Nigerian like rejoicing stupidity


Bond is a means of borrowing money and giving the lenders guaranteed intrest after limited time,

the Article says investors interested in our bond market (better said,: people willing to borrow us money) are rushing Nigeria because they know 2020 would be the year we would have the highest deficit (deficit meaning we not being able to finance our budget or meet up with recurrent and capital expenditure) while 98% of our income would go to service existing loan after oil price dropped our earnings

So in laymans term, loan sharks and international gbomulalantern are trooping to Nigeria because they know without Oil we would be forced to borrow money from them or die of hunger

“If secured, multilateral loans would cover around 21% of the general government deficit in 2020,” Fitch Ratings said in a report published Monday.

Yet investors seem unconcerned. The cost of protecting Nigeria’s debt against default has dropped by 520 basis points since March 18, an indication that creditors are feeling more secure holding the country’s debt.

.

To do what?

In a crumbling economy already on recession of Nigeria's kind.Abeg which sector of the economy? Perhaps it's aliens from space.

Power supply and demand and supply.

God help us

The whole front page filled with people that either didn't read or read but don't understand. Simply put, as a result of the IMF loan and removal of fuel subsidies, investors see that the country will be able to lay it's debt and are willing to invest or allow their investment remain in Nigeria..

They are welcome!

Today is the last day to get the Marathon sex guide at preorder price:

https://www.nairaland.com/5870706/instant-marathon-sex-guide

Fact: While most of the foreign investment goes to the SW,the SE receives literally zero of this foreign investments.

Fake news

How I wish ‘the fuel subsidy is gone forever’ indeed.

pushy8:
The whole front page filled with people that either didn't read or read but don't understand. Simply put, as a result of the IMF loan and removal of fuel subsidies, investors see that the country will be able to lay it's debt and are willing to invest or allow their investment remain in Nigeria..

Portfolio investors mainly Bonds and creditors, not Foreign Direct Investments

“If secured, multilateral loans would cover around 21% of the general government deficit in 2020,” Fitch Ratings said in a report published Monday.

Yet investors seem unconcerned. The cost of protecting Nigeria’s debt against default has dropped by 520 basis points since March 18, an indication that creditors are feeling more secure holding the country’s debt.

.

Issokay

They are welcome.

AroleOduduwa2:
Paid article, how can investor rush to a country with a messed up a Forex. They should stop wasting our money on PR

Smh

Because Nigerian currency is only just approximating its true value

Nigeria is never doing too bad only for the bad leadership who does not know how to run an economy base on multi disciplinary approach standpoint except from a corrupt oriented mind.
Nigeria needs change.

Our economy wast hit by any yeye Qupid 1 nine birus,

nah polithiefians greediness hit am

I don't understand this obsession with defending the naira.

Industrialisation has nothing to do with a low exchange rate if the fundamentals like electricity is right.

In fact, the higher the exchange rate, the favourable the country is to industrialisation if electricity and skilled man power is available.

$1 = 23k Vietnam Dong
Vietnamese exports in 2019= $264 Billion

$1=1,230 Korean won
Korean exports in 2019= $542 Billion

Slawormir:
Damnnnnn niggarrr
Isoright

investment is a future.
These investors know that the future is bright for Nigerians
And Nigeria is gonna be bright in the future

No matter what we are passing through right now
Nigeria Will be great
There is always light and fire at the extreme end of our weed

Oh! Sorry! I mean
There is always light at the end of the tunnel
We can't give up at this moment.
God bless Nigeria
God Bless

Bullshyte.

Nothing to jubilate about here.

The headline is completely misleading.
The so -called investors are not investing in any productive sectors of the Nigerian economy.
They are Debt Investors, who buy Nigeria's junk bonds at discount.
Basically, they are called Vulture investors, who , like Vultures, pick out meat from dead carcasses.

Yenefer:


Source: https://www.bloomberg.com/amp/news/articles/2020-05-21/record-deficit-fails-to-dent-nigerian-bonds-outperforming-africa?__twitter_impression=true

They make it sound like taking bogus loans to corner to one side of the country was a good thing in the first place.

We are lucky this pandemic came and reset their brains. It would have been a case of spending tomorrows money today.

Some people have put money in so they need to talk it up(pump) for the mugus to come in before they dump
Only a fool will put money anywhere without doing homework himself

tempest01:


They make it sound like taking bogus loans to corner to one side of the country was a good thing in the first place.

We are lucky this pandemic came and reset their brains. It would have been a case of spending tomorrows money today.

Yep making good out of bad situation

Yenefer:


Source: https://www.bloomberg.com/amp/news/articles/2020-05-21/record-deficit-fails-to-dent-nigerian-bonds-outperforming-africa?__twitter_impression=true

Rushing into this shithole for what exactly?

In fact the Asian tigers have what you called useless currencies when compared with the dollar.

But it is deliberate.

Industrialisation is high, imports are almost non existent, and Standard of living is high.

Kingrefreshed:


Rushing into this shithole for what exactly?

Are u asking me

Yenefer:


Source: https://www.bloomberg.com/amp/news/articles/2020-05-21/record-deficit-fails-to-dent-nigerian-bonds-outperforming-africa?__twitter_impression=true

yenefer rest all nA audio

RTSC:
I don't understand this obsession with defending the naira.

Industrialisation has nothing to do with a low exchange rate if the fundamentals like electricity is right.

In fact, the higher the exchange rate, the favourable the country is to industrialisation if electricity and skilled man power is available.

$1 = 23k Vietnam Dong
Vietnamese exports in 2019= $264 Billion

$1=1,230 Korean won
Korean exports in 2019= $542 Billion

There is no obsession.

The exchange rate is not the issue that is just a number but the rate at which it changes
Too rapid change or instability deters investors in the real sector because they cannot plan.

Also it means imported inflationary our manufacturing is next to zero.

If we had substantial industrial capacity like those countries you mentioned it would be different

$1 =1230 South Korean won.

This is the same South Korea that has Hyundai, LG and Samsung and export heavily.

$1=500 naira.

Both nobody will say Nigeria is half as developed as South Korea.

The CBN should focus on the fundamental.

Electricity, infrastructure.

Once that happens, manufacturing investments will pour in and it is the FG that will even look to artificially weaken the naira themselves, just to favour more exports.

Buhari has relied on deficit financing from day one. No matter the price of oil

Imagine from near 10% of GDP to near 40% debt,
Over 90% of all fx earnings to be used for debt servicing (gbese re!), nearly zero left for infrastructure after paying salaries. So zero your mind for any progress from Buhari. Any road construction etc you see going on will likely be on credit (to the Chinese especially)

Leaving a very scattered economy behind. Incase you think it's price of oil, it's not. He has ALWAYS borrowed when he shouldn't, no matter the price of oil

To understand financing, when a new govts borrowing is not commensurate to the devpt going on, it's simple. They are using it as opportunity to steal fx. Cos you can't steal naira and store abroad. But you can fx. Oil revenue is not enough to steal so add external borrowing. You print the naira here and cause devaluation and steal the fx because it didn't come into the economy

bmdmixer:
yenefer rest all nA audio

Why do you hate your mother land, if because of bad leaders then u need to think again

Slawormir:
Damnnnnn niggarrr
Isoright

investment is a future.
These investors know that the future is bright for Nigerians
And Nigeria is gonna be bright in the future

No matter what we are passing through right now
Nigeria Will be great
There is always light and fire at the extreme end of our weed

Oh! Sorry! I mean
There is always light at the end of the tunnel
We can't give up at this moment.
God bless Nigeria

Puff, puff, pass bro.