The Nation Newspaper

Tag: Foreign

  • Group to boost foreign investment

    Group to boost foreign investment

    The Nigeria Leadership Initiative (NLI) will, on Wednesday, hold the maiden edition of the Diplomatic Dialogue Series (DDS), aimed at strengthening bilateral relations with other countries and boost investment.

    The event will take place at the Metropolitan Club in Victoria Island, Lagos, at 8am.

    According to the organisers, DDS is a platform for interaction between business-oriented people and foreign ambassadors.

    NLI’s Director of Programmes Anthony Ubani  said it would be a sustainable forum for the leaders of corporate firms, public servants, policy makers, business-oriented senior fellows and associates of the institute to engage, interact and share ideas  with envoys.

    The event will host the India High Commissioner to Nigeria, A.R Ghanashyan, as a guest.

    Chief Executive Officer of the NLI Dr. Yinka Oyinlola said: “Whatever brings people closer will inherently bridge divides, foster peace and better understanding and ultimately strengthen human interaction, growth and productivity.”

  • Labour decries $9.38b foreign debts

    Labour decries $9.38b foreign debts

    The Trade Union Congress of Nigeria (TUC) has cautioned the Federal Government not to mortgage the country’s future through external borrowing.

    Its President, Comrade Bobboi Bala Kaigama, said the union was worried over the country’s huge external debts, which are $9.38 billion.

    He said in 2005 under the regime of former President Olusegun Obasanjo, Nigerians celebrated the nation’s exit from external debt, adding that it was surprising that by December 2010, Nigeria external debt portfolio had risen to $4.78 billion.

    He said: “This is very sad. If the foreign debt regime  stands at $ 9.38 billion, it follows that external debt profile has risen by almost $5 billion which is about 100 per cent in less than four years.

    “This is very unfortunate especially when the impacts of the foreign loans are not being positively felt by the generality of Nigerians.

    “Nobody should be carried away by the argument that the country debt stock is still less than 26 per cent of GDP the so called international standard.

    Kaigama said the country went through hell when its debt stock was about $ 35 billion, stressing that the country was sliding back to where we were before 2005.

    He said though the Debt Management Office (DMO) said part of the loan was injected into the power sector, there was nothing on ground to show that electricity supply has improved greatly in the country.

    DMO’s Director-General, Dr Abraham Nwankwo, had said in Abuja that the country’s domestic and foreign debt had  hit $ 66 billion over (N10 trillion) with the external component being $9.38billion.

    Kigama warned that increasing reported cases of deserters in the Nigerian Army over lack of weapons to confront the Boko Haram insurgency is a dangerous trend that can destroy the army.

    He expressed concerns over incessant refusal by soldiers to take orders from their superiors in their fight against the Boko Haram when deployed to the stronghold of the terrorist sect.

  • ‘ Multiple entry point for foreign airlines stifles local carriers’ growth’

    ‘ Multiple entry point for foreign airlines stifles local carriers’ growth’

    The deputy managing director and head of flight operations,  Arik Air , Captain Ado Sanusi has accused the Federal Government of undermining the growth of indigenous carriers through its policy of granting multiple entry points to foreign carriers into the country.

    Besides, granting such rights, he said government must ensure there is reciprocity in the bilateral air services agreements signed between Nigeria and the countries of the foreign carriers  to bridge the current lopsidedness that exists.

    Sanusi said government must consider ways and assisting local airlines to boost their operational capacity to enable them compete with foreign carriers, by barring carriers from countries that are frustrating efforts by Nigerian carriers in getting traffic rights into their countries.

    He canvassed an airport slot allocation system that would give Nigerian carriers priority during check in and boarding , as is the practice in other countries.

    He accused aviation ministry officials of alleged corruption in facilitating the approval of extra flight frequency to foreign carriers at the detriment of Nigerian airlines.

    He said the alleged practices of such officials have contributed immensely to the invasion of the Nigerian market by foreign carriers .

    Sanusi said many African countries and others  have been conspiring against Nigerian carriers in their quest to get approval to operate into many countries.

    He listed countries that have frustrated  efforts of Arik Air to secure approval to fly into their country to include: Brazil, Egypt, Ethiopia, Togo and the United Arab Emirates,

    He said what is lamentable, is the impunity with which Nigerian government grants unrestricted frequencies to many foreign carriers without any consideration for reciprocity by the benefiting countries to Nigerian carriers.

    Sanusi said many African countries, including Togo, Ethiopia and Egypt, which ought to pursue the liberalization of air transport in the continent in line with the principle of Yamoussoukro Decision of 1999 have continued to frustrate efforts by Arik Air to secure approval for flights into their country.

    He said many foreign carriers were taking for granted the generosity of Nigerian government, which would offer anything to other countries at the detriment of her airlines.

    Sanusi said the categorisation of  Nigerian carriers as weak by some experts, who have perception imbalance about the carriers is doing incalculable damage to the reputation of the carriers in the international investor community .

    He said many international finance agencies would be discouraged to access funds to Nigerian carriers because of the way, they have been so labeled by industry experts.

    He said: ‘It is not unusual for foreign carriers to tell you that coming to Nigeria is a matter of who you know and who you can ‘see’. You will be surprised to know that some of the so called negotiations involve a price tag of $1 to $2 per passenger, per flight commission demanded by the negotiator.

    “Consequently, there are several agents who scout for frequencies for foreign airlines in Nigeria and foreign airlines do pay them these commissions. Suffice it to say that top government officials might be unaware of this but there are other government officials who give one reason or the other of Nigerian airlines being weak, being incompetent and Nigerians want to travel but Nigerian airlines cannot airlift them to international destinations.

    “These are the reasons these officials give to justify what they do and for their applications for multi frequencies from foreign airlines to be approved. Some of them even go to Aso Rock and give false information about Nigerian airlines. On the other hand, when Nigerian airlines go to other countries and request for entry approval, these requests are never replied. For example, Arik Air has written to the embassy of Brazil, Ethiopia, Togo, Egypt, to mention a few; in most cases we never got any response. In some other cases we were given unending list and when we satisfy that we were given fresh list.

    “One would have thought that since we have bilateral air service, including Yamoussoukro Decision by African states aimed at liberalizing air services in the continent, and other agreements reached in ECOWAS, it would be easy for Nigerian airlines to have easy entry to some West African countries, for example, Togo where Asky is based.

    “But Nigerians are too happy to give Asky all the frequencies it asked for and in fact, even feel alright that Nigerian airlines are denied entry to that country. It is high time the Nigerian government took a second look at this situation and responds appropriately. Our generosity and spirit of brotherhood should not be taken for granted and no nation will do what Nigeria is doing to her airlines. We wish to state categorically that Nigerian airlines have the capacity and know-how to compete with foreign airlines only if the government, the civil servants will allow the issue of multiple entries to Nigeria to be reciprocated to foreign countries.”

    Nigerian carriers, Sanusi said have the capacity to compete with other players in the global arena, if government could have a rethink on its offer of multiple entry points to foreign  carriers  and insist that there must be reciprocity to Nigerian operators on the routes that such foreign carriers have been rewarded.

    He said other areas government could assist indigenous operators is to grant them waiver on payment of landing and parking fees for their aircraft, as is the practice in other countries.

    He said the levies and charges on indigenous carriers are too weighty , describing it as the highest in the world.

    Sanusi said the utilisation factor on Nigerian aircraft   is too low, because of restriction on operations at some airports, which only carry our day light operations.

    Such daylight operations, he said are occasioned by absence of air field lighting systems at the airports, which he said should immediately be installed at airports nationwide, as is the practice in other West African and other countries.

    He accused of many Nigerian banks of not supporting indigenous carriers, due to the huge capital outlay required to acquire aircraft.He said: ”Nigerian carriers are not weak, labeling them as weak would only serve as a stumbling block to access funds from multilateral   and financial institutions abroad.”

    He however appealed to government to assist in securing landing slot at the London Heathrow Airport for its Abuja operations, saying that securing seven landing slots in London would reduce air fare charged by foreign carriers on the London Abuja route.

    He said: ”Nigerian airlines and the industry cannot grow without the support of government, even if is a national carrier.”

    National carrier will not do more than what the existing domestic operators are doing. Government would be assisting the industry by stepping up its responsibility by reviewing the multiple entry point, which does not factor in the principle of reciprocity for Nigerian carriers.

    Granting multiple entry point for foreign carriers into Nigeria is counter productive.”

    He also canvassed the setting up of an aircraft maintenance repair facility in Nigeria, which he said would create jobs for Nigerians and earn foreign exchange.

     

     

  • Foreign investors show increased appetites for Nigerian equities

    Foreign investors show increased appetites for Nigerian equities

    For the first time since the beginning of this year, foreign investors are staking more on Nigerian equities than they are taking out. Latest update on foreign portfolio transactions in the Nigerian equities showed that they have regained the lead as the larger block of investors from the domestic investors with about 29 per cent increase in total transactions by foreign investors.

    The foreign portfolio investment (FPI) report by the Nigerian Stock Exchange (NSE) showed positive net foreign inflow of about N20 billion in June this year, reversing the downtrend that has seen a built-up of deficit foreign transactions over the five previous months.

    The report used two key indicators-inflow and outflow, to gauge foreign investors’ mood and participation in the stock market as a barometer for the economy. Foreign portfolio investment outflow includes sales transactions or liquidation of equity portfolio investments through the stock market while inflow includes purchase transactions on the NSE.

    The NSE report is generally regarded as a credible gauge of foreign portfolio investments in Nigeria as it coordinates data from nearly all active investment bankers and stockbrokers.

    Total foreign inflow rose to N68.78 billion as against decline in outflow to N49.22 billion in June, putting the total foreign transactions to N118 billion. Total domestic transactions stood at N107.51 billion. The proportion of foreign investors’ turnover to Nigerian investors’ turnover thus stood at 52.32 per cent to 47.68 per cent.

    A six-month report for the first half ended June 30, showed that foreign investors accounted for 60.84 per cent of total turnover value in the Nigerian stock market as against 39.16 per cent recorded by Nigerian investors.

    Total foreign transactions stood at N705.15 billion as against N453.91 billion by Nigerian investors. Total transactions during the period thus stood at N1.159 trillion. However, there were more outflows than inflows with net foreign deficit of more than N100 billion. Total foreign outflows stood at N402.63 billion as against foreign inflows of N302.52 billion.

    Earlier reports had indicated general decline in foreign investments as the overall trend continued to show net deficit with outflows more than inflows. While foreign participation declined from 75.25 per cent in April to 45.56 per cent in May, domestic participation more than doubled from 24.75 per cent to 54 .44 per cent.

    The five-month report for the period ended May 31, 2014 detailed month-on-month as well as periodic transactions by both foreign investors and Nigerian investors.

    According to the report, the quantity of total foreign transactions dropped by about N47 billion in May to N91.9 billion, its lowest position in four months. Besides, the inflow- the buy side of the foreign transactions, declined by about N24 billion from this year’s high of N65.1 billion in April to N41.3 billion in May, its lowest position in three months.

    Total transactions trended to its high of N201.61 billion in May, driven largely by significant increase in transactions by Nigerian investors, which rose from N45.64 billion in April to N109.75 billion in May.

    Five-month cumulative analysis however still underlined the dominance of foreign investors, who accounted for about 63 per cent of the turnover on the NSE during the period. Aggregate turnover during the period stood at N933.55 billion, consisting of N587.15 billion from foreign investors and N353.41 billion from Nigerian investors.

    Buy-sell analysis of the foreign transactions showed that foreign investors had taken out more than they invested during the period. Foreign outflows stood at N353.41 billion within the period as against inflows of N233.74 billion.

    In April, foreign investors traded N138.79 billion worth of shares including sales transactions of N73.73 billion and buy transactions of N65.06 billion. Total domestic transactions stood at N45.64 billion. Total transactions during the month stood at N184.43 billion.

    The foreign sale-buy trend in April followed the same trend in recent months, although the momentum of buy transactions appeared to be picking up. In the first quarter, nearly two-thirds of foreign portfolio transactions were on the sell side.

    According to the NSE, total foreign outflows stood at N229.03 billion in the first quarter, representing some 64.2 per cent of total foreign transactions during the period. Total foreign inflows stood at N127.41 billion. Altogether, foreign investors’ deals accounted for N356.50 billion during the three-month period, more than 65.11 per cent of total transactions of N547.51 billion. This indicated that Nigerian investors accounted for N191.01 billion, 34.89 per cent of total transactions, during the period.

    Month-on-month analysis showed that there was increase in the momentum of foreign transactions in March 2014, with increases in both sell and buy orders. However, the downtrend continued to dominate transactions. Total foreign outflow in March 2014 stood at N75.42 billion as against inflow of N55.13 billion, totaling N130.55 billion. Foreign investors accounted for 78.25 per cent of total transactions-foreign and domestic, of N166.84 billion in March 2014.

    The flow of investments in March this year contrasted sharply with the situation in March 2013 when there were more inflows than outflows. Total foreign inflows totaled 53 per cent of total foreign transactions in March 2013. Total foreign transactions stood at N80.14 billion in March 2013, consisting of inflow of N43.13 billion and outflow of N37.01 billion.

    Month-on-month, the outflows in February are about 107 per cent higher compared to January this year and about 183 per cent compared to February 2013. While total transactions at the NSE increased from N181.97 billion in January to N198.70 billion in February , foreign outflows accounted for the increased tempo of activities and the higher proportion of foreign participation to local participation.

    Foreign portfolio outflows stood at N103.53 billion in February as against foreign inflows of N32.75 billion. These indicated that foreign investors accounted for 68.59 per cent of total transactions during the period.  This contrasted sharply with the situation in similar earnings season of February 2013 when foreign investors had more inflows at N39.34 billion as against outflows of N36.63 billion.

    Total foreign outflow had stood at N50.14 billion in January as against inflow of N39.53 billion during the period, bringing total foreign transactions to N89.67 billion.

  • ‘Delta is safe for foreign investment, tourists’

    ‘Delta is safe for foreign investment, tourists’

    A former Delta State Commissioner for Information and Senior Special Assistant to Governor Emmanuel Uduaghan on Foreign Affairs, Mr Oma Djebah, has said the state is safe for diplomats and foreign investors.

    Djebah spoke when the Political Secretary and Senior Political Adviser at the British High Commission, Abuja, Edward Dunn and Osaro Odemwingie visited the state at the weekend.

    He said: “Look at Seplat Nigeria that is in Sapele, people are talking about the security situation in Warri and its environs but Seplat is operating here and they have upgraded in their production capacity. Today, they are producing up to 62,000 barrels of oil per day, which is a huge success.

    “Look at the teaching hospital in Oghara, it is a huge success too because it is building the human capital development of the people. Look at what we are doing in the health sector. And all these have effect in crime and criminality. If you are healthy and strong, you will not have time for crime. If you are engaged you will not want to go and do crime.”

    Djebah noted that the state was not different from the situation in the United Kingdom during the Irish Resistance Army (IRA) era, adding that that the violence did not stop  foreign investors from setting up businesses in the UK.

    He urged the international community to be considerate when issuing travel warning and advice to visitors to the state and the Niger Delta.

    The team visited the Sapele office of indigenous oil firm, Seplat Nigeria Limited, where the management told them it had quadrupled production from facilities it acquired from Shell Petroleum Development Company (SPDC) within four years.

    Seplat’s Head of Community Affairs, Mr Godwin Obiuwvbi, told the visitors that the company increased production from the 14,000bpd it inherited in 2010 to 62,000bpd from OMLs 4, 38 and 41, adding that it is already targeting 100,000bpd before 2017.

    He said: “From four producing communities in 2010, we have increased to 10 and by 2017, we hope to reach 100,000pbd. This year we should get to 72,000 from there we will take it to 85,000 and in the next two, three years we will get 100,000bpd.”

    Obiuwevbi added that the three OMLs hold up to 500 million barrels, adding that the company, which recently listed on the London Stock Exchange, planned on acquiring additional oil wells and also revealed that Seplat is planning a massive investment in gas at the company Oben field in Edo state and LTF and green field development programmes in Amukpe, Sapele.

    Obiuwevbi, who was accompanied by the company’s Security Manager, Mr William Akolo, a former employee of SPDC, Tony Owumi and other top staff of the firm, said the company was bullish because since it commenced operation in 2010, it had experience “no significant disruption in operation”, adding that crude oil theft had also been drastically reduced.

    He said the robust Global Memorandum of Understanding (GMoU) with host communities has complimented their internal security and build confidence across board, adding, “There were four MoU and a trust fund of N250 million down payments gave communities a stake and helped build confidence and trust.”

    The Commissioner for Oil and Gas, Mr Mofe Pirah, debunked the reasons given by SPDC for divesting from the facilities: “They said Delta State was not secured, you cannot do business in Delta State.”

    Pirah said the team was interested in knowing how Seplat managed to achieve so much and better SPDC in spite of the allegation of insecurity in the region, adding that it showed that there is something the local firm was doing that Shell did not do.

    Speaking with reporters after the two-day visit at Osubi Airport on his way to Abuja, Dunn expressed satisfaction with Uduaghan’s development drive, particularly in the education and health sector, where the governor had investment hugely in the past years.

    Odemwingie noted that the projects were first class and urged Deltans to support the government’s efforts by maintaining them.

    Djebah described  Uduaghan’s vision of Delta Beyond Oil as rightwards to keeping a lasting legacy for posterity in the state, stressing that the citizenries’ support is important to achieving the dream.

  • 2014 Glagow Commonwealth Games: Minister confirms foreign tours for athletics, boxing, wrestling, weightlifting

    • Also release of funds to 8 participating federations 

    Minister of Sports and Chairman, National Sports Commission, Tammy Danagogo has told SportingLife that athletics, boxing, wrestling and weightlifting would go on foreign tours to prepare adequately for the 2014 Glasgow, Scotland Commonwealth Games that is slated to start 23rd of this month.

    The Minister disclosed that all sports federations that needed foreign exposure for the forthcoming Commonwealth Games holding between July 23rd and August 3rd, 2014 would get it before the tournament starts.

    ”But most of the contingents that are to leave are in athletics, boxing, wrestling and weightlifting. They have different countries they are going to with different time frame, but those of them that need foreign exposure will surely get it before the Games start,” Danagogo disclosed at his office in Abuja on Tuesday.

    He also disclosed that the athletes for the Games have been camping for some time now. “The athletes have been in local camp since and some of them have gone for off-shore camping, so that we can expose them, with a view to winning more laurels.

    “I believe that we will do better than we have ever done in previous editions and I have been talking to some of the medal hopefuls, so, we are hopeful and we pray that God crown our efforts. A lot of them are already out in foreign camps, some others are leaving today (Tuesday) and some will leave tomorrow (Wednesday).”

    He also allayed fears on funding of the athletes and officials for the Commonwealth Games declaring that, “All approvals have been made and money has been released by the Federal Government and we have released that to the respective federations to prepare their athletes.

    “The reason why we are on ground now is to ensure that every preparation of Games is properly taken care of. I have met with some federation presidents and we are trying to fine-tune the expenses and demands, because the demands are heavy, but the funds are limited. But, everything is under control,” Danagogo assured.

     

  • Why foreign retailers can’t resist Nigerian market

    Why foreign retailers can’t resist Nigerian market

    Many foreign retailers are setting up businesses in Nigeria to gain a firm foothold in a marketplace where most consumers are brand loyal and value good services. TONIA ‘DIYAN reports.

    Within the global business community, Africa is believed to be the last frontier for proper growth, which is why global attention is focused on Nigeria, the most populous country in the continent.

    With an estimated 167 million population and huge market, foreign investors can no longer ignore the huge investment opportunities in Nigeria, considering the fact that most consumers are brand loyal and discerning; they value good services and products.  These, perhaps, explains why many foreign retailers see Nigeria as the investment destination of choice and are, therefore, rushing to have a foothold in a marketplace that offers tremendous opportunity for bountiful return on investment (RoI).

    South African retailers are leading the pack of foreign investors who have seen the profitable opportunities in Nigeria’s retail market. South African retailers have since been notching up exceptionally strong trading in shopping places where they are situated in Nigeria. These South African retailers, it was learnt, carry out researches to understand the unique set of consumer needs and norms before venturing into the business.

    In doing this, the retailers from the Rainbow nation, as South Africa is called, recognise that there is more brand recognition for foreign retailers in Nigeria that requires a marketing strategy that goes beyond advertising, store opening and extends to launching a new brand, which has continue to make them seek opportunities in the market.

    A South African clothing retailer, David Botha, is one those that ventured into the retail business in Nigeria and has since been counting his blessings. Botha entered into Nigeria a few years ago with the hope of using the country as platform to expand the frontier of his retail business headquartered in South Africa. Today, the foreign retailer is more satisfied doing business in Nigeria than in South Africa or any other African country.

    Botha has since brought his world-class retail store with all the international standards, guarantees and returns policies attached to his products to Nigeria. Having done his feasibility, he understands that Nigerian consumers are hungry for quality and innovation, which is why he provides the latest international fashion at affordable prices and in trendy/stylish stores situated across the country.

    As pointer to the profitability of retail business in Nigeria, many retailers who started with one store have opened several others within a short period of time, as new shopping complexes owned by foreign nationals keep springing up in the country every now and then.

    For instance, Mr. Botha told The Nation Shopping that he already has four stores in the country and will be opening new ones as soon as he finds space. “I started out with one store in Ikeja City Mall in Lagos, opened another one in Surulere, within Lagos. In my second year of doing business in Nigeria, I opened another store in Heritage Mall in Ibadan, as well as in the Grand Towers Mall in Abuja,” he disclosed.

    More than anything else, it is the innovation that the foreign retailers brought to bear in the business that ensured their expansion. Some of them who spoke with The Nation Shopping say they are committed to learning how they can improve on the way they do things to make current and future customers’ shopping experience as enjoyable and rewarding as possible. “We are not simply copying what we do where we are coming from, we are customizing our business to suit the needs of Nigerians in the various regions in which we have stores,” Sander Norman of Ikeja City Mall, said. Constant research into the needs of customers is believed to be partly responsible for the rapid growth of retail business in Nigeria.

    The success of these foreign retail businesses is also attributed to the passionate and dedicated efforts of the staff, which is why the retail owners invest heavily on staff development and training. As the investors acquire more stores, they hire more staff and develop them strictly from within.

    “We make use of an organic growth model, whereby we largely promote staff members from within our business. There are numerous staff members who hold senior positions now, who began their working career with us as casual employees,”  Botha said.

    Expectedly, the coming of the foreign retailers has rubbed off on the local economy. Apart from continuously investing more capital into their businesses, which contributes immensely to the growth of the local economy, the investors have also been contributing greatly to employment generation across the country. Most of their businesses are run by Nigerians. Sander confirmed this much when he said that apart from employing Nigerians, foreign retailers regularly take Nigerians for training in other countries and are often excited by the fantastic potential of the team members. “We promote our business from within and we have only one expatriate who will be replaced by a Nigerian by the end of the year,” he said.

    With experts projecting that in a few years time, many more retail shops and new shopping malls would dot Nigeria’s retail business landscape, the spin-offs to the local economy are expected to increase. More foreign investors in the industry will want to be part of the current growth and there will be many opportunities for local entrepreneurs to develop new store brands and different types of entertainment offerings, restaurants and fast food businesses.

    New foreign stores will enter Nigeria and will result in various retail-related job opportunities, as well as prospects to supply such stores with all the various services they will require. Also, experts have said these retailers will provide one-stop-shops for people to browse while doing their shopping, as well as meet their friends and families, and also enjoy themselves during their free time.

    Part of the innovation the retailers would bring to the table is to ensure that new items reach their stores weekly, thus ensuring that customers always have the freshest, latest items available when they visit the stores. The thinking is that foreign retailers who wish to make impact in the  market where consumers are known for their increasing sophistication and taste must customise their models to meet the unique consumer needs and aspirations because mall dwell times are increasing and foot counts are growing.

    Nigerians enjoy a first-world shopping environment that is pleasant, safe, cool, unrushed and which offers a complete retail experience from shopping to relaxing at the food court. That is why the call for more foreign retailers is gaining the support of more shoppers.

    Sander has a piece of advice for retailers planning to enter the market: “If you are prepared to develop a country-specific model and invest in research to support a supply chain, get the right stock, provide the best price and render the best services, because there’s a bright future in Nigeria.”

  • Foreign equity portfolios rise to N972.5b

    •Dominate market at 51%

    Foreign investors gradually built up their stakes on Nigerian equities from about 37 per cent of total transactions at the stock market in January 2013 to achieve dominance over 11-month period with 50.94 per cent by the end of November 2013.

    The latest report on the foreign portfolio investment flow by the Nigerian Stock Exchange (NSE) indicated that foreign investors accounted for N972.5 billion out of total transactions of about N1.91 trillion during the 11-month period, representing 50.94 per cent of total transactions during the period. Nigerian institutional and individual investors, which had started the year with dominance of about 63.1 per cent, closed the period with 49.06 per cent with transactions valued at N936.49 trillion.

    However, portfolio flow analysis showed a consistent trading pattern in foreign transactions. While foreign investors flowed in more funds than they took out in the first half, they have taken more money out than they invested since the beginning of the second half, showing a sustained trend of profit-taking in the second half.

    But with the significant inflows in the first half, net position by the 11-month period still remained positive. Total foreign inflow closed November at N498.9 billion as against total outflow of N473.6 billion, representing positive net inflow of N25.3 billion.

    The last two months of October and November also saw marked improvements in foreign interests in the Nigerian market with substantial increase in foreign transactions. Foreign portfolio investments, which had shown month-on-month slowdown in the third quarter, picked up in October. Total foreign transactions closed October at N82.33 billion including inflow of N39.45 billion and outflow of N42.88 billion. Total foreign transactions rose to N88.89 billion in November, including inflow of N42.68 billion and outflow of N46.21 billion.

    In September, total foreign inflow was N26.14 billion as against outflow of N27.88 billion, bringing total foreign transactions to N54.02 billion. Total transactions at the stock market during the month stood at N108.19 billion, out of which domestic investors contributed N54.17 billion or 50.07 per cent.

    In August, foreign inflow had stood at N31.12 billion as against outflow of N39.76 billion. Total foreign transactions thus stood at N70.88 billion, 52.26 per cent of the total turnover of N135.63 billion recorded for the month.

    Foreign investors had took out nearly a double of every penny they invested in the Nigerian stock market in July, unusually high disparity between foreign portfolio inflow and outflow, which led to significant decline in net foreign investment in the Nigerian stock market.

    The seven-month report for the period ended July 2013 had indicated that total foreign inflow stood at N31.81 billion as against outflow of N61.90 billion in July, showing the widest divergence between inflow and outflow so far this year.

    Total foreign transactions thus slowed to N93.71 billion in July as against N150.24 billion in the previous month. However, foreign investors remained dominant in stock market’s transactions with 62.53 per cent of the aggregate foreign-domestic transactions in July, an increase on 51.13 per cent recorded by foreign investors in June.

    With the outflow in July, net foreign investment declined from about N73 billion by June to N42.59 billion by July.

    Total foreign inflow had risen to N90.15 billion while outflow stood at N60.09 billion as total foreign transactions increased to N150.24 billion in June.

    Total foreign transactions in the Nigerian market for the seven-month period stood at N676.25 billion, 50.73 per cent of aggregate transactions of N1.33 trillion by foreign and domestic investors during the period. Breakdown of foreign transactions during the seven-month period showed inflow of N359.47 billion as against outflow of N316.88 billion. Nigerian investors accounted for N656.85 billion over the seven months.

    Foreign investors had capitalised on general market optimism in July ahead of the release of the first half earnings reports of quoted companies to monetize and rebalance their portfolios. Nigerian equities had consolidated their bullish rally in July with capital gains of some N581 billion. Aggregate market value of all equities closed July at N12.007 trillion as against its opening value of N11.426 trillion for the month. The All Share Index (ASI), which doubles as benchmark index for all equities on the Nigerian Stock Exchange (NSE) and country index for Nigeria, also rose from month’s opening index of 36,164.31 points to close at 37,914.33 points, a month-month average positive return of 5.08 per cent.

    First-half report on foreign portfolio investment flow had shown that total transactions-including buy and sell deals, by foreign investors totaled N582.64 billion, accounting for 49.24 per cent of total turnover at the NSE during the period.

    The report had indicated that in most instances, foreign investors flowed in more funds than they took out, leaving the stock market with a positive net foreign investment of about N73 billion within the period. Foreign portfolio inflow stood at N327.66 billion as against outflow of N254.98 billion.

    Total turnover value at the NSE during the first half was N1.18 trillion with both foreign investors and domestic investors dominating transactions in three months each. But while foreign investors had maintained gradual and steady increase and decline in portfolio adjustments, Nigerian investors showed large fluctuations.

    Nigerian investors dominated the market within the first two months and were supplanted by foreign investors in March and April. Indigenous investors regained dominance in May and were displaced by foreign investors in June.

    Foreign investors accounted for 36.89 per cent, 39.65 per cent, 52.78 per cent, 64.48 per cent, 48.68 per cent and 51.13 per cent in January, February, March, April, May and June respectively.

    Portfolio transactions by foreign investors totaled N61.46 billion, N75.97 billion, N80.14 billion, N122.97 billion, N91.86 billion and N150.24 billion in January, February, March, April, May and June.

    The report underlined the structural outline of Nigerian investors, which was largely skewed in favour of institutional investors. For instance, institutional Nigerian investors accounted for 66.7 per cent or N95.78 billion of domestic investors’ turnover in June, last year while retail investors contributed 33.3 per cent or N47.81 billion.

    The report had shown stronger momentum in foreign portfolio investments in the stock market as the 2013 first-half report was substantially above six-month average over the past five years.

    Foreign investors staked about N4.08 trillion on quoted shares on the NSE between 2007 and 2012. Foreign investors had gradually and consecutively increased their investments in Nigerian equities from about 15 per cent of total market turnover in 2007 all through till a high of about 67 per cent in 2011.

    Foreign portfolios were particularly the main drivers of transactions on the NSE in the past two years, with foreign investors accounting for average of two-thirds of equity transactions between 2011 and 2012.

    The report underlined the early positioning of the foreign investors, who had saw through

  • NFF dismisses calls for foreign coach

    NFF dismisses calls for foreign coach

    Mike Umeh has described calls for a foreign assistant to be hired for Nigeria coach Stephen Keshi as an unnecessary distraction.

    The NFF Vice-President told journalists on Thursday that the demands are unwarranted as Keshi is capable of leading the Super Eagles to the World Cup, citing the results since his appointment as evidence of his capability.

    “We have not lost any match since Stephen Keshi started work as Super Eagles’ chief coach, so, what are we talking about? Your measurement is according to the results you posted in your matches, since he has not lost any match, I do not think that there would be any need for a foreign technical adviser,” Umeh queried.”

    He therefore called on stakeholders to avoid causing distractions to both the NFF and the coaching crew of the senior national team.

    “There must be no distraction to the smooth revolution by the NFF and the Super Eagles coaching crew with the call for a foreign technical adviser, we are indigenous people and the team is doing very well with the indigenous coaches.”

  • Foreign portfolios hit N801b in Q3

    Foreign portfolios hit N801b in Q3

    Foreign investors staked N801.25 billion and dominated transactions on Nigerian equities within the nine-month period ended September 30, 2013.

    The latest report on the foreign portfolio investment flow by the Nigerian Stock Exchange (NSE) obtained by The Nation showed that foreign investors dominated transactions during the nine-month period, accounting for 50.81 per cent of total transactions during the period.

    The report indicated that total transactions at the NSE within the period stood at about N1.58 trillion, with foreign portfolio investors accounting for N801.25 billion while domestic investors accounted for N775.77 billion. Domestic investors thus accounted for 49.19 per cent within the nine-month period.

    However, while foreign investors flowed in more funds than they took out in the first half, they took more money out than they invested since the beginning of the second half, showing a sustained trend of profit-taking in the second half.

    But with the significant inflows in the first half, net position by the third quarter still remained positive. Total foreign inflow closed September at N416.73 billion as against total outflow of N384.52 billion. Investment flow so far in the second half has followed the same pattern, with more outflow than inflow. Besides, the foreign portfolio investment report showed month-on-month slowdown in both the total foreign transactions and foreign portfolio inflow while there was an increase in outflow during the period.

    In September, total foreign inflow was N26.14 billion as against outflow of N27.88 billion, bringing total foreign transactions to N54.02 billion. Total transactions at the stock market during the month stood at N108.19 billion, out of which domestic investors contributed N54.17 billion or 50.07 per cent.

    In August, foreign inflow had stood at N31.12 billion as against outflow of N39.76 billion. Total foreign transactions thus stood at N70.88 billion, 52.26 per cent of the total turnover of N135.63 billion recorded for the month.

    Foreign investors had took out nearly a double of every penny they invested in the Nigerian stock market in July, unusually high disparity between foreign portfolio inflow and outflow, which led to significant decline in net foreign investment in the Nigerian stock market.

    The seven-month report for the period ended July 2013 had indicated that total foreign inflow stood at N31.81 billion as against outflow of N61.90 billion in July, showing the widest divergence between inflow and outflow so far this year.

    Total foreign transactions thus slowed to N93.71 billion in July as against N150.24 billion in the previous month. However, foreign investors remained dominant in stock market’s transactions with 62.53 per cent of the aggregate foreign-domestic transactions in July, an increase on 51.13 per cent recorded by foreign investors in June.

    With the outflow in July, net foreign investment declined from about N73 billion by June to N42.59 billion by July.

    Total foreign inflow had risen to N90.15 billion while outflow stood at N60.09 billion as total foreign transactions increased to N150.24 billion in June.

    Total foreign transactions in the Nigerian market for the seven-month period stood at N676.25 billion, 50.73 per cent of aggregate transactions of N1.33 trillion by foreign and domestic investors during the period. Breakdown of foreign transactions during the seven-month period showed inflow of N359.47 billion as against outflow of N316.88 billion. Nigerian investors accounted for N656.85 billion over the seven months.

    Foreign investors had capitalised on general market optimism in July ahead of the release of the first half earnings reports of quoted companies to monetize and rebalance their portfolios. Nigerian equities had consolidated their bullish rally in July with capital gains of some N581 billion. Aggregate market value of all equities closed July at N12.007 trillion as against its opening value of N11.426 trillion for the month. The All Share Index (ASI), which doubles as benchmark index for all equities on the Nigerian Stock Exchange (NSE) and country index for Nigeria, also rose from month’s opening index of 36,164.31 points to close at 37,914.33 points, a month-month average positive return of 5.08 per cent.

    First-half report on foreign portfolio investment flow had shown that total transactions-including buy and sell deals, by foreign investors totaled N582.64 billion, accounting for 49.24 per cent of total turnover at the NSE during the period.

    The report had indicated that in most instances, foreign investors flowed in more funds than they took out, leaving the stock market with a positive net foreign investment of about N73 billion within the period. Foreign portfolio inflow stood at N327.66 billion as against outflow of N254.98 billion.

    Total turnover value at the NSE during the first half was N1.18 trillion with both foreign investors and domestic investors dominating transactions in three months each. But while foreign investors had maintained gradual and steady increase and decline in portfolio adjustments, Nigerian investors showed large fluctuations.

    Nigerian investors dominated the market within the first two months and were supplanted by foreign investors in March and April. Nigerian investors regained dominance in May and were equally displaced by foreign investors in June.

    Foreign investors accounted for 36.89 per cent, 39.65 per cent, 52.78 per cent, 64.48 per cent, 48.68 per cent and 51.13 per cent in January, February, March, April, May and June respectively.

    Portfolio transactions by foreign investors totaled N61.46 billion, N75.97 billion, N80.14 billion, N122.97 billion, N91.86 billion and N150.24 billion in January, February, March, April, May and June.

    The report underlined the structural outline of Nigerian investors, which was skewed in favour of institutional investors. For instance, institutional Nigerian investors accounted for 66.7 per cent or N95.78 billion of domestic investors’ turnover in June 2013 while retail investors contributed 33.3 per cent or N47.81 billion.

    The report had shown stronger momentum in foreign portfolio investments in the stock market as the 2013 first half report was substantially above six-month average over the past five years.

    Foreign investors staked about N4.08 trillion on quoted shares on the NSE between 2007 and last year. Foreign investors had gradually and consecutively increased their investments in Nigerian equities from about 15 per cent of total market turnover in 2007 all through till a high of about 67 per cent in 2011.

    Foreign portfolios were particularly the main drivers of transactions on the NSE in the past two years, with foreign investors accounting for average of two-thirds of equity transactions between 2011 and 2012.

    The report underlined the early positioning of the foreign investors, who had saw through the prospects of Nigerian equities amidst the downtrend and the rampant herd instinct of the domestic investors, who mostly usually look at recovering market.

    Foreign portfolio transactions increased from N615.6 billion in 2007 to N787.4 billion in 2008. These trimmed down to N424.6 billion in 2009 before rising consecutively to N577.3 billion and N847.9 billion in 2010 and 2011 respectively. Foreign portfolio trades stood at N808.4 billion in 2012. With these, the two-way flow of foreign portfolio investments showed that while foreign investors flowed in about N2.01 trillion during the period, they equally took away about N2.17 trillion.

    Market pundits said the investment flows at the stock market might underline concerns over the future earnings of banks, following a relatively low fundamental performance in the third quarter. Most banks reported marginal growth in profit in the third quarter as they struggled with reduced income streams and high cost of funds and operations induced by new regulations by the Central Bank of Nigeria (CBN).

    Banks remain the dominant subsector at the NSE, although reduction in number of quoted banks and increased capitalisation of non-bank multinationals have reduced the hitherto overbearing influence of banking stocks on overall market situation.