AskProshare: Analysts Express Diverse Views on the 2016 Economy and Market

Friday, February 26, 2016 05:30 PM /News

For exactly one month between January 25 and February 19, 2016 Proshare, Nigeria’s leading business, news, analysis and financial information hub as part of its mandate of enlightening, empowering and educating the citizenry, rolled its high-impact social media interactive forum tagged #AskProshare.
 
Focusing on “the Nigerian Economy in 2016 and You”, it utilized the twitter platform and created an avenue for 10 economists, 5 analysts and 5 women professionals to engage on critical topical issues that will shape the socio-economic sphere of the nation.

This initiative was well received in the social media community, as Nigerians were eager to engage and ask questions on the critical economy issues as it affects them.

Outcomes from the engagements

Devaluation

On the much debated currency crisis, FX issues and the question of whether or not to devalue the naira, Mr Marcel Okeke, Mr Opeyemi Agbaje, Mr Tunji Andrews, Dr Tunji Sobodu, Dr Martin Oluba and Mr Chuks Anyanwu all made a strong case that it was time for the devaluation of the naira. On the other hand, Dr  Biodun Adedipe, asserted that devaluation is a lesser evil, as it has not solved  Nigeria’s structural economic challenges, since adoption in 1986. Dr Temitope Oshikoya, also mentioned that devaluation does not guarantee the return of foreign investors.

Diversification of Revenue Sources

Mrs Toyin Sanni, Dr Temitope Oshikoya, believed Nigeria had to take seriously the “Diversification of its Revenue earnings”, as a way to reposition and boost the economy.

Developing Infrastructure

Dr Ayo Teriba, Mr Tunji Andrews, Dr Martin Oluba and Oluwatosin Olaseinde agreed that infrastructure in  Nigeria, must be fixed to guarantee economic development.

Doing Business in 2016

For businesses, Mr Opeyemi Agbaje, Mr Abiodun Adedipe, Mr Bismark Rewane, Mrs Olufunmilayo Adepoju, Mr Feyi Fawehinmi and Mrs Toyin Sanni stressed the fact that businesses will have to effect cost-management, rethink their business models and become more proactive in strategies and plans. Oluwatosin Olaseinde also specified how business can take advantage of the current administration’s focus to diversify their businesses and facilitate innovations in line with Budget 2016.

Economic Indicators

For the 2016 economic indicators, Mr Ebo Ayodeji projected growth for Nigeria to hit 3.6%, while Mrs Olufunmilayo Adepoju forecasted a high inflation rate level for the country in the year.

Sectoral Perspectives

Oil & Gas: Both Mr Dolapo Oni and  Rolake Akinkugbe agreed that the Nigerian petroleum sector was in dire need of strategic reforms and a robust policy framework, beyond the Petroleum Industry Bill(PIB). Rolake urged the government to come out with an Investor friendly gas masterplan.

Real Estate: Ruth Obih asserted that the Nigerian real estate sector needs transparency and data to grow and develop.

Market Forecast

 Ebo Ayodeji: Expect market sentiments to remain negative, which will affect consumer spending.

Chuks Anyanwu: The “economy climate is really tough”, but for the daring, the equities space has good potentials for short-term returns.

Saheed Bashir: The Diversificstion of the Nigerian economy, will create value for the market.

Damilola Lawal: The equities market is headed for another tough year in 2016.

Most of them also asserted that there are opportunities in the agriculture, services, consumer goods, construction and industrial services sectors.

Related NEWS:

1.       #AskProshare: Industrial goods, Construction & Agric are good prospects in 2016 – Anyanwu

2.      #AskProshare: Equities are headed for another tough year – Lawal

3.      #AskProshare: “Nigerian capital market, needs a fundamental shift” – Bashir

4.      #AskProshare:Afrinvest projects Nigerian GDP to grow by 3.6% in 2016-Ayodeji

5.      #AskProshareDay10: Dolapo Oni says Oil should contribute 20% to Budget

6.      #AskProshareDay8: Rewane calls for significant investment in capital beyond Infrastructure

7.      #AskProshareDay7:Adedipe calls on FG to ensure 80% capital budget execution

8.     #AskProshare Day 6:Opeyemi Agbaje says Devaluation is Probably Inevitable

9.      #AskProshareDay 5: Dr. Oshikoya asserts that Nigeria’s economy in 2016 would be between a stormy cloud and silver lining

10.  #AskProshare Day4: Mr. Tunji calls for a state of emergency on infrastructure

11.   #AskProshare Day3: Dr. Oluba calls for Diversification into export advantage sectors

12.  #AskProshare Day2: Dr. Ayo Teriba advocates liberalization of key Infrastructure sectors

13.  #AskProshare Day1: Marcel Okeke addresses key economic issues

14.  2016 Economy and You: 10 Analysts engage public for 10 days via Twitter

15.   Nigeria Outlook 2016: "To be or not to be” – GTI Capital

16.  Nigeria 2016 Outlook: A Slippery Path to Recovery – UBA Capital

17.   Nigerian Economy & Financial Markets' 2015 Review & 2016 Outlook: Darkest before the Dawn– Afrinvest