Skip to main content

IPO of Nigerian Banks - Nigerians with Means Need to Invest As Patriotic Citizens.

Aliko Dangote's wealth has diminished by more than 66% in the last decade because of his choice to invest in Nigeria where the currency has seen significant depreciation in value and the economy has not been so stable, yet he remains. He has not given up on the nation... this is worth considering as a Nigerian in the diaspora who wants a better country. Especially in the wake of the re-capitalization of the Nigerian banking sector.
 
The Nigerian Banks under the directive of CBN have been mandated to increase their capital base and some of them currently have public offers. I did a due diligence to look at the strength of some of these banks, they have done so well over the years. Huge dividends were paid out year after year and their shares have seen significant appreciation over time. Some of their indices show that they are on a path of growth.
 
As a Nigerian in the diaspora, I have concerns about investing in Nigeria. The number one concern is the devaluation of the naira. No dividend or share value appreciation can override the colossal depreciation of the naira in the last 10 years, especially in the last 15 months. And it appears the regulators have not been able to find a solution to the problem. The reason is that it boils down to corruption that has dogged the nation from the beginning and those who benefit the most and the ones that are supposed to have oversight roles, the political office holders.
 
Second, the economic landscape in Nigeria is so precarious now that investors are pulling out their funds. However, the banking sector remains one of the thriving sectors in the nation, especially those that have re-invented themselves in a way that puts their shareholders and customers first. GTB, Access, Zenith, UBA, First, and maybe Fidelity...
 
I have asked myself as a Nigerian, if I choose not to invest, who will. I see this as an opportunity for me to make a small change. Without access to credit facilities, the economy will not grow. Our banks are the custodians of credit and they help the economy grow. So, I urge Nigerians in the diaspora to invest in some of these banks not considering so much of the return but the good they will do if they help provide more access to credit that can drive growth... the return will come, but it may not be at the rate we see in the West. I am encouraged by the patriotic act of Aliko Dangote...

Comments

Post a Comment

Popular posts from this blog

ISE L'OGUN ISE (WORK IS THE PANACEA TO POVERTY)

Ise ni ogun ise (Work is the panacea to poverty) mura si ise ore mi (Be conscientious my friend in your work) ise ni a fi n di eni giga (Through hard work can we excel) ti a ko ba ri eni feyintin (If there is none to create a pathway to the top for you) bi ole la n ri (It is as if we are lazy) ti a ko ba ri eni gbekele (If there is no one to be your mentor and godfather) a tera mo ise eni, (Work harder then, don't give up, innovate, there is dignity in labor, a way will open up for you soon) Iya re le l'owo (Your mom may be super rich) Baba re le l’esin lekan (You dad could have real estate in choice places) T’oba gbo’ju le won o te tan ni mo so fun oh (If you trust in their riches, your shame is around the corner) Ohun aho j’iya fun kii t’ojo (What you did not labor often does not last, because you might not value them) Ohun ta ba s’ise fun nii pe l’owo eni (It is what you work for that becomes a treasure) Apa lara, Igunpa niye kan (Arms are your f...
Post a Comment
Read more

This is Cacophony at Best...

MAGA destroyed DEI but they want to implement DEI at Harvard... They claim the school is not diverse enough. They have too many liberals, so they need to hire more conservative, whether they meet the hiring requirement or survive the rigor of delivering excellence at Harvard or not. This is what they claim DEI is all about - hiring people based on race, they claim, but they have no issue telling Harvard to hire based on political ideology.... You read the same thing about BLM and Antisemitism. They say BLM reflects poorly on the history of America... Critical race theory is false history... slaves loved being in captivity, they loved their masters and served willingly... there is no more discrimination based on the color of your skin in America - but all the metrics point in the opposite direction... Jewish Lives Matter; Black Lives Matter, and Palestinian Lives Matter... All Lives Matter. A terrorist life should not be equal to 20 innocent Palestinian life... It is okay to forget abou...
Post a Comment
Read more

Until Ordinary Nigerians Seize the Power that Belongs to them, There Will Not Be Progress in That Country

  Until Ordinary Nigerians Seize the Power that Belongs to them, There Will Not Be Progress in That Country When I see the shameful drama unfolding in the Senate in Nigeria, I see impunity. When those who are supposedly elected into political offices are abusing the power they hold in trust for the rest of us in daylight, then you know they have no fear of the electorate... The Senate President in Nigeria, Akpabio, forced a motion that obviously failed, down the throat of his colleagues... The motion was to humiliate Senator Natasha and force her to apologize for daring to accuse Akpabio of alleged sexual harassment before she is re-admitted to the senate after serving the unlawful six-month suspension imposed on her. What saddens me the most are the fellow female senators who have either kept quiet or have reprimanded Senator Natasha for speaking out, including the wife of the president, Remi Tinubu, who faced many sexist comments and threats when she was a senator. Remi Tinubu wa...
Post a Comment
Read more