Economy

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

Published

6 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 Black Market Dollar (USD) To Naira (NGN) Rate As Of December 18, 2024

Published

17 hours ago

December 18, 2024

Naijablitznews

Black Market Dollar (USD) To Naira (NGN) Rate As Of December 18, 2024Wondering about the current Dollar to Naira exchange rate at the black market, also known as the parallel market? Here’s the latest update for December 17, 2024, along with the rates for buying and selling US dollars in the Nigerian black market.

How Much is a Dollar to Naira Today in the Black Market?

As of Tuesday, December 17, 2024, the exchange rate at the Lagos parallel market (Black Market) stands as follows:

•Buying Rate: N1665

•Selling Rate: N1675

These rates reflect what buyers and sellers are willing to trade US dollars for in the black market. However, please keep in mind that these rates are subject to change and can fluctuate based on supply and demand.

Dollar to Naira Black Market Rate – December 17, 2024

•Buying Rate: N1665

•Selling Rate: N1675

Dollar to Naira CBN Rate Today

The official Central Bank of Nigeria (CBN) rates differ from those in the black market. For today, the CBN exchange rate for the Dollar to Naira is:

•Highest Rate: N1555

•Lowest Rate: N1520

It’s important to note that the Central Bank of Nigeria (CBN) does not endorse the black market exchange rate. The CBN encourages individuals to conduct their foreign exchange transactions through approved channels, such as commercial banks and licensed Bureau De Change (BDC) operators.

Please be aware that the exchange rates for buying or selling foreign currency may differ from the values listed here, as they can vary throughout the day. Always confirm rates with your local dealers before making any transactions.

Economy

SEE Today’s Black Market Dollar (USD) To Naira (NGN) Exchange Rate – 16th December 2024

Published

3 days ago

December 16, 2024

Naijablitznews

The exchange rate for the Dollar to Naira in the black market (parallel market), also known as the “Aboki FX” rate, is as follows for 15th December 2024:

•Buying Rate: ₦1,660

•Selling Rate: ₦1,670

This rate reflects the price at which traders in the Lagos parallel market (black market) are buying and selling dollars, as reported by sources at Bureau De Change (BDC).

It is important to note that the Central Bank of Nigeria (CBN) does not officially recognize the parallel market and encourages individuals to conduct foreign exchange transactions through authorized banks.

Central Bank of Nigeria (CBN) Rate for Dollar to Naira

•Highest Rate: ₦1,549

•Lowest Rate: ₦1,520

The rates you receive may vary slightly from those mentioned here, as forex prices fluctuate based on market conditions.

CBN Takes Tough Action on New Naira Notes

In another development, the Central Bank of Nigeria (CBN) has imposed a ₦150 million fine on commercial banks found guilty of supplying newly minted naira notes to currency hawkers. This move is part of the CBN’s ongoing efforts to prevent the illegal trade of naira notes and ensure proper circulation to the public.

The penalty comes as the CBN reaffirmed the continued validity of the old ₦1,000, ₦500, and ₦200 notes following a Supreme Court ruling on November 29, 2023. The CBN also warned against the hoarding of cash, which disrupts the smooth flow of money in the economy.

Economy

NNPCL Crashes Petrol Price, See New Petrol Price

Published

4 days ago

December 15, 2024

Kayode Sanni-Arewa

The Nigerian National Petroleum Company Limited, NNPCL, has reduced the price of Premium Motor Spirit (petrol) across its retail outlets in the Federal Capital Territory, Abuja.

According to a reporter from Dailypost who visited NNPCL retail outlets observed that the petrol pump price was reduced from N1,060 to N1,040 per litre. This represents a reduction of N20.

“The price was reduced to N1,040 per litre from N1,060 on Saturday morning,” a filling station attendant at the NNPCL retail outlet along Kubwa expressway said.

A motorist, Ezekiel Njoku, confirmed the development.

“The reduction of N20 is significant. We need further fuel price reductions in the coming days,” he said.

With the price cut, Nigerians will now buy petrol at N1,040 per litre at NNPCL filling stations, while prices remain within N1,115 per litre at other filling stations, depending on the location.

This development comes barely three weeks after the state-owned Port Harcourt refinery began producing petroleum products in November 2024.

The former Managing Director of NNPCL Retail, Prof. Billy Okoye, had earlier speculated that a fuel price reduction was imminent with the commencement of production at the Port Harcourt refinery.

Oil marketers, the Independent Petroleum Marketers Association of Nigeria, IPMAN, and the Petroleum Products Retail Outlets Owners Association, PETROAN, had also hinted that the deregulation of the sector—coupled with the operations of Dangote and Port Harcourt refineries—would lead to a drop in petrol prices.