Expert Advises Capital Market Solicitors on 2020 Economic Outlook
The Capital Market Solicitors, have been given expert advice on the Nigerian economy and prospects in 2020.
Mr. Bismarck Rewane, CEO, Financial Derivatives Company Ltd, gave the expert advice to members of the Capital Market Solicitors’ Association (CMSA) during their 2019 end of year get together tagged 'An Evening of Dinning, Music, Entertainment, Networking and Knowledge Sharing’ which held at Victoria Crown Plaza Hotel, Victoria Island, Lagos, last week.
The CMSA is an independent selfregulatory Association of solicitors and commercial law firms, engaged in capital market practice. The Association has over 50 members with access to a pool of expert professional market knowledge, where members are kept up to date on activities and developments in the capital market.
Speaking on the Nigerian Economy and Capital Market 2020 Prospects, Rewane said the outlook under the current policies is challenging, and that minimum wage payment and new VAT rate, will result in higher inflation.
The renowned Economist and Member, Economic Advisory Council, noted that, growth will remain unchanged at 2%, while inflation in 2020 will average 11.3% - widening forex restrictions plus inadequate local supply.
According to Rewane, the opportunities for members of CSMA in 2020 include, legal documentation and advisories to facilitate trade alliances; Minority shareholder rights and cases that require legal expertise; positive trade outlook will also deepen international trade and other licence agreements, and projected de-listings also provide opportunities for legal services.
Speaking on the pros and cons of the border closure, the economic expert said due to the border closure, the Naira has appreciated to N359 per dollar, before falling back to N360 per dollar, adding that, there has been drastic reduction in the demand for Dollars, as smugglers have no need for it now.
He also said there has been a 30% decline in PMS utilisation (approximately 18 million litres a day), and that the subsidy amount, has been reduced by approximately N135 billion.
According to him, the border closure has also resulted in the disruption in economic activities, in border communities - trading sector contracted by 1.45% in Q3.
Other areas affected by the border closure include, reputational damage for Nigeria as a member of World Trade Organisation (WTO) and giant of ECOWAS, and 123,000 bags of rice seized in a month.
In his welcome remarks, the Chairman of the Association, Mr. Benjamin Obidegwu, thanked all members of the Association for their support since he was elected Chairman.
Obidegwu, who was elected the 7th Chairman of the Association in September, reassured the members of the Association of his readiness, more than ever, to work and act true to the realisation of the mission and vision of the CMSA.
The night also featured a raffle draw, from which lucky members of the Association went home with fabulous prizes.