₦airaland Forum

baralatie:
If obj can see that Pat utomi is not capable of handling the economy in his own time.I don't know who brought him now for this administration.

Kenai:
- [size=13pt]"Losing index status is classic own goal," [/size] says Aberdeen

- Ashmore dumps debt as Africa's biggest economy deteriorates.

- Nigerian currency could face devaluation.



by Paul Wallace Emele Onu

As if being kicked out of one of the world’s biggest emerging-market bond indexes isn’t enough, Nigeria now faces the risk of its credit rating falling further into junk.
Standard & Poor’s, which rates Africa’s largest oil producer four levels below investment grade at B+ with a stable outlook, releases a review of its assessment on Sept. 18. A week later, it’s the turn of Fitch Ratings, which has Nigeria at BB-, one level above S&P, with a negative outlook.
Those decisions come on the heels of JPMorgan Chase & Co.’s announcement last week that Nigerian debt will be removed from its local-currency emerging-market indexes, tracked by more than $200 billion of funds. Adding to a loss of favor among investors is a delay by President Muhammadu Buhari in naming his cabinet since taking power in May as the continent’s biggest economy grapples to cope with oil prices below $50 a barrel and speculation that the currency will be devalued.

“There’s a very high risk of a downgrade,” Jan Dehn, head of research at Ashmore Group Plc, which sold all of its Nigerian Eurobonds and naira debt over the past year, said. “At the moment, I’m pretty far away from even considering buying anything Nigeria. It’s a deteriorating credit.”
The bond market is siding with Ashmore and Aberdeen Asset Management Plc, which also predicts a ratings cut. Yields on Nigerian dollar bonds have been trading higher than those of Kenya -- which has an economy almost a tenth of Nigeria’s size and is rated lower by Fitch -- since mid-August. When that last happened in March, S&P downgraded Nigeria and Fitch followed days later by lowering its outlook from stable.

“Fitch is the one people will be watching most closely,” Alan Cameron, an economist at Exotix Partners LLP in London, said by phone on Sept. 10. “The oil price has been low for a long time and people assume that’s at least a semi-permanent state of affairs, which will have a very significant impact on fiscal and external projections. It is difficult to argue that Nigeria should not be downgraded at this point.”
Central Bank of Nigeria Governor Godwin Emefiele has introduced several foreign-exchange restrictions since December to prevent dollars fleeing the economy amid an almost 60 percent drop over the past year in the price of oil, which accounts for 90 percent of exports and two-thirds of government revenue.
Record Low
Emefiele resorted to the measures as the naira weakened 20 percent to a record of 206.32 per dollar in the year through Feb. 12. While the restrictions helped to stabilize the currency at an average of 198.98 since its all-time low, foreign-exchange trading has dried up, contributing to JPMorgan’s decision to remove Nigeria’s bonds from its benchmark indexes.
“To lose the index status is a classic own goal,” Kevin Daly, a money manager at Aberdeen, who sold all his Nigerian sovereign debt last year, said by phone from London on Sept. 10. “They were trying to convince investors that they should remain in. The problem was that by squeezing the FX market and not allowing any locals to trade it, they just pushed investors to the sidelines. That forced JPMorgan’s hand.”

Fitch could lower Nigeria to B+, while S&P will wait to see Buhari’s cabinet and what economic policies he introduces, said Daly, who prefers Angolan and Gabon dollar securities because of their higher spreads. Buhari has pledged to name his ministers by the end of September. Calls to Femi Adesina, the president’s spokesman, and Ibrahim Mu’azu, a spokesman for the Abuja-based central bank, weren’t answered.
Yields on Nigeria’s $500 million of bonds due July 2023 rose 1 basis point to 8.03 percent as of 10:19 a.m. in London on Monday, having climbing to a record high of 8.54 percent on Aug. 24. Rates on Kenya’s $2 billion of debt maturing in June 2024 fell 2 basis points to 7.52 percent. An index of Nigerian dollar notes has lost 5.8 percent this quarter, compared with an average drop of 0.5 percent among 59 emerging markets tracked by Bloomberg.
Average naira-denominated government bond yields rose 7 basis points to 16 percent last week, the highest among 31 emerging markets tracked by Bloomberg.

“It’s markets are basically frozen domestically,” said Ashmore’s Dehn, who prefers Eurobonds issued by Ivory Coast and Kenya because their economies are better managed. “Monetary policy and access to the Nigerian market is being managed in a way that’s incomprehensible to investors. The Buhari administration has shown a remarkable lack of urgency. At a time of negative oil shocks, it is not confidence inspiring.”

http://www.bloomberg.com/news/articles/2015-09-14/rattled-by-jpmorgan-exit-nigerian-bonds-now-face-downgrade-risk

baralatie:
Seriously PMB needs an economic team like crazy!and what I can see is a pat utomi( he core specialty is labor,productivity).PMB needs a financial analysts and an economists.

IbnSultaan:
Mo ni ibeeri. why are u dull

IbnSultaan:
Grow UP
join us on main stream politics
and stop been a clown here Monsieur

Truckpusher:
We are already aware of the kurukere movement of the Fulani man and their slave.

Odili got the shock of his life after he pleased Obasanjo , the only thing Odili didn't do for obj was to give him his own wife to sleep with yet he was betrayed and kicked out like a dog and sick Yaradua was his replacement.
If you can't learn from the lessons of your kinsmen then you deserve everything you get in the future.

kaboninc:
Lool

Maybe Passing#Shot

kaboninc:
Hehehehehehe


Am coming oh....with my Bendel Insurance

ETHIX:
Pls be sincere with your fake facts. NO one was sacked in most if these banks you wrote. The workers were even suprised to see these info online. Employers were just laughing. Pls stop publicising information you have not verified.

CallPolice:
there are no 72 virgins for them so they die in vein.

CallPolice:
b4 they would be wiped out, it won't cause much harm to Nigeria. Trust me. Even the Chinese that has all the military equipment doesn't want to got to war.

sweetgala:
The real fact many people who know very little about global diplomacy fail to understand. Saudi Arabia are the main cause of all that is happening wrong over the last 30 years. They fund many insurgent groups and the USA just turn a blind eye sonlong they are buying the latest F22 and F35 and every single useless military hardware that comes from US companies.

Without Saudi Arabia spending money and committing to military projects most of the US companies would not have a mass purchaser of new equipment

CallPolice:
I understand what I am talking about. nobody or group has the monopoly of violence and can never defeat his own government.

Ugomba:
hahahahaha. Are you dumb? I read the story.. My point is that Apc trying to rig bayelsa guber poll will resurrect a serious militant resurgence... So what part of my comment did u find hard to understand?

obailala:
With the new administration being barely 3 months old and even without ministers, any militant who picks up arms at this time in the Nigerdelta is nothing but a criminal who's angry over the hinderances faced in their business as usual of bunkering.

The guys going back to pick arms now need to be arrested and swept off the street cos they are nothing but criminals and not freedom fighter.

Ugomba:
did you escape a psychiatrist hospital?

Ugomba:
how?

Ugomba:
They should fight their militancy in Bayelsa alone.. Inec should let that bayelsa election be free and fair..
Say NO to election violence

Curlieweed:
You dey mind the spineless modern Oyibo we have today. Their ancestors will be rolling in their graves with the shame.

When Idi Amin expelled the brood of Paki Mohammedans from his country, the UK was very happy to let them in. Today, their descendants are constituting themselves into the usual nuisance in that country. All the 7/7 London train bombers were Pakis.

They don't want to learn. They want to keep pretending that Mohammedan-ism is actually a normal religion.

Mogidi:
Whats your real moniker?

truefact:
I have always said it, though yorubas are diabolically evil, there are those who are on constant payroll, especially Hausa-Fulani and yoruba muslims, but there naive people across the board who have joined them unknowingly.

There is Hausa-Fulani agenda to weaken igbos...Hausa / Fulani sees igbos as the only obstacles to their agenda . They now using the yorubas in the chess game...but I know at the end igbos will have victory. ..

The Hausa / Fulani and muslims have used all tactics against igbos in this nigeria, but igbos can never be totally weakened

Mogidi:
Hehehehehe!!!!!

Every Yoruba man's ambition is to be a Fulani man.

DaBullIT:
While i may be inclined to agree that the bailout was specifically meant to offset salary arrears and all that, I do not agree that all governors put themselves in the message , Initially Jonathan deliberately took 35% off Osun's allocation for talking back during a campaign

Then it was the fall in global oil price , Osun's allocation is now 35% of what it used to have

Aregbesola embarked on breathtaking projects in Osun, and the evidence is out there , every town, state , in Osun had a facelift , and upgrade

While that may be unwise i think his intentions were genuine and he wouldn't have had problems if not for the two main factors listed above

Bottom line is , in times of excess he worked (Projects) He paid (13 months) he fed, (School Children) and they applauded , now that things are hard, they should be reasonable

Symphony007:
you dey talk 10 years..with the SNP eating up all labour's votes in scotland and the majority of England and Wales tories, except a cataclysmic reversal of Fortune, labour will be out of power forever and the tories the only major u.k party.