‘Stock Market Will Benefit From Budget Signing’ | Independent Newspapers Limited
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‘Stock Market Will Benefit From Budget Signing’

Posted: May 12, 2016 at 12:23 am   /   by   /   comments (0)

Bamidele Ogunwusi, Lagos After waiting for several weeks, the 2016 appropriation bill, also known as budget was signed into law last week by President Muhammadu Buhari. This singular decision has been receiving commendations from Nigerians who described it as a positive development.

The Registrar/Chief executive, Chartered Institute of Stockbrokers (CIS), Adedeji Ajadi, said the signing of the 2016 Budget by President
Mohammed Buhari is not only a positive development for the capital market but the economy as a whole.

He said: “It is a signal of the commencement of activities that will energize the economy. Remember the government is pursuing an expansionary fiscal policy, which promises rapid and catalytic growth. This should bring back confidence into the capital market immediately.”

The delay in the signing of the Budget has put economic activities in the country and investment in stocks at a standstill.

Investment experts, who drew a contrast between early budget passage and the reversed case, said the real sector operators are usually the first to
get the hit and heat.

According to them, every organisation involved in production, import and export, with huge numbers in its employ, would always want to know
the direction of government at the beginning of each year to guide its own budget, but where that is not forthcoming, the fastest signal will
be “uncertainty.”

Managing Director of Red Star Express, Sule Umar Bichi, stated in a report that: “The delay will only increase the level of uncertainty.
The earlier, the better and a guide to business projections and internal planning as well. This is a general situation to all real sector operators, because no business operates without budget, but the government’s own will show the direction to which sector in the economy to investment in, not only by local operators, but also those who want to come in from abroad”.

Former Chairman, Nigerian Bar Association, Ikeja, Monday Ubani said the signing of the budget by the president has made him one of the
happiest persons in this country because it is the most epileptic in the history of Nigeria. It started with being missing, the next story
was that it was being padded, after they managed to unpad, they added some flesh to it again.

His words: ‘But the good news is that it is one of the biggest and most ambitious budgets in the history of this country. I have this feeling and conviction that this budget is actually going to transform Nigeria. This government means business, there is a high level of transparency and as a result there would be a high level of compliance and execution of the details.

“It is not going to be business as usual because Nigerians are becoming more conscious and the government, a little more sensitive to
the people’s feelings. It may not be 100 per cent compliance but I am expecting a high level of it from this government. Investors will
start coming when they begin to see implementation of the budget.”

The time we have lost in passing this budget is unnecessary but I see it as a learning curve for the All Progressives Congress-led
administration. They have never governed at the national level and so this experience gives them an opportunity to learn vital lessons. I am
sure they will use this one to get the 2017 version right.