Stockbrokers

Some stockbrokers have assured the investing public that the economy has strong potential to bounce back this year.

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 said the Nigerian economy was going through a tough period with headwinds, including imported inflation, huge debt service-to-revenue ratio, high exchanges rates, forex scarcity, currency depreciation, N12 trillion 2023 budget deficit, among others.

Prof. Uche Uwaleke, President of Association of Capital Market Academics, who spoke on the “Macroeconomic Performance and the Capital Market,” said contrary to projections in several quarters, government’s fiscal position was likely to improve in 2023.

Uwaleke said that would be based on the account that there would be improvement in crude oil revenue from increase in crude oil production.

He, however, said that would also be on the assumptions that crude oil price would not change and incidence of oil theft continued to go down.

“Savings from fuel subsidy removal will increase government revenue.

“Implementation of Finance Act 2022 and unification of exchange rates will boost economic growth and development,” said Uwaleke.

Also, Mr Ayo Ebo, Chairman, Research and Technical, CIS, who spoke on the Nigerian Economic Review of 2022 and Outlook for 2023 corroborated Uwaleke’s view.

Ebo said expected higher crude oil would increase government revenue in the year.

He said, “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.”

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, Mr Oluwole Adeosun, President and Chairman of Council, CIS, 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.

The Chartered Institute of Stockbrokers (CIS) and Lagos Business School (LBS) have signed a Memorandum of Understanding (MoU) for training of professionals in the financial market to upscale their competence and enhance global competitiveness.

A statement from the institute on Tuesday stated that its recently inaugurated subsidiary, CIS Academy, would drive the training processes with LBS.

According to CIS, the MoU is expected to bring about comprehensive and practical trainings that cover technical and ethical needs of finance professionals.

It will also entail case studies and emerging trends in the global financial market and cement the relationship between CIS and LBS.

Commenting on the landmark MoU, the institute’s President, Mr Wole Adeosun, said that it was significant being the first time the capital market operators would collaborate with a private sector training institute.

“The Mou is quite significant in the sense that this is the first time we are having a collaboration between the capital market and a private sector training institute at Lagos Business School (LBS).

“This collaboration will provide a link between the executive education and the capital market. It will afford members the opportunity to come for more quality programme.

“The training will be much more affordable for them. It shall be well packaged to enable participants derive value. The capital market is expanding and we want as many people as possible to benefit from such collaboration.

“Our two institutions share a lot in common. We were both established at about the same time: LBS in 1991 and CIS chartered in 1992.

“We both share a common mandate to train and produce professional leaders for the Nigerian economy, and we have both acquainted ourselves remarkably in this regard, setting the pace and standards in our various jurisdictions,” Adeosun said.

The Dean, LBS, Prof. Chris Ogbechie, said that by the MoU, “two strong brands” would be coming together with similar values to improve executive capacity in the capital market.

Ogbechie said that the MoU would also make the players in the market to be more professional and to operate in more ethical way  to grow our economy.

The ceremony was attended by the institute’s 1st Vice President, Mr Oluropo Dada; 2nd Vice President, Mrs Fiona Ahimie; Registrar and Chief Executive, Mr Josiah Akerewusi and some staff of LBS.