By Peter Egwuatu
The Chief Executive Officer, CEO, Rekit Financial Advisors Limited, Mrs Ebere Agbogun, has said that Nigeria’s inflation rate which has risen to its highest level in more than sixteen years has eroded gains in stocks despite high interest rate boosting the outlook for the fixed income market.
Nigeria’s inflation rate was at 21.07 percent as at October 2022.
In an interview with Vanguard on the state of the economy and financial sector, she said: “A disciplined investor can plan for inflation by cultivating assets classes that outperformed the market during inflationary inclines, although traditional bonds are good for the income oriented they aren’t the only investment that produces revenue stream, I mean other investments options to hedge against inflation are USD link investments, buying in prefer shares and real estate and even commodities.”
On what is causing the rising inflation, Agbogun, said: “The deprecation or devaluing of naira, unstable economic policies, insecurities and our present election related spending are some of the factors that contribute to the current high inflation we are experiencing and Nigeria can lower its high inflation rate by implementing sound economic policies that will make a Nigeria a producer and exporter of varieties of commodities rather than been an importer and a consumer.
“Not even commodities because commodities are the natural things we find under the ground, God-given, but we need the ability to turn these commodities into products and that’s where the real insights is and Nigeria must be a producer of varieties of products not only products, but variety of products by the time we are able to manufacture these things, produce these things, then our Naira will start getting stronger.”