CBN Urged to Halt Bank Investments in Stock Market

Ike Chioke, the Group Managing Director of Afrinvest West Africa, has called on the Central Bank of Nigeria (CBN) to ensure that banks do not invest fresh capital in the stock market. In an interview, he highlighted the critical need for Nigeria to achieve double-digit GDP growth, specifically between 12% to 15% annually, to reach its ambitious target of a $1 trillion economy by 2031.

Chioke pointed out that the current GDP growth momentum is insufficient, with projections indicating that Nigeria's GDP would only reach around $550 billion by 2031 if growth rates remain at 15%. He noted that the government must maintain a growth rate above 25% to meet the $1 trillion target.

Furthermore, Chioke discussed the importance of fiscal discipline and the need for state governments to access the capital market effectively to raise funds for development projects, emphasizing the role of the pension fund industry in this process.