Lagos – Some capital market operators have expressed fears that the ongoing national energy crisis, if not checked, would paralyse activities at the Nigerian capital market.
They told journalists in separate interviews in Lagos that the energy crisis had already affected the level of activities in the nation’s bourse.
Mr. Emeka Madubuike, President, Association of Stockbroking Houses of Nigeria (ASHON), lamented that the level of activities in the market had dropped drastically, because of the energy crisis.
Madubuike said that the stalemate had grounded the economy to a halt, adding that the capital market as the engine growth of the economy was passing through hard times.
“We are hoping that there will be clearly a vision of things by next week, with the new government,” Madubuike said.
He called on the incoming government to ensure prompt settlement of all issues affecting economic growth and development.
Dr David Ogogo, Registrar/Chief Executive Officer, Institute of Capital Market Registrars (ICMR), said that many companies would likely close shop, if the energy crisis lingers.
Ogogo said that companies had no choice rather than to close operations, to avoid incurring unnecessary overheads.
He said that the impact on the market would be negative if quoted companies declare losses due to the ongoing energy crisis that would increase the cost of operations.
“We are praying for a positive development and hoping that the whole thing is sorted out before the week runs out. If it continues this way, it will affect the market adversely,” Ogogo said.
Mazi Okechukwu Unegbu, the former President, Chartered Institute of Bankers of Nigeria (CIBN), described the development as disturbing.
Unegbu said that the volume of transactions in the market would reduce as many investors would find it difficult to place their orders, due to the current energy crisis in the country.
He said that the market was going through tougher times due to the various dislocations in the economy.
Also speaking, Mr. Sehinde Adenagbe, the Managing Director, Standard Union Securities Ltd, said that the development would drag down investment and confidence in the market.
Adenagbe said that Nigerians were groaning under the present situation and called for the removal of fuel subsidy.
He said that fuel subsidy should be removed for Nigerians to know the reality of the situation on ground.
