Some stockbrokers have assured the investing public that the economy has strong potential to bounce back in 2023.
They said this at an event organised by Chartered Institute of Stockbrokers (CIS) on: “The Nigerian Economic Review of 2022 and Outlook for 2023,” on Monday in Lagos.
The stockbrokers x-rayed the state of the Nigerian capital market in 2022 and forecast recovery in 2023 despite the headwinds and uncertainties associated with the economy.
The stockbrokers noted that the Nigerian economy is going through a tough period with headwinds, including imported inflation, huge debt service-to-revenue ratio, high exchange rates, foreign exchange (FX) scarcity, currency depreciation, and N12 trillion 2023 budget deficit, among others.
President of Association of Capital Market Academics, Prof. Uche Uwaleke, who spoke on the “Macroeconomic Performance and the Capital Market,” said contrary to projections in several quarters, the government’s fiscal position is likely to improve in 2023, as long as there is an improvement in crude oil revenue from increased production.
Uwaleke said it would also be on the assumption that crude oil prices do not drop and the incidence of oil theft continues to fall.
“Savings from fuel subsidy removal will increase the government’s revenue. Implementation of Finance Act 2022 and unification of exchange rates will boost economic growth and development,” he said.
Higher revenues
Also, the Chairman, Research and Technical, CIS, Ayo Ebo, who spoke on the Nigerian Economic Review of 2022, and Outlook for 2023 corroborated Uwaleke’s view.
Ebo said 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 on stream of Dangote’s refinery and promotion of non-oil export.”
Savings from fuel subsidy removal will increase the government’s revenue. Implementation of Finance Act 2022 and unification of exchange rates will boost economic growth and development.
According to him, increased 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 five per cent and seven per cent per annum,” Ebo said.
Also, President and Chairman of Council, CIS, Oluwole Adeosun, while presenting the CIS scorecard, explained that the Nigerian economy would experience growth during the year.
Adeosun, while listing the achievements of the institute in the reviewed period, stated that the institute would 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,” he said.
According to him, in furtherance of CIS ‘Catch Them Young campaign,’ the institute shall make deliberate efforts to penetrate the university campuses more rigorously and effectively.
He noted that the CIS Academy would work harder to bring affordable world class training to its members in emerging areas like derivatives, among others. (NAN)
