By Melvin Onwubuke
The analyst at FBNQuest, asset management division of FBN Holdings, have projected a significant market yield for the whole year, provided the tight monetary policy of the CBN is sustained.
According to it’s economic outlook report, FBNQuest highlights that, inspite of the prevailing food crisis, inflation and the foreign exchange crisis, Nigerian economy is poised to rebound with a possibility of a high yield revenue, according to THISDAY.
They said “Market yields are expected to remain high this year, despite the current economic challenges. This is due to factors such as the tight monetary policy that the CBN is expected to sustain, as well as a sizable supply of Federal Government of Nigeria paper, which will be driven by domestic borrowings of around N6.1trillion.”
Tunde Abidoye, Head of Equity Research at FBNQuest added “Despite the myriad headwinds confronting the economy, such as low-single-digit GDP growth, high inflation rates, and downward pressure on the naira exchange rates, the Government’s steadfast commitment to policy reforms holds the potential to yield favorable economic outcomes.
“We need strong policy interventions and concerted efforts to strengthen tax compliance and encourage investments, especially at the base level, for increased business productivity and sustainability.”
He emphasized, that the proposed tax reforms implementation is assured to progressively raise the non-oil revenue, from its current sub -5 per cent of GDP to the high single digit.
Basically, this path aligns with the federal government’s medium term goal of 8 per cent non-oil revenue as a fraction of the GDP.
