Africa Investment Forum (AIF) 2024 has secured $7.6 billion in investment interest for Nigeria, a significant milestone for the nation’s economic growth. This was disclosed by Dr. Akinwumi Adesina, President of the African Development Bank (AfDB), in a tweet following the conclusion of the event.

“I am delighted the Africa Investment Forum 2024 mobilized $7.6 billion of investment interest for Nigeria. It was great to have several State Governors: Lagos, Kaduna, Katsina, Kwara, and Plateau, and (later) Ogun. We will keep working to support & boost investments to Nigeria,” Dr. Adesina said.

Event Highlights
Held from December 4 to 6, 2024, in Rabat, Morocco, the Africa Investment Forum Market Days brought together key stakeholders under the theme, “Leveraging Innovative Partnerships for Scale.” The forum underscored its dedication to driving transformative investments across Africa through strategic collaborations.

Nigeria emerged as one of the event’s major highlights, with state governors from Lagos, Kaduna, Katsina, Kwara, Plateau, and Ogun States showcasing investment-ready projects to a global audience of investors. Their active participation reflected Nigeria’s commitment to attracting substantial international investments to address critical sectors, including infrastructure, energy, agriculture, and technology.

Accelerating Africa’s Economic Transformation
Since its inception in 2018, the Africa Investment Forum has established itself as a premier platform for mobilizing investments to propel Africa’s economic transformation. Its flagship event, the Market Days, connects project sponsors, government leaders, and investors, facilitating seamless deal closures.

The event’s curated boardroom sessions streamline the investment process, matching viable projects with capital from commercial banks, institutional investors, and development partners. This approach ensures direct negotiations and accelerates deal-making.

The $7.6 billion investment interest secured for Nigeria underscores the forum’s effectiveness and the growing confidence in the country’s economic potential.

Innovative Partnerships Driving Impact
The 2024 theme, “Leveraging Innovative Partnerships for Scale,” highlighted the importance of collaboration in fostering sustainable growth. The AIF continues to champion innovative financial models and strategic partnerships to address Africa’s most pressing development challenges.

Dr. Adesina reiterated the AfDB’s unwavering commitment to supporting Nigeria and other African nations in unlocking their investment potential. “We remain focused on driving investments that create jobs, reduce poverty, and foster sustainable development,” he noted.

A Vision for Africa’s Future
During his speech at the event, Dr. Adesina reflected on the forum’s broader mission. “As we all gathered here in Rabat, we joined our hands and hearts, with determination to drive investments into Africa, to accelerate its growth, to move forward successful projects with continuity, and to forge new alliances for stability and resilience of the economies of Africa. We came here to this historic royal city of splendor, Rabat, a World Heritage Site, to make history,” he said.

Beyond Nigeria, the forum achieved a broader success, attracting $29.2 billion in investment interest across various projects. This achievement reinforces the AIF’s role as a catalyst for transformative development across the continent.

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Nigerian stock market, tracked by the All-Share Index (ASI), concluded the trading day on January 9, 2025, with a significant milestone. The ASI gained 1,300.01 points, closing at an all-time high of 105,530.74.

Breaking the 105,000 Barrier

This robust performance not only broke through the 105,000-point barrier but also marked a 1.25% increase from the previous day’s close of 104,230.73. The index dismantled the resistance level of 104,562, which had held firm since March 2024.

Decline in Trading Volume

Despite the bullish price action, trading volume experienced a sharp decline of 23.4%. The number of shares exchanged dropped from 639 million to 489 million, reflecting reduced market participation.

Surge in Market Capitalization

Market capitalization climbed to N64.3 trillion, a significant increase from the previous session’s N63.5 trillion. This was fueled by rising stock prices across 13,010 transactions.

Top Performers

MTNN and HONYFLOUR led the gainers with impressive increases of 10.00% and 9.89%, respectively. These performances underscored growing investor confidence in these nigerian stocks.

Top 5 Gainers:

• MTNN: Up 10.00% to N242.00
• HONYFLOUR: Up 9.89% to N9.11
• UNIVINSURE: Up 9.86% to N0.78
• TRANSCOHOT: Up 9.78% to N127.35
• IKEJAHOTEL: Up 9.31% to N13.50

Notable Decliners

On the flip side, RTBRISCOE recorded the steepest decline, dropping 10.00%, followed closely by SUNUASSUR with a 9.99% decrease.

Top 5 Losers:

• RTBRISCOE: Down 10.00% to N2.34
• SUNUASSUR: Down 9.99% to N8.11
• TIP: Down 9.68% to N2.52
• UPDC: Down 9.50% to N1.81
• GUINEAINS: Down 8.08% to N0.91

Market Activity Highlights

Trading Volume

Market trading volume declined to 489 million shares, a drop of 23.4% from the previous session. Key highlights include:

• UNIVINSURE: 97.2 million shares traded
• AIICO: 54.2 million shares
• SOVRENINS: 24.9 million shares
• FBNH: 16.2 million shares
• GUINEAINS: 14.6 million shares

Trading Value

In terms of trading value, SEPLAT dominated with transactions totaling N4.5 billion. Other significant contributors included:

• MTNN: N1.1 billion
• PRESCO: N673.6 million
• TRANSCORP: N643.5 million
• ARADEL: N638.8 million

SWOOT and FUGAZ Stocks Performance

SWOOT Stocks

MTNN led the SWOOT category with a remarkable 10% surge.

FUGAZ Stocks

The FUGAZ stocks—FBNH, UBA, GTCO, ACCESSCORP, and ZENITHBANK—had mixed outcomes:

• ZENITHBANK: Up 4.49%
• ACCESSCORP: Up 0.82%
• UBA: Up 0.59%
• FBNH: Down 1.27%
• GTCO: Unchanged

Market Outlook

The All-Share Index has surpassed the 105,000-point mark, reflecting strong bullish sentiment despite the drop in trading volume. With sustained momentum in mid- and large-cap stocks, the index appears poised to challenge the 106,000-point barrier in the coming sessions.

Market Summary

• Current ASI: 105,530.74 points
• Previous ASI: 104,230.73 points
• Day Change: +1.25%
• Year-to-Date Performance: +2.53%
• Volume Traded: 489 million shares
• Market Cap: N64.3 trillion

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About LASRIC

Established by the Lagos State Government, LASRIC is dedicated to fostering science, research, and innovation. Its mission is to position Lagos as a global hub for technological and scientific advancements, driving solutions to societal challenges through groundbreaking innovation.

Focus Areas

The LASRIC Innovation Challenge 2024 targets transformative ideas in the following areas:

• Circular Economy: Innovations in waste reduction, recycling, and sustainable resource management.
• Agritech and Food Security: Solutions to enhance agricultural productivity, ensure food sustainability, and improve supply chains.
• Emerging Technologies: Disruptive ideas leveraging blockchain, quantum computing, AI, machine learning, laser technology, and cloud computing.

Why Apply?

• Funding: Secure the financial resources needed to scale your project.
• Global Recognition: Join a prestigious network of innovators transforming Lagos.
• Impact: Elevate your solution with LASRIC’s support and resources.

Eligibility Criteria

To qualify for the LASRIC Innovation Award, applicants must:

1. Be Nigerian citizens aged 18 or older.
2. Provide a valid means of identification (e.g., LASSRA Card).
3. Register and operate their business in Lagos State.
4. Have a Minimum Viable Product (MVP) with active customers.
5. Be prepared to fund their team’s travel and associated expenses.
6. Show evidence of Personal Income Tax payment in Lagos State.
7. Submit an original and innovative application aligned with LASRIC’s vision.
8. Have no outstanding debts to Lagos State Government programs (e.g., LSETF loans).

Application Deadline

Don’t miss this opportunity! Submit your application by 31st January 2025 to take the first step in revolutionizing the future.

Click here to apply

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Auction Overview

On January 6, 2025, the CBN disclosed plans to issue Treasury Bills across three tenors: 91, 182, and 364 days. The total offering included:

• N50 billion for the 91-day bills
• N80 billion for the 182-day bills
• N385 billion for the 364-day bills

Subscription Results

The auction results revealed a mixed demand across the tenors:

• 91-day bills: Subscriptions totaled N22.94 billion, with a stop-out rate of 18%.
• 182-day bills: Subscriptions amounted to N20.81 billion, with a stop-out rate of 18.5%.
• 364-day bills: Subscriptions soared to N1.47 trillion, with a stop-out rate of 22.62%.

Pricing and Maturity Details

Investors were offered Treasury Bills at N1,000 per unit, with a minimum subscription of N5,000 and increments of N1,000 up to a maximum of N50 million. The maturity dates for the bills are as follows:

• 91-day bills: April 10, 2025
• 182-day bills: July 10, 2025
• 364-day bills: January 8, 2026

Allocations were finalized on January 9, 2025, with the following allotments:

• 91-day bills: N21.30 billion
• 182-day bills: N20.48 billion
• 364-day bills: N473.20 billion

Surge in T-Bill Demand Amid Rising Interest Rates

The significant oversubscription for the 364-day bills reflects heightened investor interest in longer-term securities. Comparatively:

• Interest in the 364-day bills surged by 2,723%, reaching N1.47 trillion.
• Interest in the 91-day bills increased by 725.4%, totaling N22.9 billion.
• Interest in the 182-day bills declined sharply by 77.9%, falling to N20.8 billion.

This trend aligns with rising interest rates, as investors seek high-yield instruments to hedge against inflation.

Monetary Policy Impact

In November 2024, the Central Bank of Nigeria raised its Monetary Policy Rate (MPR) by 25 basis points, bringing it to 27.50%. This marked the seventh consecutive hike aimed at combating inflation, which stood at 33.88% in the same month.

The series of rate increases has steered investors toward government-backed securities, like Treasury Bills, which offer attractive returns in a high-inflation environment.

Conclusion

The oversubscription for the 364-day Treasury Bills underscores robust investor confidence in government securities as a viable investment option. With rising interest rates and persistent inflationary pressures, Treasury Bills remain a preferred choice for investors seeking stability and high yields.

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Nigeria’s foreign exchange (FX) reserves increased by $591.78 million in the month following the government’s $2.2 billion Eurobond auction on December 2, 2024. This marks a significant step in bolstering the nation’s financial stability.

The reserves rose from $40.292 billion on December 2 to $40.884 billion by January 3, 2025, reflecting a month-on-month growth of 1.47%. This growth underscores the effectiveness of Nigeria’s strategic measures in stabilizing its foreign exchange position amid internal and external economic challenges.

What Does the Data Say?

Data from the Central Bank of Nigeria (CBN) highlights a steady rise in FX reserves over the one-month period:

• Initial Growth Post-Auction: On December 2, the reserves stood at $40.292 billion, marking the baseline after the Eurobond auction. By December 9, reserves had increased to $40.376 billion, reflecting an $84 million rise.
• Accelerated Growth Mid-Month: From December 12 to December 19, reserves climbed from $40.525 billion to $40.790 billion, a $265 million increase within a week. This spike indicates intensified foreign exchange inflows, likely driven by oil revenues and CBN’s strategic interventions.
• Stability Towards Year-End: By December 31, reserves peaked at $40.884 billion, maintaining stability through the last week of the year and into January 2025.

Year-on-Year Comparison

Nigeria’s FX reserves have grown significantly over the past year. On January 3, 2024, reserves stood at $33.042 billion. By January 3, 2025, they had surged to $40.884 billion, representing a $7.84 billion increase (23.74%). This growth highlights the success of government efforts to secure external financing and leverage improved global economic conditions.

Implications for the Economy

The rise in FX reserves has several positive implications for Nigeria’s economy:

• Enhanced Payment Capacity: Higher reserves improve Nigeria’s ability to meet external payment obligations, including debt servicing and import financing.
• Exchange Rate Stability: Increased reserves help manage exchange rate volatility, stabilize the naira, and boost investor confidence, encouraging foreign direct investment.
• Buffer Against External Shocks: The reserve growth provides protection against global oil price fluctuations and international financial disruptions, critical for Nigeria’s oil-reliant economy.
• Improved Creditworthiness: The increase in reserves enhances Nigeria’s reputation among international lenders and investors, supporting further foreign investment and financing.

Key Facts About the Eurobond Auction

Nigeria raised $2.2 billion through its Eurobond auction in December 2024, marking a pivotal effort to address the nation’s fiscal deficit. Key details include:

• Subscription and Allotments: The auction received total subscriptions of over $9 billion, with $2.2 billion allotted. This includes $700 million for a 6.5-year bond priced at 9.625% and $1.5 billion for a 10-year bond priced at 10.375%.
• Utilization of Funds: The proceeds are intended to support the 2024 budget, strained by revenue shortfalls and increased public spending.

Challenges and the Way Forward

While the growth in FX reserves is a welcome development, sustaining this trend poses challenges:

• Debt Sustainability: Nigeria’s reliance on external borrowings, such as Eurobonds, raises concerns about the rising debt profile and the high cost of servicing these debts.
• Economic Diversification: Reducing dependence on oil revenues is crucial. Expanding non-oil exports and promoting foreign direct investment are key strategies for long-term economic stability.
• Fiscal Discipline: Efficient use of borrowed funds is essential. Investments in critical infrastructure and economic development projects will enhance productivity and create a more resilient economy.

By addressing these challenges, Nigeria can ensure sustainable growth in its FX reserves and build a robust economic foundation for the future.

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