Friday 18th August, 2017
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NSE boss predicts 0.6% GDP growth in 2017

NSE boss predicts 0.6% GDP growth in 2017

The Chief Executive Officer of the Nige­ria Stock Exchange (NSE), Mr Oscar Onyema has predicted that Nigeria’s economy would recover from recession in 2017 with a mod­est Gross Domestic Product (GDP) growth forecast of 0.6 per cent.
 
Onyema stated this at the NSE 2016 Market Recap and Outlook for 2017, in Lagos, on Thursday.
 
He expressed optimism that the nation’s economy and the equity market would re­bound in 2017 with the right economic policies and strate­gies.
 
He said that the economy would be driven by vigorous fiscal policy implementation with focus on articulation of desired goals.
 
He said that lower rates of disruptions to oil infrastructure from resolution of the Niger Delta conflict would increase foreign exchange inflows.
 
Onyema added that rise in crude oil prices above the Federal Government’s bud­get benchmark of 42.5 dollars per barrel and positive impact of the war against corruption would enhance investor con­fidence.
 
“We are cautiously opti­mistic, as consensus estimates suggest a moderate recovery for Nigeria in 2017, provided that policy makers implement the right combination of policy measures,” Onyema said.
 
He assured investors that the exchange would promote its unique value proposition to both global and domestic in­vestors to increase market ac­tivities.
 
“Monetary policy will con­tinue to play a vital role in de­termining activity in the mar­ket,” he said.
 
Onyema said that the Ex­change would work with poli­cy makers to drive policies that would free up the system and promote ease of doing business in Nigeria.
 
The chief executive officer called for an incentive schemes for sectors of the economy that could support export for en­hanced foreign exchange earn­ings.
 
According to him, systemat­ic removal of impediments to doing business and reduction of leakages will attract private sector investments.
 
He explained that the NSE would focus on achieving its goal of becoming a more agile and demutualised exchange in future.
 
Onyema added that the ex­change would also hasten ef­forts toward developing innova­tive products such as exchange traded derivatives to provide investors with tools to better weather economic realities in 2017.
 
He gave the assurance that the NSE would enhance its cross-border integration efforts via African Securities Exchange Association (ASEA) and Afri­can Capital Market Integration (WACMI) programmes to en­hance capital market liquidity.
 
“We will also continue our engagement efforts with the government to promote the listing of privatised state-owned entities as well as engage with the private sector issuers for listings across all of our prod­uct categories,” Onyema stated.
 
On the market performance in 2016, he said that the NSE Industrial Index recorded the steepest drop of the year, drop­ping by 26.37 per cent due to se­vere difficulties faced by com­panies in accessing capital for imported raw materials.
 
Onyema stated that the NSE All-Share Index in 2016 dropped by 6.17 per cent to close at 26,874.62 compared with 28,642.25 posted in 2015.

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