Tinubu's decisiveness bearing fruit for Nigeria and Naira
Fitch and Moody’s also confirmed that Tinubu’s fuel subsidy cut, and unification of multiple FX rates were positive for the economy. Interestingly, to ease the cost of living burden on the common folk due to fuel spiking post subsidy cuts, Tinubu's temporarily frozen fuel prices, frozen new taxes and signed a new act to boost electricity generation - all within his first 100 days as president.
He's also had some success in temporarily stopping/delaying union strikes.
Nigeria's MASSIVE WIN - UK High Court Ruling against P&ID - Avoids $11 Billion Payout
The London High Court ruling by Justice Robin Knowles reverses an arbitration award over the failed 2010 gas deal between Nigeria and a British Virgin Islands-based firm Process & Industrial Developments Ltd., founded by two Irish businessmen.
The judge overturned the arbitration award that would have required Nigeria to pay $11 billion over a failed gas project, finding the contract was obtained through fraud. The payment would have dealt a massive blow to Nigeria’s economy.
https://www.msn.com/en-us/news/world...ct/ar-AA1iHYRb
https://www.msn.com/en-us/news/world/a-british-court-ruling-frees-nigeria-from-paying-11-billion-in-damages-over-a-failed-gas-project/ar-AA1iHYRb
The climb back begins for Naira
Quote:
Originally Posted by
beacon
28% discount to $10.23 NAV of 20/10/23 vs market low of $7.41 today, should VANISH now as we near liquidation distribution in March. With P&ID ruling, Tinubu's decisive reforms which US rating agencies and Investment banks like, and USD liquidity issues being ironed out as we speak, buying NGE has now become the best arbitrage opportunity I've come across in my life. Anyone see a catch?
On Monday, central bank governor Yemi Cardoso said the naira will adjust once rules for market participants are made clear.
Finance Minister Wale Edun also said on Monday that Nigeria was expecting $10 billion in foreign currency inflows in the next few weeks to improve foreign exchange market liquidity. He said, without elaborating, that the inflows would come from the issuance of instruments in dollars, oil sales and foreign investments.
On the official market, the naira recovered to 775 to the dollar from a record low of 999 it touched last week. https://www.reuters.com/markets/curr...fx-2023-10-26/