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Nigeria’s Capital Inflow Rises by 54% in Q1 2020



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  • Nigeria’s Capital Inflow Rises by 54% in Q1 2020

Despite economic headwinds and global uncertainties due to the COVID-19 pandemic, capital inflow rose by 53.97 percent in the first quarter.

The National Bureau of Statistics (NBS) reported that the total value of capital importation into Nigeria grew by 53.97 percent from $3.802 billion achieved in the final quarter of 2019 to $5.854 billion in Q1 2020.

However, this was 31.19 percent lower than the first quarter of 2019.

A breakdown of the report shows that the largest amount of capital inflow into the country was through Portfolio investment that accounted for 73.61 percent or $4.309 billion of the total capital imported during the period under review.

Other Investments followed with 22.73 percent or $1.330 billion of the total capital brought into the country. While the Foreign Direct Investment (FDI) came third with 3.66 percent or $214.25 million.

A sectorial analysis revealed that the banking sector attracted the most capital inflow, accounting for $2.990 billion of the total capital imported during the period.

The United Kingdom remains Nigeria’s top source of capital investment in Q1 2020, investing a whopping $2.908 billion or 49.68 percent of the total capital in the economy.

Lagos, Nigeria’s commercial capital,  also remains its position as the top investment destination in the country, receiving a total sum of $5.135 billion or 87.72 percent of the total capital inflow.

The NBS reported that “Standard Chartered Bank Nigeria Limited emerged at the top of capital investment in Nigeria in Q1 2020 with $1.656 billion. This accounted for 28.30 percent of the total capital inflow in Q1 2020.”

The surged in capital inflow has helped the Central Bank of Nigeria managed the drop in foreign reserves better, especially with revenue generation at a record-low and crude oil price trading at 61 percent below its original price.

OPEC and allies have agreed to cap crude oil production by 9.7 million barrels per day in June to artificially boost low oil prices and rebalance the global oil market.

However, experts doubt Russia and other members of the group now known as OPEC plus can abide by the new accord given economic uncertainties and surge in global risk level.

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.


Global Deal Activity Down by 4.5% in October 2020



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A total of 6,304 deals were announced globally during October 2020, which is a decrease of 4.5% over the 6,598 deals announced during September, according to GlobalData, a leading data, and analytics company. An analysis of GlobalData’s Financial Deals Database revealed that the deal volume during October remained below the monthly average of Q3 2020.

Aurojyoti Bose, the Lead Analyst at GlobalData, comments: “After demonstrating growth for four consecutive months, the deal volume shrank in October. The decline in deal activity could be attributed to inconsistencies across different regions. The APAC region remained a weak spot, while deal activity remained mostly flat in North America, and the Middle East and Africa (MEA) region witnessed growth in deal activity.”

North America attracted the highest number of investments, followed by APAC, Europe, the MEA, and South, and Central America.

The uncertain global economic landscape lowered the deal volume in October for major markets such as the US, Germany, Australia, France, India, and China compared to the previous month. On the contrary, the UK, Japan, South Korea, and Canada saw growth of 15.6%,14.9%, 3.8%, and 2.2%, respectively, in October as compared to September’s deal volume.

Bose continued: “Most of the deal types witnessed a decline in volume during October compared to the previous month. Private equity, equity offerings, venture financing, debt offerings, and partnership deals volume decreased by a respective 2.4%, 9.1%, 9.8%, 14.6%, and 24.6% – while the deal volume for mergers and acquisitions (M&A) increased by 7.2%.”

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Japaul to Invest in Chinese Firm H&H to Deepen Mining and Exploration Business



Japaul Gold & Ventures Plc (Japaul), formerly known as Japaul Oil and Maritime Services Plc, announced it has gotten approval in principle from H&H Mines Limited to invest in or acquire shares in the company once it concluded its fundraising exercise.

According to a statement released through the Nigerian Stock Exchange (NSE), H&H Mines Limited has several licenses, which include two major Mining Leases for 25 years renewable.

The statement noted that extensive exploration has been done on the Mining properties and the last lap of the exploration works is core drilling. This, it said will allow Japaul knows the measured Minerals Reserve contained in the Mine, which it claimed contain Gold, Silver, Lead, Zinc, etc.

Japaul further explained that the need to get the drilling done was what led H&H Mining to engage the services of Xiang Hui International Mining Company Nigeria.

“Since Japaul will eventually be part of H&H Mines Limited, it was necessary that Japaul is carried along on the kind of Contract of Drilling to be entered into, and that was why the signing of the Drilling Contract between the Chinese Company and H&H Mines Limited was concluded at Japaul’s Head Office,” the company stated.

The drilling is expected to be concluded in the next 12 months and within this time, Japaul is expected to have concluded the Fund Raising and formalise her involvement in the Mining.

The company added that Canadian reports revealed that there are huge gold, silver, lead, etc deposits, but it is drilling that will show the actual reserve.

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Africa Investment Forum (AIF) Rescheduled to Hold in 2021 – AfDB




Investment Forum to Now Hold in 2021 in a Bid to Curb Possible Second Wave of COVID-19  

The Africa Investment Forum scheduled to hold in November 2020 in Johannesburg, South Africa has been rescheduled to hold in2021 as a result of the ongoing global health pandemic.

This announcement was made in a statement by AfDB on Wednesday. The African Development Bank (AfDB) and the Africa Investment Forum founding partners agreed to the postponement of the annual three-day investment market place.

Considering the negative effect of Covid-19 on the global economy, agreement by the two bodies was made after a careful assessment of the impact of COVID-19 on global travels, investments, observing the social distancing rules and curbing the likely possible risk of a second wave.

In the statement, the bank stated that through the forum innovative digital platforms, it would track investments, source for new deals, progress on financial closure of transactions and other existing deals.

“At the 2019 Africa Investment Forum, 57 deals valued at $67.7bn were tabled for discussions. Fifty-two deals worth $40.1bn secured investment interest.

“In July this year, the AIF Founding partners pledged to strengthen strategic partnership engagement and commitments for Africa Investment Forum Market Days 2021, to help ‘reboot investments in Africa.’ They underscored the need to boost local manufacturing while leveraging the continent’s vast resources to unlock investment.”

In the statement, Africa Investment Forum objectives are achieved through the forum’s four pillars; Closing, Connecting, Engaging and Investment Tracking.

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