The Managing Director, Partnership Investment Company, Victor Ogiemwonyi has expressed confidence that the Asset Management Corporation of Nigeria (AMCON) was capable of boosting lending by banks to other sector of the economy.

Speaking at the Bi-Monthly discourse of the Financial Correspondents Association of Nigeria (FICAN) sponsored by Zenith International Bank in Lagos last week, Ogiemwonyi  noted that AMCON, otherwise known as ‘bad bank’ , was capable of reducing the debt overhanging in the sector, a development that would free banks of non-performing loans (NPLs).

Taking a look at the state of the economy for the year, the investment analyst predicted that except a check was put on the current high level of insecurity, coupled with sectarian violence and political instability, both local and foreign investors would be unwilling to deploy resources to boost the economy.

He disclosed that the country was currently facing a high level of capital flight and declining interest of foreign investors in the economy, adding that the huge impact of these crises reminded the country’s investors that they were part of one unified global entity, as seen in the impact of the Euro economic crises in emerging markets like Nigeria.

He was, however, optimistic that the Okonjo-Iweala headed Economic Management Team (EMT) would do all it take to put the economy on a sound pedestal, adding that privatisation of public corporations would equally boost the market confidence.

“The level of insecurity has increased and hampered investors’ confidence in the country. Don’t forget that the stock market is a barometer for measuring a country’s economy. The insecurity in the country affects foreign Direct Investment and investors’ confidence. This is because crisis brings uncertainty, which also affects investors’ confidence,” he said.

He posited that the recent hike in pump price of fuel had imported inflation into the country, adding that such would deprive the economy, particularly the stock market of its real value to investors.

He explained that such inflation would raise cost of operation for companies, leading to fewer profits and declining return on investment.