As the February 23rd, 2019 Presidential and Federal legislative elections results continue to trickle in and the All Progressive Congress (APC) in clear lead as at Monday February the 25th, 2019, the People’s Democratic Party (PDP) on the same Monday February 25th, 2019 through its National Chairman, Uche Secondus, in a press briefing claimed the results being announced were in favour of the ruling Party, the All Progressive Congress, APC.
The Chairman claimed the results are filled with “Irregularities” and therefore, “Incorrect and Unacceptable”. He stated that “Our collation centres have the original results from all the polling units in the country. That is from where are going to reclaim our results.”
“The results are incorrect and unacceptable to our party. Officials of the APC working with INEC have decided to alter results to affect our people. This must now be resisted by every well-meaning Nigerian. “INEC must live up to its responsibility. They are under pressure. We have the facts and when the time comes, we begin to release them.”
This singular message unknown to many Nigerians would have passed a shockwave to investors in a country where security is very fragile during elections. In 2017, the World Bank conducted a survey on Multinational Corporations Executives on factors affecting investment decisions in developing economies, and top on the list was Political Stability and Security, with 50% of the CEO respondents stating Political Stability and Security as Critically Important, and 37% stating they are important, of all the 10 factors considered, Political Stability and Security was the most crucial on the list.
As at Tuesday the 26th, February 2019, the Stock market was already reacting to the threat of Political Instability should the election results be contested with market capitalization of listed equities on the same day February 26th, shedding N85 billion (0.69%) in six hours of trading, the market capitalization opened at N12.194 trillion and by close of day was N12.109 trillion.
While some analyst claim that it was because the opposition party, the PDP did not win, they must look at the crucial factors which guide investments and investors decisions, and uncertainty in Political Stability where a major political party heats up the polity may lead to breakdown of law and order which can lead to insecurity and causing investors to lose billions, hence they see the sensible thing to do as quickly liquidating their investments and moving the funds out of the economy, and this can further compound economic situations for the country.
The country at this time must assure investors of its political stability and security and the PDP and APC as the major political parties must be seen to play the role of reassuring confidence in the economy. Heating up the polity will lead to further liquidation of investments from the Stock exchange which will lead to high demand of the dollars, driving up its price as investors move out their funds out of the economy.