The CBN says the available records show that there was an increase in FDI into Nigeria during the 2018 financial period. This is in contrast to the World Investment Report 2019, recently released by UNCTAD on FDI to African countries. According to the regulator, it was not apprised of the methodology used in arriving at the figures in the report, which pointed to a decrease of over 40 percent in FDI inflows to Nigeria in 2018. Total capital inflows to the country, according to the CBN, stood at $19.07 billion in 2018, out of which FDI accounted for $7.78 billion. It put the total capital flows to Nigeria, from January to May 2019 at $14.2 billion, of which FDI accounted for $2.87 billion, representing 20.18 percent of the total amount. Contrary to the UNCTAD report, CBN said the country continues to enjoy steady capital flows due to the prevailing stable macroeconomic environment and sustained investors’ confidence in the economy.
Airtel Africa has announced intentions to float its shares simultaneously on the Nigerian Stock Exchange and London Stock Exchange. The subsidiary of India’s Bharti Airtel said that it plans to list its shares on the LSE for a set share price of the range 80 to 100 pence per share in its intended Initial Public Offering (IPO). The telecoms group is pushing ahead for a target valuation of up to £3.6 billion (₦1.65 trillion), indicating an increase from £3.007 billion to £3.623 billion, excluding any option of over-allotment. Nigeria’s second largest telecom firm, according to Segun Ogunsanya, MD, Airtel Networks, also confirmed the intention to list on the NSE as it considers various options to further upscale its business. The mobile operator had hinted that conditional dealings in its shares are expected to commence on or around 28 June, with the final pricing announcement being made same day. Airtel operates a mobile money business and a telecoms business in 14 African countries. Listing on the both the NSE and the LSE will see Airtel float new shares of between 595.2 million to 744 million and raise a total £595 million, which is inclusive of an over-allotment option. At least 25 percent of the stock is expected to float freely immediately following the IPO.
The Debt Management Office has no plans to return to the Eurobond market this year, after a sixth outing in November raised $2.86 billion. According to the DG of the debt office, Patience Oniha, the government would not consider a U.S. dollar-denominated For 2019 as the Foreign borrowing for the 2019 budget is set at ₦802 billion ($2.7 billion). The country approved a three-year plan in 2016 to borrow more from abroad. It wants 40 percent of its loans to come from offshore sources to lower borrowing costs and help to fund record-high budgets. Last week, the debt office said it would list five FGN Eurobonds on the Nigerian Stock Exchange last Friday. The bonds include, the 7.143 percent, 12-year, $1.25 billion FGN Eurobond; the 7.696 percent, 20-year, $1.25 billion FGN Eurobond; the 7.625 percent, seven-year, $1.118 billion FGN Eurobond; the 8.747 percent, 12-year, $1 billion FGN Eurobond, and the 9.248 percent, 30-year, $0.75 billion FGN Eurobond. The government has said it wanted to tap concessionary long-term loans to finance its 2019 budget in addition to borrowing at home. In 2017, it sold $3 billion in Eurobonds, part of which was used to fund its budget that year. It then followed with a $2.5 billion Eurobond sale in 2018 to refinance local currency bonds at a lower cost.
Kebbi state governor, Atiku Bagudu, has acknowledged the recipient of about ₦2 trillion by the 36 states of the federation from in the form of restructuring of loans, refunds on federal roads, refund for Paris Club among others. Bagudu said this after a private meeting between President Buhari and APC governors on Tuesday. According to Bagudu, the funds have helped encouraged economic activities in the states, payment of salaries, pensions, gratuities and overall investment by infrastructure spending. Last month, the Federation Account Allocation Committee said it distributed the sum of ₦616.19 billion from the federation account to the three tiers of government as revenue allocation for the month of April, where the states received the sum of ₦168.05 billion, 26.72 percent of the statutory revenue.