The Business NG - May 24, 2024

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Today's edition of BusinessNG Newspaper features an exclusive editorial from the Chartered Institute of Stockbrokers (CIS), shedding light on the performance of foreign exchange-dependent companies in Nigeria's stock market. The CIS sounds the alarm over significant losses and reduced profits in 2023, citing companies like Nestle Nigeria and MTN as examples.

The CIS attributes this situation to factors such as the free float of the Naira, escalating foreign exchange rates, and economic and monetary policies. President and Chairman of the Council, Mr. Oluropo Dada, emphasizes the need for a managed float currency management system and boosting domestic production to strengthen the national currency. He also urges a reduction in importation and an increase in local productivity.

The institute warns against the potential impact of the recent hike in Band A electricity tariff on production costs and local competitiveness. They propose that companies like Toyota Nigeria establish production lines in Nigeria, fostering local manufacturing of car components.

Despite challenges, the CIS expresses optimism about the potential listing of Dangote Refinery, Electricity Distribution Companies, and NNPC Plc on Securities Exchanges in 2024, which could enhance the economy. The CIS's warning serves as a call to action for policymakers and stakeholders to address issues affecting foreign-dependent companies and promote sustainable economic growth.