Business

September 4, 2023

SEC optimistic Tinubu’s reforms’ll stimulate economy

SEC optimistic Tinubu’s reforms’ll stimulate economy

Tinubu

By Yinka Kolawole, with agency report

The Securities and Exchange Commission (SEC) has said that the economic reforms initiated President Bola Tinubu is capable of revitalizing the Nigeria’s economy.

Director General, SEC, Lamido Yuguda, in a statement on Saturday, said the reforms are intended to revitalise the country’s economy and improve the standard of living of Nigerians.

Yuguda recalled that on the president’s first day in office, there was a remarkable 5.23 percent surge in market capitalisation at the Nigerian Exchange Limited (NGX), driven by “optimistic anticipation of market reforms”.

“It is a fact that there are prevailing challenges arising from demanding macroeconomic conditions, constrained consumer spending, and rising operational costs.

“Despite these challenges, there remains a shared sense of optimism that ongoing rigorous reforms will rejuvenate the nation’s economy.

“I therefore pledge the resolute support of the Capital Market to the Federal Government in navigating these challenges for the country’s brighter future.”

Yuguda said Nigeria outperformed global indices on gains in the all-share index (ASI) and market capitalisation in the first half of 2023, an indication that the economy is being reflated.

Last Tuesday, Nigerian stocks recorded remarkable gains as the All-Share Index (ASI), which measures the overall performance of equities, hit its highest level ever.

The ASI of the Nigerian Exchange Limited (NGX) rose by 0.51 percent to 66,490.34 basis points from 66,151.38 recorded the previous day, thus surpassing the high of 66,371.2 basis points, set more than 15 years ago on March 5, 2008.

The SEC boss attributed the performance to several factors, such as “the appealing dividend yields offered by certain stocks, the recovery of corporate earnings, and a notable improvement in sentiments” among domestic retail investors.

“All the indicators reflecting investors’ involvement – including volume, value, and the number of transactions – had demonstrated consistent month-on-month increases throughout the first half of 2023,” he said.