Jim Ovia, founder and chairman of Zenith Bank has lost close to $64 million in paper net worth over the last 6 months as the stock price of his bank shed 33% in value within that period, Forbes reports.

On the 8th of February this year, the bank was trading at a share price of N24.4 ($0.06). However at the close of trading on Thursday, its share price had dropped to N16.35 following consistent daily losses over the past few weeks.

Ovia, who is the largest shareholder of the bank with a 9.4% stake, has seen the value of his 2.94 billion shares drop from $200 million, to $136 million.

The last few months have been a bit of a disaster for many companies listed on the Nigerian Stock Exchange. The stocks of several blue-chip stocks such as Zenith Bank, Dangote Cement, Transcorp and United Bank of Africa among several others have hit one-year-lows as foreign portfolio investors who dominate the equities market have been pulling out funds from the Nigerian capital markets while waiting for policy signals that could lift growth in the economy several weeks after President Muhammadu Buhari won re-election.

“Foreign investors are not exactly complicated. All they are looking for a broader catalyst like government policy or macro announcement that suggest growth for the economy is becoming better. Buhari’s government has been slow in providing a coherent economic policy that will give foreign investors some sort of comfort, so they are taking to the hills,” says Ademola Adeleke, an Abuja-based stockbroker.

Apart from his shareholding in Zenith Bank, 65 year-old Jim Ovia is one of Nigeria’s largest property owners.

In 2015 he featured in FORBES’ ranking of Africa’s 50 Richest with a fortune that was estimated at $550 million at the time.

https://www.pmnewsnigeria.com/2019/08/10/zenith-bank-boss-jim-ovia-loses-64m/

Baba God suppose reason my matter o..See d kind money wey dis guy lose but e still no touch am

That's business for u

Money will be made back

The last few months have been a bit of a disaster for many companies listed on the Nigerian Stock Exchange. The stocks of several blue-chip stocks such as Zenith Bank, Dangote Cement, Transcorp and United Bank of Africa among several others have hit one-year-lows as foreign portfolio investors who dominate the equities market have been pulling out funds from the Nigerian capital markets while waiting for policy signals that could lift growth in the economy several weeks after President Muhammadu Buhari won re-election.

“Foreign investors are not exactly complicated. All they are looking for a broader catalyst like government policy or macro announcement that suggest growth for the economy is becoming better. Buhari’s government has been slow in providing a coherent economic policy that will give foreign investors some sort of comfort, so they are taking to the hills,” says Ademola Adeleke, an Abuja-based stockbroker.

The bolded is the real problem in the Nigerian stock exchange.
The monetary policy from cbn does not have a complementary fiscal policy. While the cbn is racking its head on how to improve investors confidence and boost the economy, those charged with providing a clear cut fiscal policy seems to be aloof

Sai Buhari

HisSexcellency:

The bolded is the real problem in the Nigerian stock exchange.
The monetary policy from cbn does not have a complementary fiscal policy. While the cbn is racking its head on how to improve investors confidence and boost the economy, those charged with providing a clear cut fiscal policy seems to be aloof

Do you have a substantive minister of finance?

Fiscal policy planning is done by ministry of finance while CBN controls monetary policy.

Blame that goat in Aso rock

HisSexcellency:

The bolded is the real problem in the Nigerian stock exchange.
The monetary policy from cbn does not have a complementary fiscal policy. While the cbn is racking its head on how to improve investors confidence and boost the economy, those charged with providing a clear cut fiscal policy seems to be aloof

So what's your remedy?

Check my signature and win free cash

ubcandid:


So what's your remedy?

Let the government constitute an economic team that would profer a clear cut fiscal policy for this administration.
Anyone that wants to invest in any economy wants to make profit. You can only achieve this in a stable economy with clear cut direction.
If i may ask you, what is the policy direction of this administration
Can you tell us please

HisSexcellency:

Let the government constitute an economic team that would profer a clear cut fiscal policy for this administration.
Anyone that wants to invest in any economy wants to make profit. You can only achieve this in a stable economy with clear cut direction.
If i may ask you, what is the policy direction of this administration
Can you tell us please

Well, suffice to say, I wasn't attacking you but wanted to hear your view point or expert angle on how the Governmemt should approach the problem. I think one major problem we have in the country is "sincerity of purpose"- in the sense that the people along the periphery of schemes, the conduits, through whom the implementation of these policies pass through are always soiling the broth. It would be unfair if we say we don't have a fiscal policy when we see measures in restricting forex for certain products to allow local development and growth. These policies appear good on paper but unsurprisingly they keep back firing and plunging us deeper into a state of quagmire than we were, but the question is; why do we fail to realize that this a perpetual problem in the country rife across the different (political parties if you would say) leadership tenures. It's more than this administrations problem. We have these plans, we have been making projections from time immemorial (vision 2020) but the canker worm of greed, political bureaucracy and aggrandizement keep eating far deeper than the outcome.
Look at the automation policy, rice scheme, fuel subsidy, cassava flour initiative - then you now look at the local content issue which suppose to make the economy buoyant, create better skilled workforce and development but has brought more ills to the indigenous work force than good. Contract staffing with inhumane terms are being deployed. Benefits and staff training are being abandoned to save cost and surprisingly the costs being saved is negligible when we phantom how much the indigenous ceo's drown into their pocket for allowances and jambore. There are even more cases of flight of jobs to Indians and Lebanese from our own indigenous MD's. Go through the job section, requirements are more of a mockery, nobody wants to groom staffs again as against in the hands of foreigners. The problem is a two faced edged one, the Government on one side and the citizens on the other.

stenlydxlite:
Check my signature and win free cash

Once someone makes an offer of free money I know there's usually a catch somewhere

ubcandid:


Well, suffice to say, I wasn't attacking you but wanted to hear your view point or expert angle on how the Governmemt should approach the problem. I think one major problem we have in the country is "sincerity of purpose"- in the sense that the people along the periphery of schemes, the conduits, through whom the implementation of these policies pass through are always soiling the broth. It would be unfair if we say we don't have a fiscal policy when we see measures in restricting forex for certain products to allow local development and growth. These policies appear good on paper but unsurprisingly they keep back firing and plunging us deeper into a state of quagmire than we were, but the question is; why do we fail to realize that this a perpetual problem in the country rife across the different (political parties if you would say) leadership tenures. It's more than this administrations problem. We have these plans, we have been making projections from time immemorial (vision 2020) but the canker worm of greed, political bureaucracy and aggrandizement keep eating far deeper than the outcome.
Look at the automation policy, rice scheme, fuel subsidy, cassava flour initiative - then you now look at the local content issue which suppose to make the economy buoyant, create better skilled workforce and development but has brought more ills to the indigenous work force than good. Contract staffing with inhumane terms are being deployed. Benefits and staff training are being abandoned to save cost and surprisingly the costs being saved is negligible when we phantom how much the indigenous ceo's drown into their pocket for allowances and jambore. There are even more cases of flight of jobs to Indians and Lebanese from our own indigenous MD's. Go through the job section, requirements are more of a mockery, nobody wants to groom staffs again as against in the hands of foreigners. The problem is a two faced edged one, the Government on one side and the citizens on the other.

All you stated there are issues everyone in Nigeria is familiar with. What I'm saying is let the government do their part first. We can't continue to hide under the cloak of the problem has been with us for long and so nothing should be done about it.
Governments does not just wake up one morning and ban importation of certain items just for the fun or razzmatazz of it, you have to put concrete measures in place to ensure sustained supply of whatever you intend to ban its import.
Donald Trump came up with his policy of "America First ", he wasn't just saying it for the cameras. He has the right people working day and night to ensure it works damming all the criticisms.
We all know Nigeria has a docile populace, but let the government do her part and citizens will fall in line. When fuel price was increased to #145 per litre, are we not buying it now even after the initial resistance.

HisSexcellency:


All you stated there are issues everyone in Nigeria is familiar with. What I'm saying is let the government do their oart first. We can't continue to hide under the cloak that the problem has been with us for long and so nothing should be done about it.
Government does not just wake up one morning and ban importation of certain items just for the fun or razzmatazz of it, you have to put concrete measures in place to ensure sustained supply of whatever you intend to ban its import.
Donald Trump came up with his policy of "America First ", he wasn't just saying it for the cameras. He has the right people working day and night to ensure it works damming the criticisms.
We all know Nigeria has a docile populace, but let the government do her part and citizens will fall in line. When feul price was increased to #145 per litre, are we not buying it now even after the initial resistance.

That are not banning for the fun of it, if you look at most fiscal policies we are clamouring at, they are policies that have been mooted by last administrations and being brought into effect by the current. I was trying to let you know that we have the fiscal policies being drafted and should I say a good economic team behind them but, the inherent problems we are used to keep stultifying growth.