Election Intrigues, Fears, Take Toll on Nigeria’s Economy

The Nigerian Stock Market recorded a loss of over N3.4trillion between May 2018 and January 2019, following persistent fall that has been attributed to jitters over political activities leading up to the General Elections. This is contrary to the positive predictions of stock analysts made in January 2018. Analysts have blamed this unprecedented decline on electoral activities that have been on the rise within this period, starting with the political parties’ ward congresses held in May 2018, some of which was characterised by conflict and malpractices. The Stock Market being a setting controlled by news, has seen foreign and domestic investors going on a massive sell-off of shares and subsequently exiting the market, having lost confidence in it, owing to the heated polity and uncertainties present in the political space. The most recent incident of suspension of the Chief Justice of Nigeria has not helped matters. The Capital Market of any country plays a key role in its economic development and it is important that the political atmosphere is conducive enough to keep investors’ confident.

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