Nigerian polls outcome unlikely to affect markets


Nigerian markets are expected to remain cautious as the country awaits electoral outcome that could see President Goodluck Jonathan being succeeded by Muhammadu Buhari.

FX dealer at GT Bank, Lekan Olabisi says the outcome of the past weekend polls is unlikely to bring many changes to the market saying the winner will face current challenges.

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Responding to sentiments suggesting that despite an attractive yield environment and a stable naira, the outlook of fixed income space will be largely dependent on the general election outcome of the last weekend, Olabisi told CNBC Africa that to the contrary the situation was unlikely to change.

“People are likely to watch for results expected to come out today but I don’t think it changes the environment for Nigeria,” said Olabisi.

“What happens when results come out, the situation will not make a much reaction as things are expecting to stay the same.”

Incumbent President Goodluck Jonathan and former president General Buhari are the frontrunners in a largely congested election.

“I think markets will be cautious and they will attempt to see what happens so on the fixed income we are likely to see more liquidity in the market,” added Olabisi.

Olabisi welcomed the Central Bank of Nigeria for stabilising the naira.

“The naira has been stable for a while now and has been around 197 naira to the dollar, I think this should continue. The CBN has been intervening on daily basis,” added Olabisi.

“Last week there was a lot of liquidity in the market. We saw bonds closing below 16 which is the first time in a while.”