Nigeria Economy | |
Nigeria Economy | |
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Tuesday, April 14, 2020 / 07.20AM /
Nifemi Taiyese for WebTV / Header Image Credit: WebTV
Mr. Boason
Omofaye CEO Frontier Africa Reports, has called for investment cluster groups
in Nigeria, to support key sectors of the economy post COVID-19 pandemic. He
made this statement in an interview in the WebTV Market Review Program.
He also
charged the political and ruling class of Nigeria to learn from this pandemic and
engage the citizens in ways that build trust and confidence in the policy space
and economic management.
The
financial analyst noted that Nigeria has a robust business class that has the
financial capacity to mobilize capital that can address key challenges of
sectors in the economy.
Omofaye stressed
the importance of government engaging business leaders in the country with a
view to creating an enabling environment to invest in the country.
Speaking
further he stressed the need for the government to continue its engagement with
major private sector groups like the Lagos Chamber of Commerce and Industry
(LCCI), Nigerian Economic Summit Group (NESG), Nigeria Employers Consultative
Association (NECA) amongst others to ensure that it is driving pro-market and
inclusive economic policies.
At the
global level, he cited the truce between Saudi Arabia and Russia as a source of
optimism for the global oil market in the years 2020 and 2021.
According
to him this would imply the rebalancing of the Nigerian budget as an oil
producer and member of OPEC.
He stated
that the Federal Government has already reviewed the 2020 budget benchmark
which is now $30 per barrel. The recent international Brent crude oil price is
$31.45.
Concerning this
week's IMF /World Bank conference in Washington DC USA, he said Frontier Africa
Report (FAR) is tracking the meetings and sessions to give updates on global
economic conditions.
FAR would
be looking at the various reports from Africa on health, safety, security, and
climate change which would be the main headline topics for the Spring 2020
meeting.
On COVID-19
cases which have gone passed 300 in Nigeria, he believed it is a learning curve
for the country in pandemic management.
Looking at
the role of international financial institutions, he acknowledged the fact that
there have been several interventions to mitigate the impact of the pandemic
and its pressures on emerging markets.
Omofaye
also said the fact that there have been ongoing discussions between African
Ministers of Finance and key global institutions to explore debt relief outcomes
during the COVID-19 outbreak suggests that global market is preparing for a
soft rather than hard landing for emerging African economies.
He also
acknowledged the role of IOSCO in ensuring stability and efficiency in the
global capital market in the course of the spread of the disease.
According
to Omofaye the fiscal authorities in frontier markets will have to do more
domestic than foreign borrowings, as there is need to recalibrate post
pandemic.
Speaking on
market regulations, the ace financial journalist and analyst said that since
trading is now off the grid, market regulators need to prevent technological
manipulations in particular for sensitive markets such as derivatives, and
ensure tight oversight in line with stated rules and regulations.
The capital
market regulators have more difficult work to do as they no longer have
officers in the field and as such, they would have to place phone calls, emails
to check market professionals, listed companies, issuers to be sure that
activities are properly done.
According to Omofaye as soon as the Coronavirus lockdown is over there is need to directly intervene in small businesses, MSMEs, Agriculture and so on.
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