In just one year of the President Muhammadu Buhari administration, the Nigerian stock market crashed by N1.732 trillion as against the N11.658 trillion market capitalization was as at May 28, 2015. According to a report by Punch newspaper, in the first quarter of 2016, the All-Share Index also crashed to 28,902.25 basis points from 34,310.37 basis points as the equity category lost over N1.053tn in the first quarter of 2016. The market capitalisation of the NSE fell by N811bn in the first 10 weeks of trading this year. READ ALSO: Made-in-Nigeria products is our priority – FG announces The NSE market capitalisation dropped from N9.75tn on January 4, 2016 to N8.939tn 10 weeks into the year, while the All-Share Index also closed at 25,988.40 basis points from the 28,643.67 basis points recorded on the first trading day of the year. Investors had also made huge losses in the Nigerian equities market last year as the market capitalisation (equities only) of the NSE shed a total of N2.354tn between December 2014 and December 2015. An analyst quoted in the report said in the last one year, the efficiency of the country’s economy had been constrained by policies – monetary and fiscal. He noted that the country had not been able to chart the right path in the past one year, saying some actions by the Federal Government in recent times had shown a rethink especially in the partial deregulation of the petroleum downstream sub-sector and the flexible foreign exchange market. “Our concern is that this flexibility must mean flexibility in the whole sense of it. We’ve seen the capital market make progress recently owing to these. Any attempt by the government to interfere again could drag us back significantly,” Mr Tola Oni, an analyst at WSTC Financial Services Limited said. But the President, Nigerian Stock Exchange, Mr Aigboje Aig-Imoukhuede, has said the capital market must facilitate capital raising for economic growth as well as mobilise savings for investment.
“Nigeria is facing a huge growth challenge. Nigeria, indeed, has a big challenge in terms of growth. Employment rate must grow owing to the fact that the population is also growing very fast. Growth is difficult to realise; so, government must stimulate growth. “Nigeria is only exaggerating the impacts of falling oil prices now. This is because with a robust financial market the economy can be sustained. The financial market must be encouraged.” He described the Nigerian financial market as a ‘high-risked’ market, saying the situation was capable of attracting limited investors who could ultimately stop at nothing to maximise returns. Meanwhile, here are five Jonathan’s mistakes Buhari repeated in his one year in office.