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NSE Predicts 0.6% GDP Growth



Oscar Onyema, chief executive officer of the Nigeria Stock Exchange
  • NSE Predicts 0.6% GDP Growth

Mr Oscar Onyema, Nigeria Stock Exchange (NSE) Chief Executive Officer, has predicted that Nigeria’s economy would recover from recession in 2017 with a modest Gross Domestic Product (GDP) growth forecast of 0.6 per cent.

Onyema stated this at the NSE 2016 Market Recap and Outlook for 2017, in Lagos, on Thursday.

He expressed optimism that the nation’s economy and the equity market would rebound in 2017 with the right economic policies and strategies.

He said that the economy would be driven by vigoorous fiscal policy implementation with focus on articulation of desired goals.

He said that lower rates of disruptions to oil infrastructure from resolution of the Niger Delta conflict would increase foreign exchange inflows.

Onyema added that rise in crude oil prices above the Federal Government’s budget benchmark of 42.5 dollars per barrel and positive impact of the war against corruption would enhance investor confidence.

“We are cautiously optimistic, as consensus estimates suggest a moderate recovery for Nigeria in 2017, provided that policy makers implement the right combination of policy measures,” Onyema said.

He assured investors that the exchange would promote its unique value proposition to both global and domestic investors to increase market activities.

“Monetary policy will continue to play a
vital role in determining activity in the market,” he said.

Onyema said that the exchange would work with policy markers to drive policies that would free up the system and promote ease of doing business in Nigeria.

The chief executive officer called for an incentive schemes for sectors of the economy that could support export for enhanced foreign exchange earnings.

According to him, systematic removal of impediments to doing business and reduction of leakages will attract private sector investments.

He explained that the NSE would focus on achieving its goal of becoming a more agile and demutualised exchange in future.

Onyema added that the exchange would also hasten efforts toward developing innovative products such as exchange traded derivatives to provide investors with tools to better weather economic realities in 2017.

He gave the assurance that the NSE would enhance its cross-border integration efforts via African Securities Exchange Association (ASEA) and African Capital Market Integration (WACMI) programmes to enhance capital market liquidity.

“We will also continue our engagement efforts with the government to promote the listing of privatised state-owned entities as well as engage with the private sector issuers for listings across all of our product categories,” Onyema stated.

On the market performance in 2016, he said that the NSE Industrial Index recorded the steepest drop of the year, dropping by 26.37 per cent due to severe difficulties faced by companies in accessing capital for imported raw materials.

Onyema stated that the NSE All-Share Index in 2016 dropped by 6.17 per cent to close at 26,874.62 compared with 28,642.25 posted in 2015.

He added that NSE 30 index decreased by 7.18 per cent to close at 1,195.20 in contrast with 1,287.67 in the corresponding year.

The News Agency of Nigeria (NAN) reports that equities market capitalisation lost 6.12 per cent to close at N9.225 trillion against N9.859 trillion in 2015.

Total market capitalisation dipped 4.81 per cent to close at N16.185 trillion in contrast with N17.003 trillion in the preceding year.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade experience in the global financial markets.


Egypt Leads Nigeria, South Africa in Foreign Direct Investment



Global debt

Egypt Leads Nigeria, South Africa in Foreign Direct Investment

The United Nations Trade Association has Nigeria recorded a total of $2.6 billion in Foreign Direct Investment (FDI) in 2020, below the $3.3 billion posted in the preceeding year.

South Africa, Africa’s most industrialised nation, reported $2.5 billion during the same year, slightly below Africa’s largest economy and 50 percent below the $4.6 billion attracted a year earlier.

The report also noted that Africa recorded a total of $38 billion FDI in the same year, representing a 18 percent decline from the $46 billion posted in the corresponding year of 2019.

However, Egypt led Nigeria and South Africa with $5.5 billion FDI, an increase of 38 percent from the preceeding year.

The report read in part, “FDI flows to Africa declined by 18% to an estimated $38 billion, from $46 billion in 2019. Greenfield project announcements, an indication of future FDI trends, fell 63% to $28 billion, from $77 billion in 2019. The pandemic’s negative impact on FDI was amplified by low prices of and low demand for commodities.

UNCTAD also noted that global foreign direct investment declined by 42 percent to an estimated $859 billion, down from $1.5 trillion in 2019.

The decline was concentrated in developed countries, where FDI flows fell by 69 percent to an estimated $229 billion. Flows to Europe dried up completely to -4 billion (including large negative flows in several countries). A sharp decrease was also recorded in the United States (-49%) to $134 billion.

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FG to Partly Fund Six Rail Projects Connecting All Regions



rail project

FG to Partly Fund Six Rail Projects Connecting All Regions

The Federal Government will pay a total sum of N71 billion to partly fund six rail projects connecting all regions of the country.

In the report obtained from the Federal Ministry of Finance, Budget and National Planning, the six rail projects marked for development this year are Lagos-Kano rail line (ongoing), Calabar-Lagos (ongoing), and Ajaokuta-Itakpe-Aladja (Warri).

Others are the Port Harcourt-Maiduguri railway, the new Kano-Katsina-Jibiya-Maradi line in Niger Republic and the Abuja-Itakpe and Aladja-Warri Port and refinery/Warri new harbour.

The Buhari administration will also spend N15.1 billion on the development of safety and security of critical projects, airport certification, runway construction, terminal building, among others in the aviation sector in 2021.

Last week, Rotimi Amaechi, Minister of Transportation, said the Lagos-Kano line would be connected from the Ibadan end of the Lagos-Ibadan railway and would cost $5.3 billion.

We are waiting for the Chinese government and bank to approve the $5.3bn to construct the Ibadan-Kano. What was approved a year ago was the contract,” the minister said.

He added, “The moment I announced that the Federal Government had awarded a contract of $5.3bn to CCECC (China Civil Engineering and Construction Corporation) to construct Ibadan-Kano, people assumed the money had come in; no.

“We have not got the money, which is a year after we applied for the loan. We have almost finished the one of Lagos-Ibadan. If we don’t get the loan now, we can’t commence.”

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FG Launches E-ticketing Platform to Deepen Train Usage and Convenience



FG Launches E-ticketing Platform to Deepen Train Usage and Convenience

In a bid to improve the usage and enhance the convenience of train transport in Nigeria, the Federal Government on Thursday announced the launching of the Electronic Ticketing platform for the Kaduna-Abuja rail services.

The N900 million E-ticketing platform was introduced by the Minister of Transportation, Chibuike R. Amaechi, and the Nigerian Railway Corporation.

Amaechi said the new platform would improve efficiency, promote accountability, reduce leakage and enhance economic growth, as well as save time.

The E-ticketing platform was a Public-Private Partnership project done in conjunction with Secure ID Solutions, who provide and would manage the system for 10 years in an effort to recoup its investment before the Nigerian Railway Corporation take charge.

Kofo Akinkugbe, the Chief Executive Officer, Secure ID Solutions, said as the new E-platform issued 25,000 tickets after a successful pilot test on Thursday.

Potential Travelers can book via three ways:

1. Mobile app
2. Website
3. POS or Cash at the station

A validator would be used to scan the ticket barcode to ascertain its authenticity before boarding.

Amaechi further announced that self-service ticket vending machines at various train stations would be introduced soon.

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