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.
“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.
The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.