Stockbrokers optimistic on Nigeria's economic growth

• Published date: 24 January 2023
• Publication title: Nigeria - The Nation

Contrary to projections in many quarters, Nigeria's economic performance will likely improve this year with improved government revenue and major reforms heralding economic stability and growth.

This was the conclusion of leading stockbrokers who yesterday in Lagos x-rayed Nigerian economy, the state of the capital market last year and outlook in the year.

They agreed that despite the headwinds and uncertainties associated with the economy, they said the overall outlook for the Nigerian economy and the capital market remains positive.

They however called on the incoming government to undertake bold reforms and further consolidate fiscal and monetary policies in order to address structural inefficiencies in the economy and free up synergistic growth.

They noted that the Nigerian economy is going through a tough period with headwinds, including imported inflation, huge debt service-to-revenue ratio, high exchanges rates, forex scarcity, devaluation of currency, budget deficit of N12 trillion in 2023, removal of fuel subsidy on petroleum price, insecurity and uncertainty about the outcome of the upcoming presidential election, among others.

They spoke during the conversation organised by Chartered Institute of Stockbrokers (CIS) on 'The Nigerian Economic Review of 2022 and Outlook for 2023'.

The experts assured the public that the economy had strong potential to bounce back this year.

President, Association of Capital Market Academics, Prof. Uche Uwaleke, said contrary to projections in several quarters, government's fiscal position is likely to improve in the year because of improvement in crude oil revenue from increase in crude oil production, assuming crude oil price does not disappoint and incidence of oil theft continues to go down.

'Savings from fuel subsidy removal will increase in government revenue. Implementation of Finance Act 2022 and unification of exchange rates will boost economic growth and development ,' Uwaleke said.

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