External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m - Business (4)

External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m - Business (4) - Nairaland

Nairaland Forum › Nairaland General › Business › External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m (15373 Views)

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Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by Nobody: 8:10am On Apr 06, 2016

emi14:
Fr. Mbaka prophet of God as claimed could not see Nigeria beyond Patience Jonathan/Buhari for the future of Nigerians both unborn. Am a catholic. I am not affiliated to any political party and doesn't reside in Nigeria either, I must say that Mbaka is a disgrace to whatever he believe and represents. He owe Nigerian Catholic community and Christians unreserved explanations and apology for his supports on Buhari. I am totally disappointed in him; can't play his music's anymore.

Everyone is entitled to their own opinion

Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by porka: 8:13am On Apr 06, 2016

Quakertellicus1:
Wailers....food is ready.

On a more serious note...

The problem is that we are not earning enough forex from oil. And we should have saved money last time....but GEJ somehow did not improve on Yaradua's success in raising our ECA to 60bn....he knocked it down to 32bn.

Let's be frank, we have a situation where we are no longer earning enough from oil.(And we are going to earn less as the glut continues) And PMB is not doing what needs to be done....cutting subsides, raising taxes, spending more on power and transport...so that eventually Nigeria would be able to get off oil for good.

Nigeria needs to be free from oil. We need to become a manufacturing power....who manufactures goods for the export market...so that we can be like China....a superpower who gives loans to other poor nations.

So....if you want your ECA imporved....you have to go manufacturing. Oil is a spent force.

Where did you get your $60bn balance on ECA?

Do you even bother to know what ECA mean?

Or you are just hearing people saying it and decided to say it too?

Isn't it better to have an understanding of something before subjecting yourself to public embarrassment?

1 Like

Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by Marpol: 8:14am On Apr 06, 2016

NavierStokes:
I thought CBN said Nigerians have $20billion sitting idle in their accounts, remittances from diaspora for 2015 was $21billion, so why is the reserve still around $27billion?

Lies everywhere!!!!!

Those are depositors funds!!! CBN reserve is government funds.

Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by repogirl(f): 8:14am On Apr 06, 2016

dboss444:
How long are we going to keep importing stuff? Nigerians has to look for a way to manufacture these things here so we can grow our own locally

manufacture what? You think manufacturing happens overnight?

Go and ask Dangote the policies that had to be put in place before his industry became successfully sustainable ove time.

Then factor in the lack of steady power supply, the unavailability of fuel and then tell me how a manufacturer will survive under these harsh conditions.

Capital nko? Bank loans are now higher, taxes are higher, forex is crappy, how will manufacturers access raw materials that are not readily available here in Nigeria?

You want to build a house but your tools and resources to do it are scarce or unavailable, how will that house be built?

1 Like

Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by eyeview: 8:18am On Apr 06, 2016

Those foreign investors must be ipod yoots,wailers or pdp!
Isn't that the name of anyone who faces the truth in this govt

Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by judondasylva(m): 8:23am On Apr 06, 2016

slap1:
Where are all those brainwashed zombies that voted the dullard? Zombies be missing in action since Buhari, the cattle rearer of Daura, has shown there is really a limit to what he can do at 74.

We warned them. Where is Wole Soyinka (I still respect you, my prof)? David West? Father Mbaka? OBJ and the other despicable creatures who hypnotized the zombies with impeccable thoroughness? Where are they?

they have all gone blind, dead, deaf and dumb. nothing like occupy Nigeria cus the dullard is the President.

Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by engrchykae(m): 8:29am On Apr 06, 2016

Quakertellicus1:
It is dropping because our economy is pegged to oil...which your dear darling PDP did nothing about for 16 years...despite being given the money to deal with it.

And diversification takes time.

but the henchmen of pdp put on performed plastic surgery on their face,did change of name and became the messiah of nigerians.
Is Obasanjo,saraki,Atiku,Amaechi etc not the henchmen of pdp's 16 years misrule?
Don't do self deception,its the reason why the devil is frustrated

Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by OFFICIAL336: 8:31am On Apr 06, 2016

Quakertellicus1:
Wailers....food is ready.

On a more serious note...

The problem is that we are not earning enough forex from oil. And we should have saved money last time....but GEJ somehow did not improve on Yaradua's success in raising our ECA to 60bn....he knocked it down to 32bn.

Let's be frank, we have a situation where we are no longer earning enough from oil.(And we are going to earn less as the glut continues) And PMB is not doing what needs to be done....cutting subsides, raising taxes, spending more on power and transport...so that eventually Nigeria would be able to get off oil for good.

Nigeria needs to be free from oil. We need to become a manufacturing power....who manufactures goods for the export market...so that we can be like China....a superpower who gives loans to other poor nations.

So....if you want your ECA imporved....you have to go manufacturing. Oil is a spent force.

Zombie

Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by uyplus(m): 8:31am On Apr 06, 2016

Vongsama:
What I can tell u however, is that throughout PDP erra, things never got this bad. It is not in our democratic setting to ever b this backward. Oh, I mean it WAS never. PDP was bad but they never brought us this far down our feet. But who's even talking party here? Am talking buhari d d.ullard from daura.

Oh well, things have gotten this bad because our major source of forex has been hit hard and we have no where to run to.. Our mono-economy is comatose because we don't wanna look inwards for self sufficiency, start growing our grains, refining our crude, mining and processing our mineral resources etc. We are living the pain now for taking wrong decisions over the years by voting on ethno-religious lines.

Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by emi14: 8:32am On Apr 06, 2016

Quakertellicus1:
It is dropping because our economy is pegged to oil...which your dear darling PDP did nothing about for 16 years...despite being given the money to deal with it.

And diversification takes time.

Is Nigeria just 16years old? Did Nigeria started drilling oil just last 16year? How many 16years have Nigeria experience since after independence and oil boom? Jonathan never inherited economy with excellent performance is a loud fact. Is pdp the first political party ever been in Nigeria corridor of power? Why have we easily forgotten about saints Buhari/Idagbon, Ibb, Abacha,Abubakka, Yar'dua and even Obasanjo and continue calling for the head of Jonathan as if his the first and only head of state ever in Nigeria? Afterall he inherited a system. Don't you think is injustice? Am not exonerating from corruption and misdeeds during his 6yrs in office.
Finally, apc is aware of the mess in pdp government / governance and promised change, let them do the needful. Shikina!!

1 Like

Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by CosmicJames(m): 8:34am On Apr 06, 2016

ATERI:
To hell with foreign investors!!

Not so fast! No nation is an island. Nigeria need those investors. Even America with all their wealth have foreing investors investing in their economy. Only one tree will not and cannot make a forest

Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by porka: 8:38am On Apr 06, 2016

repogirl:
I keep hearing diversification, diversification... And it's funny.

Boooooohari and his stiff policies are chasing away these same investors that are supposed to invest in the 'diversification' projects and some zombies are happy, hailing him.

Who will give you the necessary capital to ensure this 'diversification' actually happens when all of them are fleeing from our economy? Abi is the diversification from the budget also?

Funny.

My sister, you won't believe these people are adults. It's almost like they are under a strong spell.

1 Like

Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by brightology3: 8:44am On Apr 06, 2016

ATERI:
To hell with foreign investors!!

who is this vagabond

Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by Ijaya123: 8:45am On Apr 06, 2016

A lots of comments up here are purely based on political sentiment. Can you people see beyond politics that there is a grand conspiracy by the West to try and arm twist this government to devalue the naira for their own selfish interest and not in our own interest.

It unfortunate that a lot of people are shallow minded to read between the line. They are always in a hurry to blame Buhari and resort to name calling without injecting any intelligent contribution.

With this type of mindset from the youth of today, the future is indeed bleak.

Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by Nobody: 8:47am On Apr 06, 2016

repogirl:
I keep hearing diversification, diversification... And it's funny.

Boooooohari and his stiff policies are chasing away these same investors that are supposed to invest in the 'diversification' projects and some zombies are happy, hailing him.

Who will give you the necessary capital to ensure this 'diversification' actually happens when all of them are fleeing from our economy? Abi is the diversification from the budget also?

Funny.

As I have just pointed out to the commentator below there are two types of investors; foreign portfolio investors and strategic investors. Portfolio investors are shot term investors interested in making quick gains. They move from country to country seeking quick gains. Strategic investors are like Shoprite, Spar, Coca Cola, MTN, Diageo, Guinness. They are long term investors who build infrastructure and employ locals.

The investors this report is talking about are foreign portfolio investors not strategic investors. No strategic investor is pulling out of Nigeria. In fact Coca Cola has just made a big investment in Chivita.

Secondly even the foreign portfolio managers are merely repatriating their profits. They have to do so because it's not their money, it's the money of people who invested in their emerging market funds and these people need to be paid their dividends and capital gains. Repatriation of profit is a good thing not a bad thing.

Repatriation of profits gives international investors the feeling that the market can be trusted to give them orderly exits when they choose.

So rather than being viewed as bad news, it is in fact very good news.

Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by NavierStokes(m): 8:50am On Apr 06, 2016

Marpol:
Those are depositors funds!!! CBN reserve is government funds.

And with whom doe the bank's keep these depositors funds?

Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by NavierStokes(m): 9:02am On Apr 06, 2016*

Marpol:
Those are depositors funds!!! CBN reserve is government funds.

And with whom do the bank's keep these depositors funds?

Okay thanks bro, I had to look up our own cbn's definition of reserves which you quoted. So as it is we have over $40billion in the system but government declare her own part.
47 to 68 billion usd doesn' t seem like we should be having forex scarcity or claim to be broke

Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by ATERI(m): 9:19am On Apr 06, 2016

CosmicJames:
Not so fast! No nation is an island. Nigeria need those investors. Even America with all their wealth have foreing investors investing in their economy. Only one tree will not and cannot make a forest

Capital flight is the pain you must be ready to endure if you want to stop casino capitalism in your country. It`s the madness that started during the Obasanjo era and continued with Jonathan when people believed that foreigners can be relied upon to develop the economy. Look at what happens around the world, once you make a slight adjustment in favour of the domestic economy, casino capitalist would be on the run. They are only happy with blind privatization and liberalization that hand over the economy and the country over to them so that they can turn Nigeria into the type of apartheid soceity that Britain and America have long been. Buhari needs to be steadfast, the investors that are looking for quick bucks would leave, the ones that are genuine investors want a society in which they can operate smoothly and make profits. What the governments need to do is to provide an enabling environment: deal with irregular power supply, let fuel be widely available, provide security and tackle reckless corruption so that genuine investors won`t sweat for the basic amenities needed to do business. Anyone that is not happy with Buhari`s reform should leave our country and go to South Africa where a tiny minority control the economy while the majority ( mainly blacks) eat the crumbs that fall from their table. Foreign investors, my ass!!

1 Like

Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by 989900: 9:21am On Apr 06, 2016

greenpasture:
Obviously neither you nor the reporter know how markets work.

The report spoke of the repatriation of profits which would be dividend bonuses and capital gains. This is not the same as selling the principal investments. Secondly, market reputation needs investors to be able to enter and exit in an orderly manner. If investors cannot exit at will then the market fails. Rather than being seen as bad news, this is very good news. Foreign portfolio investors repatriation profits and gains is NOT bad news. What is bad news is if strategic investors such as Diageo, Coca Cola, Guinness etc sell out their equity stakes in Nigerian companies. This is not happening. In fact Coca Cola have made a major investment in Chivita. Portfolio investors on the other hand enter and exit markets at will looking for short term gains. They have no loyalty to any country or market. These are the people repatriating profits, which is to be expected.

When trying to knock a government it is important to understand the issues clearly before making your point. Hatred of all things Buhari or APC should not drive us to embarrass ourselves.

You don't have to comment on every story, just because it is on the front page. Wait for areas and times in which you can make a worthy contribution. The more you do this, the more you will have the ability to analyze events in a powerful and effective way.

You just saved me time I don't have trying to explain stuffs.

Nice one.

OTOH, I think things are very bad especially with Forex, and the government needs to act 'fasterrrr', the racketeering and profiteering is unchecked, and that is a major influence on the present insane margin between the official and the parallel markets.

By the time the budget is passed and this is not looked into, there would be more Naira chasing fewer dollars, meaning . . . u get the drift . . .

Already, the massive importation of refined fuel presently, is going to take its toll on the Naira.

Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by Vongsama(m): 9:27am On Apr 06, 2016

And u think we've made d right voting decision this time? I dnt think so. We were wrong but we got it worst this time. I tell u, neither Buhari nor Jonathan was in d last election what we need. Bt since we had to choose from two (both of dem on d negative side of the number line), Jonathan was d less catastrophic choice we had. Too bad, we trusted n bought propaganda and only propaganda (dats all dis administration is good for plus tell me how many of dem r nt frm d same pdp everyone is blaming). We hav made a terrible mistake that we wish thinks can jst go back to d bad state it used to be rather than this situation of downward ever, upward never.

uyplus:
Oh well, things have gotten this bad because our major source of forex has been hit hard and we have no where to run to.. Our mono-economy is comatose because we don't wanna look inwards for self sufficiency, start growing our grains, refining our crude, mining and processing our mineral resources etc. We are living the pain now for taking wrong decisions over the years by voting on ethno-religious lines.

Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by 989900: 9:28am On Apr 06, 2016

repogirl:
manufacture what? You think manufacturing happens overnight?

Go and ask Dangote the policies that had to be put in place before his industry became successfully sustainable ove time.

Then factor in the lack of steady power supply, the unavailability of fuel and then tell me how a manufacturer will survive under these harsh conditions.

Capital nko? Bank loans are now higher, taxes are higher, forex is crappy, how will manufacturers access raw materials that are not readily available here in Nigeria?

You want to build a house but your tools and resources to do it are scarce or unavailable, how will that house be built?

#gospeltruth

Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by Pidggin(f): 9:35am On Apr 06, 2016

kobonaire:
Tsunami actually.

I know, twas deliberate.

Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by InvertedHammer: 9:36am On Apr 06, 2016

$30m repatriated by foreign investors is negligible and inconsequential.

/

1 Like

Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by yaki84: 9:38am On Apr 06, 2016

ATERI:
To hell with foreign investors!!

na so demdem(zombies) dey talk, tomorrow baba dulla rdinho will jet off to china to go beg investors to come invest for the country. the next thing aisha fellows go create thread listing all the benefits the junketeering don bring.

1 Like

Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by yaki84: 9:41am On Apr 06, 2016

NavierStokes:
I thought CBN said Nigerians have $20billion sitting idle in their accounts, remittances from diaspora for 2015 was $21billion, so why is the reserve still around $27billion?

Lies everywhere!!!!!

my brother Apc came not only to STEAL, but to KILL AND DESTROY the country and economy.
God unto ur hands we commit nigeria oh....

Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by yaki84: 9:51am On Apr 06, 2016

Quakertellicus1:
Wailers....food is ready.

On a more serious note...

The problem is that we are not earning enough forex from oil. And we should have saved money last time....but GEJ somehow did not improve on Yaradua's success in raising our ECA to 60bn....he knocked it down to 32bn.

Let's be frank, we have a situation where we are no longer earning enough from oil.(And we are going to earn less as the glut continues) And PMB is not doing what needs to be done....cutting subsides, raising taxes, spending more on power and transport...so that eventually Nigeria would be able to get off oil for good.

Nigeria needs to be free from oil. We need to become a manufacturing power....who manufactures goods for the export market...so that we can be like China....a superpower who gives loans to other poor nations.

So....if you want your ECA imporved....you have to go manufacturing. Oil is a spent force.

we cant be successful manufacturers when the govt r double standard.
2weeks ago federal govt donated 100s of hilux n cars to nigerian police force, how many of those cars were nigerian brand? the shoes they wear is it made in naija?
so u see, we cant be preaching made in naija n our ministers, govrs, other big boys in the country hv children schooling abroad depleting the already depleted foreign reserve d more.
how secure is the northern states border?
if u know what happens in those borders u will curse nigeria.

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Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by yaki84: 9:56am On Apr 06, 2016

Quakertellicus1:
It is dropping because our economy is pegged to oil...which your dear darling PDP did nothing about for 16 years...despite being given the money to deal with it.

And diversification takes time.

jonathan made good policies for diversification, the auto policy, agro policy which we all knw can replace oil.
the states suppose to build o these policies cos they hv acess to lands n manpower.
all they need do is collaborate with the fd to assist them interms of fund to kickstart this esp those who budgetary didnt capture this. but u know how nigerians r, we protect party interest more than nigeria interest.

Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by neocortex: 10:06am On Apr 06, 2016

glook:
Do you want him to satisfy the foreign investors which will lead to more sufferings for Nigerians?

What is your solution?

It is not about satisfying the foreign investors, it is about
having a stable policy. I can assure you that most investors
fleeing Nigeria aren't doing so simply because the Naira has
crashed but because they don't know what Buhari might decide
to do tomorrow which might put their investment in jeopardy.

Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by glook(f): 10:19am On Apr 06, 2016

danielicon:
what do u know about satisfying foreign investors??
and how will that lead to suffering of Nigerians??
see!!! A stable and fast growing economy is enough to satisfy foreign investors.
I for one, support no political party but buhari is messing up Nigeria economy big time.
the funny thing is that bihari still makes promises even now that he is the president. we don't need promises again, we need result.

You are going off topic. We are talking about devaluation of the naira.

Devaluaing the naira will lead to more inflation as we are import dependant, so I support that the naira should not be devalued.

Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by glook(f): 10:22am On Apr 06, 2016

neocortex:
It is not about satisfying the foreign investors, it is about
having a stable policy. I can assure you that most investors
fleeing Nigeria aren't doing so simply because the Naira has
crashed but because they don't know what Buhari might decide
to do tomorrow which might put their investment in jeopardy.

You are going off topic. What can be more stable about Buhari refusing to devalue the naira despite pressures from all quarters.

Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by glook(f): 10:24am On Apr 06, 2016

SycophanticGoat:
Hahahahahahahahahahaha! What sufferings can be worse than this one Nigerians are facing presently? Chai! Thank goodness I ain't no zombsicle..

You never begin to suffer. Wait till he devalues the naira which will lead to more inflation and you will pray to be a zombie.

Re: External Reserves Drop To $27.85bn As Foreign Investors Repatriate $30.2m by porka: 10:27am On Apr 06, 2016*

greenpasture:
Obviously neither you nor the reporter know how markets work.

The report spoke of the repatriation of profits which would be dividend bonuses and capital gains. This is not the same as selling the principal investments. Secondly, market reputation needs investors to be able to enter and exit in an orderly manner. If investors cannot exit at will then the market fails. Rather than being seen as bad news, this is very good news. Foreign portfolio investors repatriation profits and gains is NOT bad news. What is bad news is if strategic investors such as Diageo, Coca Cola, Guinness etc sell out their equity stakes in Nigerian companies. This is not happening. In fact Coca Cola have made a major investment in Chivita. Portfolio investors on the other hand enter and exit markets at will looking for short term gains. They have no loyalty to any country or market. These are the people repatriating profits, which is to be expected.

When trying to knock a government it is important to understand the issues clearly before making your point. Hatred of all things Buhari or APC should not drive us to embarrass ourselves.

You don't have to comment on every story, just because it is on the front page. Wait for areas and times in which you can make a worthy contribution. The more you do this, the more you will have the ability to analyze events in a powerful and effective way.

Repatriation of your entire profit is also a sign that the market's outlook is significantly negative. It is not a positive. .

A percentage of your profit is re-invested in the market if the near to midterm outlook is positive. As you can see, this is not happening.

The market reputation you spoke about has been significantly damaged by the monetary policy which led to the JP Morgan removal of the naira from its index. Simply put, the free entry and exit of capital has been restricted for the better part of the last ten months of Buhari's government.

http://www.bloomberg.com/news/articles/2015-09-08/jpmorgan-to-remove-nigeria-from-emerging-market-bond-indexes

Even though this particular report dwells on profit taking, you are laboring to assume that there's positive market sentiment. The opposite is the case, as can be seen from aggregate downward movement of the ASI for the past months.

The reason there's no massive capital flight from the NSE in the sense of divestment could be that the CBN is not making forex available for the foreign investors.

Even though Coca Cola made a hostile takeover of Chivita to protect its market share, a deal that predates Buhari's utterly failed presidency, other brands have not fared better. A Bloomberg report quoted the Nestlé chief executive as throwing a jab at the current monetary policy.

You people who defend this government at all cost should stop assuming that people have short memory. Everything has happened in the open and it is unlikely that everyone would be so daft to forget so soon.

It was not long ago that Oshinbajo said openly that they are not bothered about portfolio investments.

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