- FG Targets N14.67tn Investments in 2017
The Federal Government is targeting an investment inflow of N14.67tn into the economy before the end of the 2017 fiscal period, figures obtained from the Ministry of Budget and National Planning have revealed.
The proposed investment inflow of N14.67tn when compared with a total Investment of N13.6tn for 2016 represents an increase of N1.07tn.
A breakdown of the figure showed that the private sector is expected to make the highest form of investment in the 2017 fiscal period with N10.75tn.
This is an increase of N596bn over the N10.16tn investment, which the sector made in 2016.
Based on the plan, the Federal Government is expected to make a total investment of N2.05tn in 2017 as against the N1.58tn investment it made in 2016.
For the state governments, a total amount of N1.85tn investment is being expected from them; the same amount was reportedly made last year.
In order to achieve the objective of stimulating investment, the Federal Government is planning to provide incentives to support industrial hubs, and review local fiscal and regulatory incentives to support the development of industrial cities, parks and clusters, especially around existing ports and transport corridors.
There are also plans to revitalise export processing zones by reviewing local fiscal and regulatory incentives; rationalise tariffs and waivers on the equipment and machinery imports required for agro-industry; and establish special economic zones to provide dedicated infrastructure to support hub productivity.
There is a plan to promote local content by sourcing raw materials and spare parts locally, leveraging public procurement of locally manufactured goods and expand the capabilities of the Bank of Industry to enable it to support manufacturing firms through low cost lending.
Commenting on the investment drive, analysts said there was a need for the government to make it easier for people to do business in the country, adding that the poor perception of foreign investors about the Nigerian business climate was one of the major reasons for the huge decline in investment inflows into the country.
The Managing Director of an investment promotion firm, Footprints for Africa, Mr. Osita Oparaugo, explained that while there were huge investment opportunities in the country, the harsh operating environment was limiting the interests of investors in key sectors of the economy.
Oparaugo, whose firm is currently into partnership with five African countries including Nigeria on investment drive, urged the Presidential Enabling Business Environment Council to quickly commence the process of identifying and reducing the bureaucratic processes and regulations that impeded the private sector.
PEBEC was set up by the Federal Government in October last year to improve Nigeria’s ranking in the ease of doing business index and is being chaired by Vice-President Yemi Osinbajo.
Oparaugo said as part of efforts to correct the poor perception of foreign investors, a Memorandum of Understanding had been signed between the company and the Nigerian Investment Promotion Commission.
The MoU, according to him, will enable the company to showcase the huge investment opportunities in the non-oil sectors of the Nigerian economy.
He said, “We are committed to helping intra-African and foreign investors find the right partners and opportunities, joint ventures or partnerships and to establish presence through Private Public Partnership.
“There are numerous investment opportunities in Nigeria but a lot of investors particularly the foreign investors are not taking this advantage owing to the fact that they have a poor perception of the investment climate. This is understandable when you consider the fact that the operating environment is not friendly and the lack of continuity in some programmes of government.”
The Executive Secretary, Nigerian Investment Promotion Council, Ms Yewande Sadiku, said that the commission was working assiduously to promote the required synergy between investors and critical stakeholders in various sectors of the Nigerian economy.
She added that the commission would work hard to promote the ease of doing business within the area of its jurisdiction as part of its contributions to the recovery efforts.
FBNQuest Mutual Funds returns 104%
FBNQuest Asset Management, a subsidiary of FBN Holdings, has held yearly general meetings for five mutual funds managed by the firm.
The funds are the FBN Balanced Fund, FBN Smart Beta Equity Fund, FBN Eurobond Fund, FBN Bond Fund and the FBN Money Market Fund.
The Fund Manager continues to deliver commendable results, as demonstrated by strong performance across all its funds.
The FBN Bond Fund was the best performing of the mutual funds, returning 104.20 per cent over five-year while its US Dollar fund, the FBN Eurobond, returned 48.43 per cent in US dollars over the same period.
The Managing Director of FBNQuest Asset Management, Ike Onyia, said: “Our strong performance track record is premised on the research capabilities, insights and experience of our portfolio management and research teams. Our mutual funds serve as useful investment options useful in formulating unique and value-adding investment strategies for various client segments. This is because our range of mutual funds cut across various asset classes including equities, bonds and money markets.”
“Our funds remain easily accessible, as our goal is to continue to drive financial inclusion and democratise wealth creation, by supporting the financiainclusion and democratise wealth creation, by supporting the financial security aspiration of investors” he added.
Increasingly, financial markets are becoming complex to navigate and as a result, it will not be out of place for investors to actively seek the inclusion of mutual funds in their investment portfolio, which will serve as the structured gateway to such markets. Seeking the help of experienced financial planners to assist you in establishing your risk tolerance levels and advise on suitable options is highly recommended.
SEC Warns Against Proliferation of Unregistered Investment Platforms
The Securities and Exchange Commission (SEC) has warned the investing public to be wary of the proliferation of unregistered online investment and trading platforms facilitating access to trading in securities listed in foreign markets.
SEC’s warning was conveyed via a circular issued in Abuja, Thursday to capital market operators.
It advised the investing public to seek clarification as may be required via its established channels of communication on investment products.
The circular read: “The attention of the SEC has been drawn to the existence of several providers of online investment and trading platforms which purportedly facilitate direct access of the investing public in the Federal Republic of Nigeria to securities of foreign companies listed on securities exchanges registered in other jurisdictions.
“These platforms also claim to be operating in partnership with capital market operators (CMOs) registered with the Commission.”
The Commission categorically stated that by the provisions of Sections 67-70 of the Investments and Securities Act (ISA), 2007 and Rules 414 & 415 of the SEC Rules and Regulations, only foreign securities listed on any exchange registered in Nigeria may be issued, sold or offered for sale or subscription to the Nigerian public.
Accordingly, the SEC notified CMOs who work in concert with the referenced online platforms of the Commission’s position and advised them to desist henceforth.
Public to seek clarification as may be required via its established channels of communication on investment products advertised through conventional or online mediums.
SoftBank Reaps $33 Billion Coupang Windfall
SoftBank Group Corp on Thursday racked up a roughly $33 billion gain on paper through the public market debut of South Korea’s largest e-commerce company, Coupang Inc, the latest sign of a dramatic turnaround for its $100 billion Vision Fund.
Shares of Coupang opened 81% above their offer price on Thursday, after the company raised $4.6 billion in the U.S. stock market’s biggest initial public offering this year.
SoftBank paid around $3 billion for a 37% stake in the company, according to sources familiar with earlier fund-raising, giving it a roughly $33 billion headline profit if prices hold.
Coupang’s hugely successful stock market launch is welcome news for SoftBank, which is grappling with the collapse of billions of dollars worth of funds linked to Britain’s Greensill Capital, a supply chain finance start-up.
Vision Fund is Greensill’s biggest backer.
The Japanese conglomerate last month reported third-quarter net profit ballooned more than 20 times thanks to a recovery at the Vision Fund, a huge venture capital operation famous for investing early in Uber and other tech industry startup successes.
Only a year ago, SoftBank had been smarting from the flopped IPO and collapse in value of office sharing firm WeWork, raising questions over whether Chief Executive Officer Masayoshi Son had lost his midas touch and threatening plans to establish a successor to Vision.
The COVID-19 pandemic has also forced Son to sell assets but a second deal reported by Reuters on Thursday bodes well for VF II, a second, smaller fund.
The $225 million late-stage funding round for healthcare startup Forward Health was its first major investment this year, following a pickup in activity and the group’s fortunes in the second half of 2020.
The Vision Fund also made $11 billion on a blockbuster market launch of DoorDash Inc in December, which valued the food delivery company at more than $70 billion.
It also made gains on home seller Opendoor Technologies Inc’s initial offering in December.
The fund still holds large stakes in China’s biggest ride-hailing firm Didi, as well as Uber’s Southeast Asian rival Grab.
SoftBank is also trying to ride the mania for special purpose acquisition companies, launching a handful of blank-check firms this year, although none of them have found investment targets yet.
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