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Recession: Investment inflow shrinks by N642bn

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By Joseph Inokotong

Nigeria’s economy recorded a total decline of $2.1bn in investment inflow in the first 12 months of the administration of President Muhammadu Buhari. The amount when converted based on the N305.5 per dollar official exchange rate of the Central Bank of Nigeria, translates to about N642bn.

Investigations showed that since July 2015, the country had been experiencing persistent decline in the value of direct and portfolio investments.

 

An analysis of the capital importation report obtained from the National Bureau of Statistics revealed that the country attracted a total investment inflow of $2.75bn in the third quarter of 2015.

 

However, owing to the harsh operating environment coupled with exchange rate uncertainties, the inflow had declined by $2.1bn to $647.1m at the end of June this year.

The report stated that all the three major components of investment such as Foreign Direct Investment, portfolio investment and other investments recorded huge declines in the one-year period.

 

In terms of FDI inflow, an analysis of the report showed that the economy attracted the sum of $717.72m as of the third quarter of 2015.

 

The inflow, according to the report, dropped to $133.02m at the end of the second quarter of this year.

 

For portfolio investment, which is made up of equity, bonds and money market instruments, the report stated that the sum of $1.09bn was invested in the third quarter of last year.

 

The $1.09bn investment, it added, dropped by $673.68m to $245.32m at the end of June this year.

 

For other investments made up of trade credits, loans, currency deposits and other claims, the report stated that the sum of $1.02bn was invested in the economy as of the third quarter of last year as against $268.77m in June this year.

 

The NBS attributed the decline in investment to the harsh economic climate, stating that the investment attracted within the first six months of this year was the lowest in Nigeria’s history.

 

It said, “The continuing decline in the value of capital imported into the economy is symptomatic of the difficult period that the Nigerian economy is going through.

“The second quarter saw the economy enter into the first recession during the rebased period, according to the technical definition of two consecutive periods of decline.

“This may suggest less profitable opportunities for investment. In addition, in the second quarter, there was considerable uncertainty surrounding future exchange rate policy, which may have deterred investors.”

 

Commenting on the drop in investment inflows into the country, financial analysts said the current fiscal and monetary policies of the government were not friendly to investors.

The President, Abuja Chamber of Commerce and Industry, Mr. Tony Ejinkeonye, said that a lot of investors were unwilling to bring in their funds due to the tough economic environment in the country.

 

He said the tough operating environment had led to the closure of so many companies in Nigeria, adding that there was a need for the government to address the structural challenges, which had made the operating environment hostile.

 

He listed some of the areas that were scaring away investors to include uncertainty in the foreign exchange market, hostile business climate, infrastructure deficit and the absence of adequate incentives to attract investors into key sectors of the economy.

Ejinkeonye said that what the country needed currently was for the government to implement a well-articulated industrial plan.

 

This, according to him, is needed in order to begin a new era for industrial development in Nigeria.

 

“The Abuja Chamber of Commerce and Industry has made it known to the government that the issue of power and energy must be urgently addressed in order to promote industry, boost productivity, and attract both foreign and local direct investments.

 

“Power and energy sufficiency is the fulcrum of any meaningful development of the economy. This is the time for us as a nation to start implementing consistent policies geared towards attracting investments that will revitalise our industries”, he said.

 

On his part, he Registrar, Chartered Institute of Finance and Control of Nigeria, Mr. Godwin Eohoi, advised the government to look inwards by encouraging the patronage of locally-produced goods to boost investment activities.

He said, “We have to look inwards to reflate the economy by ensuring the encouragement of local content through patronage of locally-made goods. This will help stimulate production by local industries and thus boost investment.

 

“The government should come up with policies that will encourage investors to set up plants in Nigeria for production rather than spending money importing all these items that are depleting our foreign exchange reserves.

 

“The government should also reduce the interest rate to make funds available for investment in critical sectors of the economy such as agriculture, manufacturing and others”, he added.

 

Eohoi added that since foreign investors were shying away from investing in the country, Nigeria should look inwards and encourage local industries by reducing interest rate and making foreign exchange available to them to continue production.

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2027: THE MANY WARS IN PARTIES

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☆ ADC, PDP, NDC, LP Tacle APC Amidst Internal Wranglings.
☆ Party primaries trigger godfather vs godson clashes.
By: Our Special Correspondent.

Election periods always make Nigeria a political melting pot. Tensions, intrigues, violence, manipulations and grandstanding have been the order.
2027 may not be an exception, as already, the polity is heating up and political players are up in arms.
Between political parties, battle lines are being drawn.
It is no longer news that, President Bola Ahmed Tinubu of the APC, former Vice President Atiku Abubakar of the ADC and former Anambra state governor, Peter Obi of the NDC have secured the presidential tickets for their various political parties, ahead of the 2027 elections.
While Nigerians await the outcome of the presidential primaries for the other parties, it is apparent that the leading dramatis personae of the 2023 presidential election debacle, are set to square it out again in 2027.
But, while most, if not all the opposition political parties are emershed in multi-dimenssional crisis, the stage seems set for dirtier political schemings, in the quest to wrestle power from the ruling APC.
With the apparent collapse of the much talked about coalition, frontline candidates may again go into the election as a divided house, as the parties are further polarized by the attendant crisis arising from the just concluded primaries.
The ruling APC, also faced with similar crisis following the primaries. The primaries of all the parties seem to have sparked internal wranglings
across Edo, Delta, Lagos, Oyo, Kano, Rivers and other states. In most states, the primaries for governorship, Senate and House of Representatives seats have triggered deepening crises between governors, former governors, senators and entrenched party blocs.
While one may regard such disagrerments as normal and could be resolved before the main election, the disagreement between President Tinubu and the opposition may linger.

The President is fighting hard to ward of attacks over his failed promises which were made in 2023, as campaign issues.
Similarlly, the issue of insecurity, fuel subsidy, pol8cy summersault, and general cost of living have been brought to the front burner, in political discourse.
Tinubu told Nigerians on Friday that subsidy removal and forex reforms have revived investor confidence, lifted market cap to 250,000 points, and drawn new oil and gas investment. He also said security operations have “intensified” against bandits, separatists and insurgents.
But critics insist that Tinubu’s camp is working to cripple opposition parties reminescent of the Abacha-era dark days.
In apparent move to realign forces and reshape 2027, NDC’s Peter Obi has announced Rabiu Musa Kwankwaso as his running mate.
Obi told a gathering brfore naming Kwankwaso as his running mate, that, the Vice President office under him, will be “an active partner, not ceremonial”. The NDC held a special convention Saturday to affirm Obi as flagbearer where he promised 10,000MW electricity generation. Labour Party has also presented Dr. Chibuzo Okereke as its presidential candidate, a lowly rated personality.
At the sub-national level, political players are pulling the strings from different end. Most governors are being accused of imposing their cronies as governorship, senate, House of Representatives and House of Assembly candidates.
The national leadership of the APC has been struggling hard to adress the widespread crisis occassioned by the primaries. The APC, in Lagos amidst the internal wars, has picked Princess Damilola Sonayon-James as running mate to Lagos governorship candidate Dr. Obafemi Hamzat. Both are seen as stooges of the governor and by extenssion the President.
In Rivers, FCT Minister Nyesom Wike has vowed that, the APC “Rainbow Coalition” will agree on one governorship candidate and that ADC’s Atiku won’t get 10% of Rivers votes. Though the candidate has not yet been named.
Wike also declared “Rivers has no option but to back Tinubu”.
In several states, there have been massive decampments from the APC in particular, because of unfavourable outcomes of the primaries.
All these point to a turbulent outing for the APC, even as the ruling party.
As for the opposition parties, they all have been emasculated, and may not be able to pose much threat to the ruling APC.
While the political wranglings were going on the most serious threat to the APC remains the rising concern over insecurity. The issue seem to have ignited anger across the country, with Federal Workers Forum threatening an indefinite nationwide strike over rising insecurity and unresolved wages. SERAP, has meanwhile urged the UN Secretary-General to invoke Article 99 over Nigeria’s “escalating insecurity—mass abductions, killings, displacements”.

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“Nigeria Is in a Hurry to Celebrate Victory Over Enemies of the State,” Says Tinubu as He Decorates New Service Chiefs

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By: Fabian Apechihin

President Bola Ahmed Tinubu has urged the newly appointed service chiefs to discharge their duties with utmost dedication and renewed commitment, declaring that “Nigeria is in a hurry to celebrate victory over enemies of the state.”

The President made this statement on Thursday during the decoration ceremony of the new service chiefs with their ranks at the Aso Rock Presidential Villa in Abuja.

Those decorated were General Olufemi Oluyede as Chief of Defence Staff, Lieutenant-General Wahidi Shaibu as Chief of Army Staff, Air Marshal Kennedy Aneke as Chief of Air Staff, and Vice Admiral Idi Abbas as Chief of Naval Staff.

The ceremony was attended by Vice President Kashim Shettima and the spouses of the newly promoted officers, who joined the President in performing the decorations.

In his address, Tinubu underscored the central role of security in fostering national development and reaffirmed his administration’s commitment to protecting the lives and property of all Nigerians.

“Security is an essential element without which everything else becomes meaningless,” the President stated. “There can be no sustainable development if this fundamental need is not met. Our people and our nation must remain secure to enjoy the dividends of governance.”

The elevation and decoration of the new military chiefs followed their confirmation by the National Assembly on Wednesday, after a closed-door screening session with lawmakers.

It will be recalled that, in a recent overhaul of the nation’s military hierarchy, President Tinubu appointed:

  • Lieutenant General Olufemi Olatubosun Oluyede as Chief of Defence Staff,
  • Major General Waidi Shaibu as Chief of Army Staff,
  • Rear Admiral Idi Abbas as Chief of Naval Staff,
  • Air Vice Marshal Sunday Aneke as Chief of Air Staff, and
  • Major General Emmanuel Undiandeye retained as Chief of Defence Intelligence.

The new appointments mark a strategic restructuring of Nigeria’s security leadership aimed at strengthening the fight against insurgency, banditry, and other threats to national stability.

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FG Dismisses Coup Rumour, Reaffirms Confidence in Nigerian Military

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By: Fabian Apechihin

The Federal Government has dismissed widespread rumours of an alleged military coup plot against President Bola Tinubu, declaring its full confidence in the loyalty and professionalism of the Nigerian Armed Forces.

Minister of Information and National Orientation, Mohammed Idris, made this known in an interview with The Punch on Sunday, insisting that the administration has “no reason whatsoever” to doubt the assurances given by the Defence Headquarters, which had earlier denied reports linking the detention of 16 military officers to a coup attempt.

“The Federal Government has no reason to doubt the military on what it has said,” Idris stated.
“We believe the Armed Forces of Nigeria remain committed to protecting the nation’s territorial integrity and strengthening the fight against insecurity. The government commends their sacrifice and will continue to support them in safeguarding the country.”

The minister’s remarks came a day after the Director of Defence Information, Brigadier General Tukur Gusau, firmly debunked a report by Sahara Reporters alleging that the detention of 16 officers was connected to a failed coup plot and the cancellation of the 65th Independence Day parade.

Gusau described the publication as “false, mischievous, and deliberately aimed at creating unnecessary tension and public distrust.”

He clarified that the cancellation of the October 1 Independence Day parade was a purely administrative decision — taken to allow President Tinubu attend a key bilateral meeting abroad and to enable military units sustain ongoing counterinsurgency operations nationwide.

On the issue of the detained officers, Gusau said their case was “an internal disciplinary process” and not related to any political matter.

“The investigation involving the 16 officers is routine, aimed at upholding discipline and professionalism within the ranks,” he explained. “An investigative panel has been constituted, and its findings will be made public in due course.”

Reaffirming the military’s constitutional role and unwavering commitment to civilian rule, Gusau stressed emphatically:

“Democracy is forever.”

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