As the second wave of the coronavirus rages, with overwhelming effects on the economy, Tony Edeh, managing director, Norrenberger, a financial group, has urged on the Federal Government to articulate a policy framework that would encourage investment inflow into Nigeria.
Edeh also wants the government to, on its own, massively invest to upgrade dilapidated infrastructure in the country. He believes this will open up more investment opportunities for the private sector players.
“There must be an articulate policy, bold reforms that would open up the economy for investors. A steady reopening of the Nigerian and global economy should improve some of the contraction we saw in Q2-Q4 2021. Beyond the challenges from lockdown, purchasing power of Nigerians continue to decline which is a challenge for manufacturing companies as they are unable to increase prices despite alleviating import costs,” the MD said in Abuja during a media interaction with select newsmen.
According to him, focusing of the investment in infrastructure and friendly regulators should improve the operating environment in these sectors and hopefully spur growth.”
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On the performance of the investment market pre and post-covid, Edeh said: “The Nigerian money market suffered huge losses in 2020 due to the economic impact of Covid-19, however, the stock and equities market rebounded at the end of Q3 of the year.
“The all share index (ASI) which had fallen 8.8 percent by mid-year, appreciated by 9.6 percent in Q3 to close at 26,831.76 points at the end of September gaining investors N1.3 trillion,” he said.
Speaking on the impact of Covid-19 on the economy, he said, “In 2021, the most visible and immediate spillover of Covid was the drop in the price of crude oil, from nearly 60 dollar per barrel to as low as 30 dollar per barrel in March.
Making further suggestions on way forward, Edeh said: “We must ensure that our policies are well-aligned with unfolding global realities by repositioning to get a good share of the post- Covid financial opportunities.
“We must push for large foreign direct investments and remittance in flows as our main source of external liquidity, and deploying those into transport and energy infrastructure to boost stability, growth, and trade.
On the latest Finance Act provision for unclaimed dividends and dormant accounts, he said: “Federal Government having access to these funds provides an avenue for increased financial capacity to manage cost-intensive projects and infrastructure development that could have a drastic and beneficial impact on the daily lives of people in Nigeria.”
The unclaimed funds, he noted, could also be used to provide loans to MSMEs and other entities, which could generate employment and alleviate some of the negative impacts of the coronavirus on the economy.
