₦airaland Forum

Tinubu’s 15 Days in Office Leave Investors Excited About Nigeria:

Nigeria’s President Bola Tinubu has pulled the right levers for markets: ridding the country of a costly fuel subsidy, removing a controversial central bank governor, and promising to unify a web of varying exchange rates.

Foreign investors have embraced those decisions, sending Nigeria’s dollar debt surging on Monday. Tinubu set the tone in his inauguration speech on May 29, when he announced that the country’s gasoline subsidy was “gone” — a bold move that had set off riots when previous leaders attempted it.

“Overall, President Tinubu has shown that he’s willing to take on two of the most important factors investors are focusing on, which is fuel subsidies and FX reform, in a very short space of time,” said Thys Louw, a portfolio manager at Ninety One in London.

“Reform momentum in Nigeria has picked up considerably, although from a low level and sustaining this will be important given poor economic conditions Tinubu inherited.”

In two major moves, Tinubu suspended central bank Governor Godwin Emefiele on Friday, and on Monday a senior adviser said it’d be a matter of months before he unified its exchange rates, a key demand of investors and multilateral institutions like the World Bank. Emefiele is widely considered the chief architect of a set of unorthodox policies — including propping up the naira, allowing a complex regime of multiple exchange rates, and lending tens of billions to the government of Tinubu’s predecessor — that have been blamed for crippling Africa’s largest economy.

Nigeria’s State Security Service detained Emefiele Saturday for “investigative reasons,” and Folashodun Shonubi, a deputy governor in charge of operations at the bank, took over in an acting capacity.

Nigeria’s international bonds due in 2029 jumped the most among emerging-market peers on Monday, a public holiday in Nigeria. Those notes jumped as much as 3 cents before closing around 88 cents on the dollar, the highest since January, according to data compiled by Bloomberg. The extra yield investors demand to hold the nation’s debt over US Treasuries fell 38 basis points to 7.19 perctange points, according to a JPMorgan index.

The changes at the central bank “could spell the end of unorthodox and often conflicting and confusing monetary policies that held back economic growth and destroyed local and foreign investor confidence,” Ayodeji Dawodu, head of Africa sovereign and corporate credit research at BancTrust & Co. in London, said by phone.

Under Emefiele, the central bank offered the US dollar through several windows at tightly controlled rates, with little liquidity, to businesses and individuals. This forced many to the black market, where the dollar traded more freely but at about a 60% premium to the official rate.

Wale Edun, an influential member of Tinubu’s advisory board, told Bloomberg by phone on Monday that the unification of exchange rates was “imminent.”

“I would say it would have to be done within a quarter as rather than within a year,” he said. “ I think you’re talking, think quarters rather than years, that’s where I would put it.”

Emefiele was widely seen as acting in lockstep with the administration of Tinubu’s predecessor, Muhammadu Buhari. That government was perceived to be more statist and socialist in its approach, said Yemi Kale, chief economist for Nigeria at KPMG LLP and the nation’s former statistician general. “The markets will respond positively to an administration it believes to be more market oriented,” Kale said.

https://www.bloomberg.com/news/articles/2023-06-12/tinubu-s-15-days-in-office-leave-investors-excited-about-nigeria

God bless Jagaban. Nigeria will be great again.

Some people will come and cry and call it Propaganda or Sponsor post...

WOW,this is the Nigeria we all desired,
God bless Mr president.
God bless Nigeria/Nigerians,
God bless Akwa Ibom State.

Buhari started off like this but ended up disappointing the nation

My president started well walahi.

I was having a walk the other day and reminiscing how Tinubu has been getting things right from the inception.

For the first time in Nigeria, we have a president who is well prepared, organized, ready to face the problems facing the country head on.

With Tinubu's presidency, better Nigeria ahead

God bless His Excellency, President Bola Ahmed Tinubu (GCFR)


The great people of Nigeria have made the best choice, and we are so glad we did.

Same Bloomberg that predicted victory for a particular candidate

He’s the right man for the job, the best leader to ever happened to Nigeria after Murtala Muhammad.

Agbadocassava:
He’s the right man for the job

Definitely!

Just watch how the economy will bounce back and stronger!

Mention the Investors.

helinues:
If you have a job, if you are productive in life, you won't be trolling people online for more than 2 years.

See what you woke up to do, would any productive person wake up in the morning and the next thing to do is to troll people Online.

Pastor Odumeje would be having a special deliverance this Sunday, you are cordially invited. All your problems including the spirit of trolling shall be cast away

Is that why you typed all these long episode hyper ventilating and screaming ?

Misuse of Nigeria resources is the main reason why Nigeria seems not functioning properly but with a cocaine sniffing vagabond, Nigeria might get better

helinues:
My president started well walahi.

I was having a walk the other day and reminiscing how Tinubu has been getting things right from the inception.

For the first time in Nigeria, we have a president who is well prepared, organized, ready to face the problems facing the country head on.

With Tinubu's presidency, better Nigeria ahead

Nightwolf1:
Mention the Investors.

Hahahaha

So you don't believe this news cos your vindication would have entered gutter bah?

Only Bitter and Hate Filled Pandora Miscreants are not excited

Ihateheadslamer:
Misuse of Nigeria resources is the main reason why Nigeria seems not functioning properly but with a cocaine sniffing vagabond, Nigeria shall be great again

The day some of you people would start having positive mindset about things, na that day una go dey redeemed

helinues:
Hahahaha

So you don't believe this news cos your vindication would have entered gutter bah?

Eieshhhh them delete your last quote 🤣

Mods dey plan send you back to your jail

helinues:
Hahahaha

So you don't believe this news cos your vindication would have entered gutter bah?

I said mention the Investors. Not whether the news is believed or not.

helinues:
The day some of you people would start having positive mindset about things, na that day una go dey redeemed

11 razor blade face shatap and behave

Nightwolf1:
I said mention the Investors. Not whether the news is believed or not.

Sebi una sabi how to write letter, tell Adichie to write bloomberg in order to request for the list of the investors

He is implementing IMF policies which is hard on the man on street but favours foreign portfolio investors

helinues:
Sebi una sabi how to write letter, tell Adichie to write bloomberg in order to request for the list of the investors

Adichie got the attention of the united states president.

How many people have your Yoruba ronu screaming while naked attracted?

helinues:
Sebi una sabi how to write letter, tell Adichie to write bloomberg in order to request for the list of the investors

Foolishness there you have it🤡🤡

Of course president Tinubu will perform excellently.

LagosFirstSon:
Buhari started off like this but ended up disappointing the nation

Buhari didn't start like this

princeryle1:
Same Bloomberg that predicted victory for a particular candidate

Na so life be.... everyone has moved on

Nightwolf1:
Foolishness there you have it🤡🤡

Some of you can't believe you can make any comments without abusing others.

Chai

I know you will not like it, but he no matter

Nightwolf1:
Mention the Investors.