Lack of statistical data bane of investment decision –Experts

By Amaka Ifeakandu
Lagos

Financial experts have said that the delay in the release of statistical data has continued to impact negatively on the investment decision in the country.
They also said that economic data offer people opportunity to make decision on how to invest their money.    In his presentation at the  Citi Financial Journalist Training,in Lagos the  Country Treasurer, Citibank,  Mr. BayoAdeyemo  said that uneven Gross Domestic Product (GDP) growth rate is present between developed and emerging market because of the high starting base of developed market.  He, however, said that optimally, developed countries grew between 2.5 per cent and 3.5 per cent per annum while emerging market growth could be in the double digits.  He stated that monetary policy is used to target inflation and exchange rate, adding that lower interest rates leads to increase in borrowing and money supply as well as serve as disincentive to invest in securities.
Also speaking, the chief operating officer, Citibank, Mr Akin Dawodu said that to manage inflation and keep foreign exchange stable in the system, the Central Bank of Nigeria has retained Monetary Policy Rate (MPR) at 12 per cent since October 2011.
He said that there are arguments for and against high MPR, stating that high MPR helps to contain inflation, keeps a stable exchange rate and attract investors while low MPR could lead to a pick up in inflation, a devaluation of the exchange rate and a flight from investors
He said that rebasing of the economy would be positive in the medium to long term as it suggests that Nigeria has better data which adds to investor’s confidence of their assessment of preferred investment destinations. He pointed out  that economic comparison was easier with the rebased GDP, stressing the rebased GDP provide a better understanding of the economy.              He also said that care must be taken in reporting the new figure as it means everything but nothing.
Financial expert recently said that if Nigeria continues to grow at seven per annum as per current projection. It will dominate Africa economically by virtue of its sheer size.