Economy

BlackRock’s iShares Worth $400 Million Issues Notice to Exit Nigeria

Published

3 months ago

June 14, 2024

BlackRock, one of the world’s leading asset managers, has announced its decision to liquidate its iShares exchange-traded funds (ETFs) valued at $400 million in Nigeria and Kenya. This decision comes amidst an unprofitable business environment exacerbated by challenges in currency repatriation and the significant devaluation of the naira.

BlackRock’s iShares Frontiers, which has invested substantial amounts in emerging market equities in Nigeria and Kenya, is set to cease trading by March 31, 2025. The extended liquidation period is due to the complex nature of currency conversions, particularly the naira, which poses a significant challenge in the timely liquidation of the fund.

“The board of directors of the company approved a proposal to liquidate the fund. In light of persistent liquidity challenges in certain frontier markets, including among other things, delays or limits on repatriation of local currency, the board determined that it is in the best interest of the fund and its shareholders for the fund to liquidate,” stated iShares in a recent announcement.

The devaluation of the naira and liquidity constraints have made it difficult for BlackRock to repatriate profits, impacting the timing and process of the fund’s liquidation. These issues have prompted the company to opt for an extended liquidation period, with the final cessation of trading scheduled for no earlier than August 12, 2024.

The planned exit of BlackRock’s iShares marks another significant setback for Nigeria’s economic landscape, reflecting the ongoing challenges faced by the country’s business environment. This move adds to the list of multinational companies exiting Nigeria amid economic difficulties.Guinness Leaves Nigeria After 75 Years as Tinubu’s inflation wreaks economic havoc

Already, BlackRock has liquidated $5.2 million of its shares in Kenyan companies like Safaricom ($2.8 million), Equity Group ($1.5 million), and KCB Group ($885,000), which are listed on the Nairobi Securities Exchange (NSE).

The departure of such a significant player in the financial market underscores the deteriorating business conditions in Nigeria. This development comes as President Bola Tinubu’s administration, which is just over a year old, struggles with the nation’s declining economic fortunes.

The economic outlook for Nigeria has been grim, with several high-profile multinational companies deciding to exit or scale down their operations. Diageo, the parent company of Guinness Nigeria, recently announced the sale of its controlling shares to Tolaram after posting a loss of over ₦61 billion for the financial year ending March 31. Similarly, UK pharmaceutical giant GlaxoSmithKline and tech behemoth Microsoft have also ceased their operations in Nigeria.

BlackRock’s decision to liquidate its iShares ETFs in Nigeria and Kenya highlights the severe challenges faced by businesses operating in these frontier markets. Currency devaluation, liquidity issues, and difficulties in repatriating profits have created an untenable situation for many international investors. As Nigeria grapples with these economic challenges, the government will need to address these fundamental issues to restore confidence and attract foreign investment. The exit of major multinational companies not only impacts the market but also signals the urgent need for economic reforms to stabilize the business environment and encourage investment.

Economy

SEE NAIRA Rates Against The USD, GBP, EURO Today September 20, 2024

Published

2 hours ago

September 20, 2024

Naijablitznews

By Mario Deepromoter

The USD was traded at ₦ at the beginning of this September on Monday, September 2, 2024. As at today with USD being traded at ₦1,665 we see a % for United States Dollar to Naira exchange rate for this month.

On this page, we are primarily focusing on the Black Market Dollar To Naira Exchange Rate Today, the USD to Naira currency pair are the most traded currency in the FX market.

Black Market Exchange Rates
Buying Rate
Selling Rate
Dollar to Naira 1665 1657
Pounds to Naira 2227 2200
Euro to Naira 1839 1815
Canadian Dollar to Naira 1221 1213
Rand to Naira 52 43
Dirham to Naira ‎0 0
Yuan to Naira 62 62
G.Cedi to Nair 70 50
CFA F. (XOF) To Naira 0.83 0.81
CFA F. (XAF)

Having full knowledge how much USD to NGN black market exchange rate today will give you a better opportunity to plan and make informed decisions.

Economy

SEC wants govt agencies to list on NGX

Published

8 hours ago

September 20, 2024

Kayode Sanni-Arewa

The Securities and Exchange Commission (SEC) says it will encourage government agencies and state owned enterprises to list on the Nigerian Exchange Ltd. (NGX).

Dr Emomotimi Agama, the Director-General (D-G) of SEC in an interview with newsmen in Abuja on Thursday, said the listing of the companies on the NGX would guarantee democratisation of their operations.

Agama said the listing would also guarantee inclusiveness and wealth creation for citizens.

He said the Commission would provide incentives that would encourage as much state owned enterprises to list.

According to him, inclusivity is very critical, because in it, you have ownership and so we all build our industries and the country together.

The D-G said the SEC was also working towards inclusion via technology, adding that the use of technology would make the capital market more attractive, especially to the younger generation.

“That is why we encourage apps, we encourage fintech tools, and that is why we supported the inauguration of the electronic offering platform at the Nigerian exchange.

”We encourage everyone who wants to participate and is qualified to participate in this process, to turn around the way people see investing.

“We want investors to have a beautiful experience, to make it so easy for them that each time they feel like investing, it brings happiness to them.

”We will continue to do that through encouragement of technology, through education,” Agama said.

He said the Commission would ensure that bottlenecks usually experienced in process of investing in the market were removed to rejuvenate the country’s capital market.

(NAN)

Economy

SEE Naira To Dollar Exchange Rate In Black Market Today – 19th September 2024

Published

1 day ago

September 19, 2024

Naijablitznews

By Mario Deepromoter

The Dollar to Naira exchange rate in the black market, also known as the parallel market (Aboki fx)? Here’s the exchange rate for today, 18th September 2024, based on information from Bureau De Change (BDC) operators

How much is a dollar to naira today in the black market?

As of today, in Lagos Parallel Market (Black Market), the exchange rate for buying a dollar is N1655, while selling is at N1660 on Wednesday, 18th September 2024.

It’s important to note that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market) and advises individuals to approach their banks for official Forex transactions.

### Dollar to Naira Black Market Rate Today:
– **Buying Rate**: N1655
– **Selling Rate**: N1660

### Dollar to Naira CBN Rate Today:
– **Buying Rate**: N1651
– **Selling Rate**: N1652

*Note*: These rates may vary slightly based on location and the specific Bureau De Change operator.

### CBN’s Outlook on External Reserves and Economy:

The Central Bank of Nigeria (CBN) has raised concerns over factors that may hinder the growth of Nigeria’s external reserves in 2024/2025. The removal of fuel subsidies, rising import costs, and increased debt servicing are cited as potential threats to the reserves.

This was detailed in the CBN’s Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for the fiscal years 2024/2025. Despite these challenges, the CBN projects overall economic growth for Nigeria, driven by policies supporting agriculture, oil sector reforms, and foreign exchange market adjustments.

“The outlook for Nigeria’s external sector in 2024/2025 is optimistic,” the CBN noted, with expectations of favorable trade terms due to higher oil prices and improved domestic production. However, the bank also highlighted risks such as lower oil revenues, increased import bills, and rising external debt obligations.