NIGERIA'S CAPITAL INFLOW UP 74.8% THIRD QUARTER

Things are looking up for Nigeria once again as foreign capital importation rose by 74.8% to $1822.11m by the third quarter of this year, according to latest figures from the National Bureau of Statistics (NBS).

This represents second quarterly increase after it rose by 46.6% to $1042.17m from quarter one's lowest level of $710.97m in flow since 2014 quarter two.

The new trend seems sustainable because it was driven by 172.8% rise in portfolio investment due to renewed interest in money markets instruments and bonds and fair growth too in foreign direct investment.

Sustainable because both seem to be in response to incentives embedded in monetary policy of the central bank of Nigeria.

Inflow into bond came to $369m within third quarter compared to zero in quarter two while that into money market instruments rose by 508.7% to $350m.

As for foreign direct investment, it was third quarterly increase in a row after the second lowest $123.15m since 2014 in quarter four 2015. All of that was in the form of equity investment

However, much as it looks like Nigeria has thus turned the corner in the eyes of foreign investors, it is still a long way from peak capital inflow of $6542.58m in same quarter three in 2014.

In fact the 2016 total capital importation was barely above 50% of any quarter inflow in tough and very uncertain 2015.

Also, most of the inflows were into banking, telecommunications and further down, oil and gas as usual.
Not much interest has been shown in other areas especially agriculture where high population also offers good opportunities and manufacturing.

In addition, something still needs be done to convince investors from Switzerland, Belgium, Mauritius and Island of Man to look Nigeria's again just as more needs be done to fully rekindle still reliable sources like the United Kingdom, United States of America and the Netherlands.

Investors from China and India are yet to think Nigeria especially in recent times in the case of India and despite growing bilateral links with China.

Comments

Post a Comment

Popular posts from this blog

2018: TWO BLOWS TO UNITED CAPITAL PLC.

When a child who in a previous examination scored 80%, comes home with a new report in which he now scores 67.2%, the parents have a right to sit him down and ask how come. So it must be between Nigeria's United Capital Plc and its discerning shareholders since the release of the company's 2018 audited figures. In 2018, all said and done, says the annual report, United Capital ended with 67.2 % profit margin compared to 80.2% in 2017. How come? What comes across from the figures was that the company received 2 blows to the jugular in 2018: Sharp drops in Investment income and fair value gain. Investment income dropped by 10.8% to N4422.8m from N4965.2m while fair value on financial assets plunged by 79.7% to N6.173m from 2017's N30.387m. In view of both drops, the group's gross earnings grew by only 33.9% to N9259.4m despite strong growths in net trading income, and net operating income leap to N757.5m from N143.5m  Other income streams ended with single digit increase....
Read more

KENYA AUCTIONS Ksh 13.84bn Treasury Bonds.

The Central Bank of Kenya (CBK) will from Tuesday December 18 to 27th 2018_ auction Ksh 13.84bn worth of fixed income Treasury Bonds with issue date December 17, 2018. According to official statement from the Director of Financial Markets Irene Njiru on Monday December 17, auction will continue throughout the stated period or close once the target money to be raised is reached, whichever comes first. Bid value will be paid for at most by 2pm December 31, 2018 while auction results will be made public on December 28, 2018 after the scheduled closing date. The bonds are being issued at 12.502% fixed interest at an adjusted average price of Ksh 100.468 for Ksh 100 bond. However, price payable after auction results publication will be average of successful bid prices based and allotment will be on first come first served basis. Meanwhile, the monetary operations and debt management department has released the interest payment schedule for 13 Treasury Bonds due January and February 2019. Th...
Read more

NAIROBI SE's HIGH PRICED EQUITIES.

In the wake of Nigeria's high priced quoted companies posted in this blog a while ago, Henates took a look to at Nairobi Securities Exchange June 23 official list to identify its high priced equities and the outcome was interesting too. Of the 66 companies quoted on the market by June 23, 15 or 22.7% were valued averagely at above 30 times nominal value. A word of caution though: There are two clear differences between the Nigerian stock market list and that of Nairobi: In the Nigerian one most listed companies have par or nominal value of N0.50 as is there is an implied agreement on this. On the other hand, at Nairobi most of the equities do not share common par value, they differ greatly. Then another thing, Nigerian equities are not valued below par, Nairobi ones can and many are so valued. Of the top 15 high priced equities at the Nairobi market, Safaricom topped with because by June 23, at 23.25 Ksh average price, it was valued 465 times its nominal value of just 0.0...
Read more