Capital market, several sectors in limbo as equities await Buhari’s cabinet
The dangers of delays in governance are beginning to play out in a number of critical sectors of the economy following the observed delay by President Muhammadu Buhari in forming his cabinet getting to two months after his inauguration.
Already, capital market pundits have started decrying the current standstill posture of the federal government considering the silence in the appointment of ministers.
According to the industry experts, early appointment of ministers by President Muhammadu Buhari to man various sectors of the economy as well as his policy decisions will play major role in determining the direction of the equities market.
While arguing that the first half of 2019 had gone with electioneering and political alignments, activities are supposed to begin to pick up from second half, but this will only be possible in the event of early formation of the government with ministers.
Business Hilights can authoritatively report that tomorrow, Wednesday, July 3, 2019, will make it the sixth Wednesday in a row without anything like the meeting of the Federal Executive Council (FEC) in an economy that is in need of speed in both governance and fiscal policy direction.
In the views of stock market operators, there are fears that the government might be toeing the same line in 2015 when it took the president six months to announce the cabinet members and the result was plunging into economic recession.
The market makers averred that the trading systems has already exhausted all the expected boosters in H1, including the listing of MTN Communication Nigeria Plc and re-appointment of Godwin Emefiele as the Central Bank of Nigeria, CBN, governor in the second quarter of the year and now requires new catalysts to move on.
According to them, the best form of cataclysm will be the immediate appointment, confirmation of ministers and the resultant formation of a cabinet which will jump start governance and fiscal policy activities.
