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Investors task government on rising insecurity - Edoman - 02-12-2020
Investors task government on rising insecurity
12 February 2020 |
[url=https://guardian.ng/business-services/crffn-begins-pof-collection/][/url]
![[Image: economy-.jpg]](https://guardian.ng/wp-content/uploads/2020/02/economy-.jpg)
Investors insist that insecurity is a major impediment to the ease of doing business anywhere in the world. Photo; PEXELS• Stock market capitalisation plummets N797b in 10 trading days
Investors in equities have expressed displeasure over the impact of the rising insecurity and social disorder in Nigeria, amid a slow economic recovery in the stock market, urging the federal government to intensify efforts towards tackling these challenges to stem the further loss of investment.
These, coupled with the recent Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC’s) decision to adjust the industry’s Cash Reserve Ratio (CRR) for banks from 22.5 per cent to 27.5 per cent, as well as the Coronavirus threats, have triggered panic and massive selloffs in the stock market.
As a result, investors have lost close to N800 billion in less than two weeks of trading.
Some of them, who spoke with The Guardian, cited the brutal killing of Christians in the North that led to recent protests by the Christian Association of Nigeria (CAN), an umbrella organisation of various Christian denominations in the country.
Consequently, investors insist that insecurity is a major impediment to the ease of doing business anywhere in the world, noting that virtually all the stocks in the market are currently undervalued due to uncertainties and fear, leading to investment apathy.
The investors argued that war, insecurity, and social disorder are a disincentive to investment, as no investor would stake his money a country where his investment cannot be protected, adding that security of investment takes precedence over return on investment.
The Nigeria equities market capitalisation, which stood at N15.261 trillion on January 24, reopened for the transaction on Monday, with N14.464 trillion, meaning that it had lost over N797billion in value or 5.2 per cent, while the All-share index lost 1,856.65 points or 6.26 per cent to close at 27,772.19 from 29,628.84.