The Central Bank of Nigeria (CBN) has been urged to look at the possibility of easing the cash squeeze in the Nigerian stock market in a bid to improve liquidity in the market.
Mr. Olutola Mobolurin, group chief executive of Crusader Nigeria Plc said liquidity needed to be restored to the stock market otherwise it will constrain capital formation process in the economy.
He said cost of capital is going up while the value of equity is coming down because of the prevailing bearishness in the stock market.
Mobolurin, who also doubles as a leading stockbroker on the Nigerian Stock Exchange, contended that “We cannot have a depressed stock market and at the same time a rising interest rate because of the continued mopping up of liquidity from the financial system by the CBN.
He said there is need for the government to look at its tax policy because some aspects of the taxation policy negate capital formation.
He cited the minimum tax on insurance gross premium as well as the taxing of investment income of life assurance as some of such negative tax policies 
Mobolurin advised investors to take advantage of the bear run in the stock market to buy shares because there are currently 30 companies that are undervalued.
He remarked that about seven months ago, it was difficult to find undervalued stocks.
In a similar vein, analysts at FSDH Securities Limited, a dealing member of the Nigerian Stock Exchange (NSE) have maintained that the current bearish trend in the market presents good buy opportunities for investors who can maintain medium and long-term views.
The analysts said most of the stocks in the Nigerian stock market are currently trading at prices that are lower than their intrinsic values on account of waning confidence leading to liquidity crunch.
“In a market like this, wise capital market investors usually take advantage of the depressed stocks’ values to invest in the market, in anticipation of good returns to come,” the analysts said.
They strongly advised investors to carefully look at the market to select stocks with good values and prospect for growth.