for investors. But more worrisome is that in the near term, the outlook remains uncertain, an indication that the search for respite by stakeholders may not come sooner.
IMF said the forecast is influenced by the larger than expected storms to global value chains due to the coronavirus, affecting global demand for goods and services.For many investors, Nigeria remains an important part of their long-term Africa portfolio strategy, and rightly so. Between 2005 and 2015, Nigeria’s economy grew by an average of 6.
But experts at the weekend insisted that there is a nexus between infrastructure development and capital market growth. “There is a need for more investments in power generation and distribution as well as communication and port development if the capital market is to grow faster. The 2020 budget has been severely affected by COVID-19 pandemic requiring adjustments, which did not really affect funds allocated to infrastructure.
CAPEX are funds used to acquire, upgrade, and maintain physical assets such as property, buildings, an industrial plant, technology, or equipment. This type of financial outlay is also made by companies to maintain or increase the scope of their operations. He said: “This evidence has been in existence over the years. This can be explained by the fact that capital expenditure, especially on infrastructure, is an expenditure that promotes economic development. “This gives a lot of confidence to domestic and foreign investors to invest in the stock market. Also, the injection of development funds into the economy leads to improved liquidity some of which will flow into the stock market and boost performance.
Therefore Uwaleke insisted that the government should ensure that the share of CAPEX in the annual budget is gradually increased, while systematically reducing recurrent spending.
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