•Advocates support for investment products
By Babajide Komolafe
FSDH Merchant Bank has projected further decline in the inflation rate to 11.23 percent in April.
The inflation rate dropped for three consecutive months from 11.44 percent n December to 11.25 percent in March.
This trend according to FSDH Merchant Bank continued in April but could be reversed in the coming months should there an adjustment to the pump price of petrol.
Head of Research, FSDH Merchant Bank stated this at a media presentation of the bank’s monthly economic and financial markets outlook for May titled: “Investment Opportunities in the Nigerian Financial Market”.
He said: “FSDH Research expects the April 2019 inflation rate to drop marginally to 11.23 percent from 11.25 percent in March. Inflation rate may remain in the low double digit in the remainder of 2019. Possible adjustments to the pump price of Premium Motor Spirit (PMS) and electricity tariff may shift the inflation curve by 2.5 percent.”
Meanwhile the bank has called for increased efforts to enlighten the public about the savings and investments products in the financial market in order to enhance savings in the country.
Akinwunmi said: “Despite the growth in the savings and investment products in Nigeria, the country still records low savings and investments
“The ratio of Gross National Savings to the Gross Domestic Products (GDP) in Nigeria is one of the lowest among some selected countries including Nigeria, Kenya, South Afica, India, Malaysia, China, United Kingdom, and USA
The ratio of total investment to GDP in Nigeria is the lowest among the selected countries
“FSDH Research notes, however, that these investment instruments need more supports than are currently available to enable existing and potential investors to fulfil their wealth creation and developmental goals.
“The first support needed is enlightenment. But government through the DMO, SEC, CBN can embark on publicity, both in the television and in the print media to create more awareness. They have done it before, they can do more.”