Business
Unegbu Predicts Economic Meltdown
The former President of the Chartered Institute of Bankers of Nigeria, Mr Okechukwu Unegbu, last Saturday, predicted another meltdown in the capital market with continuous dependence on foreign investors.
He said in Lagos that the market, and the general economy, would be at risk of another crash if the only or major players were foreign investors.
Unegbu said that local investors must be encouraged to ensure full participation for the recovery and growth of the Nigerian capital market.
Unegbu, who is also the Chief Executive Officer of Maxifund Investments and Securities Ltd., advised regulators to place less emphasis on foreign investors.
“Restoration of local investors’ confidence is paramount to the growth of the nation’s capital market.’’
According to him, local investors should be encouraged to come into the market “because if we are strong internally, no external enemy can defeat us.
“If the investment climate is very strong and we are making profit, people from outside, who really want to invest and develop will come.’’
Unegbu said that the nation’s capital market was made up of 80 per cent foreign direct investments, pointing out that those foreigners did not bring the best into the country.
He observed that part of the problem the capital market had, during the 2008 meltdown, was that those foreign investors dumped their shares, got any money they could and got out.
He said that there was need for complementary arrangement between regulators of the two markets in the interest of the nation’s economy.
Unegbu said that the capital market would be strengthened if banks resume lending to all sectors of the economy.
He also suggested the need to organise a road show to educate the populace on the benefits of the capital market.