President of the Institute of Chartered Accountants of Nigeria, ICAN, Chidi Ajaegbu, has expressed fears that the country?s currency, the naira might be devalued further, probably after the 2027 general elections.

Ajaegbu who is the 50th President of ICAN, made the assertion at the maiden edition of Colloquium/Public Lecture organised by the Department of Accounting and Finance, Godfrey Okoye University, with the theme: ?Harnessing the Capital Market for Catalyzing Infrastructure Development & Economic Transformation in Nigeria: Prospects, Challenges & Roadmaps,? said government had indulged in excessive borrowing capable of plunging the nation into more economic woes.

He said that the government should soft pedal in the bid to borrow loans which are often difficult to repay, pointing out that during the Buhari administration, Nigeria borrowed recklessly.

?Excessive borrowing scares away investors. Government has to be careful with taking loans. Buhari was reckless with taking loans,? he said, lamenting that this might further lead to devaluing the naira that has been relatively stable in recent times.

As a result of the possible economic downturn for Nigeria, Ajaegbu, who is also the CEO of Heritage Capital Market Ltd, had this to say: ?Few days after 2027, they might devalue the currency. Naira has been stable in the last five to six months but this might change after the election in 2027,? he declared.

He lamented that there Is rapid underdevelopment, ageing infrastructure, rising population, among others, pointing out that unless these things are tackled, Nigeria could be plunged into economic doldrums.

The ICAN also lamented that America was tilting towards economic woes, though at the moment it seems all is well, pointing out that America cannot afford Sovereign Wealth.

?America is technically bankrupt but nobody is saying it. They are consuming more than what they are producing,? he said, adding that only Norway and Saudi Arabia at the moment can afford Sovereign Wealth for its citizens.

Ajaegbu counselled against taking World Bank loans, saying that it mortgages a people economically because when the loans are given, out of it 40% will go to consultants which the bank would prescribe on how to manage the loan.

He therefore suggested that to make headway, Nigeria has to seek recourse to the stock market. ?For us to make progress and raise funds from the stock market, we must ensure that people are held accountable,? he said and called for the strengthening of the judiciary to ensure that corruption does not jeopardise investment.

Also speaking, the Vice Chancellor, GOUNI, Prof. Christian Anike, noted that the lecture was partly designed to give the students of the department practical knowledge of what is obtainable in the larger society, other than theory and urged the students and the lecturers alike to pay rapt attention to the colloquium and the goodwill messages.

Chairman of the occasion and Speaker of Enugu State House of Assembly, Hon. Uche Ugwu, stressed the importance of the capital market which he said helps in growing business and improving infrastructure development in any given society.

The keynote speaker, Prof. Uche Uwaleke, who is the President of Capital Market Academics of Nigeria, CMAN, who spoke on Zoom, suggested that literacy about the capital market should be increased so that people can invest wisely and improve their economic well-being, but expressed the view that the colloquium would proffer solutions.

?The level of capital markets literacy in Nigeria is very low and in particular, the South East region. The deliberations that will emerge from this colloquium will go a long way in boosting the capital market awareness in the South East Region of Nigeria.

?I look forward to a time when a lot of people from the South East will participate in the capital market. Development is all about long-term funds and the capital market means long-term funds and the capital market provides the means for long-term funds. So in terms of development, I expect to see individuals, I expect to see companies from the South East becoming part of the capital market.

?As we all know, people from the region are all hard working, are known to be industrious, so we also need to embrace the capital market such that both the government and individuals can benefit from the market.

?As I said earlier on, I am the President of the Capital Market Academics of Nigeria, and we shall support any effort by your university and department to ensure that the capital market awareness is promoted in the South East region of Nigeria. So I want to thank you for the opportunity given me to deliver a paper in this colloquium,? he said.

Speaking earlier, the Head of Department, HOD, Accounting/Finance Department of the Godfrey Okoye University, GOUNI, Dr. John Odo, Associate Professor, stressed the importance of the capital market, saying that through it the economy could be stimulated for growth.

?In recent years, we witnessed the urge by the state and federal government to stimulate the economy and also increase the internally generated revenue so as to withstand the downturn of economic situation ravaging the whole world.

?Capital Market remains a vital tool for economic growth by channelling savings from investors and platform for risk management. It helps to fuel economic development by funding business expansion, creating jobs, and facilitating the efficient allocation of resources.?

The chairperson, Organising Committee of the Public Lecture, Prof. Uche Lucy Onyekwelu, said that with the capital market, Nigeria would achieve its economic targets and goals.

?Nigeria is gradually but decisively steering towards a better economic future through sound policy activation, fiscal reforms, infrastructure renewal, and an intensified commitment to the Sustainable Development Goals, SDGs. The capital market, as we all know, remains an indispensable instrument in promoting transparency, investor confidence and market efficiency,? she said.

Onyekwelu said that the South East could key into the capital market with the requisite knowledge from a forum like the colloquium.

?As scholars, we are concerned that many enterprises in the South East remain unlisted, relying heavily on sole proprietorship funding models. This limits their access to long-term capital and hinders intergenerational sustainability. There is also a persistent information gap ? a limited understanding among local business owners of how the capital market can serve as a vehicle for expansion, risk management and liquidity creation,? she noted, pointing out that there is limited representation of the South East-based companies on the Stock Exchange Market. ?Statistics showing that just about 2-3 or three out of the 151 companies listed on the Nigeria Stock Market leave much to be desired and more can be achieved,? she points out. (Vanguard)

Update news