Another Int. Firm, BlackRock Inc. Exits Nigeria Amid Liquidity And Repatriation Challenges

Date: 15-06-2024 4:44 pm (1 month ago) | Author: Mister Jay Wonder
- at 15-06-2024 04:44 PM (1 month ago)
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Nigeria's financial landscape faces a new challenge as BlackRock Inc., a leading American fund management firm, has announced its decision to sell off its equity investments in the country. The firm cited persistent liquidity issues and difficulties in repatriating funds in dollars as key reasons for its exit.

In a notice to investors, BlackRock detailed its plans to liquidate its assets in Nigeria and Kenya, indicating a strategic withdrawal from these markets. The notice stated that the "Fund will enter into an extended liquidation period," during which it will deviate from its investment objectives and policies. During this period, the fund will aim to sell its assets and hold the proceeds in cash and cash equivalents.

This decision marks a significant shift for BlackRock, which previously adhered to a policy of maintaining at least 80 percent of its net assets in equity securities of issuers tied to frontier markets. The liquidation process will see a departure from this strategy as the firm navigates the complexities of asset sales in challenging economic environments.

The announcement comes just months after BlackRock's reentry into the Nigerian Stock Exchange (NSE) in March, following a four-year hiatus. This move was initially seen as a significant boost for the struggling exchange, highlighting the unpredictable nature of foreign investments in Nigeria's volatile economic climate.

BlackRock, one of the world's largest asset management companies with a market capitalization exceeding $114 billion and managing $9.1 trillion in assets, is not the first foreign entity to reconsider its operations in Nigeria. The country has witnessed a series of exits by international firms grappling with economic instability, currency fluctuations, and a stringent regulatory environment.

These factors have increasingly challenged businesses' ability to operate profitably and maintain financial stability in Nigeria. Despite being Africa's largest economy, Nigeria has struggled with significant economic issues that have deterred foreign investment.

The departure of BlackRock underscores the broader challenges facing Nigeria's economy, as other major international firms have also scaled back their operations or exited the market entirely in recent years.

For Nigeria, the exit of such a prominent investor as BlackRock signals a need to address the underlying economic and regulatory issues that hinder the country's appeal to foreign investors.


Posted: at 15-06-2024 04:44 PM (1 month ago) | Addicted Hero
- gogoman at 15-06-2024 04:52 PM (1 month ago)
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they can go!! Their empire is going down!!! china the rising sun will take over  Cool Cool Cool nothing last for ever
Posted: at 15-06-2024 04:52 PM (1 month ago) | Grande Master
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- angesco at 15-06-2024 04:54 PM (1 month ago)
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Why should foreign companies stay in Nigeria???

After all “JAPA” is the new password in Nigeria  - for ALL NIGERIANS!!!
Posted: at 15-06-2024 04:54 PM (1 month ago) | Gistmaniac
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- ifrica at 15-06-2024 05:26 PM (1 month ago)
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Quote from: gogoman on 15-06-2024 04:52 PM
they can go!! Their empire is going down!!! china the rising sun will take over  Cool Cool Cool nothing last for ever
[/quote
No more excuses for your failing Jagaban govt., goofy.
SMH!!
Posted: at 15-06-2024 05:26 PM (1 month ago) | Newbie
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- gogoman at 15-06-2024 05:45 PM (1 month ago)
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Quote from: ifrica on 15-06-2024 05:26 PM
Quote from: gogoman on 15-06-2024 04:52 PM
they can go!! Their empire is going down!!! china the rising sun will take over  Cool Cool Cool nothing last for ever
[/quote
No more excuses for your failing Jagaban govt., goofy.
SMH!!


Do you realize they are leaving Kenya as well!!! looney Roll Eyes Roll Eyes Roll Eyes
Posted: at 15-06-2024 05:45 PM (1 month ago) | Grande Master
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- kp45 at 15-06-2024 08:36 PM (1 month ago)
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Hmnn
Posted: at 15-06-2024 08:36 PM (1 month ago) | Addicted Hero
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