Nigeria Economy | |
Nigeria Economy | |
1372 VIEWS | |
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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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