₦airaland Forum

lawani:
If you are doing fixed deposit. It means you are saving cash. You don't have equity you have cash. Cash isn't what we are talking about here. If inflation catches your cash in the bank, it will reduce it's worth and the bank will offer you a higher interest

I mentioned fixed income securities and not necessarily bank fixed deposits
Tell us how interest rates have now been increased to compensate for the high inflation and devaluation since May29, 2023

lawani:
But you are an investor according to you and people have commented severally here to explain to you. If you build a house with 50 million naira and there is inflation two years later, it will not affect your asset. The house will rise in value in response to the inflation and your rental income also will increase. It is the same when you have invested your money in shares

Inflation affects only people that save cash not people owning equity

You think buying shares is the only form of investment in financial assets?
How would investment income from fixed income securities (interest income) adjust to the very high inflation and devaluation of naira from N450 to N1,450?
It is a simple logic in Economics and Finance : Generally, the high inflation and steep devaluation of the naira from N450 to N1,450 would lead to a decrease in profits and investment income (nominal or real, or both), all things being equal.

Hi

TrioVibes:
South Africa is doing everything possible to clean their global reputation because they are no longer receiving tourists as before.

They paid Trevor Noah to do an advert, but it failed. They announced that South Africa has made visa applications easier for travelers, but that also failed. They announced that South Africa welcomed 5.6 million tourists in six months, but that was not true. Imagine a xenophobic country saying they received 5.6 million tourists in six months🤭😂.

They have now announced that they have reduced visa fees for online travelers. It's now by force?🥱😂. South Africans, this is just the beginning, and with time, you will understand the damage Jacinta has done to your country.

I pray that the March March and looting will continue for the next five years so that investors will leave the country and tourists will completely stop coming to the country.

You better work and pray to redeem your citizens reputation as lawless, criminal and drug pushers all over the world!

emmanuelewumi:
Good investments will adjust to inflation and devaluation, the investment income will also adjust

How?
How wou)d investment incone adjust when inflation and devaluation are inversely related to profits that would produce the income? The higher the inflation and devaluation, the higher the costs of production, the lower the profits and the higher the potential losses.
So how is investment income going to adjust just like that without hurting the operations of the company or investment? Is this a fanciful talk?

G

KarlTom:
OandO

'Unrelated'
"To manage oil price volatility and support revenue stability, the Group implemented a hedging programme covering 3,000 barrels per day using purchased put options at a strike price of $59/bbl. These instruments provide downside protection while preserving upside exposure..."

@ the bolded, see attached...

I also read somewhere (searching for the article) that ONLY the 8.83bn shares will qualify for the RI (i.e. excluding the distributed units)

In that case, the RI shares should not benefit from the share redistribution

emmanuelewumi:
If you are saving to pay your house rent or children's school fees it is better to invest in Money Market Fund.

If you are saving to buy a property in 5 years time or saving for your children's University school fees in 8 years, it is better to invest it in equities if you know how to pick stocks or Equity Fund if you don't know how to pick stocks better still you can invest in Eurobond Fund.

Yes. But if the target property price has moved from N50 to N150-N200m, they would still not be able to meet up unless they increase or double their investment capital. That is my point.

GeneralDae:
The poor and ordinary masses have always been there. In 2022, we had many of them and we were in danger of not having dollars to import (which would have doubled the amount of those poor in a few years). We were going to be a Srilanka with the struggle to get dollars to fufill our letters of credit due to the mounting FX backlog, the dominance of the black market and banks having no dollars to give.

''Let them eat cake''

emmanuelewumi:
Why should you save in the bank. People saving up for their children's education or to buy a property, invest such funds in equities or equity fund.

Such savings should be for a period of 3 years and above

Not everybody would save in equity or equity funds. And savings does not mean saving in bank alone
You think equity does not have risks? Or because we are fortunate to survive and recover from 2008-2010 crisis?
Whatever way, it still does not reduce the fact that the cost or price has increased from N50 to N150-N200m

elpaso007:
Greetings everyone!

I am thinking of domiciling my long time holdings to one of these brokers, FSDH or Cardinalstone.

Which of them will you recommend I go with. How much are there respective account opening fees?

Your advice and experience with them will be useful. Thanks

@ymcy @Sunrisepebble @Karltom @Nosa @PaEmma @Agba @All

If you ask me, I would suggest you go for a broker that is a subsidiary of a very reputable bank!

GeneralDae:
When last did this happen?

Apparently, you are employed and receiving salaries, maybe in dollars.
That is why you have the luxury of talking about international purchases using dollar card.

You are like the Queen, wife of the King of France, who was informed that her starving subjects had no bread to eat.
Her response was: ''let them eat cake''. She did not know that cake was even more expensive than simple bread that the subjects could not afford to buy.
She was oblivious to the conditions and daily lives of the poor, ordinary masses.
I guess you also live in similar luxury like Daniel Bwalya an co.
Well done

GeneralDae:
This is so amusing and too novel an argument to make. We printed 6 trillion naira in 2022 and increased our money supply exponentially. Inflation was already on the rise for several months leading to May 2023.
Buhari and Emie bobo had already printed over 3 trillion as at May 2023.
The printing from 2022 was on steroids and fed itself into 2023 (in addition to the removal of subsidy and floating) plus the one Tinubu printed in 2023 thereby making 2024 hell for the naira due to these cumulative factors.
If we didn’t remove subsidy or float, the problem would still be there but rising steadily.
When we floated and removed subsidy at once, we brought it out all at once in all of its monstrosity instead of a slow steady rise postponing the evil days.

Keep on rubbishing everything that Buhari did and keep praising and justifying whatever Tinubu did.

While some govt spoke-persons have even pleaded with Nigerians to bear with govt and be patient with the unprecedented inflation and hardships caused by the subsidy removal and floating of the naira, you are here defending, justifying, championing, rationalizing, substantiating, praising, eulogizing, celebrating the policies and effects with your full chest......all because of partisan loyalty to one man!.
Well done! Daniel Bwalya must come learn work from you.

GeneralDae:
Do you think printing around 13 trillion in 2022 and 2023 didn’t contribute to that inflation? Do you believe the inflation was caused by just this Government alone and not the previous one?

I am talking about effect of inflation from May 29, 2023 to now.
Any effect of printing of naira in 2022 and early 2023 had already reflected in prices of goods by 28-May-2023 before this govt came to power.
What has happened from May29, 2023 to now is the making of this govt and cannot be attributed to any printing of money by Buhari.
The abrupt subsidy removal and the floating of naira from N450 to N1,450 are the main cause, creating very severe cost-push inflation in the economy.

GeneralDae:
So should I say it in dollars or just in naira? A road you borrow 50 Billion naira to construct in 2023 would have been around 200 Billion naira in 2025/2026. Would you borrow 50 Billion naira in 2025/2026 for thesame road?

This scenario you pointed out confirms the damage inflation has caused under the govt.
Imagine citizens who were planning to save up to N50m to buy a house. Now, they have to look for N150-N200m. And this real life matter, dashing the hope of the people because their income has not increased three-fold.

PuristForest:
The 23-month decline from the ₦84.55 peak in Sept 2024 shows just how much fluff has been erased from OANDO. The fact that they are pursuing a Rights Issue at ₦50 while the open market is pricing the stock at ₦35 tells you everything about the current market sentiment—it's a massive votes-of-no-confidence discount.
No retail investor is going to buy a rights issue at a 30% premium when they can just accumulation on the NGX for ₦35. This implies either management is completely disconnected from current liquidity realities, or there is an institutional/underwriting backroom deal designed to absorb the shares regardless of the public price.
With the recent 52-week low of ₦34.85 tapped on August 3rd, support looks incredibly weak. We anticipate a decisive breakdown below this floor, targeting a correction down into the late 20s. The upcoming two-year anniversary of the peak marks a highly critical re-pricing phase.

ref:
https://www.nairaland.com/1131485/nigerian-stock-exchange-market-pick/10035#138335128
https://ewnation.com/oando-positioned-as-nigeria-s-energy-sector-rebounds-2/
Enjoy..no investment advice

In this NGX, it is always good to go for fundamentally strong stocks if you are convinced.
But sometimes, what is ''market sentiment'' can be manipulative and movement in price can be engineered by the market players or interested directors.
It only takes 100,000 units (closing deal, in the last 5minutes of the trading day) for a price to move up10%; So one should not be too rigid with these theories and of assumptions of ''market sentiments''.

Example, FBNH has risen to as high as N140 because only one man (Ote$) decided to mop up. Without him, FBNH would not be that high.

GeneralDae:
With a devalued naira officially by x3, you have to borrow domestically (at the initial stage) by at least x3 or more to match the inflation else you get nothing done.

In the end, total debt stock is what matters. It shows that in real terms, the debt is not really increasing as you think it is when viewing it nominally.

You don't want to say how much this govt has been borrowing.
The debt stock does not tell how much the govt has borrowed because it is a cumulative balance.

If you dodge, I catch you. Cunning man die, cunning man bury am.

GeneralDae:
Actual Net Dollar Borrowing: According to Debt Management Office (DMO) records:

June 2023 (Taking Office): Total public debt was $113.42 billion (External debt was $43.16 billion). 

2026 - Latest DMO Records: Total public debt stands at ~$110.97 billion (External debt is ~$51.86 billion).

You have not answered the question.
I did not ask for the current stock or balance of debts.
I asked how much loans has current govt borrowed since they came to office.

The two are not the same

GeneralDae:
Buhari printed 22 trillion naira (not allegedly because he presented it to the senate himself in 2023 for securitization). If we assume a rate of 450 naira/$ in all 8 years (for argument’s sake), that is almost $50 Billion. Are you saying this Government have borrowed $50 Billion?

Note: This $50 Billion is printed money only excluding other borrowings.

How much has the current govt borrowed? Multiply both principal and total interest by N1400

GeneralDae:
How much is our total borrowing now in dollar terms? How much was it as at May 2023? Printing is borrowing but more deadly because you are creating new money making your money more abundant and worthless. With borrowing, you at least pay back huge interest but with printing you are tempted to defer it and just have exponential money supply

Compare what Buhari allegedly ''printed'' and what has been ''borrowed'' by current govt.

GeneralDae:
Okay let me put it in a better way:

“If” we had continued the Buhari policy (2020 -2023) of pegging the Naira and depending majorly on printing for our Budget in addition to the fuel subsidy, our fiscal situation would have been worse.

Which do you want: printing money or unbridled borrowing?

emmanuelewumi:
Nahco

Presco

Okomu

Aradel

Seplat

Zenith

GTB

United Capital

Unilever

Custodian

Stanbic IBTC

Are in my portfolio and they beat inflation

Both inflation and devalution?
But congrats anyway

GeeKudi:
To be sincere, I admire your consistency but I am worried for you about the amount of energy you expend doing this activism

I am not into activism oooo. Not at all.
Apart from NGX, I am not on any platform; Not on X, not on Instagram, not on FB, nothing nothing.

But what I don't like is the hypocrisy of people who want to tell lies or twist facts so that their candidate can look good or better.
I am only using the same yardstick, standards and principles that current leaders used to criticize and assess past leaders.

I don't have any party. That's why I can praise Buhari today and criticize Tinubu. I can also praise GEJ and criticize OBJ. In fact, I criticized GEJ too for the way he handled Sanusi, a man that was helping to check corruption in the banks, NASS budgets etc.
During OBJ' tenure I was defending Tinubu for standing up against OBJ's tyranny.
But people just don't want to hear that their preferred candidate is being criticized. I don't defend Obi or Atiku when they are being criticized. But I focus more on the people that are entrusted with the resources and powers of the country i.e. the elected president and governors

SeeHim:
Source: https://dailypost.ng/2026/08/11/air-peace-flight-operations-grounded-nationwide/

Oshiomhole and NLC stressing Pease Air

GeeKudi:
I think Bro Mike is moulded in Sowore's brand of activism. Never see good in anything or any other person other than self.

Thanks for not seeing anything positive about me or my principles or opinions.
God dey.
Me too go ''GetKudi'' one day, then I will remove the ''t' and replace it with ''e''. E get why

GeeKudi:
I asked my AI model to use 2023 as reference price for these stocks and ask it to correct for both inlation and devaluation.

You these people and AI! Everything, AI!
Instead of using your Four-Figure Tables to do the calculation and sweat a bit to lose weight and keep fit!
AI don spoil all of una!

emmanuelewumi:
I don't think those stocks gave a negative return based on inflation or devaluation

These are the stocks I said may have positive returns after inflation and devaluation. See the last line in my post that you quoted earlier

emmanuelewumi:
The problem is that a number of us buy junk stocks and we will be better off buying Equity mutual funds and hold for at least 5 years.

Your N10 million invested 5 years ago in Paramount Equity Fund managed by Chapel Hill Denham would have grown to over N50 million

This is true

emmanuelewumi:
Vitaform stock price 3 years ago. It is now N194 per share

That is why I say some stocks may have positive returns in real terms, even after inflation, devaluation etc

emmanuelewumi:
Can you give us specific examples of such stocks

Check maybe:
Vitafoam,
Eterna Oil,
NEM

GeneralDae:
But Buhari increased printing from 850 Billion naira in 2015 to 22 trillion as at 2023. That always devalues a currency no matter what. You can keep pegging it for a while but you make it worse and it would eventually blow up in your face.

If Buhari had continued until 2026 and kept a crawling peg official rate, you would have the parallel market eventually move to 1300/$ but with the official rate at around 650/$. That would have been a double jeopardy. Your reserves also would have been stunted. You would still have fuel queues even with Dangote because he would struggle to keep supplying the Nigerian market at 200 naira when the market price officially is 800 and 1400 using the open market.

Stop engaging in needless conjectures.
Where did you get the spirit of clairvoyance from?

''If Buhari had continued until 2026....''
How would Buhari had continued to 2026 when his 8 years limit terminated in 2023?
Are you just saying things to give you the rationale or justification to write or push what you have in your mind or what?

chimex38:
I think Even with 100% free float,the free-market determinants will still be dominated by a few.
The amount you and I are going to exchange arthritis market will be minute compared to the clique who will form a massive hoarding or massive flooding of the naira to determine the exchange rate.
Just like how market makers determine stock prices especially for low float and illiquid stocks..

I don't think it's decentralized enough for unrelated relatailers to have a substantial effect on volume of forex transactions daily..
Just my opinion.

Perfect!
Many do not realize that ''perfect market'' is a mirage. Force of demand and supply can be skewed by market players to achieve some desired or pre-determined outcomes

elengine:
If we begin to write about politics here, we will lose the sight of why we are here. Every perspective whether in support or against may be correct. Personally I think Nigerians do not really know the state of this Country and economy pre 2023. The question we dont ask is- what would have been the state of our economy now if those decisions were not taken? Even when companies go through restructuring, they dont suddenly return to profitability and in fact some may carry negative retained earning for 5 years before returning to dividend payments. Like I said earlier, all perspectives are right and can we now face the fact that MTN has just come down to 805 naira. I hope I can buy for 740 naira tomorrow 😀😀😀

After you don talk your own politics, you then use sense to switch to MTN?
Na you clever pass, abi?
I also hope I can buy Airtel at N5000 today

Dey play..

lawani:
His administration printed the volume of naira that led to the devaluation. As at a few months ago the CBN said the current administration has not printed a single new naira since inception. So it is what the last admin farted that is still smelling. Official rate was 450 while market rate was like 800 or so but the real rate would have been up to 1700 or even 2000 if not for CBN market manipulation of selling forex meant for refinery repairs

Stop all this talk.
Wait until another CBN governor under a different govt comes to power. That is when you will know what Cardoso has been doing as CBN governor.
Buhari did not float the naira. He did not take it from N450 to N1,450.
God bless Buhari; he had pity on the masses