By Elizabeth Adegbesan
Contrary to popular positions on the impact of the electioneering season on the Nigerian economy and the investment environment, some leading stakeholders in the financial sector have projected stability in the economy pre-election, while expecting a slowdown post-election.
The stakeholders spoke over the weekend at a discuss titled: “Doing Business in Nigeria-Lagos 2019”, where Mr. Sonnie Ayere, Chief Executive Officer, Dunn Loren Merrifield, a Lagos based investment house, said that this period of election is a period to buy shares as an investor.
He stated: “I believe that the election will come and go. From my business standpoint there are no implications, although, a bit of uncertainties, given that all of us are being pessimistic.
From an investment stand point, if I am an investor, it is time to buy. If you look at the stock market today, shares are being traded at prices far lower than comparable foundations across similar economies in Africa and the world. I think the economy will even slow down a bit after the election but towards the end of the second quarter things will pick up again”.
Managing Director, Sun Trust Bank Limited, Mr. Ayo Babatunde said: “In terms of what will happen in the Nigerian economy in 2019, we have a long term this season. This is a good time to buy Nigerian stocks.
So, we have to take cognizance of the fact that between now and maybe the middle of the year, the country will join a flat line mostly because of uncertainties and also because of two things. One is, you are looking at what would happen if the Peoples Democratic Party, PDP, should win and if there will be a change in policy and so on and so forth?
The other is if the All Progressive Congress, APC, wins, which means business as usual. So investors are weighing those two options and because of that most people will say ‘I will just hold forth until I know the options of the economy’.”
Also speaking, Mr. Micheal Orimobi, Global Chairman, Tokunbo Orimobi Law Firm, organizers of the event, said that the event was to celebrate the 40th year anniversary of the Law Firm, as well as Launch ‘Gnosis’ the 3rd edition of the firm’s annual economic outlook and also launch the Tokunbo Orimobi Foundation.