FSDH Merchant Bank Plc has foreseen that about N2.82 trillion coming from matured government securities and Federal Account Allocation Committee (FAAC) are projected to hit the Nigerian money market this month.
The bank also anticipated a total outflow of about N1.03 trillion from various sources.
Including government securities and legal withdrawals, leading to a net inflow of about N1.79trn.
The Head of Research and Strategy at FSDH Merchant Bank Limited, Mr. Ayodele Akinwunmi, speaking on the firm’s latest monthly financial market outlook report recently.
The report was titled: “Local Competitiveness: A Qualification for Complete Growth.”
Presenting the highlight of the report, the Akinwunmi, reiterated the need for the diversification of the economy in order to drive inclusive growth and competitiveness.
According to him, the Nigerian economy has the latent to grow faster than the projection by the International Monetary Fund (IMF).
He added: “Even though FSDH is of the view that the Nigerian economy has the latent to grow faster, this can only happen where we have corresponding set of policies that will uncheck the economy.
We need to involve private sector operators in ensuring that we lay the foundation for a supportable growth of the Nigerian economy.
According to him, the more we create local rivals to make our local economy attractive, the better for us.
On capital flight, Aknwunmi said: “The capital flight will continue to increase because of the increase in rates in developed countries.
And this is putting a lot of pressure on foreign exchange.