The Nigerian Stock Exchange (NSE) on Monday predicted that crude oil price and production, global economy, political stability and business environment were key factors that would determine Nigeria’s economic outlook in 2020.
NSE’s Chief Executive Officer, Mr Oscar Onyema, made the prediction at the 2019 Market Recap/2020 Outlook in Lagos.
Onyema affirmed that the dynamics of crude oil price and production would continue to influence the capital markets and large economy because of Nigeria’s reliance on oil for foreign reserves.
He said that the current US and Iran crisis, oil supply shocks and progress in trade negotiations between US and China may exert pressure on crude oil in the year.
According to him, enhanced focus on infrastructure renaissance and promotion of laws that would support the business environment would be key to Nigeria’s success in 2020.
“Domestically, market sentiments may be buoyed by a steady and stable recovery in the domestic economy, alongside continued sustainability in monetary policy,” he said.
Onyema said that the signing of Nigeria’s Finance Bill 2019 into law and implementation of the 2020 budget might positively impact on companies’ earnings and consumer spending.
“Accordingly, the exchange will continue to advocate for business-friendly economic environment, working in conjunction with both the public and private sectors,” he said.