The Chartered Institute of Stockbrokers (CIS) has said that the new Gross Domestic Product, (GDP) of $510 billion will enhance inflow of foreign direct investment, (FDI) and foreign portfolio investment, (FPI) into the country.
The President of CIS, Mr.AriyoOlushekun who stated this in Lagos at a press conference on the forthcoming 3rd CIS national workshop said the rebasing would impact positively in capital market
The new GDP figures of $510 billion was the outcome of the rebasing of the country’s GDP. The base year was moved to 2010 from 1990 reflect the changes that have occurred in the structure of the economy in the last 20 years.
According to him “the impact of GDP rebasing will be positive in the capital market as it will attract more foreign investors into the Nigerian capital market, thus increasing value of FPI. It means that operators and other stakeholders need to work hard to create securities that will attract investment.
The rebasing has reduced the contribution of market capitalisation to the GDP. This means that our market has become highly under-represented and foreign investors who are already looking at the Nigeria’s economy at a larger scale would be looking for opportunity to invest in the market.”
Speaking further, he said “beside the increase in portfolio investment, we should expect increase in FDI. Foreign investors would want to come to Nigeria to invest directly in the country since there are abundant untapped resources in the country.
He said CIS workshop is designed to bring together key players in both the public and private sectors of the Nigerian economy to brainstorm, and generate ideas, which will serve as useful input to the national budget and enhance the quality of the policy making process.No tags for this post.