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Foreign Portfolio Investors Withdraw N1.87tn under Buhari

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Foreign portfolio investors(FPIs) have withdrawn a total of N1.87tn in four years, starting from June 2015, after President Muhammadu Buhari was sworn into office, according to the Punch.

 

The latest data obtained from the Nigerian Stock Exchange (NSE) showed that the investors withdrew N163.77bn after his re-election in February.

 

Analysts at the United Capital Plc have described the delayed policy formulation and cabinet formation by President Muhammadu Buhari as a risk to capital inflow to the country.

 

They noted that in the absence of profound changes in the policy environment, only the FPIs in search of cheap naira assets would dominate capital importation into the county, while Foreign Direct Investments would remain on the sidelines.

 

An analysis of data obtained at the NSE revealed that the year 2018, the preceding year to the general elections, saw the highest withdrawals of the FPIs in four years, as they withdrew N642.65bn.

 

Mr Peter Ashade, group chief executive officer, United Capital, said the lack of economic policy reforms would continue to scare the FPIs off equities while policy stability and a double-digit interest rate would promote a further appetite for fixed income instruments.

 

Data from the National Bureau of Statistics revealed that the FPI flows continued to account for the bulk of capital imported into Nigeria.

 

In the first quarter of 2019, the amount surged by 56.5 per cent year-on-year to $7.1bn, despite the jitters that trailed the February general elections and the eventual conduct in the Q1.

 

Total capital imported into the country surged by 34.6 per cent year-on-year to settle at $8.5bn, the highest since the third quarter in 2013.

 

This revealed that across the three components of capital imported, the FPIs accounted for the bulk of expansion observed.

 

According to him, weaker capital inflows reflect the impact of waning confidence in the Nigerian economy by foreign investors amid concerns about macroeconomic fundamentals of the Nigerian economy.

 

Analysts at United Capital said, barring any external shocks, they expected the naira to stabilise this second half of the year.

 

They said the stability would be buoyed by a sustained foreign exchange intervention and continued FPI inflows.

 

However, they expressed concerns, saying the “uninteresting macroeconomic environment is scaring the FPIs.”

 

The report read in part, “However, in Nigeria, we believe the lack of economic policy reforms will continue to scare the FPIs off equities while policy stability and a double-digit interest rate will promote a further appetite for fixed income instruments.

 

“Clearly, to boost the FPIs appetite for equities, uncertainties must be out of the way and the Central Bank of Nigeria must reduce the attractiveness of risk-free securities as monetary policy in the global economy becomes easier.”

 

In the second half of 2015, which was the first six months of President Buhari’s tenure, the FPIs withdrew N277.63bn, the highest being in July, when they withdrew N58.83bn.

 

In 2016, the FPIs withdrew N261.03bn; N435.31bn in 2017 and N642.65bn in 2018.

 

In the first half of 2019, the foreign investors withdrew N257.81bn, bringing the total withdrawals under the President Buhari regime to N1.87tn.

 

Alice Tomdio, associate Ddrector, Capital Markets, PwC Nigeria, in an interview with The Punch recently, said, “Once there is any cause to fear, portfolio investors sell out their shares and they come back when the environment is better; all of these create a lot of volatility in the market and may be one of the reasons we do not have a lot of initial public offerings in the country.”

 

Between 2011 and 2015, foreign transactions consistently outperformed domestic transactions. However, domestic transactions marginally outperformed foreign transactions in 2016 and 2017, accounting for 52 per cent of the total transaction value in 2017.

 

Also, foreign transactions, which stood at N1.5tn in 2014, declined to N518bn in 2016 but increased significantly by 133 per cent to N1.2tn in 2017. This accounted for about 48 per cent of total transactions in 2017.

 

Over an 11-year period, domestic transactions decreased by 62.46 per cent from N3.5tn in 2007 to N1.3tn in 2017, meaning foreign investors were dominating the market.

 

However, there was a significant increase in domestic transactions between 2016 and 2017 by 111 per cent from N634bn to N1.3tn.

 

Alice Tomdio, president, Independent Shareholders Association of Nigeria, said the economic policies of the country were responsible for the exit of foreign investors.

 

He noted that when the policies were favourable, investors would come around and if otherwise, they would flee.

 

Nwosu, who spoke with our correspondent, said it was not advisable for the FPIs to stay ahead of the general elections because there was no assurance given to them when the polls were approaching.

 

He said, “The FPIs are very careful about their money; these investors have been in this country and have enjoyed a lot. They are not willing to gamble with their money.

 

“When the situation in Nigeria is showing imminent doom, they will all go away and wait until things stabilise. They will want to make sure that the economic situation does not affect their investment, whereby they will lose money.”

 

Mr Afolabi Olowookere, head, Economic Research and Policy Management, Securities and Exchange Commission, (SEC) said foreign investors understood the country and could read it well, knowing when to leave and when to stay.

 

He stated that there were fundamental issues in the economy that needed to be addressed not only to attract but to keep foreign investors.

 

Olowookere said, “We have some investors that were waiting for the President to appoint his cabinet, while some others do more serious analysis on the interest rates in the country, economic performance, efficiency and liquidity of the market and exchange rate.

 

“Investors will be interested in what will happen to the exchange rate and how many companies are listed on the Nigerian Stock Exchange. Foreign investors are responsible for over 50 per cent of the transactions on the stock exchange, whether their investments are increasing or reducing.”

 

He said to attract and retain the FPIs, infrastructure and foreign exchange issues must be addressed.

 

According to him, looking at the road map of the Central Bank of Nigeria, it can be observed that the apex bank is trying to stabilise the macroeconomic environment, as everybody wants inflation to come down so that interest rate can drop.

 

Olowookere said, “Investors want to know how much the government is borrowing and the level of debt sustainability. They want to know how much it will weigh in on the country’s capacity to generate revenue.

 

“They are also interested in the level of liquidity of the market; fortunately, we had two main listings recently, which pushed the market capitalisation from about N10tn to N14tn.

 

“These companies can also compete with Dangote and the likes; that is if the holders are willing to transact. But investors will always come and go. It’s not just about them bringing in money; it is also about what they can buy with it.”

 


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Shell to Sack 9,000 over Oil Output Drops

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Shell said on Wednesday that volumes of both Liquefied Natural Gas and crude production were down in the third quarter.

Shell to Sack 9,000 over Oil Output Drops

The oil major disclosed this in an update to the market, which also detailed plans to cut up to 9,000 jobs by the end of 2022 as it adjusts to the COVID-19 price collapse, according to S&P Global Platts.

Upstream production of oil and associated streams was significantly down in the quarter, in a range of 2.2 million to 2.3 million barrels of oil equivalent per day, from 2.6 million boe/d in Q3 2019.

LNG output was down in a range of 7.9 million to 8.3 million metric tonnes for the quarter, compared with nine million mt a year earlier.

In the update ahead of a full results statement on Oct. 29, Shell said its oil sales in July and August had reflected a 15-20 per cent discount to Brent pricing, similar to the second quarter, and its LNG business in the quarter had suffered a ‘significant impact’ from a lag effect in the oil-linked pricing of LNG.

It also highlighted refining weakness, with a utilisation level of just 64-68 per cent and margins “significantly lower” than in the second quarter 2020, and said it intended to reduce its refining footprint globally to less than 10 sites.

On its restructuring plans, Shell said, “Reduced organisational complexity, along with other measures, are expected to deliver sustainable annual cost savings of between $2.0bn to $2.5bn by 2022.

“This will partially contribute to the announced underlying operating cost reduction of $3bn to $4bn by the first quarter 2021.”

Worldwide job reductions of 7,000 to 9,000 are expected by the end of 2022, including 1,500 people who have agreed to take voluntary redundancy this year, Shell said.

It also said production levels in both the upstream business and the LNG business had been lower than in the second quarter, partly reflecting seasonal maintenance, but also the impact of hurricanes in the US Gulf of Mexico.

 

 

 

 

 


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Western Digital Unveils Speed, Portable SanDisk SSDs

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Western Digital Corp. yesterday released two new SanDisk® portable SSDs that offer nearly 2x the speed over previous generations. The SanDisk Extreme® and SanDisk Extreme PRO® portable SSDs are purpose-built to keep up with today’s high-quality content demands.

Professional photographers, videographers and enthusiasts capture and keep life’s best moments every day and they need reliable solutions that perform on the move at astonishing speeds.

With capacities up to 2TB*, the new NVMe™ drives are perfect for creating amazing content or capturing and moving incredible 4K and 8K footage with ease.

The flagship SanDisk Extreme PRO portable SSD features a forged aluminum chassis made to stay cool under the pressure of a heavy workload and a durable silicone design to withstand the rigors of production. The drives also help keep content safe with password protection and an upgrade to 256-bit AES hardware encryption1.

“When every second counts, I need fast and powerful solutions that work as quickly as I do. I rely on SanDisk SSDs to keep up with my creativity,” said Tyler Stableford, SanDisk Extreme Team member.

“As an artist, speed is one of my greatest strengths, and I know with the SanDisk Extreme line of SSDs, I can get the job done with greater efficiency and capacity, and I never have to worry about running out of memory wherever the job takes me.”

Rugged and Powerful SSD Performance

Designed with professionals in mind, the new SanDisk portable SSDs were built to reliably handle the most challenging assignments – whether at home, in the office or out on location.

The SanDisk Extreme portable SSD is a great go-to drive for those who need more memory and a durable and fast drive, while the SanDisk Extreme PRO was built for an avid pro who needs even, sustained performance and a drive that can go anywhere.

“For our customers, life is an adventure and they rely on us to raise the bar across our portfolio when it comes to delivering powerful solutions to consumers and professionals alike,” said Brian Pridgeon, director of marketing, Consumer Solutions, Western Digital.

“The SanDisk brand is trusted by professional photographers worldwide, which is why we built our Extreme family of drives to perform at the highest level. We amped up the speeds with the latest NVMe technology and used robust materials in our designs to handle the best shots and the most demanding jobs.”

Key Features

  • SanDisk Extreme PRO Portable SSD

– Save time storing and transferring data with powerful NVMe solid state performance featuring up to 2000MB/s** read and up to 2000MB/s** write speeds.

– A forged aluminum chassis acts as a heatsink to deliver higher sustained speeds in a portable form factor.

– Up to two-meter drop protection and an IP55 rating2 make the drive tough enough to take on any adventure. The drive’s forged aluminum chassis and silicone shell design offer a premium feel and added protection.

– Helps keep private content private with password protection and an upgrade to 256-bit AES hardware encryption1.

  • SanDisk Extreme Portable SSD

– Get NVMe solid state performance featuring up to 1050MB/s** read and up to 1000MB/s** write speeds in a portable, high-capacity drive that’s perfect for creating amazing content or capturing incredible footage.

– For added durability, the drive features up to two-meter drop protection and IP55 water and dust resistance2.

– Durable silicone shell that offers a premium feel and added protection to the drive’s exterior.

– Helps keep private content private with password protection and an upgrade to 256-bit AES hardware encryption1.

Ready to move, consumers can use the handy carabiner loop to secure the drives to a belt loop or backpack for extra peace of mind. The new drives are compatible with PC and Mac computers.

In addition to moving content to a PC or laptop, the new products also now allow users to back up mobile content quickly and easily thanks to compatibility with a range of USB Type-C™ smartphones.

Availability

The SanDisk Extreme and SanDisk Extreme PRO portable SSDs are backed by a five-year limited warranty3 and are now available at the Western Digital Store, and at select e-tailers and retailers worldwide.

The SanDisk Extreme portable SSD is available now in 500GB* and 1TB*, and is expected to ship in 2TB* later this holiday season. The SanDisk Extreme PRO portable SSD is available now in 2TB*, and is expected to ship in 1TB* later this holiday season.


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ID Africa Announces ‘Neusroom Untold’ In Celebration Of People, Places And Events That Have Shaped Nigeria’s History

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In celebration of Nigeria’s 60th Independence anniversary, ID Africa, Marketing, Media and Technology company and media platform, Neusroom have announced the Untold project, a collection of 78 stories about important people, places and events that have shaped Nigeria’s history and some little known facts that are yet to penetrate mainstream consciousness, especially amongst young citizens.

 

Nigeria was under colonial rule from 1900 to 1960. Sixty years after independence, the country has survived a civil war, endured eight military coups and rule, and grown to become one of the most populous black nations on earth. With a GDP of $376.3bn, and $1.2 trillion PPP, Nigeria is ranked by the IMF as the largest economy in Africa. But many of the stories, ideas, and events that can unite, motivate, and inspire the mostly youth population appear to have been forgotten.

 

The Untold project is in line with the Neusroom’s long-term mission to research, document and publish important stories about Nigeria and its people.

 

The collection includes the work of six Neusroom and Netng writers published over the past two years, and are being presented to the world in honour of the country’s 60th year of breaking free from colonial rule.

 

At a critical time when access to historical facts  and verifiable information on some of Nigeria’s most important people, places and events has become a challenge for the younger generation, Neusroom is taking a position as a reliable information outlet by providing the public with credible, verifiable, and objective information about Nigeria and other African nations.

 

The Untold project includes profiles of some of Nigeria’s most revered and celebrated personalities such as potter Ladi Kwali, and Alimotu Pelewura, a fish seller who led Lagos market women’s protest against colonial masters. It also includes the detailed account of how Kudirat Abiola fought valiantly to ensure her husband’s mandate as elected President was returned to him, and how Samuel Okwaraji slumped and died on the football field while representing Nigeria.

 

Events and places such as the Nigerian Civil War, the Oyo town where every household has a set of twins, and the Kiriji war which is popular as the world’s longest ethnic war that pitched powerful Yoruba towns against Ibadan, also make up a part of the collection.

 

The collection which will be updated quarterly, is aimed at serving as a source of entertainment, knowledge and insight, in easily digestible formats, for today’s youth and future generation of Nigerians.

 

Speaking on the idea behind the project, ID Africa CEO, Femi Falodun says, “We are using Nigeria’s 60th Independence celebration as an opportunity to share some of the most remarkable stories we’ve curated over the past few years with a wider audience of young Nigerians who may not have previously known about these people, places and events.

 

Our ultimate goal for the Neusroom Untold Project is to document obscure parts of Nigeria’s past and recent history in short multimedia formats that are interesting, easy to read and readily accessible to anyone on the internet. And as history is constantly being made, we believe that this project will always be work-in-progress.”

 

Ayeni Adekunle, founder and publisher of Neusroom and Netng, said, “With The Neusroom Untold Project, we are celebrating Nigeria’s journey as a progressive nation with a spotlight on all of its important contributors whose stories may have been lost in the archives or not being told at all.

 

“We have and will continue to put together, through a thorough editorial process, this project which reflects the country’s rich history, achievers and events that particularly young Nigerians will find interesting and useful.”

 

Since it was founded in 2015, Neusroom has been a trailblazer in telling the most relevant and impactful Nigerian stories. In June 2020, the ID Africa-owned platform unveiled The Neusroom 100 Project, in recognition of 100 people, organizations, countries, and things helping the world fight the pandemic and flatten the COVID-19 curve.

 


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