Mr. Ayodeji Ebo, Managing Director, Afrinvest Securities Limited, says the equity market in Nigeria would be driven largely by seven key indices of political uncertainty as a result of the 2019 general elections, sustainable stability in the Niger-Delta region, implementation of the 2018 budget, sustenance of forex stability, new market listings and earnings of corporate firms operating in the economy.
Ebo said in a paper ‘Nigeria’s Economy and Financial Market Outlook: 2017 Review and 2018 Outlook’ that he expects the federal government to curtail current security challenges in the country to create better outlook for the 2019 elections, as well as engage in ground-breaking capital projects before the elections.
“We don’t expect the federal government to increase tariff on electricity and fuel prices because of political considerations. However, we expect stable forex regime in 2018, which would also lead to pressure. On the Gross Domestic Product (GDP), our expectation is on 2.1 percent growth.”
He advised investors to focus on treasury bills to make derive revenue in the year.
“Treasury bills is the way to go in 2018 to generate less risky revenue in the financial market. Investors should equally focus on stocks that have strong fundamentals.”
