Foreign investors pull out N1.64tr from stock market over insecurity
The prevailing insecurity in the country and other macroeconomic challenges have continued to hamper investment in the stock market, with foreign investors pulling out N1.64 trillion from the market in three years.
In 2018, N642.65 billion in foreign portfolio investment outflow was recorded, while foreign investors withdrew N523.42 billion and N481.93 billion during the corresponding period in 2019 and 2020.
Latest data from the Nigerian Exchange Limited (NGX) show that foreign investors withdrew N30.79 billion in January, N39.05 billion in February and N20.28 billion in March 2021, while domestic investors pulled out N86.35 billion in January, N69.28 billion in February and N93.31 billion during the same period.
Foreign inflow within the same period in 2018, 2019 and 2020 stood at N576.45 billion, N419.13 billion and N247.27 billion, totalling N1.24 trillion.
This huge outflow of capital has led to concerns about impact on the economy, as operators predict the precarious state of the stock market could worsen if factors impeding the nation’s economic growth were not tackled soon. Operators said that given the increasing level of insecurity, kidnapping, recurrent farmers-herders clashes, unemployment, weak naira and GDP growth, rising inflation and dwindling revenue, government has to evolve new strategies to stop investment outflows.
Cargo handling business records boom in Q1 2021, firms make N2.63 billion
Cargo handling businesses recorded a boom in the first quarter of 2021, as aviation handling companies made N2.63 billion (import and export) against N2.53 billion recorded in the same period in 2020.
This was extracted from the Q1 2021 financials of Nigerian Aviation Handling Company Plc and Skyway Aviation Handling Company Plc (major Aviation handling firms in Nigeria).
For instance, SAHCO, the Aviation handling firm, made N1.455 billion from its cargo handling services, up from the N1.324 billion recorded in Q1 2020.
Read Also: How insecurity cost Nigeria’s economy $10.3bn in 2020
Cargo handling in SAHCO Plc also includes income from cargo documentation services rendered to airlines, which include import and export cargo facilitation through Nigeria’s biggest network of customers, bonded warehouses in Lagos, Kano, Abuja, and Port-Harcourt.
In the case of NAHCO Aviance Plc, it made N1.215 billion from import and export cargo handling within three months. This is against the N1.191 billion recorded in the same period in 2020.
Indian COVID-19 strain surfaces in Nigeria, diseases centre alerts NCDC
The COVID-19 strain, which is currently ravaging India, has been found in Nigeria.
The strain was detected by the African Centre of Excellence for Genomics of Infectious Diseases in the Redeemers University, Ede, Osun State nearly three weeks ago and has been communicated to the Nigeria Centre for Disease Control.
Recall that the Federal Government on Monday restricted gatherings at worship centres and banned nightclubs following reports that the devastating COVID-19 strain in South Africa had spread to 23 other countries.
Real estate, power, 2 other sectors attract $8.35 billion in three months
The real estate, power, manufacturing and agriculture sectors received $8.35 billion worth of investment in the first quarter of 2021, as they made the top 4 investment destinations.
This is a complete turn from what was witnessed in the same period in 2020 when transportation (42%), information and communication (33%), mining and quarrying (21%), and agriculture (4%) took the lead.
This was disclosed by the Nigerian Investment Promotion Commission (NIPC) in its Report of Investment Announcements, Q1 2021.
It stated that the manufacturing sector received the largest investment, accounting for 60% ($5.08 billion), followed by construction ($2.90 billion), electricity ($0.26 billion), and agriculture ($0.11 billion).
FG proposes retirement age of 65 years for doctors
The Nigerian Government has announced that it is proposing to increase the retirement age to 65 years for normal health workers and doctors, and 70 years for consultants, in a bid to keep health workers in Nigeria.
This was disclosed by the Minister of Labour, Chris Ngige, in a meeting between the Presidential Committee on Salaries (PSC), relevant Federal Government stakeholders, Health Sector Professional Associations, and Trade Unions on Tuesday in Abuja.
“We have taken their proposal. The government side will firm up its own proposal and we are reconvening June 1, so that we can have an agreed hazard allowance for health workers in Nigeria,” Ngige said.
The Minister added that health workers could be retained for a longer period, citing a proposed retirement age of 65 for health workers and doctors and 70 years for consultants.
He revealed that the FG had called back retired health workers during the pandemic, and delayed retirement age by six months for health workers to fight the COVID-19 pandemic.
