Stakeholders offer suggestions s as downturn takes toll on NSE
The revelation on Wednesday by the Nigerian Bureau of Statistics (NBS) of the nation’s inflationary figure of 17.1 per cent has begun taking a toll on the Nigerian Stock Exchange (NSE) as virtually all the blue chip companies depreciated in price at the end of the day’s transactions.
Speaking with The Guardian on the development, the Managing Director of Highcap Securities, David Adonri, said: “The market is a little bit weak and the latest NBS release on inflation is also taking its toll on the market.
“Although, the market capitalisation is up, but almost all the sectors were on the downward note.“I think government has adopted a market-based economy with its diversification measures. This model is inflationary because it is a period of correction.
“We are already going through the inflationary period of correction and if it continues, by the end of the year, the inflation level will decline because the correction would have gone far.”
To the Managing Director of Capital Bancorp Plc, Aigboje Higo, for the country to overcome the downturn, government should study every sector of the economy and identify issues impeding growth.
He also stressed the need for government to engage experts for solutions.He added: “We should get credible people that would help us to succeed. Government should look at ways to sort out the power sector issue in the next 24 months. We should draw a plan and get people to execute it. If oil price goes up to $70, we would come out of recession, otherwise, we would remain there in the next three to four years.”
The president, Independent Shareholders Association of Nigeria, Sunny Nwosu, lamented that government and regulatory authorities were not showing any sign that the country was in an economic mess.
“Government should encourage businesses to grow by giving tax incentives. They should relax most of these stringent measures of doing business in this country, especially in the areas of taxation.”
“A lot of companies are living this country. Government must ensure that local industries have access to foreign exchange to increase production,” he said.
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