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Nigeria-China Trade Declines by 79% in 2016

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  • Nigeria-China Trade Declines by 79% in 2016

The trade relations between Nigeria and China declined in 2016 to a record low, according to the Chinese Ambassador to Nigeria, Zhou Pingjian.

According to the Ambassador, Nigeria-China trade relations was $15 billion in 2015, but has since dropped to $3.1 billion in 2016. Pushing Nigeria down to fourth position from the second largest Africa-China trade partner.

Pingjian, who visited the House of Representatives Committee on Nigeria-China Relations said “Nigeria-China trade is declining fast. Nigeria used to be China’s number two trade partner in Africa, but it’s now number four.”

He however expressed confidence that the situation can be improved upon with focus and implementation of policy agreements reached by the two countries and commended Nigeria for supporting the ‘One China Policy’. “We need to follow up on the outcomes of the Forum of China-Africa Cooperation summit and President Muhammad Buhari’s state visit to China in April last year”, he said.

The ambassador disclosed that one of the fall-outs of the president’s visit was the construction of the Agricultural Training Centre in Bwari, Abuja by CGCOC to assist Nigeria’s diversification efforts.

Pingjian said with over $139 billion Foreign Direct Investment, China is interested and ready to expand investment in Nigeria and urged the government to create enabling environment for investors to come in.

“As Chinese ambassador to Nigeria, I wish a small part of the $139 billion could come to Nigeria”, he said, adding that as an ambassador he was willing to facilitate it.

Pingjian reiterated China’s commitment to Nigeria’s economic revival and as well as readiness to support the nation’s economic diversification efforts.

Similarly, CGCOC Group Managing Director, Ye Shuijin who called for improved security in the country, noted that Chinese firms in Nigeria were ready to make greater contribution to the socio-economic development of the country.

Shuijin, who also doubled as Chairman of the China Chamber of Commerce in Nigeria expressed the need for the establishment of a Strategic Master Plan by Nigeria and China to fast track industrialisation of the country.

“We have more than 20 industrial zones in Nigeria, we have funds abroad that can be brought into Nigeria for investment but it has to be strategically done”, he said.

The MD disclosed that in 2008 CGCOC ventured into mechanised farming in Wara, Kebbi State and today the company is one of the leading producers of rice accounting for about 50 per cent of rice production in Nigeria.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market.

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Investment

COVID-19: Zenith Bank to Access First IFC Financing Support Package in Africa

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Zenith Bank

Zenith Bank to Access $100 Million COVID-19 Support fund from IFC

Africa’s sixth-largest bank, Zenith Bank Plc, is the first African Bank to access a $100 Million loan from International Financial Corporation (IFC) to battle the negative effect of the global health pandemic.

The world Bank Group reported that the investment is to enable Zenith Bank gain access to foreign currency, additional working capital and more fund for trading.

Accordingly, the loan will enable the bank to support Nigerian businesses in various sectors, strengthen operations, preserve employment and help gain access to required raw materials in this challenging economic period.

The Group Managing Director/CEO of Zenith Bank, Ebenezer Onyeagwu said that IFC support will help the nation tackles the negative impacts of COVID-19 pandemic on the economy.

IFC’s support is essential and will help us respond to challenges resulting from the COVID-19 pandemic. It will allow us to support compelling export initiatives and trade financing for critical goods and materials, especially for the medical and pharmaceuticals sectors. Our partnership with IFC is strong and we are committed to its environmental, social, and governance (ESG) requirements,” he stated

The loan to Zenith Bank is part of the $8 billion COVID-19 global support finance package announced by the World Bank in the first quarter of the year to support businesses affected by the pandemic. Over 250 global clients have requested for financial support from the multilateral institution.

Eme Essien Lore, IFC Country Manager in Nigeria, said, “IFC’s support for Nigeria’s banking sector will help keep the wheels of Nigeria’s economy turning at a time when it is facing a major challenge from COVID-19. Our experience from past shocks, including the global financial crisis in 2008, has taught us that keeping companies solvent is key to saving jobs and limiting economic damage.

With the World Bank predicting Africa’s first recession in 25 years, the adverse effects of COVID-19 have seen the shutdown of businesses in Nigeria’s economy and other countries in Africa

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A New Haven, Dual Citizenship Firm Plans to Set Up in Nigeria

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Nigerians Can Now Apply for Dual Citizenship in Nigeria

A Zurich-based firm, Henley & Partners Group, a citizenship and residency advisory firm plan to set up an office in Lagos, the most populous city in Nigeria.

According to the firm, the wealthy Africans expression of interest in passport and residency rights surged from 750 in 2019 to over 1000 in the first quarter of this year. The office in Lagos would be the second outpost in Africa, the first outpost was in Johannesburg and Cape Town, South Africa.

The two biggest economies in Africa, Nigeria and South Africa provides over 85 percent of the Africans that purchased the firm service in 2019.

Nigeria, the largest economy and biggest crude oil producer in Africa, has more than 700 people with a net worth greater than $30 million and that figure is forecast to grow by 13% in the next five years, according to Knight Frank’s 2020 Wealth Report estimates.

The country which has a population of about 200 million, also has the most people living in extreme poverty.

Henley & Partners are setting up in Lagos to support the wealthy citizens to secure citizenship of various Caribbean countries including St. Kitts and Nevis, that allow more widespread visa-free travel, as well as a select few European Union members such as Cyprus and Malta.

Costs range from less than $200,000 for Caribbean passports — once vetted by both Henley and the government — to a contribution of more than $1 million for European nations.

According to the head of sales, Dominic Volex, the firm has been rendering service to Nigerian clients for more than three years.

“We have been engaging with Nigerian and West African clients for over three years now and have seen constant growth. ”

He added that “The significant increase in wealth creation in the region has created a consequent surge in demand for our services.”

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Barclays Tell High Net Worth Investors to Shun Africa and Other Emerging Economies

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Barclays Bank

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.

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