ASHON, CIS suggest ways to manage recession

The Association of Securities Dealing Houses of Nigeria (ASHON) and the Chartered Institute of Stockbrokers (CIS) have outlined ways to manage a recession in the country.

They enumerated the various measures the Federal Government could evolve to manage the economy in separate interviews with the News Agency of Nigeria (NAN) in Lagos on Wednesday.

ASHON Chairman, Chief Onyenwechukwu Ezeagu, called for effective handling of the economic stimulus initiative and policy direction.

” The economic stimulus and policy direction of economic and political agents of Nigeria must be effectively handled.

“We need robust enlightenment and pursuit of complementary policy direction and an aggressive economic diversification agenda.

“This is the way to go coupled with consistency of purpose,” Ezeagu stated.

According to him, the fiscal and monetary policy initiatives must be expansionary in planning and execution to target job creation, sustenance and diversification.

He added that the private sector must dovetail to complement government’s efforts to give the economy the muscle to fight the looming economic headwinds.

Speaking on the capital market performance in the face of COVID-19, Ezeagu stated that the market had outperformed all expectations in spite of the odds.

“The capital market is an integral part of Nigeria’s economy which is currently under the huge weight of the COVID-19 pandemic and the twin scourge of oil glut.

“The consequences are that foreign exchange is going northwards by adjustment and a weakened naira has brought in its wake inflation,” he said.

The ASHON chairman, however, expressed optimism that the Nigerian capital market would outperform most other investment windows considering the looming recession.

“Astute investors that intend to preserve the value of their assets should be talking to their stockbrokers right away,” Ezeagu said.

Also speaking, Mr Olatunde Amolegbe, the President of the Chartered Institute of Stockbrokers (CIS), said the capital market had been able to cope very well with the COVID-19 pandemic.

Amolegbe noted that trading activities had not been impaired due to the pandemic.

“That has been possible because of the business sustainability measures that the market had long embraced,” he said.

Amolegbe, however, urged the Federal Government to support and build a strong capital market with necessary structures and liquidity to generate long-term investment capital for infrastructural development.

“There is a compelling need for the Federal Government to support the capital market, especially in terms of trading liquidity and grants for the CIS ‘ Capital Market Literacy function which is a national cause,” he said.

Amolegbe disclosed that the CIS requires huge capital to executive financial literacy.

He noted that it would not be out of place for the Federal Government to extend a grant to the institute for this laudable programme.

Amolegbe said in terms of economic growth, the most assured path to sustained and consistent economic growth and development was to build a strong capital market.

According to him, a capital market built with the necessary structures and liquidity will generate long-term investment capital for infrastructural development and private sector business expansion.

“The Central Bank of Nigeria is maintaining the appropriate Monetary Policy Stance regarding keeping systemic liquidity at the appropriate levels.

“We believe other fiscal policy stance that can stimulate demand and encourage resumption of production will go a long way in heading off a potential recession.

“Government should reinvigorate the ease of doing business in Nigeria,” Amolegbe added. (NAN)