Perceived Regulatory Problems Hinders Foreign Investment, Says Stanbic IBTC
The Chief Executive, Stanbic IBTC Stockbrokers Limited, Mrs Titi Ogungbesan, says perceived private sector challenges with regulators reduced foreign investment in the capital market.
Ogungbesan said in an interview with journalists that stifled consumer spending also led to more caution and the withdrawals by foreign portfolio investors in the market.
She noted that since the country got out of recession in 2017, there had been a lot of optimism about the growth trajectory, but that the trajectory was stifled by external and internal headwinds last year.
She said, “Nigeria was affected by the emerging market sell-offs, which highlighted the risks of investing in emerging and frontier markets and caused foreign investors to be more cautious.
“The increase in the anchor rate by the Fed Reserve Bank also encouraged them to invest more in the United States, considering safety.
“The risk aversion typically associated with pre-election years has also been a factor. Internally, the continued challenge with the farmers/herdsmen clashes, perceived private sector challenges with regulators and stifled consumer spending have also led to more caution and reduced foreign investment.”
Ogungbesan stated that opportunities abound in the country, adding that proper due diligence ought to be undertaken before investment.
“Investors should seek to partner credible local stakeholders that will assist them in achieving their objectives. With our experience, which spans several decades, we are willing and able to hold our clients’ and other prospective investors’ hands to guide them through the process,” she said.
She added that the company was working with corporates and other stakeholders to encourage more participation in the capital market, especially in the area of new listings such as initial public offerings, rights issues, mergers and acquisitions.
“We will continue to collaborate with regulators in developing new initiatives and products and also embrace technology to encourage financial inclusion,” Ogungbesan added.