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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Foreign portfolio investors(FPIs) have withdrawn a total of N1.87tn in four years, starting from June 2015, after President Muhammadu Buhari was sworn into office, according to the Punch.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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60 Hearty Cheers to Chioma Ekeh, Africa’s Leading Unusual Female Tech

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The story has often been told in tech circles of how a relatively unknown Nigerian female student became a sensation of sorts among the international student population back in the early 80s in India owing to the unusual course of study she was undertaking.

60 Hearty Cheers to Chioma Ekeh, Africa’s Leading Unusual Female Tech

Chioma Ekeh

Electing to study Mathematics at Bachelor’s degree level – a course that required not only battling differential equations, calculus, advanced algebra, and so on, but also pitting one’s wits against that of wizened professors – is not a task for the faint-hearted. But that was the path that this unusual lady took at Punjab University, located in the culturally rich and aesthetically pleasing city of Chandigarh, India.

It was a decision that would lead Chioma Ekeh (nee Emelonye) along the path of meeting the love of her life, a certain Leo Stan Ekeh and returning to Nigeria with him to play a leading role in shaping the course of technology distribution in Africa.

Undoubtedly, unusual may also be a word that defines Chioma and Leo Stan Ekeh’s remarkable journey together. A power couple and exemplary partners who have worked together for over 30 years building a successful technology empire is a rarity, one that is not often seen.

That sojourn to India and her subsequent career trajectory laid the groundwork for the impressive reputation Chioma Ekeh has built in the highly competitive technology space. Business associates and representatives of global brands never fail to cite her intellect and brainpower.

Job seekers who cross her path during interviews often recall being asked to solve a simple arithmetic problem. For those who eventually become employees, there is never-ending adulation.

Her husband, Leo Stan Ekeh, describes her as the integral analytics, the backbone behind the brilliant success of the Zinox Group where she has continued to support all the businesses across the board.

Such is the cerebral aptitude of this unusual woman that she is reported to have taken the stage once at a company-wide business review to present a financial report punctuated by humongous accurate numbers, figures and percentages, all from memory and without recourse to any notes, a device or an actual presentation document.

Born on April 25, 1964, the story of the impressive diffusion, accessibility, useability and affordability of cutting-edge technology devices and solutions in Nigeria and indeed, sub-Saharan Africa will be grossly incomplete without a detailed citation on Chioma Ekeh and the leadership role she has played – one she has continued to play as a silent innovator and disruptor–alongside her legendary spouse.

A Fellow of the Chartered Institute of Certified Accountants (FCCA, UK), Mrs. Chioma Ekeh is the brains behind TD Africa, a regional technology distribution powerhouse headquartered in Nigeria and with branches across Africa and in four other continents.

A company she led from start-up stage, TD Africa with Chioma Ekeh as CEO, pioneered ICT distribution in Sub-Saharan Africa and has remained the industry leader by market share in the region and the biggest provider of credit to resellers.

Founded in 1999, TD Africa is Africa’s leading distributor of technology and lifestyle products, boasting an unmatched and growing network of partnership with global brands like HP, Microsoft, Apple, Starlink, IBM, Dell Technologies, Ring (by Amazon), Cisco, Lenovo, APC by Schneider Electric, Samsung, Bosch, Phillips, Logitech, Vivo, among several others. Under Chioma’s exemplary leadership, the company has achieved numerous milestones, earned a long list of local and international awards/accolades and ensured Nigeria and indeed Africa is reckoned with at the global table of technology conversations and discussion-making.

However, this remarkable story may have turned out differently, had Chioma not returned to Nigeria under the guidance of her husband.

Armed with a formidable Mathematics degree after completing her studies in India, Chioma had the world at her feet and was the toast of leading companies the world over.

Moving to the United Kingdom at the invitation of her husband, Chioma joined the exalted league of Chartered Accountants and thereafter, bagged an MBA at the reputable Heriot Watts University.In 1987, she joined Sterling Deveraux as an Investment Analyst, engaging in researchand analyzing assets, such as stocks, bonds, currenciesand commodities.

Her acumen and exceptional skills were growing in demand and before long, she left Sterling Deveraux, joining the London Borough of Lewisham as an accountant in 1988.

Between 1988 and 1991, Chioma’s sterling work saw her rise swiftly through the ranks at the London Borough of Lewisham, moving from Accountant to Senior Auditor and then to Financial Auditor.

Certainly, Chioma Ekeh had a clear path to becoming CFO and possibly CEO at the London Borough of Lewisham or even going on immediately to taking up other elevated roles at other organizations. But the love of motherland and the call of her husband – Leo Stan Ekeh – to return home to Nigeria with him and build a technology legacy for Nigeria and Africa proved too strong.

Back home, Chioma Ekeh’s initial area of responsibility was with Task Systems Ltd., the first of many companies in the Zinox Group set up by Leo Stan Ekeh.

She took up the position of Financial Controller and spent six achievement-filled years at Task before driving the vision of technology distribution birthed by her husband in launching TD Africa where she became the company’s pioneer CEO.

A quiet, unassuming tech icon, Chioma Ekeh has acquired a well-deserved status as unarguably one of Nigeria’s top three leading Women-in-Tech, a female technology business leader with extensive years of proven capacity in building high-performing teams and transforming businesses beyond stakeholders’ expectations.

In partnership with her husband, Chioma Ekeh has played immense roles in growing and nurturing partner businesses, launching several thriving new businesses and successfully closing some of the biggest acquisitions in the technology space in Nigeria.

The Tech Experience Centre – Africa’s first technology experience centre – located at Yudala Heights, a sprawling edifice in the heart of Victoria Island – is another project that has Chioma Ekeh’s indelible signature on it.

The launch of the Tech Experience Centre in October 2020 received high praise from the Nigerian government and representatives of global Original Equipment Manufacturers (OEMs).

Under her guidance, Celebrating You, an annual showpiece celebratory event hosted by TD Africa has become unarguably the biggest year-end event in the Nigerian technology industry for over a decade.

Also, she has spearheaded several CSR projects, including The Herwakening – an empowerment programme for female entrepreneurs– and Girls in ICT – a project targeted at encouraging young girls to take up STEM (Science, Technology, Engineering, Mathematics) disciplines and considering careers in technology.

As she turns 60, Chioma Ekeh deserves rarefied mention and unmitigated encomiums. An amazon, this unusual female tech icon who has shattered several glass ceilings, knows no fatigue and has continued to innovate, effortlessly leading from the front.

 

 


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Academic Technologists Propose N350,000 Minimum Wage

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National Association of Academic Technologists (NAAT), has proposed N350,000 as the new minimum wage for Technologists in the tertiary institutions.

Academic Technologists Propose N350,000 Minimum Wage

Comrade Ibeji Nwokoma, national pesident of NAAT, stated this at 5th National Delegate Conference in University of Abuja.

Nwokoma, said the proposal was based on the present economic situation in the country occasioned by the removal of fuel subsidy, high inflationary rate and the attendant hardship.

Nwokoma maintained that technology rule the world and advanced development and shaping the landscape of education in developed countries.

Prof. Tahir Mamman, minister of Education, said the federal government will soon introduce the policy that will make skill acquisition compulsory for primary and secondary schools.

The minister said global space is driven by technology which the advanced world is using to solve problems and gaining grounds.

The Union protect, defend, and promote the rights and well being and interests of all members and to advance the cause of members, employed in Nigerian Tertiary Institutions Universities, Polytechnics, and Colleges of Education.

The theme of the conference is, “Technology, a recipe for national development and socioeconomic growth in the 21st century: the Nigeria quest for a better tomorrow.”

 

 


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9mobile Partners Microsoft to Host Impactful Training Session for Journalists

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9mobile, telecommunications company, recently partnered with tech giant, Microsoft to host a capacity-building session for journalists aimed at empowering them with innovative tools to improve their skills for maximum performance in their field.

The learning session held at Microsoft Africa Development Center had in attendance media partners from print and online platforms and publications.

The training session provided a platform to introduce journalists to the benefits of Microsoft Copilot and its potential to revolutionize the profession.

Microsoft Copilot is an advanced AI-powered tool which offers a wide array of functionalities designed to streamline workflow, enhance productivity, and elevate the quality of their output.

Through this partnership, 9mobile and Microsoft sought to equip journalists with the skills and knowledge necessary to leverage Copilot effectively in their day-to-day work.

Speaking at the training session, Chineze Amanfo, PR Lead, 9mobile, expressed her enthusiasm and satisfaction with the session, emphasizing the company’s commitment to fostering innovation and empowerment within the media industry.

She stated, “We are thrilled to collaborate with Microsoft in providing this invaluable training opportunity for journalists. At 9mobile, we recognize the pivotal role that the media plays in shaping public discourse and driving societal change.

Therefore, equipping them with the requisite knowledge and tools such as the Microsoft Copilot, will enhance their capability to deliver on their respective assignments efficiently by disseminating accurate and impactful information to the public.”

“We prioritize our relationship with the media hence, the need for the periodic capacity building session for journalists. With this training, we have clearly demonstrated our unwavering commitment to sustaining the initiative.

“We will continue to explore new avenues for collaboration and innovation, ensuring that our partners in the media industry have access to the tools and resources they need to thrive, Amanfo added.”

Yemi Orimolade, The Senior Business Programme Manager, Marketing Communications, Microsoft Africa Development Center, appreciated the participants for their contributions in making the session an engaging experience and enjoined them to champion the message of AI responsibility.

He said, “Microsoft’s Copilot is poised to be a game-changer for journalists. It is a reliable tool for generating and optimising content, staying informed, and enhancing productivity. Our commitment is to harness the transformative potential of AI for societal betterment. Welcome to the future of journalism, working smarter with Microsoft Copilot.”

The capacity-building session received an overwhelmingly positive response from participants, who lauded the practical insights and demos provided.

Attendees expressed their appreciation for the opportunity to familiarize themselves with a tool as powerful and versatile as Microsoft Copilot, acknowledging its potential to revolutionize their workflow and enhance their journalistic endeavors.

With the successful hosting of the capacity-building session, 9mobile and Microsoft look forward to more areas of sustained collaboration to drive positive change and innovation within media ecosystem in Nigeria.


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