TheNewsGuru

Tag: Investment

  • Climate Parliament tasks international community on investment in renewable energy

    The Climate Parliament Nigeria, has called on the international community to harness the potentials of the nation’s energy sector to invest in renewable energy.

    Its Chairperson, Rep. Sam Onuigbo, made the call at the opening of a two-day Climate Parliament workshop in Abuja.

    “Let me use this medium to call on the international community with private finance to come and invest in Nigeria’s renewable energy sub-sector as a way of helping to solve Nigeria’s energy problem.

    “The time to take advantage of the massive investment opportunity is now. There is need to avoid the mistakes that occurred during the privatisation of the telecommunications sub-sector,” Onuigbo said.

    He urged the Federal Government to expedite action on the inauguration of the National Council on Climate Change, in line with the Act which came into force on Nov. 17, 2021.

    The lawmaker recalled that the Act, aimed at achieving net zero carbon emission, was signed by President Mohammadu Buhari in November 2021.

    According to him, it also provides timelines for attainment of specific objectives.

    He added that the time was running out on the country to birth the council that would drive the Act towards realising its objectives.

    Onuigbo, who midwived the Climate Change Bill, said the non implementation of provisions of the Act was a source of concern for Nigerians.

    He said Climate Parliament  had been in the forefront of advocacy and conversation around climate change, especially as it had to do with renewable energy.

  • Forex Trading Mistakes to Avoid

    Forex Trading Mistakes to Avoid

    Forex or simply FX, otherwise known as the foreign exchange market is a preferred choice of investment for many people. Trading with currency pairs using the right strategy can yield a significant return on investment (ROI), especially in short-term periods. That’s why there are well over $5 trillion of currencies being traded in the FX market every day.

    What’s great about forex is that anyone can invest. If you use reliable sources, if you use reliable forex brokers, such as Hotforex Nigeria, you can start trading right away. The important thing is to avoid rookie mistakes that have the potential to ruin your financial status. With that in mind, here are a few forex trading mistakes to avoid.

    Trading without any practice

    Every forex trader needs practice every now and then. This is especially true for the beginners. However, even experienced traders practice from time to time so that they can test out different strategies.

    The fact of the matter is that you can always use a demo account. Demo accounts are provided by your brokers and they are basically a simulation of the real-time trade. You don’t have to spend real money on demo accounts and you can practice trade strategies and other tactics.

    Trading without a plan

    Every currency trade requires a good plan. Without a plan, you’re basically going in blind. A trading plan outlines optimal strategies that work out best in specific market conditions. That said, 95% of rookie trades manage to fail at their first trade attempt.

    They believe that they can multiply their investment on a single trade. The fact of the matter is that you cannot successfully predict the outcome of the trade. That’s why you need a plan that will help you develop an exit strategy and allow you to mitigate your losses.

    Relying on speculations and random news

    Information flows everywhere you go, including the forex market. However, that doesn’t mean you should listen closely to everything you hear. Economic statuses and current state of affairs in various countries may affect currency pairs you trade with.

    That being said, day trading isn’t affected by the fundamental points of view. Your trading plan and strategies and your trading plan should give you an advantage. Relying on news and speculations of others will hurt your investments. The main reason is that you shouldn’t divert from your original strategies because you heard a rumor.

    Closing Words

    Forex trading can be quite complex to figure out. However once you figure it out, you can actually devise a strategy that will allow you to gain profits on both short-term and long-term investments.

     

  • Investment in Bitcoin prone to fraud – EFCC warns

    Investment in Bitcoin prone to fraud – EFCC warns

    The Economic and Financial Crimes Commission (EFCC) has warned that investment in Bitcoin is prone to fraud.

    The Commission gave the warning on Monday in a statement, stressing that investment in Bitcoin is a high risk activity.

    The EFCC, therefore, warned Nigerians to be wary of fraudulent investment schemes, and also resist the temptation of quick gain that could end in misery.

    The Commission asserted that though risk-taking is considered by some as the oxygen that drives investment decisions, the public should not take unmitigated risk in desperation to earn a windfall.

    The statement reads: “The Economic and Financial Crimes Commission (EFCC) is alarmed at the rate Nigerians send petitions to the Commission on fraudulent investments that promise high return with little risks to investors.

    “This trend indicates that investment scams continue to thrive despite the enforcement and public enlightenment interventions by the Commission and other stakeholders.

    “The direct implication is that hapless citizens are losing their hard-earned money to fraudsters, compounding the nation’s economic woes. Many have lost, and are still losing, money to Ponzi schemes, forex trading and most recently Bitcoin trading.

    “Though risk-taking is considered by some as the oxygen that drives investment decisions, the Commission wishes to warn the public against taking unmitigated risk in desperation to earn a windfall. Investment in Bitcoin, for instance, is a high risk activity as the terrain is largely unregulated, and prone to fraud.

    “The EFCC wishes to state that, while it will continue to investigate and prosecute persons complicit in fraudulent investment schemes, it is incumbent on the investing public to be circumspect in their investment decisions. Any investment that promises returns that look too good to be true should be considered a red flag.

    “Nigerians are by this notice, warned to be wary of fraudulent schemes and are hereby enjoined to resist the temptation of quick gain that could end in misery.

    “Those who ignore this advisory, do so at their own risks”.

  • UBA America to Facilitate Investment, Development Capital, Trade Between North America and Africa, says CEO

    UBA America to Facilitate Investment, Development Capital, Trade Between North America and Africa, says CEO

    UBA America, the United States’ subsidiary of Pan African financial institution, United Bank for Africa (UBA) Plc, has pledged its continuous commitment to facilitate trade and investment between North America and the African continent.

    Speaking on Thursday from the Bank’s office in New York, the Chief Executive Officer, UBA America, Ms. Sola Yomi-Ajayi, disclosed that the bank’s major focus and strategy is to enable the flow of development capital, in line with its commitment to supporting companies achieve their aims of international trade between both continents.

    UBA America is the only sub-Saharan African bank licensed to operate a bank in the United States of America (USA) and armed with the fact that its parent company, UBA Group has operations in over 19 African countries and major financial capitals, continuously hinging on its pan-African strength and global connectivity to support African and international businesses.

    Speaking specifically on the subsidiaries’ activities and how UBA America has worked to solidify ease of operations of businesses, multinationals and parastatals in diaspora, Yomi-Ajayi explained that the bank ramped up its services and invested in necessary technology needed to propel business growth of these organisations.

    She said, “At UBA America, we deliver treasury, trade finance, and correspondent banking solutions to a broad range of customers, including Sovereign and central banks; Corporates, Financial institutions, Foundations and Multilateral and development organisations.

    “Overtime, we have leveraged our knowledge, capacity, and unique position as part of the international banking group – UBA Plc – as we seek to provide exceptional value to our customers around the world,” Yomi-Ajayi said.

    With its specific focus on being an enabler of international development organisations, she noted that UBA and indeed UBA America has been working with Corporate entities, financial institutions and development organisations on the continent, across the bank’s footprints, leveraging digital banking solutions to meet their needs.

    Continuing, she said, “Our focus viz-a-viz our presence in the US is to support American institutions that are operating in Africa. We work with these institutions to achieve their Corporate Goals on the continent, through the provision of innovative Trade, payments, correspondent banking and treasury solutions.

    It is no wonder therefore that UBA America’s CEO, Yomi-Ajayi who has headed the bank’s United States operations for several years, was appointed alongside 10 other members into the of United States Export-Import Bank (US EXIM) Sub-Saharan Africa Advisory Committee. Among other activities, the committee is expected to advise the EXIM Board on the development and implementation of policies and programmes designed to promote its’s activities in sub-Saharan Africa.

  • Investment in COVID-19 vaccines will strengthen Nigeria’s health care, not weaken it, FG replies Bill Gates

    Investment in COVID-19 vaccines will strengthen Nigeria’s health care, not weaken it, FG replies Bill Gates

    Contrary to the claims of the co-founder of Bill and Melinda Gates Foundation, Mr. Bill Gates, Nigerian Government has said that investing in procurement of COVID-19 vaccine would not only help in the fight against the coronavirus, but will also help to strengthen the nation’s primary health care system in the long run.

    Dr Faisal Shuaib, Executive Director, National Primary Health Care Development Agency (NPHCDA), said this on Friday in obvious response to assertion by Gates during an interview session with journalists last Tuesday.

    TheNewsGuru.com, TNG reports that the Bill and Melinda Gates co-founder had told the newsmen that Nigerian government should rather invest the funds it has set aside for procurement of COVID-19 to put the country’s primary health care system on a stronger footing.

    “There is no doubt that the impact of putting money into the health system particularly the primary healthcare system will be very high in terms of saving children’s lives. Nigeria should not divert the very limited money that it has for health into trying to pay a high price for COVID-19 vaccines,” the Microsoft founder said while responding to question on federal government’s plans to invest about N400 billion in procurement of vaccine.

    The Microsoft founder also noted that Nigeria will get free vaccine from the COVAX facility initiative being coordinated by the GAVI Vaccine Alliance set up to ensure equitable access to to the COVID-19 vaccine and as such, there is no need for the country to raise funds to procure the medical commodity.

    But while disagreeing with Gates, Dr Shuaib said the structure and skills that will be acquired by the country through the administration of COVID-19 vaccine will contribute to the strengthening of the nation’s healthcare system in the long run.

    Shuaib, whose agency is in charge of vaccine administration and primary healthcare at the national level in Nigeria, said this in an interview with News Agency of of Nigeria (NAN), in Abuja.

    He noted for instance that engagement of additional healthcare workers to administer the vaccine would ensure non-disruption of routine services.

    The NPHCDA boss also noted that the intensive capacity building and the acquisition of new and additional cold chain equipment will, on the other hand, contribute immensely to strengthening the PHC system.

    Dr Faisal Shuaib

    Shuaib said long after the country had overcome the COVID-19 pandemic, the lessons learnt, new skills acquired by health workers and the infrastructural improvements would place the country in a better stead to manage future pandemics.

    “This holistic approach to health system strengthening, which is driven through the Presidential Task Force (PTF) on COVID-19, is based on global standards and is in line with observations and recommendations recently made by our donors and development partners.

    “Any idea or report that says this approach does not prioritise strengthening of the health system, stems from a lack of complete understanding of the health system and should be disregarded,” he said.

    He added that while Nigeria was appreciative of the global effort, through the COVAX facility, the delay in accessing vaccines meant that eligible countries would have to explore all channels, that could ensure fair prices, safe and effective vaccines for its populace.

    “This is why the Minister of Health, Dr. Osagie Ehanire, is also engaged with the African Union, through the African Vaccine Acquisition Task Team.

    “The Federal Government is committed to securing the much-needed COVID-19 vaccines, taking into consideration safety, efficacy, cost and required logistics, to stop ongoing community transmission of the virus.

    “As the country awaits the arrival of the first batch of COVID-19 vaccine in February, the PTF has called on State governments to put all the necessary logistics in place to ensure a successful vaccination exercise,” he said.

    He added that traditional leaders in the country had pledged their support for the COVID-19 vaccine in the country, urging the Federal Government to procure adequate quantities of the vaccine to meet the needs of the country.

  • Deregulation will boost investment in refining — NNPC GMD

    Deregulation will boost investment in refining — NNPC GMD

    The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, says the deregulation of the downstream sector of the oil and gas industry in Nigeria will increase investment in the refining business.

    Kyari made this known in a statement signed by the Group General Manager, Group Public Affairs Division, Dr Kennie Obateru, in Abuja, on Tuesday.

    He said that the deregulation would also facilitate exponential growth in the nation’s refining capacity.

    Kyari said that though the idea of price stabilisation which led to the introduction of fuel subsidy in the 1970s was noble, it had grown into a huge financial burden on the nation’s treasury over the years.

    This, he said, had necessitated its removal in March, which would free up much-needed cash to fund infrastructural development.

    Kyari said the move would also eliminate market distortions and foster competition between operators.

    The NNPC chief said that it would get more private sector players to build refineries in the country and promote efficiency across the entire value chain.

    He said increasing Africa’s refining capacity as well as quality of fuel required respective refineries to implement sustainable, coordinated pan-African solutions.

    These, he said, would help meet the target fuel specifications and thus protect the health and wellbeing of African nations and their citizenry.

    “It is important to note at this point that the future of our continent does not just lie in our ability to unlock value from our vast natural resources or powering an industrial and economic revolution, but also in our ability to implement proven refining solutions that consider the broader public health implications of our business decisions,” he said.

    Kyari said that NNPC was making concerted efforts to carry out holistic rehabilitation of its refineries in Port Harcourt, Warri and Kaduna.

    He said that the corporation was also collaborating with relevant stakeholders to establish modular and condensate refineries.

    The GMD said it was also supporting private sector establishment of refineries.

    “These projects will be in line with the AFRI standards of AFRI-4 specifications of 50 particles per million for diesel and 150 particles per million for gasoline by 2020, and AFRI-5 specification of 50 particles per million of sulphur in gasoline and diesel by 2030 respectively.

    “Considering that revamp of petroleum products storage depots and associated pipelines is key to optimal operations of the refineries, the Corporation has decided to use a Build, Operate and Transfer (BOT) strategy to restore these facilities using private sector financing,” he said.

    According to him, this process has progressed significantly, with the process of partner selection ongoing to ensure sustainability of the refineries post rehabilitation.

    He noted that Nigeria was intensifying the use of natural gas to ensure lower emissions.

    Kyari said that natural gas had been identified as the fuel of choice for the future, as it had the full credentials to support the achievement of the Sustainable Development Goals (SDGs).

    The NNPC helmsman said that the outlook for the downstream sector, both in Nigeria and across the African continent, looked bright.

    He said this was so with attractive market conditions, large market and significant crude distillation capacity additions from various refinery projects, improvement of the distribution network and the use of natural gas.

    The GMD called on the refining professionals across the continent to utilise the abundant opportunities for strategic collaboration across the entire downstream value chain toward delivering value for the continent.

     

  • Investment in children, sure way to national growth – Peter Obi

    Investment in children, sure way to national growth – Peter Obi

    Former Governor of Anambra State and Vice Presidential Candidate of the People Democratic Party in the 2019 general elections, His Excellency Mr. Peter Obi, has said that adequate investment in the lives of children is a sure way of bringing national development to Nigeria.

    Obi made this known through a Statement from his media office, signed by his Media Aide, Barr Valentine Obienyem, to mark this year’s children day that took place yesterday. He explained that every child is a bundle of potentials which when properly harnessed through adequate investment in education, can propel the country to an enviable height of national growth and development.

    Describing children as the hope of Nigeria’s future, Obi said any government that does not take their affairs seriously is planning doom for the generations to come. He expressed happiness that governments at different levels have embraced e-learning as an alternative to the closure of schools as a result of Coronavirus.

    He further explained that when children are well trained and educated, the nation would have less worrries on insecurities, violence and other societal vices plaguing a nation like Nigeria, as they would grow to become responsible individuals contributing positively to national development.

    “A nation that refuses to invest adequately in the training of their children and young ones will only reap violence, dearth of entrepreneurship and leadership, corruption and irresponsibility in the future. Children are the solid bedrock on which the future of every nation is built and thus must be given the best in terms of quality education, access to good health and moral support needed for their complete formation”, he said.

  • Financial lessons of Covid-19 – Francis Ewherido

    By Francis Ewherido

    The stay at home order as a result of the Corona Virus Pandemic has exposed the financial underbelly of majority of Nigerians. Our oil wealth notwithstanding, we are very poor people. By the second day of the stay at home, murmurs against the lockdown were becoming louder. By a week, there was grumbling everywhere. Then protests and criminality followed. There are way too many people who will go hungry unless they earn income daily. In addition, there are many others who earn big but will run into a financial mess within a month if income stops.

    As usual many people directed their gaze at the government and for good reasons. Providing for the most vulnerable has not been institutionalised as part of governance in Nigeria. There are scarcely safety nets for the vulnerable like the elderly, the sick, the poor, the unemployed, etc. This makes it imperative for people to strive to be in charge of much of their lives. Every human being is a combination of two lives: micro life and macro life. Your micro life are those things you must do yourself, while your macro life is others-dependent. If we were to apply the Pareto 80/20 principle, your micro life should constitute 80 per cent of your life, while macro will be 20 per cent.

    Let us start from life immediately we are born. A new born baby must cry on his own. External forces can make him cry, but they cannot do the crying for him. Also, once the baby is born, the mother can stick the nipple in his mouth, but the mother cannot suck for him. The baby must suck by himself or starve to death. The baby must also defecate and urinate on his own, while external forces clean her up. External forces can facilitate the processes, but they cannot do either for the baby.

    As he grows, he will be taught how to sit, crawl and walk, but he must do these activities on his own. When he is old enough to go to school, his parents will take him to school, the teachers will teach him, but he is solely responsible for assimilating what is taught. No external force can assimilate on his behalf. Let us fast forward. When he gets to a certain age and decides to get married. Friends and family will contribute resources and join him in all the marriage ceremonies, but it is his sole responsibility to get his wife pregnant and provide her sexual pleasure. Anything outside this is an abnormality.

    That is how life is. God created us to take responsibility for our lives and it starts the minute we are born. If we took responsibility when we were not even conscious of it, it means that now we should do it even more effectively. In a VUCA (volatile, uncertain, complex and ambiguous) environment like ours, there is more need to take responsibility for our lives.

    One basic lesson they teach us in personal finance is that we should start saving with our first income. Experts put it in various forms: “pay yourself first,” “a part of what you earn is yours to keep.” It means once you start earning income – whether daily, weekly or monthly – keep a part of it as savings and/or invest it. Apparently majority of Nigerians have ignored this basic lesson and we are paying dearly for it now. You will think it is only the low income earners who suffer from this lack of saving/investment, but it also applies to some people who earn as much as N2m monthly. It all boils down to whether or not, you keep something aside periodically and subsequently invest it to generate more income. Also, some people who earn big money carry way too much expenses and liabilities. Somebody earns N30m and spends N35m within the same period, say a year. Such people are also unable to keep something aside.

    We have had this argument once in my marriage class. We talked about keeping a portion of what we earn aside. Then one participant asked how he could keep something aside when his take home pay does not take him home. Then, I painted a scenario. “Assuming the 25 of us in the lecture room were employees of a company going through a patch. The management gave us an option of a 20 per cent pay cut for all staff or disengagement of 20 per cent of the staff.” And I added that “you do not know who will be affected by the downsizing; what option will you choose?” They all chose a pay cut. Then I asked, “what would you do about your 20 per cent shortfall in income, borrow?” They said no, that they would restructure their expenditure and live within their income. I turned to the participant, who said his take home could not take him home. “You just proved that you can keep aside 20 per cent of your income every month.” It is something we all need to think about and work towards.

    There is another guide of personal finance that did not work for many of us during the period: “do not spend more than you earn.” This rule was flung through the window for many self-employed Nigerians. People were home and spending without earning. Very few SMEs earned income during the lockdown: agriculture, pharmacies, foodstuff shops and supermarkets, etc. And the income was reduced because of low patronage. Many self-employed Nigerians do not operate in these critical service sectors, so it was a case of no work and no income. The lockdown has taught us is to reorganise our micro lives so that we can respond better to such emergency situations in future (I do not mean a virus o, just any emergency situation) so that thunder will not strike one place twice.

    Personal finance training also encourages us to develop multiple streams of income. It is not because of situations like the COVID-19 pandemic only. You need multiple streams of income in a VUCA environment. A new technology or government policy can bring down your business and what do you do if that is your only source of income? For instance, many printers have had their income reduced by as much as 80 per cent due to new technologies! People also need to diversify into sectors where they can do business online or earn income. This is a necessity because the world is going virtual.

    Some people also need to organise their relationships. They need to be involved in their churches/mosques, town associations, social clubs, old students association, extended families, trade associations and with colleagues in the office, etc. Many people were stranded during the pandemic and had to seek help from acquaintances/relatives they have not spoken to in decades and sometimes total strangers. You need to be involved with your immediate environments. Emergencies are part of life: a sick child who needs immediate attention, a financial opportunity you must deal with immediately, etc. If you have no close circle of people you can run to, it can become tragic or you lose a good opportunity.

     

  • FDI inflow to Nigeria hit $23.9bn in 2019 – NBS

    FDI inflow to Nigeria hit $23.9bn in 2019 – NBS

    The value of Foreign Direct Investment (capital importation) into Nigeria stood at $3.8 billion in fourth quarter of 2019, National Bureau of Statistics (NBS) confirmed in latest capital importation data released yesterday.

    The amount represents a decline of 32.42% when compared to the 3rd Quarter of 2019, and a 77.67% increase when compared to the 4th quarter of 2018.

    Similarly, the total value of capital importation in 2019 stood at $23.9 billion, compared to $16.8 billion in 2018, representing a growth of 42.69% between the two periods.

    On investment classes, the largest amount came through Foreign Portfolio Investment (FPI), followed by Other Investment and Foreign Direct Investment (FDI).

    On sectoral basis, shares dominated with the highest amount of capital imported in Q4 2019.

    The United Kingdom emerged as the country of origin with the highest amount of Capital Imported while Lagos is the destination with the highest amount of Capital Importation.

    By bank, Stanbic IBTC Bank Plc. emerged as the bank with the highest amount of capital imported into Nigeria in Q4 and full year 2019.

    President Muhammaudu Buhari’s administration has initiated series of legislations to encourage investment flow into Nigeria.

    While attending the seventh Tokyo International Conference on African Development (TICAD7) last year, he assured foreign investors of good returns.

    The President said he looked forward to welcoming prospective investors in Nigeria’s power and renewable energy, petrochemical and gas, maritime (shipping and ports), automobiles, mining, agribusiness, healthcare and pharmaceuticals, ICT and railway sectors.

  • Elumelu Advocates Massive Capital Investment for Africa

    Elumelu Advocates Massive Capital Investment for Africa

    The Chairman, United Bank for Africa(UBA), and Founder, Tony Elumelu Foundation, Tony Elumelu has advocated massive private capital investment as well as increased support to youth development as catalysts for driving the much needed economic growth on the continent.

    Elumelu said this while speaking on a panel at the UK-Africa Investment Summit 2020, in London. He stressed the need to invest in critical sectors of the economy such as electricity and human resources, noting that this will galvanise the continent, taking into consideration the huge population which Africa currently boasts of.

    According to Elumelu, “Africa needs massive private capital investment to enable us drive the sectors that will develop the economy, especially sectors like power. Access to electricity is very critical if we are to develop our continent. We have a huge youth population in Africa and I think that is our biggest resource as a continent. So, in order to talk about the development of our continent, we must prioritise this segment and focus on how to empower them.

    “Empowering the youths will help us create jobs and alleviate poverty and I think that this empowerment must start from creating an enabling environment, from making sure we have roads, mass transportation systems and most importantly, fixing the problem of shortage of electricity on the continent. If we do all of this, we will unleash the enormous potential that resides in Africa and in these young people.”

    Through his foundation, the Tony Elumelu Foundation, (TEF), in the past 5 years, over 9,600 youths have been empowered across the continent with seed capital, mentoring and networking to grow their businesses and enable them contribute to economic development.

    Throwing more light on what TEF has been able to achieve, he said, “During lunch, I interacted with some alumni of the Tony Elumelu Entrepreneurship programme who said they were beneficiaries of $5,000 support in 2015 from the TEF, and today, they have just completed raising U$3million becoming one of the biggest food chain providers in Rwanda. These are some examples of what such interventions can do. We support, give them an enabling environment, provide a platform and think of our prosperity in a sustainable fashion,” Elumelu explained.

    Other speakers on the panel include the President of the World Bank Group, Mr. David Malpass; the Chief Executive Officer, Development Partners International, Ms Runa Alam; and the Group Chief Executive Officer, Vodafone Group, Mr Nick Read.

    On his part, the World Bank President, Malpass, spoke of more focus on digital financial services, stating that investing in Africa will help to take the continent to another level, adding that there is need for more availability of electricity and good trade policies that will boost businesses on the continent.

    The UK Africa Investment summit 2020 which was opened by the British Prime Minister, Boris Johnson, for the first time ever, brought together African heads of states, business leaders and investors, to discuss future partnerships between the UK and African nations. Africa has many suitors he posited. ’The United Kingdom is who you should be doing business with. We have no divine right to this business, it is a competitive world but look at what the UK has to offer. We are the partner of choice, of today, tomorrow and decades to come’ said Johnson as he addressed the African presidents and business leaders.