The Managing
Director/Chief Executive Officer of Skystone Capital and Investment
Limited, Mr. Ola Olabinjo, has called on Nigerians to take advantage of
the opportunity created by the relatively low yields on traditional
fixed income securities and re-direct their capital into the real sector
to
stimulate job creation, drive double-digit investment returns and
galvanise economic activities.
Olabinjo stated
this at the maiden webinar organised by the Swiss-based Faithshield
Investment Management Limited titled: "Foreign Exchange, Interest Rate
and Inflation: How they affect wealth creation."
According to him,
investment in the real sector is a critical factor that would drive the
revolution needed to resuscitate the Nigerian economy which has been
badly hit by the twin issue of foreign exchange volatility caused
majorly by the breakdown amongst members of the Organisation of
Petroleum Exporting Countries (OPEC) and the unexpected outbreak of the
Coronavirus Disease (COVID - 19).
He explained that
while domestic money managers that invested in government securities may
not be excited by the negative adjusted real returns currently being
experienced, asset managers in developed countries are beginning to
channel investible capital to address the world's most pressing
challenges in critical sectors such as agriculture, renewable energy,
transport infrastructure and affordable basic services including
housing, healthcare, and education.
He therefore, he
maintained that Nigeria must follow suit to make appreciable progress in
its quest to lift million out of the poverty bracket.
Speaking alongside,
Mr. Nwabueze Amiaka, Managing Director, Faithshield Investment
Management Limited, Olabinjo noted efforts of the Central Bank of
Nigeria (CBN) geared towards stimulating credit to the private sector
and its recently approved N15 trillion Infrastructure Development
Company Plc (InfraCo) expected to be co-owned with the Nigeria Sovereign
Investment Authority (NSIA) and Africa Finance Corporation (AFC) as a
good step in the right direction.
Speaking on
inflation, he said Nigerians should expect to witness a taper down of
inflationary pressure as the gains of federal government's investments
in rail and road networks across the country begins to kick in.
Olabinjo explained
that the high headline inflation anchored on the continued acceleration
of food inflation which rose by 30 basis points (bps) to 15.48 per cent
as at July 2020, is a result of the huge infrastructure deficit around
transport, processing, warehousing, required to move agriculture produce
from farm to markets.
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