Nigeria's capital market, world's worst hit
*GDP to drop from 6.3% to 3.6%
LAGOS—THE Nigerian Stock market has been rated as the worst performing in the world for the month of January, according to a report published by a London-based research company, Business Monitor International (BMI). It also said that the country’s Gross Domestic Product (GDP) will drop from 6.3 per cent in 2008 to 3.6 per cent in 2009.
This is coming barely 24 hours after members of the House of Representatives raised the alarm on the state of the nation’s economy, alleging that the nation’s economic managers have been economical with the truth, prompting organised labour to call for the immediate sacking of both the Governor of the Central Bank (CBN), Professor Chukwuma Soludo and the Minister of Petroleum, Dr. Rilwanu Lukman over perceived faulty monetary policies resulting to the continuous devaluation of the Naira as well as crisis in the nation’s oil industry, which have put the nation’s economy in a fragile situation.
Meantime, the Federal Government yesterday issued a N50 billion bond in three tranches that will mature in 20 years, five years, and three years.
Business Monitor International which advises foreign investors on where to put their money said: “You could not have done much worse than investing in the Nigerian stock market in 2009.
With the Lagos All-Share Index down 27.5 per cent since January 1, it’s the worst performing equity index in the world so far this year. Add to that a 9.2 per cent drop in the currency, and you are looking at a third of your investment gone in one month.”
Speaker of the House of Representatives, Dimeji Bankole, had on Wednesday painted a gloomy picture of the stocks market before the captains of industry.
The value of the market, he said, has dropped from N14 trillion to N5 trillion due to the global financial meltdown.
He said there was a need for innovative and “serious hard creative thinking” to solve the problem. He said: “Our experience has indicated that the global turmoil has affected Nigeria’s economy in the areas of capital flight, exchange rate of the naira, upward pressure on inflation and dwindling foreign reserves.”
*GDP to drop from 6.3% to 3.6%
LAGOS—THE Nigerian Stock market has been rated as the worst performing in the world for the month of January, according to a report published by a London-based research company, Business Monitor International (BMI). It also said that the country’s Gross Domestic Product (GDP) will drop from 6.3 per cent in 2008 to 3.6 per cent in 2009.
This is coming barely 24 hours after members of the House of Representatives raised the alarm on the state of the nation’s economy, alleging that the nation’s economic managers have been economical with the truth, prompting organised labour to call for the immediate sacking of both the Governor of the Central Bank (CBN), Professor Chukwuma Soludo and the Minister of Petroleum, Dr. Rilwanu Lukman over perceived faulty monetary policies resulting to the continuous devaluation of the Naira as well as crisis in the nation’s oil industry, which have put the nation’s economy in a fragile situation.
Meantime, the Federal Government yesterday issued a N50 billion bond in three tranches that will mature in 20 years, five years, and three years.
Business Monitor International which advises foreign investors on where to put their money said: “You could not have done much worse than investing in the Nigerian stock market in 2009.
With the Lagos All-Share Index down 27.5 per cent since January 1, it’s the worst performing equity index in the world so far this year. Add to that a 9.2 per cent drop in the currency, and you are looking at a third of your investment gone in one month.”
Speaker of the House of Representatives, Dimeji Bankole, had on Wednesday painted a gloomy picture of the stocks market before the captains of industry.
The value of the market, he said, has dropped from N14 trillion to N5 trillion due to the global financial meltdown.
He said there was a need for innovative and “serious hard creative thinking” to solve the problem. He said: “Our experience has indicated that the global turmoil has affected Nigeria’s economy in the areas of capital flight, exchange rate of the naira, upward pressure on inflation and dwindling foreign reserves.”