Zimvest Webinar: Stakeholders Call for Reorganisation Of Nigeria's Market Architecture

Sunday, June 21, 2020 / 1.00PM / Ottoabasi Abasiekong for WebTV / Header Image Credit: WebTV

Stakeholders in the Nigerian capital market, asset management, investment banking and wealth management segment of the financial market have called for a rethink of the nation's economic philosophy and a reset of the market architecture. This was part of the major takeaways from the Zimvest Economy Conversation which held on Saturday, June 20, 2020.

The webinar which discussed the theme "The Economic Landscape & Investor Preferences In Post Pandemic Africa" was an opportunity to explore how the post COVID 19 pandemic will impact the African and Nigerian economies, the implications for fiscal and monetary policies and how investors should reposition themselves.

Giving the keynote, the GMD/CEO of FMDQ Group Mr Bola Onadele, Koko citing the World Federation of Exchanges, WFE compared the market volatility caused by the COVID 19 pandemic as comparable to those of 2008 global market crisis.

Mr. Onadele also acknowledged the WFE report that equities market dropped by $17trn in 52 days of the global lockdowns to contain the pandemic.

Looking at Africa, he noted that the Central Banks have embarked on Monetary Policy Easing,  and stated that Fiscal policies in the continent must continue to focus on tax reliefs and stimulus for the economies.

For the Nigerian economy, the capital market leader called for a rethink of Nigeria's economic philosophy with clarity from the fiscal policymakers which will be critical for investors to understand the direction of the country.

Clarity in economic philosophy according to Mr Bola Onadele can galvanize the markets in the country, and can attract private capital which is vital to funding Nigeria's economic and recovery and sustainability.

He called for robust steps in reforming Nigeria's foreign exchange management framework from the monetary policy side.

According to him "We need to find ingenious  and innovative ways to deepen the capital market ecosystem".

The webinar which was moderated by Wole Famurewa Anchor, CNBC Africa featured the following speakers Mr Innih Ebong, Group Executive, Treasury & Financial Institutions, First Bank; Adetoun Dosunmu, Treasurer, FBN Quest Merchant Bank; Onome Komolafe, Divisional Head, CSCS Plc; Esiri Agbeyi, Private Wealth Service, PwC Nigeria and Abiola Adekoya, Wealth Expert & Ex-CEO RMB Securities.

For Mr Innih Ebong in his intervention, the post pandemic phase provides an opportunity for Nigeria to reset its Capital Market architecture and the monetary policy environment, which plays a critical role in shaping the fixed income securities.

"There will always be market volatility on account of various global macro-economic conditions. What is important is the architecture built around the markets that allow for navigation" He said.

Onome Komolafe believes it is time for the markets to explore the  development of more products with considerations for market segmentation, product differentiation and communication differentiation.

Esiri Agbeyi on her part said 63% of family businesses leaned to private equity as a source of funding. She was of the view that despite the global market uncertainties, Nigeria remained a destination for investment opportunities.

Adetoun Dosunmu speaking on investments said states with sustainable Internally Generated Revenue (IGR) streams can access the capital market for alternative financing alongside blue chip companies that are A-rated.

Giving her intervention, Abiola Adekoya stressed the need for more awareness and products in the capital market targeting the millennials in Nigeria, who are in their 20's and 30's who need to participate in the market.

The Group Managing Director of Zedcrest Capital, Mr Adedayo Amzat commended all the speakers for their contributions and asserted that the forum was an opportunity for a communal approach to grow the Nigerian capital market.

He called for collaboration amongst market stakeholders to boost the capital market formation structure and the need for increased financial literacy to address the spate of investment scams and ponzi schemes in the country.

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