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Nigeria to Get Major Economic Boost from TABEF – Okpe

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  • Nigeria to Get Major Economic Boost from TABEF

Businesses in different sectors of the economy are about to enjoy a major boost as Turkey promised more investment in Africa. The promise was made at the just concluded Turkey –Africa Business Economic Forum, TABEF 2016 in Instabul. This is in line with the country’s resolve to create an enabling environment for future collaborations.

Speaking at the event, the Turkish President, Recep Tayyip Erdogan, said Turkey will in the coming days focus on helping many businesses in Africa with a view to promoting “closer cooperation with our regional allies, develop solutions to shared challenges and explore mutually beneficial opportunities…We share a common fate. We consider the priority of the African continent as our priority. There is a nice African proverb that says one day’s rain cannot get deep into the soil. We would like to remain friends forever.”

The event which was attended by major stakeholders in the Nigerian economy ranging from construction, energy, food and healthcare promised a massive turn around that will boost trade in Africa.

Emphasising on the benefits of the forum to Nigeria’s economy, Dr. Nneka Ebru Okpe, Co-founder and Lead Consultant at IntraSolutions Consultancy; one the major facilitators of the Nigerian-Turkey business partnership, said that events like this and the last economic forum on business collaboration between Turkey and Abia state government in Abuja should be encouraged as to increase foreign direct investment in the country.

According to her, “Turkey is ready to do business in Africa and we can already see this by the country’s willingness to expand the scope. Many opportunities are opened to both government and private sector businesses to thrive under this relationship”

Erdogan promised to establish an embassy in every country of the African continent. The President also said that Turkey’s foreign direct investments in the continent have reached $3.9 billion while the trade volume between Turkey and the continent increased to $17.5 billion in 2015 from $7 billion in 2005.”

Dr. Okpe said “ All these are pointers that in the next few years, recession or not, Nigeria will experience a tremendous investment partnership in the area of hospitality, agriculture, energy and manufacturing amongst others” By the involvement of IntraSolutions, Abia state has already started to enjoy the benefit of the relationship in the area of shoe and garment making; even before TABEF held. One thing that they are sure about is that the relationship will spread across the country with many state governments and private sector investors benefiting a great deal.

Also present was Mr. Pierre Edde ( Eko Atlantic city ) who made a pitch for investors on the benefits of investing in Eko Atlantic City. Edde lamented the total neglect of mortgage scheme by government.

Expatiating on the immense benefit available to the government in making housing available for its citizenry, the Eko Atlantic City boss said “the Nigerian mortgage system is at an alarmingly low level at just 0.05% of the country’s GDP. Banks alongside the government will need to revamp the mortgage system to afford individuals the ability to purchase homes, especially in face of the current economic recession in the country,”

On ways to boost the real estate sector in the country Edde stated that government and financial institutions should work together towards improving the mortgage system, as it is critical to the growth of the sector. This, he emphasised, is the only way the sector can be able to really improve on its contribution to the nation’s GDP.

The Turkish Cooperation and Coordination Agency, or TIKA, remains active across the continent and implements hundreds of humanitarian and development projects to provide better healthcare, promote agriculture, protect the environment and facilitate commerce.

The forum, jointly organized by the Turkish Ministry of Economy, the African Union Commission, the Foreign Economic Relations Board (DEIK) and the Turkish Exporters Assembly (TIM), aims to provide a platform for the business circles of Turkey and African countries to create a long-lasting cooperation, according to the forum’s official webpage.

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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Federal Government Unveils Plan to Boost Nigerian Automotive Industry with Local Manufacturing Drive

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In a bid to revitalize the Nigerian automotive industry and reduce dependency on imported auto parts, the Federal Government has unveiled an ambitious plan to kickstart local manufacturing initiatives.

Spearheaded by the Minister of Industry, Trade, and Investment, Doris Aniete, the initiative aims to stimulate growth in the sector by increasing the supply of locally produced components to the market by 40%.

Announcing the policy during a ministerial sectoral briefing to commemorate President Bola Tinubu’s first year in office, Aniete emphasized the importance of collaboration among manufacturers, dealers, regulatory bodies, and other stakeholders in the automotive ecosystem.

This collaborative effort, she stated, would be instrumental in addressing challenges, streamlining processes, and driving innovation within the industry.

For years, Nigeria has heavily relied on imports to meet the demand for vehicles and spare parts, with a significant portion of automotive components imported from abroad.

According to Luqman Mamudu, Chairman of the West Africa Automotive Show, Nigeria alone accounts for about 78.8% of automotive components imported to the region, amounting to approximately $4.2 billion annually out of the $6.2 billion spent by the region.

The newly developed framework aims to change this narrative by prioritizing the local production of critical automotive components such as tyres, batteries, brake pads, and more.

By fostering collaboration between stakeholders and incentivizing local manufacturing, the government seeks to create a more sustainable and self-reliant automotive industry.

Aniete highlighted the potential economic benefits of the initiative, citing significant foreign exchange savings through domestic production of parts.

She stressed that by reducing the need for imports, the country could conserve foreign exchange reserves and bolster its currency while simultaneously stimulating job creation and economic growth.

Furthermore, the government has attracted substantial investment capital amounting to $3.5 billion to develop a resurgence plan for the Nigerian Cotton, Textile, and Apparel Industry.

This initiative, undertaken in partnership with development partners and private sector players, aims to unlock the full potential of the sector and create additional opportunities for growth and employment.

In addition to these initiatives, the Ministry of Industry, Trade, and Investment disclosed plans to host the Lagos International Trade Fair, signaling a renewed commitment to reclaiming Nigeria’s position as a regional market powerhouse.

The revival of this trade fair, last hosted 14 years ago, is expected to amplify market linkages for manufacturers, suppliers, farmers, and traders nationwide, catalyzing economic activities across various sectors.

As transformative reforms unfold in the Nigerian automotive and textile industries, the government remains focused on unlocking equitable opportunities for farmers, miners, and entrepreneurs.

With stringent regulations and collaborative frameworks in place, Nigeria is poised to chart a new course towards sustainable economic development and self-reliance in key sectors.

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Dangote Oil Refinery Set for December Listing on Nigerian Stock Exchange

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The $20 billion Dangote Oil Refinery is poised to be listed on the Nigerian Stock Exchange (NSE) by December 2024, according to statements made by Aliko Dangote, Chairman of the Dangote Group.

Dangote, Africa’s richest man, expressed his enthusiasm for involving Nigerians, Africans, and other investors in what he described as a historic move.

Speaking to The Africa Report, he affirmed, “The listing, most likely, I won’t be surprised if we list (on the Nigerian Stock Exchange) by the end of this year. We will do that.”

This listing, expected to attract significant investor interest, could potentially add about N8 trillion to N10 trillion to the market capitalisation of the Nigerian Stock Exchange, as predicted by economy and capital market analyst Rotimi Fakayejo.

He said such a listing would not only distribute wealth but also attract foreign portfolio investment to the country, bolstering the economy with additional foreign exchange.

Fakayejo further elaborated on the potential impact of the Dangote refinery listing, stating, “It is also going to engender foreign portfolio investment. Such listing will affect individuals in the country and the stocks listed on the Nigerian exchange.”

David Adonri, Vice President of Highcap Securities Limited, echoed this sentiment, highlighting the significance of the listing for the Nigerian capital market.

He said the listing would provide Nigerians with the opportunity to share in the considerable wealth generated by the refinery.

However, uncertainties loom regarding the Dangote refinery’s crude oil supply chain. While Dangote confirmed the refinery’s decision to import crude oil from the United States due to fluctuating Nigerian oil production figures, Minister of State for Petroleum (Oil), Heineken Lokpobiri, denied knowledge of such imports.

Despite this discrepancy, Dangote defended the decision, stating, “We have tendered to buy some WTI oil from the US because the size of our refinery is very big, and we have to make sure that we secure the raw materials for our production.”

With the refinery set to attain a capacity of 500,000 barrels per day by July and reach its full capacity of 650,000 barrels per day by the end of the year, expectations are high for its transformative impact on Nigeria’s energy sector and broader economy.

The impending listing of the Dangote Oil Refinery represents a significant milestone in Nigeria’s quest for economic growth and diversification.

As stakeholders eagerly await further developments, the prospect of increased market capitalisation and enhanced investor participation holds promise for the country’s economic future.

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Retail Transactions on NGX Plummet by Nearly 55% in April

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The retail transactions on the Nigerian Exchange Limited (NGX) declined by 54.89% in April to N100.77 billion from N223.37 billion in March.

This significant drop was revealed in the latest Domestic and Foreign Portfolio Investment Report released by the NGX.

The report highlighted that while retail transactions took a substantial hit, institutional transactions also saw a decrease, albeit less severe.

Institutional trading fell by 43.58% to N124.63 billion in April but still outperformed retail activity by a margin of 10%.

Overall, the total value of transactions executed by domestic investors continued to surpass those by foreign investors by approximately 30% in April.

However, the combined domestic transactions saw a steep decline of 49.27%, dropping from N444.28 billion in March to N225.40 billion in April.

Conversely, foreign transactions painted a more positive picture, increasing by 28.19% from N94.26 billion (approximately $70.83 million) in March to N120.83 billion (approximately $90.83 million) in April.

This surge in foreign investment activity provided a somewhat balanced view of the overall market dynamics.

Despite the month-on-month decrease, the total domestic and foreign portfolio transactions in Nigeria’s equity market amounted to N346.23 billion in April, marking a 35.71% decline compared to the N538.54 billion recorded in March.

However, the April figures still reflected a robust year-on-year growth of 81.07%, up from N191.21 billion in April of the previous year, indicating a positive trend in market activity over the longer term.

The report attributed the sharp decline in retail transactions to various market conditions and investor sentiments.

Analysts suggest that the decrease may be linked to economic uncertainties and a cautious approach adopted by retail investors in light of recent market volatilities.

Furthermore, the detailed analysis revealed that domestic investors were the primary drivers of the market, contributing N225.40 billion in April.

This trend underscores the continued dominance of local players in the Nigerian capital market.

Meanwhile, the NGX opened the new week on a slightly positive note, gaining 0.3% to reach 97,864.65 points after suffering three consecutive losses in the previous week.

The market’s year-to-date return improved marginally to 30.9% from the 30.5% recorded at the close of last week, suggesting a resilient market performance despite the recent fluctuations.

In related news, the NGX may sanction 47 companies over delayed audited reports, signaling a crackdown on non-compliance to maintain market integrity.

Also, the Federal Government listed N4.21 billion in April bonds on the NGX, contributing to the overall market activities.

While the drop in retail transactions is a cause for concern, market experts remain cautiously optimistic about the long-term prospects of the Nigerian Exchange.

They emphasize the need for strategic interventions to boost investor confidence and stabilize market activities in the coming months.

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