By Peter Egwuatu

FSL Securities Limited, has projected that there will be higher level of bond activities this year given the N9.18 trillion budget deficit  that the Federal Government is expected to tackle to be able to realize its growth target.

Speaking at the FSL Securities’ Economic Review and Outlook for 2024, with the theme “Navigating the tides”, Victor Chiazor, Head of Research and Investment, said:   “Given the need to fund the budget deficit, private sector activity in the segment of the market is needed.  We see the bond market remaining active this year as money would be raised from the market to fund the deficit budget. Also, appetite for state bonds will continue to wane, but we anticipate states with high revenues to access the bond market given the number of reconstruction done on some state bonds.”

On the economy, he said: “Economic activities in the new financial year, is expected to pick up from the first quarter of 2024 as ministers and major government appointments have been made.  Year 2024 will see the federal government struggle with the current elevated debt levels as its current debt to service ratio remains significantly high.

” The equities market will likely struggle to achieve the performance reported in 2023, but will be dominated by domestic players as we expect foreign investors’  interest in the market to be low. The market will majorly be impacted by a dovish stance of the CBN and performance of companies.  The visibility of the fiscal authority is expected to improve in the year, but monetary policy for 2024 is expected to remain mixed as it will continue to monitor unfolding events and decide whether to adopt an expansionary policy or contractionary monetary policy.”