Election Fallout Scare Investors

A repeat of 2015 when investors left the country due to delays in economic policies may occur in Nigeria again if concrete actions are not taken.

Poor performance of Nigeria’s most liquid 10-year bond which fell by 40 basis point to 13.9 percent on Thursday is an indication of the final outcome of the proposed litigations due to the announced election result could affect the nations earning. 

Source: nta.ng

Yields on the benchmark 2028 paper, which is most traded, have been falling with investors locking in attractive rates. The bond dropped to 14.3 percent in the previous day’s trade, its lowest in six months, from 14.5 percent the day before and 14.75 percent the day before Saturday’s election.

This follows Wednesday’s trading, the Naira  gained N1 to exchange at N358 to the dollar at the parallel market in Lagos, stronger than N359 it traded on Tuesday.

The Pound Sterling and the Euro closed at N470 and N408, respectively. Trading at the Bureau De Change (BDC) segment saw the Naira closing at N360 to the dollar, while the Pound Sterling and the Euro traded at N470 and N408, respectively.

At the investors window, the Naira exchanged at N361.18 to the dollar, while market turnover stood at 1259.53 million dollars.

Nigerians trade with the international community but a recent deal with China would enable some trade be conducted in Renminbi, at least in direct dealings with China.