– The Nigerian Stock Exchange market has lost N1.732 trillion in one year of Buhari’s administration

– The market crashed by N1.732 trillion as against the N11.658 trillion market capitalization was as at May 28, 2015

Floor of the Nigerian stock exchange
In just one year of the President Muhammadu Buhari administration, the Nigerian stock market crashed by N1.732 trillion as against the N11.658 trillion market capitalization was as at May 28, 2015.

According to a report by Punch newspaper, in the first quarter of 2016, the All-Share Index also crashed to 28,902.25 basis points from 34,310.37 basis points as the equity category lost over N1.053tn in the first quarter of 2016.
The market capitalisation of the NSE fell by N811bn in the first 10 weeks of trading this year.

The NSE market capitalisation dropped from N9.75tn on January 4, 2016 to N8.939tn 10 weeks into the year, while the All-Share Index also closed at 25,988.40 basis points from the 28,643.67 basis points recorded on the first trading day of the year.

Investors had also made huge losses in the Nigerian equities market last year as the market capitalisation (equities only) of the NSE shed a total of N2.354tn between December 2014 and December 2015.

An analyst quoted in the report said in the last one year, the efficiency of the country’s economy had been constrained by policies – monetary and fiscal.

He noted that the country had not been able to chart the right path in the past one year, saying some actions by the Federal Government in recent times had shown a rethink especially in the partial deregulation of the petroleum downstream sub-sector and the flexible foreign exchange market.

“Our concern is that this flexibility must mean flexibility in the whole sense of it. We’ve seen the capital market make progress recently owing to these. Any attempt by the government to interfere again could drag us back significantly,” Mr Tola Oni, an analyst at WSTC Financial Services Limited said.

But the President, Nigerian Stock Exchange, Mr Aigboje Aig-Imoukhuede, has said the capital market must facilitate capital raising for economic growth as well as mobilise savings for investment.

Mr Aig-Imoukhuede said part of the strategies was a broad consensus on sectorial priorities for growth, which should feed into policy formation.
“Nigeria is facing a huge growth challenge. Nigeria, indeed, has a big challenge in terms of growth. Employment rate must grow owing to the fact that the population is also growing very fast. Growth is difficult to realise; so, government must stimulate growth.

“Nigeria is only exaggerating the impacts of falling oil prices now. This is because with a robust financial market the economy can be sustained. The financial market must be encouraged.”
He described the Nigerian financial market as a ‘high-risked’ market, saying the situation was capable of attracting limited investors who could ultimately stop at nothing to maximise returns.

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This is one area that this Government is not doing well...the handling of the economy. I have been saying this at different fora that that the tripod foundation of Buhari regime (corruption, insecurity and the economy) the weak link is still the economy which is the foundation upon which the two are suppose to be build upon.

To me, PMB got it wrong in that regard. It's very good to diversify. In short, it's the best thing to do now. But my grievance is that the government aught to have inject the economy with enough capital before carrying out some of these policies through implementation of the budget.

You will agree with me that the strength of the financial system determine the level of investors we can woo into our economy. With our current poor financial system orchestrated by fallen oil prices and rigid foreign exchange regime that is now reversed, no meaningful investors will contemplate to thrust in his/her investment into such an high-risk environment. As a student of monetrist economics, I strongly believe that the way out of this quagmire is for the government to spend us out. Government should as a matter of urgency raise her investment expenditure by investing heavily to diversify not this social investment gimmick she currently proposes. Free money to people does not help the economy, it only cause more inflation. John Maynard Keynes of blessed memory once said that if the economy is meshed in recession with no visible solution at sight, he proposes that Government can in worst case scenario pay labor to dig a whole and pay for it to be fill up. What this mean is that government at all time must spend itself out of recession.

Having done well in the fight against insecurity and corruption in the last one year, failure to improve our economy will amount to nothing. This is so because, the economy which is the life wire of the nation without which the security and corrupt free nation cannot be attain as insecurity and corruption thrives best in an underdeveloped economy. I am appealing to the government to adjust her priority to give more emphasize on the economy.

Na only una shock o, the dulllard with ear infection no fit shock reasonable Nigerians except Zombies

I now see the reason behind the crazy figures they were giving as being lost under the past administration. Anything to cover for their flaws.

We lost more than this every month through corruption in the last 16 years!


Let's be patient! Support the good fight!

And the looting continues.

Buhari is DOA

Which way, Nigeria?