The virtual event featured experts such as Ms. Patience
Oniha, Director General, Debt Management Office; Emmanuel Etaderhi, Senior Vice
President, FMDQ Group.
Others were Stephen Osho, Managing Director; Comercio
Partners Capital Ltd; Chinwe Egwim, Chief Economist, Coronation Merchant Bank;
Iyobosa Sorae, Head of Global Markets, Coronation Merchant Bank.
Delivering the keynote address, Oniha said the Nigerian economy
remains resilient despite economic and social headwinds elicited by the
COVID-19 pandemic.
The DG noted that the composition and diversification of the
country’s Gross Domestic Product and revenue base makes for more stable growth
going forward.
“The Nigerian government has introduced several reforms
which are being implemented to attract more investments, grow and further
diversify the country’s GDP and revenue.
“Nigeria remains open to investment opportunities in
securities (domestic and international markets) and direct investments in
various key projects nationwide. The government also encourages public private
partnerships”, she said.
Etaderhi, representing Bola Onadele, Koko, Chief Executive
Officer, FMDQ Group, explained that countries borrow for very valid reasons,
mostly to put them in a stronger position in terms of their economic strength.
“However, borrowing beyond the ability to pay, makes debt
unsustainable. This has impact on investments, whether external or local,
because the pricing of the instruments within the financial markets will be
affected, as well as the ability to earn externally.
“It is very important to maintain a sustainable debt level
and more importantly, to use the debt for productive purposes which can have
multiplier effect on the economy and generate more revenue.
“The government can refinance debt by looking at lower
interest borrowing instruments in the capital markets. It can also use the
instrumentality of the financial markets to stimulate economic activities that
will enable the revenue base expand exponentially.”
Banjo Adegbohungbe, Managing Director/Chief Executive
Officer, Coronation Merchant Bank, stated that coronavirus impacted adversely
on the global economy, resulting in rising debt for more developing and emerging
economies.
“Nigeria has not been left out of these complexities. Even
though we have successfully raised debt this year, it is obvious that the
challenges we face are substantial and have been exacerbated by the pandemic.
“Nevertheless, opportunities still exist. Our economy has
recovered from recession and is on a trajectory of positive growth across a
number of sectors with demonstration of positive business sentiment and
increased market activity.
“This discourse will guide all of you and provide insights
into navigating the debt market in the coming year and identifying
possibilities beneficial for growth and expansion.”
Egwim said given the current global macroeconomic
environment, fiscal balances have deteriorated, government debt across countries
has increased and sovereign balance sheets have expanded.
She stressed that though there are growing concerns around
risk aversion and investors’ appetite, there are still attractive opportunities
within Nigeria’s debt market for investors.
“This Coronation Interactive Session is an ongoing event
that will continue to provide insightful nuggets that will help investors
navigate better”, the official added.
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