… Sees inflation, monetary tightening easing in 2023
… Ask govt to privatise moribund parastatals through listing not selling to core investor
By Peter Egwuatu
The Chartered Institute of Stockbrokers, CIS, yesterday, emphasised five key fiscal policy and monetary imperatives that would enhance the Nigeria’s economy to its expected growth rate in 2023.
The President of CIS, Mr Oluwole Adeosun, while reviewing the performance of the Institute and forecast for the economy in 2023 said: “The economy in 2022 was very resilient despite the harsh global and internal environment but we foresee this year to be better than the previous year. We are optimistic on Nigeria’s economic growth in 2023.”
The Institute noted that the Nigerian economy is going through a tough period with headwinds, including imported inflation, huge debt service-to-revenue ratio, high exchanges rates, forex scarcity, devaluation of currency, budget deficit of N12 trillion in 2023, removal of fuel subsidy on petroleum price, insecurity and uncertainty about the outcome of the upcoming presidential election amongst others.
Speaking at a separate time during the conversation organized by CIS on “ The Nigerian Economic Review of 2022 and Outlook for 2023”, two prominent stockbrokers, Professor Uche Uwaleke, President of Association of Capital Market Academics and Mr Ayo Ebo, Chairman, Research and Technical of CIS, who spoke on the “Macroeconomic Performance and the Capital Market” and The Nigerian Economic Review of 2022 and Outlook for 2023 respectively assured the investing public that the economy had strong potential to bounce back this year.
They however urged whoever emerges the Nigerian President after this year’s election to address structural issues that militate against the country’s economic development.
“Contrary to projections in several quarters, government’s fiscal position is likely to improve in 2023 on account of the following: Improvement in crude oil revenue from increase in crude oil production, assuming crude oil price does not disappoint and incidence of oil theft continues to go down. Savings from fuel subsidy removal will increase in government revenue. Implementation of Finance Act 2022 and unification of exchange rates will boost economic growth and development” says Uwaleke.
He added: “The privatisation of moribond parastatals should not be sold to core investor rather it should be done through the stock exchange and be listed. We might also see the easing of inflation and monetary tightening this year once insecurity and oil theft is reduced.”
Corroborating him, Ebo stated that expected higher crude oil would increase government revenue in the year.
“Goods account balance is expected to recover in 2022 due to higher crude oil prices. In 2023, the goods account is expected to benefit from reduced forex outflow on petroleum motor spirit ( PMS ).
Importation, following the coming onstream of Dangote’s refinery and promotion of non-oil export. Increase spread of working-class Nigerians in the diaspora is expected to continue supporting the strong performance of the transfers account, especially, the remittance component. Political stability post-2022 and more market-oriented policies of the new administration are expected to drive a steady recovery in portfolio inflows over the medium term. An optimal growth rate for Nigeria is between. 5% and 7 % per annum” Ebo said.
Speaking on “The CIS Scorecard” Adeosun, also explained that the Nigerian economy would experience growth during the year, listed many achievements of the Institute in the review period and stated that the Institute shall pursue its advocacy roles with renewed vigour
“In 2023, we shall be working to increase the number of Nigerian Universities offering both Post-Graduate and Bachelor’s Degree courses in Securities and Investment / Capital Market Studies. We shall be pursuing more vigorously, activities to promote Capital Market Literacy across the entire geo-political zones of Nigeria.
In furtherance of our ‘Catch Them Young campaign, we shall make deliberate efforts to penetrate the university campuses more rigorously and effectively. The CIS Academy will work even harder to bring affordable world class training to our members, in emerging areas like Derivatives, etc.”,Adeosun said.