Analysts during the weekend x-rayed the state of Nigeria’s double-digit inflation rate on investment in 2023, urging investors to utilize other opportunities in a tough business environment.
First to speak during the meeting was Obi-Chukwu who explained in his presentation that the country is in an election year which will make investors slow down and remain on the sideline to watch the outcome of the elections. He highlighted that the Central Bank of Nigeria in 2023 will continue with capital controls to manage the demand side of foreign exchange, adding that new foreign exchange policies will affect payment for online subscriptions as banks are forced to further cut transaction limits.
According to him, ““Look at all the top stocks in the Nigerian stock market that are paying the highest dividend, there is none that is paying up to 15per cent. Individual top-paying stocks are about 12.3per cent which is the banks. If you go to a fixed income you are not going to get five per cent. So is very difficult to make a real return if you are investing in Nigeria.
“The quick answer is that there are no safe investments in Nigeria that are going give investors a real rate of return. He stated that over the past eight years, Nigeria has had a very harsh business environment, with the local currency losing its store of value characteristic, and getting harsher.