Nigerian equities are in for a rough time, as FTSE Russell announced on Wednesday that it will assess the status of Nigerian stocks in its “frontier” markets index during its annual review in September.
“The continuing illiquidity in the Nigerian foreign exchange market is resulting in significant delays in the repatriation of U.S. dollars and hence the ability of index trackers to efficiently and cost effectively track Nigerian indexes,” the index provider said in a statement released on its website.
This announcement will come as a shocker to the financial markets, as this is similar to what JP Morgan did last year after announcing that it will phase out Nigeria from its Emerging Market Bond Index citing restrictions on forex transactions and policies of the CBN as its reasons.
FTSE Russell also said that starting from June 20 corporate events such as IPOs and rights issues in Nigeria would not be reflected in the indices.
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I am not surprised at the instant of these so called foreign analysts embarrassment of the government of Nigeria. Undoubtedly, these foreign bodies are quite aware of the efforts of the Federal government to adequately put the economy in the right direction. It is undoubtedly understood that activities from the past administration were full of corruption the result of which have adverse effect on the economy. Coupled with this is the price of crude oil which has gone down drastically and has affected the inflow of foreign exchange to the country. If I may ask, who are these so called foreign analysts? Who appointed them and give them such a powerful jurisdiction of authority to run down genuine government organization with impunity? Nigeria, for sure, will make good of all it foreign obligation when the resources are available. But why must any foreign authorities have such power to thwart the authority of a government who is making genuine efforts to put things right. The PMB administration must not let any foreign manipulators to further damage the already damaged economy. Let these foreign assessors have consideration for Nigeria and other developing countries help revamp their economy without undue foreign intervention. Let someone with authority advise these powerful manipulators of developing economy calm down and be objective in their decision. Nigeria will surely come out of her present predicament.