Investment

Investor Caution Prevails as Naira’s Fall Casts Shadow on Nigerian Assets

Published

2 months ago

September 23, 2023

As Nigeria’s President Bola Tinubu attempts to woo investors on foreign shores, a growing shadow looms over the nation’s financial landscape.

The Nigerian naira is in freefall, and this currency crisis is sending ripples of caution through the minds of both local and foreign investors.

The naira’s recent plunge to a historic low, teetering on the brink of the 1000-per-dollar mark on the parallel market, has left many questioning the stability of Nigeria’s economy. Confidence in the country’s currency is eroding at an alarming rate, despite President Tinubu’s exhortations for investors to remain confident in Nigeria’s potential.

The root causes of this crisis are multifaceted. Market experts point to the central bank’s reluctance to supply dollars to the official market as a significant factor. With the central bank seemingly on the sidelines, buyers have been forced to turn to street traders for foreign currency.

This disparity has dramatically widened the gap between the parallel and official exchange rates, undoing progress made after President Tinubu’s inauguration.

Investors are also concerned about the government’s ability to implement and sustain key economic reforms. President Tinubu’s promise to unify the complex exchange rate system and abolish costly fuel subsidies initially sent Nigerian markets soaring.

However, recent events, including the suspension of a planned gasoline price increase and the postponement of an interest rate hike, have raised doubts about the government’s commitment to these reforms.

Also, the delay in confirming the new central bank governor and the resignation of key officials have created a policy-making vacuum, further adding to the uncertainty.

Foreign investors, in particular, are exercising caution, fearful of potential losses due to the falling naira and the inability to repatriate their capital. The government’s outstanding debts to foreign companies and investors add to these concerns.

As the Nigerian economy grapples with these challenges, investors are adopting a wait-and-see approach. They are closely monitoring how President Tinubu’s administration navigates this storm to determine whether Nigeria’s assets can once again shine brightly on the global stage.

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Investment

Nigeria Export-Import Bank Highlights Lucrative Investment Environment with Mexico

Published

4 days ago

November 27, 2023

Investors King

In a meeting with the Mexican Ambassador to Nigeria, Alfredo Miranda, the Nigeria Export-Import Bank (NEXIM) revealed that investors in Nigeria are enjoying robust returns on their investments, even up to 30 percent.

Stella Okotete, the Executive Director of Business Development at NEXIM, highlighted the immense potential for collaboration between Nigeria and Mexico, emphasizing the benefits of expanding access to Nigerian goods in the Mexican market.

Okotete urged for a strategic partnership between the two nations, emphasizing that collaboration could enhance Nigeria’s foreign exchange earnings, attract investment opportunities, and foster prosperity for citizens in both countries.

She showcased Nigerian-made export goods financed by NEXIM, while underscoring other investment opportunities available in Nigeria.

She stated, “In terms of return on investments, this is the best place you can invest,” indicating the favorable investment climate in Nigeria, especially in the non-oil export sector.

Okotete also highlighted the untapped potential in Nigeria’s mining sector, expressing readiness to collaborate with Mexico to develop this sector for export.

The visit by the Mexican delegation is seen as a significant step toward strengthening economic ties between the two nations, exploring mutual benefits, fostering economic growth, and identifying investment opportunities.

Ambassador Miranda acknowledged Nigeria’s potential and initiatives by NEXIM to promote non-oil exports.

He stressed the need to identify business opportunities that could enhance trade, attract investment, and facilitate the development of both countries through their trade policies.

The meeting reflects a positive stride towards enhancing economic cooperation and fostering a strong economic partnership between Nigeria and Mexico.

Investment

Mexican Investors Explore Solid Minerals Opportunities in Nigeria

Published

4 days ago

November 27, 2023

Investors King

The Minister of Solid Minerals Development, Dele Alake, welcomed a delegation of investors from the Republic of Mexico who are exploring investment opportunities in Nigeria’s solid minerals sector.

Minister Alake commended this initiative and underscored the commitment of President Bola Tinubu’s administration to facilitating a conducive business environment for investors in the industry.

The minister highlighted several incentives aimed at attracting investments, including zero-duty on equipment for solid minerals extraction, seamless repatriation of profits to the investors’ home countries, and tax holidays.

To ensure responsible and sustainable practices, Alake emphasized the importance of investors signing Community Development Agreements with local communities in mining areas to promote socio-economic development.

The ongoing efforts to sanitize the mining industry were also discussed, citing recent actions such as the revocation of titles failing to comply with annual service fee regulations.

Nigeria’s outgoing Ambassador to Mexico, Adejare Bello, vouched for the credibility of the visiting investors, affirming that their genuine and serious interest in business aligns with Nigeria’s economic objectives.

President of Seccion Internacional Para Africa, Dr. Heriberto Cortes, speaking on behalf of the investors, expressed gratitude for the constructive discussions with Minister Alake.

Cortes emphasized Nigeria as their African home and conveyed confidence in the safety and profitability of their investments in the country.

The visit signifies a positive stride towards strengthening economic ties between Nigeria and Mexico.

Investment

Nigeria Identifies $23 Billion Investment Opportunities in Energy Transition Plan

Published

2 weeks ago

November 14, 2023

Investors King

The Federal Government of Nigeria has pinpointed approximately $23 billion in investment opportunities in the nation’s Energy Transition Plan (ETP), according to Minister of Power, Adebayo Adelabu.

Speaking at the 2nd German-Nigerian Symposium on Green Hydrogen, Adelabu emphasized the potential for these opportunities not only to bolster electric power for economic development but also to generate a substantial net job creation, reaching up to 340,000 jobs by 2030.

Adelabu outlined the broader impact of the ETP, projecting the creation of up to 840,000 jobs by 2060, predominantly driven by the power, cooking, and transport sectors.

Gas, identified as a crucial transition fuel in Nigeria’s net-zero pathway, plays a pivotal role, particularly in power and cooking.

“The ETP creates significant investment opportunities, such as the establishment and expansion of industries related to solar energy, green hydrogen, and electric vehicles,” stated Adelabu.

He highlighted the financial commitment required to achieve Nigeria’s Net Zero target by 2060, emphasizing a $23 billion investment opportunity based on current in-country programs and projects linked to the Just Energy Transition.

Addressing the importance of gas as Nigeria’s transition fuel, Ogbonnaya Orji, the Executive Secretary of the Nigeria Extractive Industries Transparency Initiative, emphasized its potential to produce blue hydrogen. While not as clean as green hydrogen, it aligns with Nigeria’s pursuit of cleaner energy sources.

Orji acknowledged the need for efficient gas commercialization policies and transparent implementation to counter challenges such as gas flaring.

Ambassador of Germany to Nigeria, Annett Günther, affirmed the commitment of both nations to driving hydrogen production and use.

Markus Wagner, Country Director of GIZ Nigeria and ECOWAS, highlighted the transformative potential of green hydrogen in reducing carbon emissions, diversifying energy sources, and fostering economic growth, reinforcing the enduring partnership between Nigeria and Germany in the energy sector.