By MICHAEL EBOH

NIgerian investors and their counterparts in the global financial community should gear up for tough times in capital markets across the globe in the current year, according to Chief Executive Officers of multinational companies. The chief executives also predicted a further decline in the global economy in 2012.

Sixty four per cent of the chief executives who participated in a survey conducted by PricewaterhouseCoopers  (PwC) predicted instability in the capital market in 2012. According to the report of the survey presented in Lagos, yesterday, 56 per cent of the respondent also complained about the activities of regulators, identifying their operations as ‘over regulation.’

About   48 per cent of the 1,258 Chief Executive Officers surveyed worldwide by the 15th annual PricewaterhouseCoopers  (PwC) survey, believed the global economy will decline even further in the year  2012, while 15 per cent  expressed optimism of an improvement in the global economy in the next 12 months.

According to the report, 57 per cent  of Africa’s Chief  Executive Officers, are very confident that over the next 12 months — the highest percentage in any region, and the only region to register a percentage increase in ‘very confident’ responses from last year.  The report also explained that 64 per cent expect instability in the capital market in the next 12 months with 56 per cent complaining about over regulations

Olusegun Aganga, Trade & Investment Minister

PwC explained that by comparison, global confidence is down year -on-year by   40 per cent of global CEOs are very confident of revenue growth over the next 12 months, compared to 47 per cent last year.

Reacting to the report, Managing Partner, PwC  Nigeria, Mr. Ken Igbokwe  said  “CEO confidence is decidedly down as they deal with the aftershocks to the recession. CEOs are disappointed with the course of the global economy and the pace of recovery. The optimism that had been building cautiously since 2008 has begun to recede.”

He added “The ongoing debt crisis in the European Union, along with other lingering economic uncertainties, have deflated confidence in business growth around the world.  Even the fast growing economies of Asia and Latin America are not immune to the realities of continued economic stagnation, bellying the notion that the global economy has decoupled.  CEOs all around the world are concerned about the health of the global economy.

“The good news is that the long cycle of the slowdown has taught CEOs how to manage their businesses with ever greater efficiencies,” Mr. Igbokwe added. “CEOs now say they are better prepared to deal with an economy defined by volatility in global markets, weak demand in developed economies, and uncertainty in the emerging markets. African CEOs in particular are confident they can deliver revenue growth despite the difficult conditions.”