http://allafrica.com/stories/201601170024.html Nigeria: More Worries for Nigeria's Troubled-Economy As U.S. Lifts Sanctions On
Iran
By Nicholas Ibekwe
Nigeria's troubled economy, which is on the brink of a recession, is expected
to worsen following the lifting of economic sanctions on Iran by the United
States which effectively re-admits the country into the international oil trade.
The sanctions put in place in 2012 was lifted after Iran met the terms with six
world powers to stop its allegedly weaponized nuclear programme.
"Today marks the start of a safer world," said U.S. Secretary of State, John
Kerry.
"We understand this marker alone will not wipe away all the concerns the
world has rightly expressed about Iran's policies in the region. But we also
know there isn't a challenge in the entire region that wouldn't become much
more complicated, much worse, if Iran had a nuclear weapon," he added.
Iran has hailed the lifting of the sanction as a vindication of its power and
influence in the world.
But Iran's joy may be Nigeria's woes.
With the lifting of the sanctions, Iran, which has the fourth largest oil reserve
in the world (160 billion barrels) is expected to flood the international oil
market with more oil which could worsen the ongoing glut that has reduced
the price of crude from $105 per barrel to about $30 per barrel.
Also, the middle-eastern country recently announced that it is capable of
producing oil at $1 per barrel; which means it can afford to sell its oil below
the official international rate if it pleases.
The re-entry of Iran into the international oil trade could also see India,
Nigeria's top buyer of crude (India currently imports 750,000 barrels per day
from Nigeria), look towards neighbouring Iran for its oil needs, further dipping
Nigeria's revenue stream. India buys about a third of Nigeria's daily production
while the U.S. currently buys none.
Last year, U.S. financial group, Goldman Sach, predicted that the present glut
(without Iran's supply) in the market could drive prices as low as $20 per
barrel. This is an indication of a possible economic problem for Nigeria as the
2016 budget was benchmarked on $38 per barrel. This could possibly increase
the budget deficit of $11 billion dollars.
A further drop in Nigeria's oil export earnings is likely to drop the value of the
naira below its present N305 to a dollar in the black market, a 43-year record.
President Muhammadu Buhari, so far, has resisted calls to devalue or float the
Nigeria by discontinuing its dual exchange rate regime that seemingly only
benefits few well-connect business moguls. The official rate of the Naira is
about N197 to a dollar.
All attempts by the Central Bank of Nigeria, CBN, to arrest the fast plunge of
the naira has so far been unsuccessful. The recent decision by the CBN to
stop selling foreign currency directly to Bureau the Change operators has
backfired, causing a drop in the value of the naira by almost N30.

I wonder why anybody who calls himself an investor would still be waiting to start sinking money in transcorp at present price levels.
Is it for the fear, that electricity could suddenly go out of style just because your money has gone into its stock?
Even if our petrodollar revenue should dry up completely, people will still be needing and using and paying for electricity.
However, if you are an acute short termite, perhaps gambling with school fees, or madam's meeting money,
having gotten all of your JIJO funds trapped in unlucky JIs, then this thought does not apply o.
Transcorp can still go down another 20-30 percent o.

Coolcash1:
With the current wave of 'tsunami' hitting the stock market, this trend is expected to continue for a while but not through out the year. As a result, investors need to thread carefully and home in on stocks with strong and quality fundamentals. If i am to advice, as some people have been asking me, my stock pick would be;

Okomu oil
Presco,
Wapco,
Dangote Cem
CCNN
FBNH
GTB
Zenith
Nestle

For long term investment >1year, best penny stocks include;
Transcorp
Tigerbrand
Oando
Eterna
Diamond bank

wat is the bottom out of GTB, ZENITH at the current trend?

@Zendi,Godisfaithful, LOcodemy n others....... pls how do see ucap, eterna afriprud.. kindly need yur 1derful advices... Thankz

Mfunkynation:
@Zendi,Godisfaithful, LOcodemy n others....... pls how do see ucap, eterna afriprud.. kindly need yur 1derful advices... Thankz

You cant go wrong in any of these three. Many eyes are on them because of high expectation of dividend, yes, from even eterna. Try to enter at their dips, but note that general market bearishness overrules all other forces.

zendi:

Toyrem, when you have time, pls tell me exactly what this brother has done to you.

He or she can't control his or her courage.

zendi:
You cant go wrong in any of these three. Many eyes are on them because of high expectation of dividend, yes, from even eterna. Try to enter at their dips, but note that general market bearishness overrules all other forces.

thanks boss, pls am kinda dnt understan d bold statement... kindly put it to me in a simple xplanation. Thankz..God bless

megainvest:
Brent crude now $28.94/bbl where is PETERiCHY with the news?

Sanctions lifted after Iran found in compliance on nuclear deal
http://www.cnn.com/2016/01/17/middleeast/iran-iaea-nuclear-deal/index.html

One week one trouble,
May God deliver Nigeria economy.

Mfunkynation:

thanks boss, pls am kinda dnt understan d bold statement... kindly put it to me in a simple xplanation. Thankz..God bless

I'm sorry, that 'dip' should've been spelt 'deep', by which I mean to buy when the price has taken a significant dive from its last resistance (high point).
Then by the other part I mean that the market bear makes nonsense of all fundamentals, at least in the short term.

zendi:
I wonder why anybody who calls himself an investor would still be waiting to start sinking money in transcorp at present price levels.
Is it for the fear, that electricity could suddenly go out of style just because your money has gone into its stock?
Even if our petrodollar revenue should dry up completely, people will still be needing and using and paying for electricity.
However, if you are an acute short termite, perhaps gambling with school fees, or madam's meeting money,
having gotten all of your JIJO funds trapped in unlucky JIs, then this thought does not apply o.
Transcorp can still go down another 20-30 percent o.

Investors are weary of this present government style of administration. Probing of past privatization process will soon come under way including electricity.


It is well..

angelo82:


I am not a fan of this stock but their management always come out on top of their game even in the midst of controversy.

Unfortunately, management has been an Achilles heel of this company(Skye bank). The era of impunity is over. The management did more harm than good to this bank.

Coolcash1:
With the current wave of 'tsunami' hitting the stock market, this trend is expected to continue for a while but not through out the year. As a result, investors need to thread carefully and home in on stocks with strong and quality fundamentals. If i am to advice, as some people have been asking me, my stock pick would be;

Okomu oil
Presco,
Wapco,
Dangote Cem
CCNN
FBNH
GTB
Zenith
Nestle

For long term investment >1year, best penny stocks include;
Transcorp
Tigerbrand
Oando
Eterna
Diamond bank

I agree with you Sir but totally disagree with you on your recommendation on penny stocks.
Tiger brand and Oando are very bad investment.

Where is UBCap, afripud, uba not even NPFMKF or transnational express..

There is global economic recession. Run run run.

Am selling tommorow

mercylicious:
There is global economic recession. Run run run.

Am selling tommorow

Madam Mercy, this alarm is already late. I thought you are getting ready to acquire tommorow, but never know your have acquired and ready to sell off and run away anyway,this recession has been on for quite some time now, only that people are reluctant to accept the simple reality. Anyway, people still have chance for escape route.

It is well...

Let the biggest ancestral bear come. I want it, I need it and I am ready for it. it will meet me here ready to kill it and drain its blood. I will not run!

Happy Sunday Everyone. Remember, just because you aren't seeing the result right now doesn't mean things won't eventually go your way or work out. Keep believing and keep grinding because you just never know where your consistent effort will take you...keep going!

Have a blessed New week ahead!

megainvest:
Let the biggest ancestral bear come. I want it, I need it and I am ready for it. it will meet me here ready to kill it and drain its blood. I will not run!

yes we are ready even if ASI clocks 0.001.we are not moving away.

Mfunkynation:
@Zendi,Godisfaithful, LOcodemy n others....... pls how do see ucap, eterna afriprud.. kindly need yur 1derful advices... Thankz

Sir, my own preference will be UbCap. This is applicable for me only since i'm not running away from the market for now . Final decision is yours.

Mfunkynation:

wat is the bottom out of GTB, ZENITH at the current trend?

My spiritual analysis is indicting all bank shares now, particularly those with high OS. I fear they'll reach the junction and then re-structure. I just pulled out from FBNH after 41% loss. Anyway, money will still be made. Either today or the day after today or the day after that.

myjoy085:



Madam Mercy, this alarm is already late. I thought you are getting ready to acquire tommorow, but never know your have acquired and ready to sell off and run away anyway,this recession has been on for quite some time now, only that people are reluctant to accept the simple reality. Anyway, people still have chance for escape route.

It is well...

I didn't buy/acquire . what am selling is my trapped stock which I've told u guys b4. I've part sold fcmb b4 now. Am keeping my money till the world stock MKT reverses.

mercylicious:


I didn't buy/acquire . what am selling is my trapped stock which I've told u guys b4. I've part sold fcmb b4 now. Am keeping my money till the world stock MKT reverses.

what of if the situation appears bottomless?

locodemy:


what of if the situation appears bottomless?

We may have to invite bigarse to help with a bottom.

RedCapChief:

My spiritual analysis is indicting all bank shares now, particularly those with high OS. I fear they'll reach the junction and then re-structure. I just pulled out from FBNH after 41% loss. Anyway, money will still be made. Either today or the day after today or the day after that.

Chief,The falling in price of stocks like zenith ,fbn,gtb and co does not mean they have financial problem.This is as a result of low oil prices,devaluation and other macro economic issues.Have you seen the nine months result of zenith bank?my brother the bank is very much capable despite the big outstanding OS.

why we want these stocks prices down is because we are targeting to become the CEO'S of tomorrow by buying into their shares as much as we can now.Time will come when zenith bank shares will become expensive and the good dividend paid by then will speak for us.

So go back and grab your copy now

mercylicious:


We may have to invite bigass to help with a bottom.

That's a good one

locodemy:


Chief,The falling in price of stocks like zenith ,fbn,gtb and co does not mean they have financial problem.This is as a result of low oil prices,devaluation and other macro economic issues.Have you seen the nine months result of zenith bank?my brother the bank is very much capable despite the big outstanding OS.

why we want these stocks prices down is because we are targeting to become the CEO'S of tomorrow by buying into their shares as much as we can now.Time will come when zenith bank shares will become expensive and the good dividend paid by then will speak for us.

So go back and grab your copy now

Must you invite or beg people to join the party?

Buhari has destroyed this country..
i see more bull traps and bears in weeks to come. Run away now.

Dragonking:
Buhari has destroyed this country..
i see more bull traps and bears in weeks to come. Run away now.

Maybe you can tell us how he destroyed this country sir. If not keep your allegations to yourself and get ready to make some serious money

There could be a conspiracy brewing right now in the oil world. Who knows if the Arabs are not sponsoring the blowing up of pipelines in Nigeria so as to destabilize the supply? Nigeria is an easy target in times like this. Of course it is easy to divert the attention of people from the true motive. Let's keep watching.

megainvest:
There could be a conspiracy brewing right now in the oil world. Who knows if the Arabs are not sponsoring the blowing up of pipelines in Nigeria so as to destabilize the supply? Nigeria is an easy target in times like this. Of course it is easy to divert the attention of people from the true motive. Let's keep watching.

lets go and scatter and throw them into many languages so that they will not understand each other again.

Dragonking:
Buhari has destroyed this country..
i see more bull traps and bears in weeks to come. Run away now.

What is happening now may have been worse if GEJ is still on seat.Lets pray for them to rule us alright.if we keep on vomiting words like this,we will remain where we are.

manie:




Must you invite or beg people to join the party?

Now is a time of grace.Time will come when Noah's ark will be locked.so lets continue begging them now.

mercylicious:


We may have to invite bigass to help with a bottom.

That one na sugar mummy ass.we need your's.under 16..........hehehe........ebelebe