Financial analysts have indicted the Central Bank of Nigeria(CBN) over  non- disclosure of data and other information that would have assisted investors to make good investment decisions and probably  reduce or even avert the level of losses incurred in the Nigerian capital market.

Speaking at a press briefing to launch a book titled: Making Money in the Nigerian Capital Market,  Managing Director, ValueFronteira Limited, Dr. Martin Oluba said: “Most of the data supplied by the CBN is quite misleading due to its inefficiency in checkmating the data often supplied to it by banks operating in the country.”
According to him “Most of the figures supplied by some banks in the financial statements are misleading and false. It is the duty of the CBN to ensure that the figures supplied by the banks are accurate and not misleading. The apex bank is supposed to monitor and investigate the books of these banks to ensure they conform to international best practice.”

He declared that lack of information especially with regard to data from the regulatory bodies such as CBN, Nigeria Bureau of Statistics(NBS) etc have continued to make it difficult for financial analysts to make proper prediction about the performance of the quoted companies.

According to him, “Inflation is in excess of 22 per cent but CBN had stated that inflation is dropping when food prices are not dropping in reality. The regulators do not carry out enough research before coming out with figures. The major component of inflation is food baskets. So if  inflation is really falling as stated by the CBN, why is it that  the prices of food stuffs are not dropping?”.

Continuing he said “Generally, the CBN cannot be said to have helped the Nigerian capital market in 2008, mainly because of its inconsistent communications and early day denial of the impact of the global crisis even when it was obvious that the nation’s banks had foreign lines which had come under strain due to the crisis.”
To this extent, Oluba stressed that unless action is taken both at the international and local levels to improve liquidity and increase global capital flows, the banking sector will be under severe pressure to increase current loan levels, face stiffer competition for deposits and restrict growth for the banks.

He noted that the risk profiles of banks were expected to rise in tandem with the increased risk in the operating environment and create a pressing need for the institution to step up its supervision, examination and enforcement role.

According to him, “It goes without saying that the CBN will have to be more transparent on the status and health of the banks, ensure more well thought and consistent communication, review the use of the Monetary Policy Rate (MPR) and support initiatives to stimulate the capital market.”
In similar manner, Head, Analyst Services, Proshare Nigeria Limited, Reshu Bagga said, “Lack of adequate and timely statistics on the drivers of the economy has been a major problem of the country.
According to her, “How can analysts make correct predictions on the direction of the economy in the coming year when there are no timely information and adequate data regarding the drivers of the economy? she queried.

Speaking further, she stated that the inconsistent policies of the government also contributed to the downturn of the Nigeria economy.

According to her, “The policy somersaults of the CBN did little to encourage investors’ confidence as the net sum of the decisions further drove capital away from the Nigerian capital market. When the policy reversal of the December Year-End policy which had created a high interest rate regime (in a bid to attract deposits); the huge deposits created undue liabilities on the books of the banks.”

Meanwhile, the book,  Making Money in the Nigeria Capital Market, was packaged by analysts from Investiq, Proshare, Valuefronteira Limited, Meristem Securities Limited, and Share Support Service.