Some financial experts have condemned lack of monetary policy direction and delay in the passage of the 2018 appropriation Bill in the country. Some of them who spoke to the News Agency of Nigeria (NAN) on Thursday in Lagos said the situation was presently affecting foreign investors’ confidence in the Nigerian stock market.
They said that foreign investors had slowdown their participation in the market due to the budget delay and lack of the Monetary Policy Committee (MPC) meeting.
Dr Uche Uwaleke, the Head of Banking and Finance Department, Nasarawa State University Keffi, attributed mixed performance of the market to the recent fiscal and monetary policies development.
Uwaleke said that the uncertainty resulting from the delay in the passage of the 2018 appropriation Bill was affecting market performance due to reduced investors’ interest.
He said that non-confirmation of the MPC nominees by the legislature contributed to the development with the country operating without proper monetary policy direction three months into the year.
Uwaleke said that the legislature should ensure that MPC nominees were confirmed this week in the interest of the market and economy in general. “A meeting of the MPC this month will boost investors’ confidence and impact positively on the stock market,’’ he said. Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., said that absence of MPC meeting to set the monetary tone for the year made foreign investors to slow down in their positioning. Omordion said that with the development, the liquidity level in the market was currently weak to reflect the drop in money circulation due to the MPC issue. He said that investors should target value stocks with high payout, and solid business model that support future growth irrespective of the present market performance.
