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Global Investors Still Interested in Nigeria – Ernst & Young

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Nigerian stock market - Investors King

A Partner and Emerging Markets and Global Deputy Leader, Ernst & Young, Mr. Rohan Malik, has said international investors are interested in investing in Nigeria as the country presents huge opportunities.

According to Punch, Malik identified the financial services sector as one of the five sectors that hold massive opportunities for Nigeria amid the sustained drop in global oil prices.

Other sectors, according to him, are telecommunications, manufacturing, real estate and agriculture.

Malik, who visited Nigeria last week, said, “I think the international community is looking at Nigeria with great expectations from the new regime. When I talked to international investors, they see Nigeria as a beacon of hope because of the vast demographic dividend you have got with the young population. I feel the government should take this opportunity with the low oil price to say, ‘What could this low oil price actually give to us?’”

He said investors would be interested in investing in any part of the world where they can get investment opportunities with the right optimum level of risks and returns.

He said, “Today Nigeria has to compete for investments with the likes of India, China, the Middle East, South America, the so-called higher growth markets.

“The global investors are still looking at deals. I was talking to some of the investors recently and they said, ‘We have got more money than bankable projects today.’ In other words, money is not the problem. So I think Nigeria is to compete in a much harsher climate today with other economies and they are looking at Nigeria vis-a-vis India, China and others.”

He explained, “The sector where I believe there is an advantage which Nigeria has got, but it comes down to how you formalise and shape these, are financial services. Thinking about banking the unbanked, people who don’t have bank accounts today are huge. It is a huge opportunity to get them on.

“Telecommunications. If you look at the opportunities which technology is giving today to governments around the world and for citizens, there is a huge amount of opportunities right now.”

He noted that the biggest area could be agriculture, saying, “If you think about the volume of people in Nigeria who are involved in agriculture – over 50 per cent – how can you ignore the biggest sector of all? And agriculture can lead to things like food processing.

“So financial services, telecommunications, manufacturing, real estate and agriculture will give you great dividends,” Malik said.

He described the decline in oil prices as an opportunity for economies who depend on oil as a major source of revenue to make change happen.

“So, I feel this is a golden opportunity for the government to actually shape policies that will deliver impact to the vast majority of the population in Nigeria.”

The EY partner, who stressed the need for the government to encourage entrepreneurship in the country, said government bureaucracies, regulations and lack of policy implementation were some of the challenges facing entrepreneurs.

He said, “Access to funding remain an issue, not because there is no funding; it is because there are not enough bankable projects. Many entrepreneurs don’t know what it will take to fund a business. They underestimate very often the actual amount of investment required.

“The second one is access to markets. Many entrepreneurs don’t understand how they can access the markets beyond the local context; how they can be national and international. For me, that is a common challenge that I find right now that an entrepreneur or a small business remains local.

“I think this is a huge challenge that government think that their job is done when they produce policies. That is the first step on the journey. How can you go from policy to outcomes is the challenge, and entrepreneurs suffer from that.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Investment

Saudi Arabia Aims for $80 Billion Tourism Investment to Fuel Vision 2030 Goals

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Saudi Arabia is embarking on a bold venture to attract up to $80 billion in private investment into its burgeoning tourism industry, a move pivotal to realizing its ambitious Vision 2030 objectives.

Tourism Minister Ahmed Al Khateeb unveiled the kingdom’s aspiration during an interview in Riyadh, emphasizing the imperative role of the private sector in spearheading investment endeavors.

With plans to disburse approximately $800 billion on tourism over the next decade, Saudi Arabia is steadfast in its pursuit to diversify its economy and reduce dependency on oil revenues.

Vision 2030 outlines a trajectory for the kingdom to metamorphose into one of the world’s premier tourist destinations, targeting 150 million annual visitors by 2030, a significant portion originating from overseas.

While the government and sovereign wealth fund have historically fueled tourism development, securing substantial foreign direct investment, particularly from the private sector, emerges as paramount in expediting Vision 2030 initiatives.

The kingdom’s fiscal projections, forecasting deficits until 2026, underscore the urgency of engaging private investors to actualize the ambitious tourism blueprint.

Saudi Arabia, having welcomed 100 million tourists in 2023, predominantly domestic travelers, eyes international markets such as India, China, the UK, France, and Germany for tourist influx.

A new program launched by the Ministry of Tourism aims to streamline investment processes, potentially unlocking $11 billion in private investment, bolstering Saudi Arabia’s tourism trajectory and reshaping its economic landscape.

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CBN Unveils Plan to Settle N1.64 Trillion Treasury Bills in Q2 2024

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The Central Bank of Nigeria (CBN) has announced its strategic approach to managing liquidity and meeting financial obligations by unveiling a comprehensive plan to settle Treasury Bills (TBs) worth N1.64 trillion during the second quarter of 2024.

This initiative, part of the CBN’s Nigeria Treasury Bills Issue programme, aims to regulate the money supply within the economy while effectively managing liquidity dynamics.

According to documents obtained by Investors King, the TBs settlement program is slated to commence on March 7th and conclude on May 23rd, 2024.

The CBN will focus on settling TBs with varying tenors, including N414.29 billion on 91 days, N43.74 billion on 182 days, and a substantial N1.18 trillion on 364 days.

The breakdown of the settlement plan reveals monthly settlements to address maturing TBs. In March, the CBN plans to settle N660.62 billion worth of TBs, followed by N292.17 billion in April and N688.3 billion in May.

Market analysts interpret this move as a testament to the CBN’s commitment to managing financial obligations and maintaining economic stability.

It provides investors with opportunities to engage in short-term financial instruments while contributing to overall liquidity dynamics.

The strategic settlement plan reflects the CBN’s proactive stance in navigating economic challenges and ensuring stability within the financial landscape.

As the apex bank implements these measures, stakeholders will closely monitor their impact on market dynamics and economic indicators, anticipating implications for investment decisions and monetary policy outlooks.

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China’s State-Owned Lenders Allocate $8 Billion to Revitalize Property Market

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General Images Of Residential Property

China’s state-owned lenders have committed a substantial $8 billion in loans to rejuvenate the country’s beleaguered property market, aligning with Beijing’s directives to bolster the sector.

Agricultural Bank of China Ltd. disclosed approving over 40 billion yuan of loans for real estate projects on predefined white lists, signaling a proactive approach towards supporting the housing market’s recovery.

China Construction Bank Corp. also joined the effort, extending 3 billion yuan to five property projects, with plans to greenlight over 20 billion yuan in loans soon.

Industrial & Commercial Bank of China Ltd. and Bank of China Ltd. are among the institutions offering financing assistance, although the exact loan amounts remain undisclosed.

This initiative follows Beijing’s recent call for local authorities to enhance financing support for developers and curate lists of eligible projects.

In response, the big four state lenders pledged to meet reasonable financing demands from developers and projects identified under the coordination mechanism.

However, China’s property market faces challenges despite these measures. New home sales plummeted 34.2% year-on-year, underscoring the ongoing slowdown.

While existing home transactions surged during the Spring Festival holiday, new home sales remained subdued, prompting a cautious outlook among buyers.

The infusion of $8 billion aims to instill confidence and stimulate activity in the property sector, potentially heralding a gradual recovery amid persisting market uncertainties.

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