Professor Charles Chukuma Soludo deserves our collective rounds of national applause, for his bold and courageous moves regarding his Naira Strategic Agenda; in fact, we owe him thunderous applauses for his purposeful audacity! 

The Governor of Central Bank of Nigeria is a regulatory activist, who has just successfully pursued and completed, his much criticized and demeaned, banks consolidation policy. Professor Soludo is a man that I admire and respect. He is a person who is actively engaged and focused on Nigeria’s fiscal-financial health. He has, through his vigorous pursuit of financial health, with rigorous public policies. He seeks to put and place Nigeria in good fiscal-financial stead.
 
Rapidly, he has been rolling out reforms in the financial sub-sector, which always seem to roil and keep his critics nonplussed, dumb-founded.
 
Governor Soludo’s detractors are inattentively oblivious of other Central Bankers in America and Europe, who often resort to activist modes of actions, to keep their national economies in perpetual growth and upsurge.
 
Whereas, too many Nigerian economists and fiscal “experts” seem to suffer time-warps, as they appear to bury their heads in Business Schools social science abstract academic theories, theories that are quite often, not applied in real terms in everyday real life situations, even in countries, where some these arcane ideas, were first propounded and postulated in the first place! Originators of sundry economic theories and abstract models, seem to be very comfortable in adjusting and sometimes, jettisoning their own theories altogether, in obeisance to their national interests.
 
While too many Nigerian economists apes and mouths antiquated or mundane free market theories, spouting demand and supply rules, as if these are the sole factors determinants, in the realm of modern economies. Market forces, market forces and market forces? Please!
 
Why are too many Nigerian economists so adept Pavlov-dog regurgitations of abstract economic theories that the have wrought extreme pains and sufferings, upon Nigerians by the wayward policies of SAP? Even while Americans and Europeans, are quick to relegate to the abyss of bad theory history, whenever their national economic interest is at stake.
 
Kalu Idika Kalu and Olu Falae, brashly critical and dismissive of Governor Soludo’s proposals last week. Nigerians ought to ignore these men, they are reminders our sordid past policies. These persons should be the last to criticize Professor Soludo, Kalu in particular, is public policy throwback of our painful Structural Adjustment Programs or SAP era, and we must ask, whether there have been any positive benefits from SAP, unless pain, suffering and hardship are considered benefits?
 
These prominent Nigerians, parading as fiscal policies “experts” appear lost in time and space, and they are the same persons who presided over the two-and-half decades old free-fall and downward spiral of our national currency, the Naira; this, bestowed upon Nigerians and Nigeria, with physical, fiscal and even psychological damages that are now all to obvious, damages that are deep in consequences and are far reaching in ramifications.
 
Among the physical, fiscal and psychological hemorrhaging damages, are, capital flight, mass migration, brain drain, un-quantifiable national loss of faith and trust in the worthiness of our national currency, the Naira.
 
A re-denomination, or, a revaluation, will lead to a resurgent and resilient Naira. A resilient Naira will be the backbone and engine-room of a rebound, robust and vibrant Nigerian economy. Countries in America and Europe are quick to intervene, interfere and bailout their currencies and their economies and the economies of countries to which they are friendly. And here are some examples.
 
 
In 1994, massive bailouts in billions of dollars were offered to Mexico, to stabilize its economy from a near bankruptcy from financial crises. It was an activist-interventionist economic or financial rescue, a big rescue of Mexican economy. It offered Mexico a soft-cushion, a soft-landing. Market forces theorists, be damned!
 
In 1997, billions of dollars in bailouts were similarly offered to a then backpedaling of the so-called Asian-Tigers, tigers that were at the time, literarily, crouching! As we all know, these tigers that were hitherto, before crouching, were actually galloping, in growth and the toasts of the so-called new market boom. These rapid-response bailouts averted and staved off, the feared Asian contagion that loomed at the time.
 
Soon after the collapse of the Soviet Union, Russia, its successor-survivor, of the USSR empire received injections upon injections of massive bailouts cash in billions of dollars from their American and European new friends, who were mortal enemies during the frigid cold-war years
 
Again, and again, bailouts, upon massive bailouts, were the rule rather than policy exceptions, during the period under consideration. Israel also received massive bailout of more than $20 billion dollars in loan guarantees. Unconditional loan guarantees, without the “usual” stringent, stifling and growth retardant strangulating conditionalities. Conditionalities are reserved for, and are only fit, for countries like Argentina, Brazil and Nigeria or such.
 
Thereafter, the events of September 11, 2001, arose, and the American government rammed through, panoply of fiscal policies, replete with bailouts, rescue packages in the trillions of dollars. There were quadruple hundreds of billions of dollars, were reserved for airlines or America’s aviation industry, which was understandably hard-hit, as it took a direct hit from the hijacked planes and indirect hit, as the American general public developed cold-feet toward flying and sudden lukewarm attitude to flying, after the fatal flights on September 11, 2001.
 
In the recent liquidity crises and credit crunch precipitated by the sub-prime lending woes, which was brought upon us by irregular lending practices, and greed. The Federal Reserve of America and Central Bankers in Europe, in trepidation, injected more $200 billion dollars as a bailouts, rescue or shock-absorbing packages to steady the financial markets in America and Europe, to stave off the worst-case scenarios, of what could lead to or be a worldwide economic depression.

Structural Adjustment Program or SAP is not September 11, for Nigeria; but the effect of SAP on Nigerians is worse. The pains, the sufferings and the magnitudes of hardships inflicted on a massive scale, upon Nigerians and Nigeria is worse than September 11, 2001 was and could ever be on Americans. Generations of Nigerians have been forcefully, involuntarily scattered and dispersed all over the world. The social dislocations and national disenchantments caused to Nigerians and Nigeria by SAP is incalculably sad, they are widespread effects, which are felt nationally by all Nigerians. It is a debacle with effects more severe on Nigerians. The direct impact of September 11 on the Americans, were on World Trade Center in New York, the Pentagon, in Washington DC and a field in Pennsylvania; it was for the most part physical to these three cities, and psychological to all Americans.
 
SAP on the other hand, caused structural and psychological damage to Nigerians and Nigeria, across the board, nationwide and worldwide.
 
SAP, clipped our national collective sense of ourselves. SAP clipped our swagger. SAP sapped our national pride. SAP was inflicted upon Nigerians and Nigeria by those ensconced in the art of aping and mouthing morose and antiquated Business School Models and concepts of how things are “supposed -to-work” in real life, but never does.
 
SAP was imposed on us by those, who seem to have rote-learned models and concepts, which often have no practical applications in real life, even in America and Europe, where Adam Smith, John Keynes, Paul Samuelson, Jeffrey Sachs and other old and new economic theorists sprouted. And where economic theories, frequently touted by Nigerian fiscal “experts” originated; theories, that are too quickly, too gladly swallowed by too many Nigerian slews of “modern” economists. I take the view that we must examine economic models, concepts and sundry theories with keenness of mind, with a view to deconstruct such, for local relevance and applications to immediate conditions or circumstances
 
Too often, it is as if, our “experts” are credentialed to be in hot-pursuits of some sorts of catch-up game, with ideas and propounded concepts of foreign experts, this, even when such foreign experts and their countries of origins, operate frequently outside these Business School Models or parameters, theories and concepts. Do Nigerians swallow old unworkable concepts, hooks, lines and sinker?
 
Must Nigerian experts dogmatically and robotically continue to pursue abstract, academic and textbook theories? Even when it does not suite our local conditions and circumstances? Must we pursue public policies that are clearly inimical and at variant with Nigeria’s short-term and long-term national interests? Must Nigerians zombie-like, swallow theories because such theories sound good academically? Why must we follow models that do not benefit our nation?
Why must any Nigerian, and in particular, in this fiscally wounded and still hemorrhaging generation of Nigerians; Nigerians who still suffer mightily from SAP’s obnoxious and debilitating policies, ever want to listen to Idika Kalu or Olu Falae? And for that matter, why would anyone want to listen to the old guards, who had one or the other thing, or something and anything to do with our national policies flowing into, within and from SAP?
 
I am willing to concede that it is acceptable to ask certain specific questions of Governor Soludo on his policy initiative phase II, as he describes it. What beyond logistical concerns determined the gestation period of one year August 2007- August 2009? Could this long time span not afford vile plans on the parts of those who wish Nigeria ill?
 
Secondly, Why was it necessary for the CBN to recently promote the redesigned larger Naira notes? The same notes that will now be withdrawn? Was this streamlining always part of CBN’s phase II? Or was it an afterthought? What necessitated the switch? We are not privy to all the facts and indices, which the Central Bank of Nigeria has relied.
 
Additionally, there is a development, since the policy announcements, that makes me have some reservations. A ringing endorsement by the World Bank gives me leery feeling about all this. Can CBN policy be good for Nigeria? Should Nigerians be very suspicious and be wary, of a policy, when a policy is so liked, almost instantaneously by the World Bank? Weren’t the World Bank and the IMF the architects of SAP, the cause of our present and persisting fiscal wounds and fiscal nightmare? Are the Breton Woods institutions now reformed or “born-again”? Even still, I am unwilling to dismiss Governor Soludo’s reforms and innovations.
 
Nigerians worldwide must be aware that Professor Charles Chukwuma Soludo is an activist economist for good cause, our nationally worthy fiscal cause. And those who swear by market forces, demand and supply’s received immutable theorems, should be aware that Professor Ben S. Bernanke, chairman of the Federal Reserve Board of the United States, is an activist too. Bernanke has, as recent as last week, intervened in the financial market, with cut and slice in the lending rate, as well as pumping billions of dollars into the financial market, instead of waiting for manufacturing base or market forces of demand and supply to solve the credit crunch and liquidity crises which America currently faces as a result of the mortgage meltdown.
 
Only last week, America and European Central Bankers, injected hundreds of billions of dollars in the financial system to stem the downward spiral of the dollars and the American economy, in the wake of the sub-prime lending scandal with the attendant molten meltdown in American mortgage industry sub-sector.
 
The Europeans followed the Americans with its activist-like, interventionist-like actions, to spur and nurture demand and supply, or market forces to act in sync, or cajole demand and supply to follow the orders of, American and European written scripts of national interests. Professor Soludo is, in my view, pursuing Nigeria’s national interests, just as his counterparts in America and Europe have always done and just what they did again, only last week, with direct intervention in the financial markets. It was the infusion of subsidy-like $200 billion dollars.
 
In America and Europe, official actions negate notions of freewheeling, or cavalier and laissez faire market forces of supply and demands. American and European officials obviously see such concepts as separate from real life economics and global developmental competition. Past and recent actions by American and European central bankers are clearly indicative of where their priority lay, between theory and practical actions for their national interests.
 
Nigerians experts can do no less for Nigeria.

Robot  Villager

# 1 Professor Charles Chukuma Soludo deserves our collective rounds of national applause, for his bol...Read the full article. Posted by Robot| 20.08.2007 15:28

pappilo  Villager

# 2 A re-denomination, or, a revaluation, will lead to a resurgent and resilient Naira Can you please tell us how this will happen Paul. I am really disappointed with the quality of your article not that I expect any better from you. It is evident from your article that you do not really understand what changes are being made to the Naira. The Naira is not being revalued but redenominated which means nothing really changes. I post an extract from Prof Soludo's article which was reproduced here on NVS which outlines the advantages of 'redenomination'. It obviously doesnt say anything about a resurgent and resillient naira. Re-denomination and re-introduction of totally new currency structure (notes and coins) following the progress so far with other reforms and the enabling conditions in the economy today are designed to better anchor inflationary expectations, strengthen public confidence in the Naira, make for easier conversion to other currencies, reverse tendency for currency substitution, eliminate higher denomination notes with lower value, reduce the cost of production, distribution and processing of currency, promote the usage of coins and thus a more efficient pricing and payments system, and lay the foundation for the convertibility of the Naira as well as make it the ‘Reference currency’ in Africa Charles Soludo Posted by pappilo| 20.08.2007 15:48

I Love Nigeria  Villager

# 3 I am personally impressed with his efforts at changing the way banks and other financial institutions in Nigeria do business; However, I am reserving my thunderous applause for Professor Soludo for a time when our national currency, the Naira recovers considerably and the exchange rate become or does better than what it was in 1980 or earlier. The above paragraph is excerpted/culled from - Soludo Solutions & Economic Reforms in Nigeria http://www.nigeriavillagesquare.com/articles/paul-adujie/soludo-solutions-economic-reforms-in-ni-3.html Posted by I Love Nigeria| 20.08.2007 20:39

aguabata  Villager

# 4 i think paul wrote an informative piece, a strong factor in economy is perception, when Soludo says people will gain confidence with the naira, there is a positive vibe in the nigerian economy, it may not be real but it works, if MEND makes a broadcast oil prices buckles, if we r lucky and inflation is better monitored it will enhace that positive vibe, why dont we take this chance.I am so happy we are now debating ideas in Nigeria, i hope we get more of that from other institutions. Posted by aguabata| 21.08.2007 15:23

Enforcer  Villager

# 5 =pappilo;201191>Can you please tell us how this will happen Paul. I am really disappointed with the quality of your article not that I expect any better from you. It is evident from your article that you do not really understand what changes are being made to the Naira. The Naira is not being revalued but redenominated which means nothing really changes. I post an extract from Prof Soludo's article which was reproduced here on NVS which outlines the advantages of 'redenomination'. It obviously doesnt say anything about a resurgent and resillient naira. Re-denomination and re-introduction of totally new currency structure (notes and coins) following the progress so far with other reforms and the enabling conditions in the economy today are designed to better anchor inflationary expectations, strengthen public confidence in the Naira, make for easier conversion to other currencies, reverse tendency for currency substitution, eliminate higher denomination notes with lower value, reduce the cost of production, distribution and processing of currency, promote the usage of coins and thus a more efficient pricing and payments system, and lay the foundation for the convertibility of the Naira as well as make it the ‘Reference currency’ in Africa Charles Soludo pappilo, If you did not expect anything better from Paul Adujie, how could you have been disappointed? Would it not have been better to write your own rejoinder to the article rather than resort to belittling someone's effort? Posted by Enforcer| 21.08.2007 16:55

I Love Nigeria  Villager

# 6 Aluko Lauds CBN over New Naira Policy http://www.thisdayonline.com/nview.php?id=87015 • MAN chairman calls for rethink By Tokunbo Adedoja in Lagos and Ahmed ****tu in Ilorin, 08.22.2007 Foremost economist, Prof. Sam Aluko, has applauded the decision of the Central Bank of Nigeria (CBN) to shore up the value of the naira through redenomination commencing from August next year. The Manufacturing Asso-ciation of Nigeria (MAN), however, called for a rethink of the policy. Unfolded last week by CBN Governor, Prof. Chukwuma Soludo, the naira redenominaton policy has continued to elicit mixed reactions from Nigerians, raking in commendation here and condemnation there. When the policy eventually takes off, N20 will be the highest denomination and exchange rate will be kept at N1.25 to the U.S. dollar. Aluko, who reacted to the policy yesterday in Akure, Ondo State capital, through a telephone text message, said the policy was long overdue. “I have been advocating for the fixing of our exchange rate system for a long time but the government has always preferred market rate,” he said. According to him, the floating exchange rate system is responsible for the naira's current “sorry state”. He said Nigeria's current level of development could not accommodate a floating exchange rate system, whereby the value of the naira would be determined by market forces. “Fixing of an exchange rate for the naira has more advantages than disadvantages to the country’s economy,'' Aluko wrote in his text message. Aluko said he would soon produce a comprehensive report and analysis on the fixing of the naira exchange system, stressing: “What I am saying now is just a tip of the iceberg.” But the Chairman of Kwara State chapter of MAN, Mrs. Omolola Olobayo, said the naira redenomination policy would not help the masses but rather compound the nation’s economic woes. She said it was high time the government provided an enabling environment that would allow the industrialists have access to loans to assist them establish cottage industries and thereby reducing unemployment rates in the nation. Olobayo, who is the Executive Director Sales and Marketing, Doyin Group Companies, made the remark in Ilorin while speaking with newsmen on the state of the nation. She called on the Federal Government to have a rethink on the policy so as to accelerate the socio economic development of the masses. According to her, it is disheartening that poverty is on the increase in Nigeria on daily basis and therefore any policy that will not have any positive impact on the masses and leave them poorer should not be encouraged. She asked, “What would happen to our income as individuals in this country? What will be the cost even on an average Nigerian? How will this reduce fraud? So many questions, to me, I believe the proposal will leave the economy worst than it met it.” Posted by I Love Nigeria| 22.08.2007 08:21

Enforcer  Villager

# 7 I love Nigeria, Do not loose sleep over pappilo comment because majority of us can see through his hollow knowledge of basic economics. I believe pappilo is overwhelmed by Paul Adujie success in writing a series of articles, particularly in this forum. What Soludo has planned is actually a revaluation of the currency in the sense that a reduced quantity of Naira will exchange for the dollar. The CBN will henceforth support the rate by selling and buying dollars from the foreign exchange market to maintain the required exchange rate. Soludo is being very careful that Nigerians do not grab the wrong end of the stick, hence he is mindful of his choice of words. Soludo expects that at the end of it all the real value of the Naira will appreciate against the dollar to about N1.20 to a dollar. That I believe as well. On behalf of my fellow countrymen and women, I thank Paul Adujie for all he has being doing to promote the interest of our country, in spite of the personal attacks that he has been receiving from some misguided few. Posted by Enforcer| 22.08.2007 13:22

RECK  Villager

# 8 I personally think it is too early to thank anyone, including our economics professors, engineers, lawyers and the host of other professionals for anything for that matter. There is nothing worth thanking anybody for. We clearly are not out of the woods, yet there is so much self adulation and feeling of accomplishment. Nigerians, and indeed the rest of sub-saharan Africans, should studiously and conscientiously get on with fixing, mending and revamping their battered, broken and desolate economies and cease from this endless worthless praise singing. Nigerians are still suffering in their millions. The real sector and public infrastructure still lie comatose. POSTURING AND TWEAKING THE NAIRA TILL KINGDOM COME, will not fix the bad roads and supply the much needed electricity. We should only be saying bravo and kudos when the real deal is done! Posted by RECK| 22.08.2007 16:00

I Love Nigeria  Villager

# 9 Enforcer, I thank you for your kind words of support and generous assessments. RECK, what a wreck! The truth of the matter is that Professor Soludo policies are laying the groundwork, solid foundations for all the things you want for Nigeria. A respectable currency achieves stability and resiliency. A worthless currency does not get respect. SAP and its adverse effects led to the downward spiral and free-fall of the Naira and since September 1986, our national currency was devalued beyond respect and reason. Americans and Europeans tweak their currencies more often than some Nigerians know or care to believe. THERE IS NOTHING WRONG WITH TWEAKING THE NAIRA. Ask Prof. Sam Aluko, a better economist than I am. Good monetary policies, good fiscal policies.... will lead to sound economy, which in turn will facilitate repairs of our national infrastructure..... improve production capacity and increase employment etc.... these things are interconnected.... interwoven in factors and outcomes. A respectable stable Naira, will buoy Nigeria's economy and, the suffering, hardships and wounds induced by SAP will dissipate. Posted by I Love Nigeria| 22.08.2007 19:37

I Love Nigeria  Villager

# 10 U.S. cuts interest rates to 4.75 per cent By Ade Ogidan, Enitar Ugwu, Gbenga Agbana and Bukky Olajide SHOVING its much-vaunted philosophy of market determinism aside, the United States (U.S.) government has made a dramatic intervention in lending rates by its banks. The U.S. Federal Reserve (Fed), the equivalent of the Central Bank of Nigeria (CBN), yesterday slashed lending rates from 5.25 per cent to 4.75 per cent. In Nigeria, the rates have officially hovered between 18 per cent and 21 per cent. But in reality, they are between 25 and 28 per cent. Until February this year, it was 0.25 per cent and has remained 0.05 per cent for seven months in Japan, perhaps, the most productive nation in the world. Lending rates are a key factor for business to thrive, especially in the real sector and the housing industry. Until June 2004, lending rates in the U.S. were 1.0 per cent. From then till mid-2006, the rates were increased 17 times to arrive at 5.25 per cent. The rate in Norway is 4.25 per cent and 2.5 per cent in Germany. It is 5.75 per cent in Britain, 12.5 per cent in Ghana and 11.5 per cent in South Africa. The U.S. action has triggered ripple effects on economies around the world, having positive impacts on major global stocks, with shares shooting up to record high. However, the rising profile of share prices eluded Nigerian stocks, as the All-Share Index and market capitalisation of the Nigerian Stock Exchange (NSE) dropped further. Also, despite indication that other central banks, including Bank of England, would toe the Fed's line, interest rates in Nigeria may continue to assume their business-unfriendly high profile. There were no hints from the CBN yesterday that similar intervention would be effected on local rates. The move by Federal Reserve, the first U.S. rate cut in four years, is aimed at restoring confidence in the housing market and preventing the turmoil from denting the economy. The Fed move could help prevent the U.S. economy, which is already slowing down, from sliding into a recession, which could hurt economic growth prospects around the world. And at close of trading yesterday, the Dow Jones industrial average was up 2.51 per cent at 13,739.39, the S&P 500 Index was up 2.92 per cent at 1,519.78, and the Nasdaq was up 2.71 per cent at 2,651.66. It was the S&P 500's biggest percentage gain since March 2003, and Dow average's best one-day percentage gain since 2003. By making money cheaper to borrow, the U.S. Central Bank is hoping that people will spend and invest more, revitalising the economy, But the Fed faces a dilemma, with some commentators worried that too-big rate cuts could stoke up inflation. A reduction in rates by 50 basis points would fuel inflation and lead to the "cheap money" conditions that have brought boom-and-bust to the property sector, Associated Press (AP) quoted some unnamed sources. But in a statement, the Fed said that they needed to act before the credit crunch caused more damage to the economy. It said that "the tightening of credit conditions has the potential to intensify the housing (market) correction and to restrain economic growth more generally". The size of the cut - the first time that the rate has changed in more than a year - took many analysts by surprise. William Sullivan, chief economist at JVB Financial Group in Florida said: "It's difficult to interpret what the ultimate ramifications will be. "The Fed's rate cut could suggest that the stresses in the credit markets are larger than what people thought and that the Fed thought an aggressive move was needed now." And Tim Evans, an energy analyst at Citigroup Futures in New York, said: "This confirms that the U.S. economy is fragile and attempts to avoid a full recession by cutting interest rates may or may not be successful, but this shows that the Fed is taking the possibility of a recession seriously." But there was better news for those concerned about inflation with the Producer Prices Index (PPI) for August showing a bigger than expected fall. The U.S. Bureau of Labour Statistics said that the measure of the prices paid to producers of goods and services in the U.S. fell by 1.4 per cent, which was the biggest fall since October 2006. "The August PPI was good news," said Gary Thayer, chief economist at AG Edwards and Sons in St. Louis. "There was a decline in energy prices that helped pull the overall index down and core inflation looks relatively modest," he added. Indeed, interest rates in Nigeria differ from bank to bank. As at last year, banks' interest rates were determined by the Minimum Discount Rate (MRR) decided by the CBN. The MRR is the anchor rate from which lending and deposit rates are determined. It also defines the lower and upper limits of market rate. In Nigeria during the MRR regime, the CBN mandated that banks' interest rates should not be more than four per cent above the MRR. Prior to its abolition by the CBN late last year, the MRR was 13 per cent. However, with the introduction of Monetary Policy Rate (MRR) to replace the MRR, the interest rates are now market-determined. That explains the disparity in rates as charged by banks. Harrison Owoh, Managing Director H. J. Trust and Investment Limited (Bureau de change, Lagos), commended the U.S. action to Nigeria. He said: "The Federal Reserve Bank of the United States of America brought down the interest rates to draw the investors so as to make people borrow money, because the more money they borrow, the more they invest and the more the economy moves forward." Owoh continued: "You will notice that any country that has less interest rates will always have a sound economy, this is because it also helps the infrastructure needed for a sound economy to grow." He noted the U. S action is to bring down interest rate to be competitive in the global market. "For instance, Germany's interest rate is 2.5 per cent, so America wants to be competitive in the global economy," he said. Owoh added: "Moreso, lower interest rates may want to translate to lower inflation rates as it could help in bringing down inflation rate. "Look at Nigeria now, our interest rate is 18 per cent and 21 per cent plus charges. If you borrow at 21 per cent, what can you do with it? This is why the economy is not growing." On the NSE, the All-Share Index, which measures the movement in share prices of quoted stocks fell from 51,547.81 point to 51,525.70 yesterday, while market capitalisation fell from N8.117 trillion to N8.071 trillion, indicating that the bears held sway. To market operators who spoke with The Guardian, the development does not have any correlation with the Nigerian stock market because the market is not opened up yet. According to them, Nigeria is operating from a jurisdiction that is different from that of the European markets. However, they noted that if U.S. investors decide to borrow cheap funds from their country to invest in the Nigerian stocks market, they will likely get better returns, which would boost the local market by enhancing its depth. For instance, the president of the Chartered Institute of Stockbrokers (CIS), Mr. Dipo Aina, said: "We are two different jurisdictions so their own market cannot affect ours. "If the investors in the United States want to invest here, there is the tendency that they will get cheaper funds relatively, to invest here. The effect is basically that they will have high returns and that will deepen the depth of the market and renew confidence in the local market. Our stocks will be more attractive because of high returns." The Managing Director of Goldman Assets, Mr. Olu Abayomi Sanya, corroborated the views of Aina. His words: "Our market is not really integrated with the international market. People there will have cheaper funds to borrow in the market on Eurobonds. It will have positive effects." Henry Olayemi, immediate past president of CIS also said there is no correlation between the U.S. market and Nigeria. "There is no correlation. Our market is not opened up yet. The stocks here are only traded and rated here. It does not affect our market here." Posted by I Love Nigeria| 20.09.2007 08:26

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