Economy
Buhari Wants Investments in Agribusiness, Mining, Automobiles, Others
By Adedapo Adesanya
President Muhammadu Buhari has said to investors willing to invest in Nigeria that there are very attractive investment opportunities with some of the highest “Returns-on-Investment’’ in the country.
The President’s Special Adviser on Media and Publicity, Mr Femi Adesina, in a statement said President Buhari stated this at the seventh Tokyo International Conference on African Development (TICAD7), in Yokohama, Japan on Thursday.
The President said he looked forward to prospective investors making willing to tap into the following priority sectors in Nigeria, namely, power and renewable energy, petrochemical and gas, maritime (shipping and ports), automobiles, mining, agribusiness, healthcare and pharmaceuticals, ICT and railway.
President Buhari, who presented Nigeria’s statement at plenary session three on “Public-private business dialogue” at the seventh TICAD7, assured potential investors of good returns as a result of ongoing reform measures taken by his administration.
He said: “I have also established a Presidential Committee on Enabling Business Environment, which is made up of key Ministries and prominent businessmen to promote the Ease of Doing Business and make Nigeria more attractive and competitive for investment.
“Nigeria is committed to removing all impediments to private sector participation in these sectors by creating policies that will ensure consistency, predictability and a level playing field for all.’’ He added.
He identified power, transportation, infrastructure, maritime/shipping, agro-processing, mining, manufacturing, petro-chemicals, food processing and textiles among others, as “key drivers to the diversification of the Nigerian economy as well as priority areas that will drive our economic agenda.”
The President, therefore, maintained that the country looks forward to welcoming prospective investors to her shores.
While commenting on Nigeria-Japan relations, President Buhari commended existing bonds of friendship and economic cooperation between both countries.
He described Japan as a strategic partner for our socio-economic development and disclosed Nigeria’s intention to further encourage relationships with key public and private sector stakeholders in both nations.
Buhari expressed delight with the level of discussions on the establishment of the Japan-Nigeria Business Facilitation Council, an initiative of the Japanese government, which would be launched on his return to Nigeria.
“I look forward to positive reports of increased trade and investment between Nigeria and Japan from these initiatives.” The president was quoted.
He described the TICAD forum as important to Nigeria in many respects, saying that it coincided with the period when the country is faced with a number of challenges that affecting its economy.
According to the president, his administration has put in place measures seeking to diversify the economy by developing agriculture, emphasising on manufacturing and addressing the energy and infrastructure deficit.
He expressed confidence saying that: “With these we shall be placing Nigeria on the path of rapid growth and sustainable development. TICAD is also coming at a time when our government is implementing home-grown and private sector-driven economic measures that are predicated on good governance, infrastructure and human capital development as well as, business climate reform.”
The president then explained that the domestic measures expressed his invitation to the private sector to come and invest in Nigeria.
He said: “Nigeria and indeed, Africa expect much from this forum in terms of investment, considering the role of foreign direct investment in all economies – developed and developing.’’
He further expressed Nigeria’s gratitude to the Japanese Prime Minister, Shinzo Abe, for his unwavering commitment to strengthen trade and investment between Japan and Africa through various initiatives, partnership and support of the Japanese government.
By Adedapo Adesanya
The Naira appreciated for the seventh straight session against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) by 0.14 per cent or N1.87 on Thursday, July 23, to trade at N1,367.76/$1, in contrast to the previous day’s N1,369.63/$1.
The Nigerian currency also improved its value against the Pound Sterling in the official market during the session by N8.67 to close at N1,824.45/£1, in contrast to the preceding day’s N1,833.12/£1, and against the Euro, it gained N6.25 to sell at N1,556.78/€1 compared with the midweek session’s N1,563.03/€1.
Similarly, the Naira gained N5 against the US Dollar in the parallel market yesterday to settle at N1,395/$1 versus Wednesday’s closing rate of N1,400/$1, and at the GTBank forex counter, it strengthened by N4 to quote at N1,379/$1 compared with the previous session’s N1,383/$1.
The positive outcome for the Naira comes amid a decline in FX turnover at the Nigerian foreign exchange market by 24 per cent to $1.163 billion from the $1.532 billion recorded a day earlier.
Meanwhile, the number of deals cut across the window by a slew of financial institutions in the country acting as market makers surged to 417 from 313 reported the previous day.
However, traders project that the local currency may weaken soon, largely due to foreign-currency buying from fuel importers.
Dangote Refinery, which distributes the majority of the country’s petrol supply, resumed the sale of petrol in Naira after it announced last week that it would start selling petroleum products to marketers in Dollars.
Meanwhile, the cryptocurrency market was down, as $800 billion evaporated from the biggest US technology stocks, regarded as a rare stretch of independence for an asset that has tracked the AI trade all month.
Market analysts noted concerns that Big Tech is spending on artificial-intelligence infrastructure faster than profits can justify, with Dogecoin (DOGE) down by 4.4 per cent to $0.0693.
Further, Cardano (ADA) also dropped 4.4 per cent to $0.1668, Ethereum (ETH) depreciated by 2.2 per cent to $1,883.48, Solana (SOL) dipped by 2.1 per cent to $75.85, Ripple (XRP) crashed by 2.0 per cent to $1.11, Bitcoin slipped by 0.4 per cent to $65,415.27, and Binance Coin (BNB) tumbled by 0.3 per cent to $568.41.
But TRON (TRX) gained 0.3 per cent to end at $0.3287, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
By Dipo Olowookere
Lower trading activity could not tie down Nigerian stocks on Thursday, as they rebounded by 0.98 per cent after the previous day’s loss caused by profit-taking.
The growth recorded by the Nigerian Exchange (NGX) Limited yesterday was driven by interest in Guinness Nigeria, First Holdco and others.
Guinness Nigeria and Zichis gained 10.00 per cent each to sell for N365.20 and N26.95, respectively, Access Holdings appreciated by 9.98 per cent to N29.20, First Holdco jumped by 9.91 per cent to N120.90, and UPDC REIT soared by 9.38 per cent to N14.00.
Conversely, Mecure lost 9.96 per cent to trade at N62.40, FTN Cocoa depreciated by 9.16 per cent to N8.63, Omatek slumped by 7.89 per cent to N1.75, Africa Prudential crashed by 4.44 per cent to N12.90, and Cornerstone Insurance fell by 4.35 per cent to N5.50.
A total of 36 stocks appreciated during the session, while 28 stocks depreciated, indicating a positive market breadth index and strong investor sentiment.
Customs Street experienced lower trading activity during the trading day, with market participants transacting 782.4 million equities for N56.3 billion in 46,273 deals, in contrast to the 1.3 billion equities worth N118.2 billion traded in 47,458 deals on Wednesday, representing a drop in the trading volume, value, and number of deals by 39.82 per cent, 52.37 per cent, and 2.50 per cent, respectively.
Bargain-hunting was seen across the key segments of the bourse, with the banking index up by 3.92 per cent. The industrial goods space rose by 1.27 per cent, the insurance sector appreciated by 0.75 per cent, the consumer goods counter improved by 0.63 per cent, and the energy segment grew by 0.04 per cent.
When the closing gong was struck to announce the end of trading activities for the day, the All-Share Index (ASI) advanced by 2,413.03 points to 247,831.40 points from 245,418.37 points, and the market capitalisation added N1.575 trillion to close at N159.894 trillion compared with the previous day’s N158.319 trillion.
By Adedapo Adesanya
Brent crude jumped over $100 per barrel on Thursday, rising by $6.62 or 7 per cent to $100.69 per barrel, as Yemen’s Houthis attacked two Saudi oil tankers in the Red Sea, causing further global supply disruptions following a near-halt in trade through the Strait of Hormuz.
The international crude oil benchmark has now climbed roughly 20 per cent in about two weeks as repeated attacks on commercial shipping, renewed fighting involving Iran, and mounting export disruptions have steadily erased expectations of a quick return to normal oil flows.
Also, the US West Texas Intermediate (WTI) crude chalked up $5.36 or 6.2 per cent to settle at $92.19 a barrel.
Houthi claimed that the group struck two Saudi oil tankers in the Bab el-Mandeb Strait after declaring a naval blockade of Saudi exports earlier this week.
Several vessels reportedly altered course or delayed transits through the chokepoint, threatening the export route Saudi Arabia has relied on to bypass disruptions in the Strait of Hormuz.
Market analysts noted that the escalation adds to the near-halt in Hormuz traffic and the sharp reduction in Iranian exports, intensifying concerns over near-term global availability.
Analysts estimate that the Strait of Hormuz and Bab el-Mandeb carry the equivalent of roughly a quarter of the world’s oil supply.
As a result of fewer shipments exiting the strait, loading activity within the Gulf has fallen to 2.5 million barrels per day over the past seven days, compared with 6 million barrels per day over the past 30 days
However, following the attacks, two Chinese supertankers carrying a combined 4 million barrels of Saudi Arabian oil managed to exit the Red Sea via the Bab el-Mandeb Strait on Thursday.
Meanwhile, US President Donald Trump promised “major military punishment” for Iran and its Houthi allies.
Goldman Sachs said Brent might exceed $120 a barrel in the fourth quarter and average $100 next year if the strait remains disrupted through 2027, with further upside if the Bab el-Mandeb Strait and Suez Canal also suffer persistent disruption.
Kazakhstan has begun cutting oil production after drone attacks shut down tanker loadings at the Caspian Pipeline Consortium terminal on the Black Sea.
Amid this development, seven core members of the Organisation of the Petroleum Exporting Countries and its allies (OPEC+), namely Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman, are likely, when they meet on August 2, to increase their output target by about 188,000 barrels per day for September.
