Investors in
anxious wait for president’s first remark in 105 days
Financial market
operators and investors, both local and international, are waiting
anxiously to
take dramatic investment decisions as President Muhammadu Buhari makes his
first official speech on the economy in 105 days.
The wait is
based on an assessment by financial experts that the socio-political economy of
the country has recorded significant progress in Buhari’s absence, which stands
to be validated or reversed by his speech today and subsequent decisions.
Specifically,
the Niger Delta threats have been managed, resulting in increased oil
production and earnings; the foreign exchange market has witnessed changes that
brought about relative stability of the naira; and businesses are gradually
rebounding with improved numbers as reforms pick up.
In a
statement, Buhari’s Special Adviser on Media, Femi Adesina, said: “President
Buhari is expected to speak to Nigerians in a broadcast by 7 a.m.” today.
Frontline
economist, Bismarck Rewane, said everything was pegged on his broadcast today,
which would be highly priced as long as it is in a positive direction.
“Acting
President Yemi Osinbajo has done a great job so far, Buhari only needs to
sustain it, perhaps building more on it. By his speech today, we would need to
get a new sense of direction in plugging leakages.
“The market
is ready to respond and it will be positive as long as the content of the
speech is positive too. So, let the activities begin,” Rewane said.
The Managing
Director of Afrinvest Securities Limited, Ayodeji Eboh, said the market was
anxious to know the content of the broadcast, as investment decisions are
always responsive to information and its meanings.
He said an
articulate presentation, admittance of economic progress during his absence and
practical new directions would surely impact market activities from today and
translate to a validation of decisions reached before now.
“The market
needs reinforcement of promises made earlier, clear support for foreign
exchange reforms, expressed zeal to pursue infrastructure projects and an
affirmation of the level of implementations so far, re-invitation to private
sector partnership, and continued drive against corruption, with new clear
strategies.
“Perhaps,
the best way to go is to formally empower the vice president to charge the
economy, while the president tackles the corruption aspect. The economy needs
drastic decisions and the vice president seemed to have mastered the art,” he
said.
But a
financial expert, Egie Akpata, said he was doubtful if anything substantial
would happen in the market, given that Buhari’s return might have been priced
into activities already in the recent past days.
“Although
his return on Saturday was not anticipated, judging from pictures of various
visits, videos and reports about doctor’s confirmation of his health status, it
was obvious that he would soon be back. Everything might still go back to
status quo, but let’s get the broadcast first,” he said.
At the
weekend, the financial market that had long been in high gear, saw the
interbank’s overnight lending rate falling to an average of 12 per cent from 60
per cent a week ago.
This was a
result of the repayment of matured treasury bills and a refund of excess cash
deposited by banks to buy dollars by the Central Bank of Nigeria (CBN).
CBN had sold
$100 million at its special intervention auction in the foreign exchange market
earlier in the week, less than the amount demanded by banks, leading to a
refund of the excess deposits.
Consequently,
the parallel market rate remained at N366 per dollar, while the interbank
official rate remains below N306 per dollar and the investors and exporters’
window priced the naira at N367 per dollar.
Also, the
All-Share Index of the Nigerian Stock Exchange rose by 1.66 per cent at 36,920
points after bargain hunters returned to take positions in the financial sector
stocks.
Meanwhile,
mixed reactions are trailing the return of Buhari at the weekend after over 100
days of medical vacation in London, United Kingdom.
While the
Deputy National Chairman (South) of the APC, Segun Oni described the home
coming as a soothing balm on the fragile political atmosphere in Nigeria, an
industrialist, Olusegun Aderemi said the president should apologise to Nigerians
who have been aggrieved by his absence.
In a
statement by his media aide, Mr. Steve Alabi in Ado-Ekiti yesterday, Oni said
that “seeing Buhari in good health has put a lie to the wishes of those who
don’t wish the nation well.”
Oni advised
those he called Buhari antagonists to stop playing politics with every issue,
especially when it touches on health, saying, they are not God.
But Aderemi
who spoke with newsmen at his country home in Aramoko Ekiti, said Buhari should
not blame those who are aggrieved by his long absence, noting that it was their
right as citizen to do so.
He said that
though it was not the wish of President Buhari to stay away from the country
for over 100 days, as a democrat, he should apologise to those who felt
strongly about his absence.
“As
president, and having survived such a critical health condition, it is expected
that he should apologise to Nigerians who have been aggrieved by his absence.
“I know that
no reasonable leader would want to go away for a long time and leave his duty
behind if not for his health challenge. It has been a situation beyond the
president’s control and so we have to bear with him,” he said.
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