Onyeama tasks govt on revenue generating options

The Group Managing Director, Nigerian Exchange (NGX) Limited, Oscar Onyema, has stressed the need for governments to explore other options of generating revenue, in view of the country’s current economic situation.

Onyeama, who spoke at a summit by CityBusiness News in Lagos, said that the nation also needs to attract more investors both locally and internationally.

He said: “One of the key areas that could boost the economy as well as create enormous opportunities for investors is the capital market. Investing in the capital market gives the nation an opportunity to unlock new avenues for economic growth and development.

“It facilitates the flow of household and business savings to finance investments in the real economy. It also provides individuals and organisations with new investment opportunities, creates wealth, and serves as an avenue for the government to fund critical national development programmes,” he said.

Onyema, who was represented by the Group Chief Investment Officer (NGX), Mr. Tony Idugboe, said Nigeria being an industrious country keeps thriving in the face of adversity to ensure the rebirth of a new economy.

Quoting the Nigeria Development Update (NDU), he said the removal of fuel subsidy and reforms in forex market by the new administration are crucial to rebuild fiscal space and restore macroeconomic stability, which would lift Nigeria’s growth potential.

With these steps, he said that the country’s economy is expected to grow at 3.3 per cent in 2023, 3.7 per cent in 2024, and 4.1 per cent in 2025.

“The effect of the fuel subsidy removal if not well managed could expose lots of citizens to absolute poverty and lack of social amenities. The inflation rate is expected to be higher in 2023 and lower in subsequent years. High inflation and low fiscal revenues continue to hinder economic growth and possible investments,” he stated.