamental to the growth of an economy and what we are discussing calls for a very careful analysis.

Assessment of Regulators

We must be careful also about laying blames, I am not sure it is going to help us; if we start doing this now. However, it is important to know that we have a problem which we must seek to resolve. Laying blames would only delay a reasoned reaction to the Nigerian Capital Market Meltdown.

Outlook for year 2009 in the Nigerian Capital Market

From my expectation, things may remain difficult until there is stability and people having the thinking that there is an opportunity for growth in business; investors should be very careful.

End