By RUKAYAT ADEYEMI

The Chartered Institute of Stockbrokers (CIS) says it is concerned over the financial reports of significant foreign exchange-dependent companies in Nigeria, which revealed losses or substantially reduced profits in 2023.

Mr Oluropo Dada, the President and Chairman of the Council of CIS, expressed this on Thursday in Lagos during the Vanguard Economic Discourse.

The theme of the discourse is “Reforms in the Era of Global Economic Uncertainty: Wither Nigeria”.

Represented by Mr Adeyemi Aina, a Fellow and Council Member of CIS, Dada cited companies such as Nestle Nigeria and MTN among those affected.

He attributed the situation to factors including the free float of the Naira and escalating foreign exchange rates, as well as other economic and monetary policies.

Dada emphasised that there was no truly free float of currency globally, advocating for a managed float currency management system as practised in democratic countries.

Dada said: “This is because, in reality, it will be suicidal for any country to just expose its national currency totally to the vagaries of markets and sharks to prey on.

“So, the dictum in the advanced economies is regulated deregulation.

“It is our firm belief that the overall policy thrust of the government is in the right direction.

“Even though there may be some pains at the initial stages, due to the extent of deterioration of the economic structures in the country generally.

He stressed the importance of significantly boosting domestic production to strengthen the national currency, urging a reduction in importation and an increase in local productivity.

He urged the government to reconsider the hike in Band A electricity tariff, warning of its potential impact on production costs and local competitiveness.

Looking ahead, Dada expressed optimism about the potential listing of Dangote Refinery, Electricity Distribution Companies, and NNPC Plc on Securities Exchanges in 2024, which could further enhance the economy.

He also proposed that companies like Toyota Nigeria should establish production lines in Nigeria, fostering the local manufacturing of car components such as tyres, batteries, and engine oil. (NAN)

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