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Poll helps to restore investors’ confidence

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By Akintola Timothy

Fair election posed to attract new capital and forestall funds poll.

The impending election in Nigeria has been regarded as one of the most significant election in the country’s history due to its place in enacting a social and economic status quo. Numerous citizens and organizations have been critical about the need to curb election malpractices and ensure that the people’s choices prevail. Capital market experts have however lent their voices to also advocate for a free, fair and credible election, as it would especially help pave the way for the elected administration to salvage the lingering macro economic challenges that have ravaged the country’s economic growth, especially the foreign exchange crisis.

Stakeholders, during the Nigerian Exchange Limited (NGX) Virtual 2022 Market Recap and 2023 Outlook which took place on Thursday, stated that a fair and peaceful would be so significant in restoring the confidence of investors, as well as attracting new capital and forestalling funding by foreign companies. Due to the uncertainty that had recently ravaged the political space, there was a huge wane in equities of foreign investments in 2022. The forex illiquidity and other macroeconomic challenges were also important reasons. The foreign portfolio investors’ appetite for equities for instance, witnessed an equilibrium in the first 10 months of 2022, where participation closed at N349.59 billion, quite lower than the N1.73 trillion transaction that was recorded by domestic investors within the same timeframe.

Investment inflow to deteriorate if economic volatility is not addressed.

According to the October report of the Nigerian Exchange (NGX) regarding domestic and participation of foreign portfolio in equities in the first 10 months of 2022 indicated a 34.59 percent year to date increase as of October 30, 2022, with the patronage of domestic investors surpassing that of foreign investors. Simon Kitchen, the managing director of and head strategist of EFG Hermes Research noted that in spite of Nigeria’s huge opportunities, investment inflow would continually deteriorate if the economic managers of the country do not address the volatility and liquidity in the forex market.

Kitchen again stated that the present consultations by the MSCI Frontier Market Index which could potentially get Nigeria removed from the indexes was a bad outlook for the country’s equities market. He however emphasized the need for the incoming administration to curb the prevailing forex issues. He stressed that key issues like policy stability and stable foreign exchange policies would immensely spur activities, stimulate investments and cause an imminent boom in the market.

Regulators urged to consider incentives that would attract PFAs to invest.

He also encouraged regulators to consider incentives that would attract the Nigerian Pension Funds Administrators (PFAs) to further invest in equities and not the fixed market income. The Chief Executive Officer of NGX, Temi Popoola however indicated that the Exchange was readily available to work with the incoming administration to enhance sustainable economic growth. Popoola noted that numerous strategic measures had been mapped out to help position NGX as a viable support platform for the incoming administration. He stated that with Nigeria’s tax to Gross Domestic Product (GDP) being the lowest in the world with 6 percent, the NGX could help with sourcing for capital to boost the country’s revenue.

The NGX Executive Officer disclosed that the total trade turnovers of 2022 witnessed an improvement by 27 percent from N916 billion in 2021 to N1.16 trillion in 2022. He thus indicated that the recent approval of the NGX Technology Board listing rules would help the management intensify their efforts in attracting more technology companies which would in turn, deepen the company’s capital formation in the technology industry. He also pointed out that exchanges would work to enact more strategic partnerships with financial institutions.

Exchange to develop youth participation by creating digital asset products.

This strategy, Popoola said, would help immensely in developing the market. He added that Exchange was also close to a USSD launch, a collaboration with Telcos and banks to enhance the African capital market via payment integration with Afreximbank’s Pan African Payment Settlement System. Jude Chiemeka, Exchange’s Divisional Head in Capital Markets also indicated that the firm was focused developing youth participation by creating digital asset products which would be powered by blockchain technology.


Related Link

Human Rights Watch: Website


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Ask Nigeria
Admin
1 year ago

Poll helps to restore investors’ confidenceFair election posed to attract new capital and forestall funds poll. – Express your point of view.

Abusi
Abusi
Member
1 year ago

The Nigerian exchange group are really trying their best to see from what perspective the economy can be improved upon. The creation of Blockchain for youth participation is a also a good idea.

Adeolastan
Adeolastan
Member
1 year ago

The 2023 election will really determine how the country goes,it will either made us or alternatively but the may issue is that if the election is free,fair and credible it will really have good impact on all area of our life be economy or social.

Godsewill Ifeanyi
Godsewill Ifeanyi
Member
1 year ago

A great number of individuals and groups have voiced their concerns about the urgent need to put a stop to election fraud and guarantee that the will of the people is honored.

Adesanyaj72
Adesanyaj72
Member
1 year ago

Due to its importance in enforcing a social and economic status quo, the next election in Nigeria has been called “one of the most critical elections in the country’s history.”

Taiwoo
Taiwoo
Member
1 year ago

This would be of particular assistance in paving the road for the newly elected administration to salvage the remaining macroeconomic issues that have wrecked the economic growth of the country, particularly the foreign exchange crisis.

Kazeem1
Kazeem1
Member
1 year ago

However, many with expertise in the financial markets have joined the chorus of those calling for elections that are free, fair, and trustworthy.

Tonerol10
Tonerol10
Member
1 year ago

Poll helps to restore investors’ confidence. This fort coming election will determine the country economy. If will choose wrong it affect the country. So we need to choose right

Nwachukwu Kingsley
Nwachukwu Kingsley
Member
1 year ago

If the economic administrators of Nigeria do not address the unpredictability and availability in the FX market, the country’s investment inflow will continue to decline, despite the enormous prospects that exist in Nigeria.

Hassan Isa
Hassan Isa
Member
1 year ago

The company’s primary focus was on expanding young people’s engagement in the cryptocurrency market by developing digital asset solutions that would be driven by blockchain technology.

Chibuzor
Chibuzor
Member
1 year ago

The management should step up their attempts to bring in additional technology companies, which would ultimately lead to a greater level of capital formation for the company in the technology area.

Tolaniiii
Tolaniiii
Member
1 year ago

This will either make or break us, but if the election is fair and credible, it will positively affect every facet of our lives, economic and otherwise.

Ultra0711
Ultra0711
Member
1 year ago

The group effort is worth it. For the upcoming election to have a positive impact on all facets of our lives, we must make every effort to make sure it is free, fair, and credible.

Christiana
Christiana
Member
1 year ago

Investor confidence is boosted by the poll results. The fate of the country’s economy rests on the outcome of the upcoming election. Weaken the nation if you make a bad decision. For this reason, we must make the correct decision.

Bola12
Bola12
Member
1 year ago

Despite Nigeria’s huge potential, investment inflow would drop if the country’s economic administrators don’t handle the FX market’s unpredictability and availability.

Haykaylyon26
Member
1 year ago

A free and fair election is all we want to appoint the one we elect our self not a fraud election we need to be doing thing right thing for the sake of the country

Iyanu12345ogg
Iyanu12345ogg
Member
1 year ago

The key issues like policy stability and stable foreign exchange policies would immensely spur activities, stimulate investments and cause an imminent boom in the market. This Exchange were available to work with the incoming administration to enhance sustainable economic growth.

theApr
theApr
Member
1 year ago

Many individuals and groups have voiced concerns about the necessity of preventing electoral fraud and making sure that the will of the people is upheld. This election will be a defining moment for Nigerians

Remi1
Remi1
Member
1 year ago

This would be especially helpful in clearing the way for the newly elected administration to resolve the lingering macroeconomic problems that have severely hampered the nation’s economic expansion, especially the foreign exchange crisis.