Monday, February 07, 2022 / 5:59 AM / ASHON / Header Image Credit: Business Day
The President of the Association of Securities Dealing Houses of Nigeria (ASHON), Mr. Sam Onukwue, advised member traders to review their operating models, create new products and deploy technology to improve operations and skills.
Investments via the Nigerian capital market were moderated by the unfavorable operating environment, characterized by the impacts of Covid-19 and its variants on corporate earnings, monetary and fiscal policy misalignment, high production costs and the low purchasing power of consumers, the devaluation of the currency, the forex scarcity and high inflationary pressure, among others.
Onukwue explained that the current investment climate requires an innovative approach that responds to client needs. According to him, each processing member should deepen their research and development and create innovative products, especially to attract millennials and Generation Z to expand their customer base and ensure business continuity.
The ASHON President emphasized the deployment of modern technology to improve the operational efficiency of members, noting that the COVID-19 pandemic has institutionalized digital transformation for all businesses. He noted that millennials and Gen Z interact through digital channels because they do virtually everything on their smartphones.
“Our members have realized the imperative of digital transformation of our operations. With the impacts of Covid-19 on our trading environment, the demutualization of the former Nigerian Stock Exchange to Nigerian Exchange Group PLC (NGX) and an environment operational difficult, our operational models have to be verified.
“We need to create more innovative financial products that appeal to millennials and Gen Z. They are digital natives who do almost everything on smartphones. Our business models need to take into account this critical class of investors. We need to deepen our research and development base to be on top of the latest developments in the global financial market. We call on our regulators to address the observed obstacles to the full digitalization of our market, such as the issue of identity management,” Onukwue said.
He noted that many investors have yet to recover from the 2008 meltdown, saying dealers need to continue their efforts to rekindle their confidence to bring them back into the market through investor education.
“As a business group, ASHON will continue to partner with other market operators, platforms and regulators to ensure smooth relationships between stakeholders in the capital market ecosystem. The capital market remains a real platform for creating wealth in any economy. We will continue to call on the government to leverage the market to raise medium and long term funds to revive the economy as there is a link between the economy and the market. That’s why an enabling environment is key,” Onukwue said.
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