By Peter Egwuatu
An investment expert and the chairman, Capital Bancorp Plc, Mr Tola Mobolurin, has advocated a complete review of strategy to boost investor confidence in order to re-position Nigeria’s stock market in the wake of on-going inclement operating environment characterized by downward trend in virtually all performance indicators of the Nigerian Stock Exchange, NSE.
Besides, Mobolurin who attributed Capital Bancorp’s success story spanning 30 years of corporate existence to adherence to ethical standard and innovativeness, lamented the negative effects of domination of Nigeria’s stock market by foreign portfolio investors, saying they are not committed to any market.
Speaking during Capital Bancorp’s 30th Anniversary celebration in Lagos he explained that uncertainty in the economy and fear that 2019 general election might throw Nigeria into deep crisis, among other concerns, have led to massive dumping of shares by both foreign portfolio investors and their Nigerian counterparts on the Exchange.
Mobolurin noted that the government had a duty to address uncertainty at every level of our development efforts in order to rebuild investor confidence in Nigeria.
“Everywhere in the world, politics and elections affect the stock market. I don’t think we should worry too much about it. However, people may worry about what can happen after the elections. It may turn some people totally away from Nigeria if they perceive it is an unstable country. If you scare people by giving them the impression that this is a country that is about to breakup, that is where I see a problem. Politicians need to watch their utterances.
“It is not only the foreign investors that are affected; even the Nigerian Investors do not want to keep money in this economy if they perceive that the country is going to blow up. Nigerians must demand from the government and the politicians that they need stability in the political system, economy, and currency.”
They must demand for low inflation because, that is where the prosperity of every citizen can be assured.
If our system becomes more stable and we improve in the environment for business and investment even Nigerians who have money abroad will start bringing them back here.”