- NCC Woos Singaporean Investors to Boost Nigeria’s Broadband Infrastructure
The Executive Vice Chairman of the Nigerian Communications Communication (NCC), Prof. Umar Danbatta, has invited the Singapore Investment Corporation (GIC) to invest in the country’s broadband infrastructure.
Addressing the investors, who were in the country to understudy Nigeria’s investment policies, with the aim of investing in the telecoms sector, Danbatta said that investing in the country’s broadband sector has high prospects for quick return on investment.
Represented by the Director of Consumer Affairs Bureau of NCC, Mr. Abdullahi Maikano, the EVC said the country, through its regulatory and legal framework, would offer conducive environment for foreign investors.
Danbatta, explained that investing in Nigeria’s telecommunications broadband infrastructure is the next frontier needed to push service delivery to the consumers, stressing that two InfraCos have been licensed to deploy broadband infrastructure in Lagos and North-central zones of the country.
According to him, “Right now, these two companies are mobilising to commence their deployment. The subsidy that we shall be given to them will be on milestone basis, depending on what they are able to deploy. The subsidy will be made available only after the project has been verified by the commission.”
While calling on the investors to consider investing in the remaining five zones, he said the commission is in the process of licensing the remaining five zones. “We are hoping that good companies will come onboard so that we can achieve that broadband vision for the country,” Danbatta said. He further explained that the process of licensing the remaining five InfraCos would be concluded in the early part of 2017, since the deadline for the submission of application of interest is November ending.
The leader of delegation, Mr. Ang Eng Seng, explained that his company is ready to invest minority stake in telecoms outfits with the intent to grow and expand their capital base with time.
“We are financial investors, we are not operators so the investment style is much more that of minority stakes.
We provide growth capital to the companies that have good business plan that we believe in and so we will not be bidding on new project on our own. Our focus is to find the right local companies with good business model that have minority investment, and invest in them.”
Speaking on the investment opportunities in Nigeria’s telecoms sector, he said the country’s huge demographic statistics makes it an investment destination on the continent.
If you look at all the other countries in Africa, Nigeria given its size and its demographics, ranks very high in terms of the list of target countries that we are focusing on, Seng said.
Barclays Tell High Net Worth Investors to Shun Africa and Other Emerging Economies
Barclays to High Net Worth Clients, Stay Off Africa and Other Emerging Economies
Barclays, one of the world’s largest investment banks, has started advising high net worth clients to stay off Africa and other emerging economies.
According to Barclays, despite the recent recovery noticed in emerging-market stocks, investors are better off avoiding the risks that still abound in emerging nations. Barclays Plc, however, advised high net worth clients to focus on U.S equities despite the S&P’s breakneck rally.
The investment bank said emerging economies do not have enough fiscal buffers to spend their way out of the COVID-19 pandemic and will likely continue to struggle in the near-time compared to the US with 12 percent of gross domestic product fiscal-support.
It said the huge US stimulus may halt rebound in emerging-markets stocks as more money is expected to flow into the world’s largest economy and its European counterparts.
“Compared to the U.S., emerging-market economies appear more vulnerable,” said Haider, the London-based managing director and head of global growth markets. “Their central banks have less room to maneuver, their governments may not be able to provide unlimited support and equity markets, given their sector mix, can be more challenged by an economic slowdown.”
Barclays added that even after 33 percent rebound in stocks of emerging markets since the panic selloff subsided in March, stocks are still down by 9 percent from year-to-date while the US S&P 500 stocks are up by 45 percent. Presently, their stocks trading at a 36 percent discount to US stocks, up from 25 percent three months ago.
Crude Oil Rises to $43.1 Per Barrel on Production Cuts Extension
Crude Oil Hits $43.1 Per Barrel Following OPEC’s Production Cuts Extension
Brent crude oil, against which Nigerian oil price is measured, rose by 1.25 percent on Monday during the Asian trading session following OPEC and allies’ agreement to extend crude oil cuts to the end of July.
OPEC and allies, known as OPEC plus, agreed to extend production cuts of 9.7 million barrels per day reached in April to July on Saturday.
In the virtual conference, delegates agreed that members, including Nigeria and Iraq presently struggling to attain a 100 percent compliance level must keep to the agreement or be forced to do so in subsequent months.
Nigeria, Iraq and others failed to keep to the cartel’s agreement in May after reports show that Nigeria only managed to attain a 19 percent compliance level during the month while Iraq struggled to attain just 38 percent in the same month.
Russia and Saudi Arabia, the two largest producers of the group, warned members to stick to the agreed quota if they want to rebalance the global oil market.
“While the errant producers such as Iraq and Nigeria have vowed to reach 100% conformity and compensate for prior underperformance, we still think they will likely continue to have some commitment issues over the course of the summer,” said Helima Croft, head of global commodity strategy at RBC Capital Markets.
“The potential return of Libyan output could also cause considerable challenges for the OPEC leadership.”
Earlier on Monday, Brent crude oil hits $43.1 per barrel, more than a month record-high, before pulling back slightly to $42.83 per barrel.
Gold Dips by 2 Percent on Better Than Expected Job Report
- Gold Dips by 2 Percent on Better Than Expected Job Report
Gold prices declined by 2 percent on Friday following a better than expected US non-farm payroll report.
The report showed an increase of 2.5 million payroll numbers against a decline of 7.5 million predicted by many experts.
The surprise number boosted investors’ confidence in US recovery as many dumped their haven investment (gold) for the stock market.
“We had significantly stronger-than-expected U.S. payroll numbers – an increase of 2.5 million versus an expectation of a decline of 7.5 million – that 10-million swing has brought forward expectations of the economic recovery in the United States,” said Bart Melek, head of commodity strategies at TD Securities.
Spot gold immediately declined by 1.9 percent per ounce to $1,678.81 while the U.S. gold futures slid 2.6 percent to settle at $1,683.
Gold was also being pressured by stronger yields and a slightly firmer dollar, “meaning the opportunity cost to hold gold in the portfolio has gone up,” Melek added.
The surprise didn’t stop there, US Dow Jones was up 614 points despite the protest going on the US and US-China tension.
Also, NASDAQ rose by 29 points while the S&P index added 50 points increase.
Note: Investors generally increase their investments in gold and other haven assets during a crisis to avert risk exposure and do the opposite once they sense a better economy.
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