One of the leading investment research firms in Nigeria, FSDH Research, has revealed in a recent report that Nigeria stands to lose more in the recent trade deal with the United Kingdom, where the UK listed the local currency, Naira, as an acceptable lender tender for trade.

FSDH feared that the deal will not eventually favour Africa’s largest market.

Recently, the Export Credit Agency of the United Kingdom (UK), UK Export Finance (UKEF) announced trade incentives for Nigeria that will stimulate the importation of goods and services from the UK.

This is expected to ensure more exporters in the UK sell their goods and services in Nigeria as the incentives will remove some hindrances to trade between the UK and Nigeria.

The UKEF will guarantee a buyer credit loan to Nigerian borrowers in local currency (Naira) to finance purchase of capital goods and/or services from UK exporters.

Thus, it reduces the foreign currency risk for the import and avoids a variable debt service cost. UK will provide up to 85% of funding for projects containing at least 20% UK content. The loan will also benefit from a UK government-backed guarantee.

Many have lauded the proposal on the ground that it may reduce the demand for foreign exchange in Nigeria and consequently strengthen the value of the Naira.

However, FSDH Research analysed the historical trade figures between the UK and Nigeria to appropriately place the benefits in the arrangement in the right context.

Nigeria’s exports to the UK dropped significantly by 59% from N730bn in 2013 to N301bn in 2016 while the imports from the UK dropped marginally by 1% from N367bn in 2013 to N363bn in 2016.

We note that Nigeria’s exports is dominated by crude oil while Nigeria imports a variety of items from the UK. Thus Nigeria exports to the UK is more volatile than Nigeria’s imports increased to 10% as at Q3 2017.

The UK also accounts for an average of 4.75% of the total exports of Nigeria between 2013 and 2016. The figure dropped to 2% as at Q3 2017.

FSDH Research is of the view that the trade structure between the UK and Nigeria favours the UK. The proposed incentives may further place Nigeria at a disadvantage. This is because of the weak exports potential of Nigeria to the UK. Nigeria needs strategic policies to drive local competiveness in production in order to take advantage of the opportunities in the international markets.

https://www.businesspost.ng/2018/02/22/nigeria-lose-uk-listing-naira-fsdh/

Pls someone should cum nd summarize o....




Anyway, my family nd I have learnt to cope,so all ds may jst be bullshit,d economy is already a disaster....





At ds moment,i dont have anything to say....im only typing this cos this is ftc nd someone must get to read this...



Let me leave u with this prayer...

This beautiful morning , the Almighty God will smile and shine His face upon you and your entire household.The peace of God that reigns will abide with you.Your pursuits will not be hindered.You will always dig and find wells of prosperity.Enemies will never frustrate your efforts to gain leverage, the Almighty God will enlarge your coast or territory beyond your imagination.Soon your expectations will come to fulfillment in the Mighty name of Jesus .The hands of God will manifest in your life, in Jesus name Amen good morning have a lovely day and blissful weekend.

Hmm! Nigeria is about to drink another poisoned chalice frm uk. Economists in d house what do u make of dis revelation, I mean are we to believe d FSDH research?

x

Even people wet no understand the writeup will still comment

Ummmm.

Smh! For this country....
Even if the foreign currency equals naira,
We'll still keep on hearing animals carting away with the money

vultures all i see

I wan give you loan to come invest in my business.
And you must pay back the loan.

Who.go benefit?

It can never be good news with the Herdman in Chief as president.

A man who sees Nigeria as Cattle colony has no business being President.

L

Authoreety:
Bh

Y0ruba:
x

slimthugchimee2:
K

tomadex:
Ummmm.

Fukafuka:

Authoreety:
Bh

Authoreety:
Bh

Just continue trying one day u gona make it

alarmist
why not look at it this way , more african countries willing to avoid bottlenecks will use naira which is easier to get as means of payment for Uk goods and services, also UK can be used as a means of selling our raw materials arts and other finished products to european countries.
lets see how this plays after six months instead of creating unnecessary exagerated negative attention.

Afterall before this arrangement, what were we gaining.

if I tell u say I understand d write up, I am deceiving myself.

Yankee101:
I wan give you loan to come invest in my business.
And you must pay back the loan.

Who.go benefit?

nah you go benefit

They are saying the truth. Encouraging importation would only damage the economy more.

Dalexicographer:
Smh! For this country....
Even if the foreign currency equals naira,
We'll still keep on hearing animals carting away with the money

CYRIL RAMAPHOSA, NEW PRESIDENT OF SOUTH AFRICA

1. He is the Chairman, MTN group
2. Owner, MacDonald's SA.
3. Chief negotiator of Nelson Mandela's presidency
4. Mandela's 'preferred' successor
5. Involved in the resolution of the insurgency in northern Ireland.
6. One of SA's richest men
7. Has 31 houses
8. Lives in a R30m mansion.
9. Has over 100 cattle

If you use or have used MTN, you have contributed to Cyril Ramaphosa's wealth!

Whatever will be will be. Cyril Ramaphosa was supposed to be Mandela's deputy, and to take over as President having led on the ground mass movement of the National Union of Miners and the United Democratic Front, and being by the side of Mandela at the negotiating table. He was unfortunately edged out by ANC godfathers.

He didn't have a godfather. He was not the son of Govan Mbeki, Mandela's contemporary in the South African struggle. The ANC godfathers preferred the son of Govan Mbeki, Thambo Mbeki, to be Deputy President, a good man and qualified man in his own right.

Cyril, frustrated, left the ANC and active politics and went into business and became very successful. Years later, he returned in measured steps to active politics after Thambo Mbeki, the man that edged him out, had himself been pushed out of power by his own deputy, Jacob Zuma.

Today, the decay of the ANC under Zuma has brought Ramaphosa to the Presidency that he mostly deserved about 15 years ago but from which he was edged out.

Life lessons:

1. Whatever is ordained to be will eventually be.
2. Have a mentality of abundance in the words of Steve Covey. Pursue other lofty and fulfilling dreams if current one seems unattainable.
3. Ramaphosa has become President at a time the LORD ordained for him. He is better today, more exposed, more mature and would do better than if he was President 12 years ago.

He was a union leader who transited to become a business leader. He knows the unions, the working class and also knows the interest of business.

He would be able to build a social compact of private and public sector needed to build a more inclusive South Africa, uniting the nation under one rainbow umbrella as Mandela did.

Best wishes to President Cyril Ramapahosa, the 4th President of the Republic of South Africa.

* I want to encourage you this day to hold on to your dreams. If you're not what or where you desire to be yet, DON'T GIVE UP! It may not be the best time yet and, surely, you will emerge soon in Jesus' name.

*Believe me, God is only packaging you to be fit for the miracle, better and bigger than your own plans.

Stay encouraged!

God bless you richly.

~Copied

You get time woook

SeniorZato:


Just continue trying one day u gona make it

dipoolowoo:
One of the leading investment research firms in Nigeria, FSDH Research, has revealed in a recent report that Nigeria stands to lose more in the recent trade deal with the United Kingdom, where the UK listed the local currency, Naira, as an acceptable lender tender for trade.

FSDH feared that the deal will not eventually favour Africa’s largest market.

Recently, the Export Credit Agency of the United Kingdom (UK), UK Export Finance (UKEF) announced trade incentives for Nigeria that will stimulate the importation of goods and services from the UK.

This is expected to ensure more exporters in the UK sell their goods and services in Nigeria as the incentives will remove some hindrances to trade between the UK and Nigeria.

The UKEF will guarantee a buyer credit loan to Nigerian borrowers in local currency (Naira) to finance purchase of capital goods and/or services from UK exporters.

Thus, it reduces the foreign currency risk for the import and avoids a variable debt service cost. UK will provide up to 85% of funding for projects containing at least 20% UK content. The loan will also benefit from a UK government-backed guarantee.

Many have lauded the proposal on the ground that it may reduce the demand for foreign exchange in Nigeria and consequently strengthen the value of the Naira.

However, FSDH Research analysed the historical trade figures between the UK and Nigeria to appropriately place the benefits in the arrangement in the right context.

Nigeria’s exports to the UK dropped significantly by 59% from N730bn in 2013 to N301bn in 2016 while the imports from the UK dropped marginally by 1% from N367bn in 2013 to N363bn in 2016.

We note that Nigeria’s exports is dominated by crude oil while Nigeria imports a variety of items from the UK. Thus Nigeria exports to the UK is more volatile than Nigeria’s imports increased to 10% as at Q3 2017.

The UK also accounts for an average of 4.75% of the total exports of Nigeria between 2013 and 2016. The figure dropped to 2% as at Q3 2017.

FSDH Research is of the view that the trade structure between the UK and Nigeria favours the UK. The proposed incentives may further place Nigeria at a disadvantage. This is because of the weak exports potential of Nigeria to the UK. Nigeria needs strategic policies to drive local competiveness in production in order to take advantage of the opportunities in the international markets.

https://www.businesspost.ng/2018/02/22/nigeria-lose-uk-listing-naira-fsdh/

Once we have worked on increasing our percentage of export to the UK, then it will start showing a hint of favor.. But for now, ko le Work

Ofcourse the UK adopted that to favour her and not Nigeria after Buhari bungled Nigerians access to Forex

SeniorZato:


Just continue trying one day u gona make it

Lols, u caught me there

Let the UK import from Nigeria include other item in addition to the crude oil. E.g. All agricultural products.

We import their technology to add value to our agricultural sector while we export our crude oil & other farm produce.

At a point the equation will balance.

wristbangle:
They are saying the truth. Encouraging importation would only damage the economy more.

It all depends on how we manage the scenario.

I see more advantages in this than disadvantages.

agabusta:


It all depends on how we manage the scenario.

I see more advantages in this than disadvantages.

The thing is, this is Nigeria where people would become greedy hence import almost if not all items which will put the nation wealth on the line. UK were smart to make such moves knowing black man will not see from the angle why they suddenly made this decision. They know it would favour them more and to get rid of unnecessary things been piled in their country.

Fukafuka:

But why

Nigeria has a lot of dummies. When did the UK start loving Nigeria? Our students take huge sums to UK making us loose billions every year. Our president prefer to treat himself in UK where the health system works. Now we are happy to buy things with Naira from UK... I am waiting for our economist to educate us on how this will help Nigeria. Brits are the biggest scammers

.... You wan try that for Naija abi .... APC , PDP and Co....dey wait you !!!

supereagle:
CYRIL RAMAPHOSA, NEW PRESIDENT OF SOUTH AFRICA

1. He is the Chairman, MTN group
2. Owner, MacDonald's SA.
3. Chief negotiator of Nelson Mandela's presidency
4. Mandela's 'preferred' successor
5. Involved in the resolution of the insurgency in northern Ireland.
6. One of SA's richest men
7. Has 31 houses
8. Lives in a R30m mansion.
9. Has over 100 cattle

If you use or have used MTN, you have contributed to Cyril Ramaphosa's wealth!

Whatever will be will be. Cyril Ramaphosa was supposed to be Mandela's deputy, and to take over as President having led on the ground mass movement of the National Union of Miners and the United Democratic Front, and being by the side of Mandela at the negotiating table. He was unfortunately edged out by ANC godfathers.

He didn't have a godfather. He was not the son of Govan Mbeki, Mandela's contemporary in the South African struggle. The ANC godfathers preferred the son of Govan Mbeki, Thambo Mbeki, to be Deputy President, a good man and qualified man in his own right.

Cyril, frustrated, left the ANC and active politics and went into business and became very successful. Years later, he returned in measured steps to active politics after Thambo Mbeki, the man that edged him out, had himself been pushed out of power by his own deputy, Jacob Zuma.

Today, the decay of the ANC under Zuma has brought Ramaphosa to the Presidency that he mostly deserved about 15 years ago but from which he was edged out.

Life lessons:

1. Whatever is ordained to be will eventually be.
2. Have a mentality of abundance in the words of Steve Covey. Pursue other lofty and fulfilling dreams if current one seems unattainable.
3. Ramaphosa has become President at a time the LORD ordained for him. He is better today, more exposed, more mature and would do better than if he was President 12 years ago.

He was a union leader who transited to become a business leader. He knows the unions, the working class and also knows the interest of business.

He would be able to build a social compact of private and public sector needed to build a more inclusive South Africa, uniting the nation under one rainbow umbrella as Mandela did.

Best wishes to President Cyril Ramapahosa, the 4th President of the Republic of South Africa.

* I want to encourage you this day to hold on to your dreams. If you're not what or where you desire to be yet, DON'T GIVE UP! It may not be the best time yet and, surely, you will emerge soon in Jesus' name.

*Believe me, God is only packaging you to be fit for the miracle, better and bigger than your own plans.

Stay encouraged!

God bless you richly.

~Copied

here to read comments

FSDH Research is of the view that the trade structure between the UK and Nigeria favours the UK. The proposed incentives may further place Nigeria at a disadvantage. This is because of the weak exports potential of Nigeria to the UK. Nigeria needs strategic policies to drive local competiveness in production in order to take advantage of the opportunities in the international markets."

This is the major problem... The problem is from within...

Another advantage is that other African countries might as well use the Naira to purchase goods from UK...

The Disadvantage i see here is that our people will likely "over import"[even the unnecessary things]..... There's still a lil bit of craze for foreign things....

Since they're no longer in the EU, Nigeria will become their new dumping ground market for several goods already piling up....


We don't produce NADA!... We're a consuming nation.... The best we can offer them now is Crude oil.... Our Agricultural sector is nothing to write home about[and not forgetting the Fulani wahala] at the moment.... If we can massively improve our agricultural sector, then, 9ja might smile....

Ekwuchago m.....