- Nigeria’s Economy Attracts N305bn Investment in Two Months
Despite the challenges facing the country, the Nigerian economy attracted investments worth $1bn (about N305bn) in the first two months of this year.
The Statistician-General of the Federation and Chief Executive, National Bureau of Statistics, Dr. Yemi Kale, confirmed this to our correspondent in an exclusive interview in Abuja.
Kale said the investment inflows into the country in the first two months of this year exceeded what Nigeria attracted during the same period in 2016.
This, he added, was an indication that despite the challenges, Nigeria still remained one of the most attractive countries to do businesses in the world.
Kale stated, “If you look at foreign direct investments and capital importation, they dropped as low as $700m from about $20bn at the peak in 2015; but now, you have seen they are gradually going back up.
“For the first two months of the first quarter, it was already over $1bn and so the numbers suggest that things are improving.”
He said that the economy started seeing sign of recovery in the first quarter, adding that with the inflation rate reducing gradually and companies recording improvements in their profitability, the country would soon be out of recession
The NBS boss added, “If you look at the inflation rate for the last few months, you can see that prices are still rising but they are rising at a slower rate than they did previously. If you look at the trend, it was negative for almost the whole of 2016, but in the last quarter of 2016 it turned positive and we think it is going to turn positive again in the first quarter of 2017.
“If you also look at companies’ financial results, particularly manufacturing companies quoted on the Nigerian Stock Exchange, you can see that they are returning to profitability after they ran losses the previous year.
“So, they are several indicators that you can look at that show that things are beginning to improve even if they have not yet got to the point where we are comfortable that things are fully better.”
The Federal Government in its Economic Recovery and Growth Plan is targeting an investment inflow of N14.67tn into the economy before the end of the 2017 fiscal period.
Debt Management Office Releases Q1, 2022 Calendar
The Debt Management Office (DMO) will, on January 16, 2022 issue N70 billion to N80 billion, four years and 20 years Federal Government of Nigeria (FGN) bond, with an interest rate of 12.50 percent.
In its recently released calendar for the issuance of bonds for the first quarter of 2022 (Q1-2022), the DMO noted that this bond has an original tenor of 10 years and 20 years and will re-open in January 2026 and January 2042.
The DMO also revealed that it will issue three years, 11 months and 19 years, 11 months FGN bond of N70 billion to N80 billion on 16th of February.
This bond, according to the DMO, will carry an interest rate of 12.50 percent, to be re-opened in January 2026 and January 2042, and with original tenor of 10 years and 20 years.
Also on March 23, the DMO will issue three years, 10 months, and 19 years, 10 months, 70 billion to N80 billion FGN bond which would last for a period of 10 years and 2 years.
The bond has an interest rate of 12.50 percent, and will be re-opened in January 2026 and January 2042.
FGN Bonds are debt securities (liabilities) of the Federal Government of Nigeria (FGN) issued by the Debt Management Office (DMO) for and on behalf of the Federal Government.
The FGN has an obligation to pay the bondholder the principal and agreed interest as and when due. When you buy FGN Bonds, you are lending to the FGN for a specified period of time.
The FGN Bonds are considered as the safest of all investments in domestic debt market because it is backed by the ‘full faith and credit’ of the Federal Government, and as such it is classified as a risk free debt instrument.
Prior to the establishment of the Debt Management Office (DMO) in 2000, Nigeria’s public debt was managed by a myriad of Government Agencies in an uncoordinated manner.
This diffusion created systemic and structural problems that brought about serious strain on the country’s debt portfolio and economic growth.
Hence, the establishment of the DMO marked the beginning of the institutionalization and professionalization of public debt management in Nigeria.
Stanbic IBTC Enlightens Nigerians on Stockbroking
Stanbic IBTC Stockbrokers, a subsidiary of Stanbic IBTC Holdings PLC, recently hosted a virtual session to enlighten Nigerians on the potentials of investing in the stock market.
The virtual event themed: “You Don’t Know About Stocks? Come On Now,” featured stockbroking experts: Afolabi Gbenro, Head, Sales Trading and Benjamin Jesumuyiwa, Head, Mandate and Settlements, both of Stanbic IBTC Stockbrokers with Tosin Olaseinde, founder of Money Africa, Jennifer Awirigwe, Certified Financial Educator and Solafunmi Oyeneye of Wealth Motley, a Personal Finance Educator as panelists.
The goal of the session was to acquaint individuals new to the stock market with basic stockbroking terms, useful tips for stock trading and how to use the Stanbic IBTC stockbroking app.
Afolabi stated the importance of diversifying investments in stocks. He listed factors that affect the prices of stocks which include supply, demand, news, and investor sentiments. The benefits of investing include dividend yield, capital appreciation, equity share holder privileges and utilising investments as collateral. He stressed the importance of research and advised Nigerians to conduct their own research and evaluate companies before investing.
On considerations before entering the stock market, he said, “You would need capital, investment objective, and risk profile assessment to determine the kind of investment you should venture into. You would also need to stay abreast of market updates.”
Benjamin Jesumuyiwa, Head, Mandate and Settlements, Stanbic IBTC Stockbrokers, urged Nigerians to invest in stocks to reap long term rewards. He said: “The stock market makes it easy to buy shares of companies and they can be purchased through a broker or via online platforms. Stanbic IBTC Stockbrokers offers a discounted rate of 0.7% on brokerage fees. Once you have set up an account, stocks can be purchased in minutes.”
Benjamin talked about the ease of using the Stanbic IBTC web and mobile applications platforms, stating that the platforms have been designed to allow customers sign up themselves, with direct access to the market.
Tosin Olaseinde commended Stanbic IBTC for making stock trading accessible and affordable for Nigerians, as individuals can open a stockbroking account with zero naira. She advised beginners to invest while gaining knowledge about the stock market and recommended Exchange Traded Funds (ETFs) as an entry point especially for people who have an aversion to high-risk investments. She said: “As a beginner, the best place to start is the Exchange Traded Funds (ETFs). It is a mixture of different equities in one stock. It offers you the opportunity to participate in a couple of stocks without buying everything individually.”
Solafunmi Oyeneye mentioned liquidity and dividends over a long period of time as advantages of trading stocks, encouraging beginners to access the Stanbic IBTC stockbroking app through their smartphones for convenience and less paperwork.
Jennifer opined that the stock market is a good place to invest because it is highly regulated, and the risks can be easily assessed. She also recommended the Stanbic IBTC Stockbroking app for trading stocks for ease of use and speed.
The stockbroking investment series by Stanbic IBTC further reaffirms the commitment of the financial institution to equip individuals with essential information required to make informed investment decisions.
Why Every Investor Should Now Include ESG: deVere CEO
Every investor needs exposure to environmental, social and governance (ESG) investments to build wealth over the long-term, says the CEO of one of the world’s largest independent financial advisory organisations.
The observation from deVere Group’s Nigel Green, a long-term advocate of impactful investing, comes as it is revealed that global sustainable fund assets almost doubled in the six months through to September.
Global ESG assets are on track to exceed $53 trillion by 2025, according to Bloomberg Intelligence, representing more than a third of the $140.5 trillion in projected total assets under management.
Mr Green says: “In January 2020, we identified that ESG would be this decade’s ultimate investment megatrend.
“Of course, that was before the pandemic that has acted as a catalyst for the sustainable investing boom.
“The health of our planet and how it affects human health which, in turn, affects the way we all live, interact and do business, dramatically came to the fore.”
He continues: “Previously, ESG investments were often considered a ‘quirk’ or ‘nice to have.”
“But now we believe that they should be a part of everyone’s investment portfolio for several key reasons.
“First, they typically deliver a legitimate diversification tool – which is how investors can seize opportunities and mitigate risk, especially during periods of higher volatility.
“Second, funds investing in entities with robust ESG credentials have outperformed their benchmarks over recent years. From a risk management point of view, including these companies in your portfolio is, clearly, a sensible decision to take.
“Third, ESG represents a revolution of investment strategy itself. A seismic shift has occurred in corporate behaviour. How firms approach ESG factors and the value they place on them compared to other considerations has already changed forever. The ESG themes are already embedded in the global economy as this is only set to grow in the years to come – and, of course, investors should embrace the concept of having early advantage.
“And fourth, the last 18 months have underscored how we have a moral obligation to back and fund entities that support the wellbeing of the planet and society”
In October, deVere announced that it will double its commitment to position $2 bn of assets under advisement into ESG investments.
This follows a similar announcement earlier this year when it said it would aim to have $1bn in socially responsible investment vehicles within five years.
As well as its commitment, deVere is one of 18 founding signatories of the UN-backed Net Zero initiative, the international alliance of finance powerhouses that will help accelerate the transition to a net-zero financial system. Its membership means it is committed to “aligning all relevant products and services to achieve net-zero greenhouse gases by 2050 and to set meaningful interim targets for 2025.
Other founding signatories include BDO, Bloomberg, Campbell Lutyens, Deloitte, EY, Grant Thornton, KPMG, The London Stock Exchange Group, Minerva Analytics, Moody’s, Morningstar, MSCI, PwC, SGX, Solactive, S&P Global and SSE.
Mr Green concludes: “The case for now having exposure to ESG in your investment portfolio is undeniable.
“We believe that a failure not to seek profits with purpose could negatively impact your long-term accumulation of wealth.”
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