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Geregu Power lists by introduction on NGX main board
Geregu Power has completed its listing by introduction on the Nigeria Exchange. The company is the first power generation company to be listed on the NGX main board and will add 250 billion naira to the market cap of the Nigerian bourse. Outside Nigeria, the bank of Sierra Leone raised its benchmark rate by 100 basis points to 17 per cent, while the World Bank classifies Ghana as a high debt distressed country. My guest host Femi Oladehin is still here with me to tackle all these topics head on.
Wed, 05 Oct 2022 11:38:51 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Geregu Power's listing marks a significant milestone for the Nigerian market, underscoring the exchange's attractiveness for companies seeking to create value.
- Decline in Nigeria's crude oil revenue highlights challenges posed by currency devaluation and fluctuating oil prices, necessitating robust economic strategies.
- Global inflation and liquidity issues prompt central banks to raise rates, Ghana's debt sustainability serves as a cautionary tale for African economies, emphasizing the need for fiscal prudence.
Geregu Power, a leading power generation company, has successfully completed its listing by introduction on the Nigeria Exchange (NGX). This milestone makes Geregu Power the first power generation company to be listed on the NGX main board, adding approximately 250 billion naira to the market cap of the Nigerian bourse. The move signifies a significant development in the Nigerian market, showcasing the efforts of the NGX's new management in positioning the exchange as an attractive hub for companies to create and unlock value. Femi Oladehin, an expert in the industry, highlighted the positive impact of this listing on the market and the broader implications for investors. He emphasized the importance of privatization and restructuring efforts by the government, leading to more companies becoming listed entities, thereby boosting market dynamics. Oladehin also pointed out that investors now have a long-term interest in the market, recognizing the value to be unlocked. The listing of Geregu Power sets the stage for more companies to follow suit and enhance market participation. The Nigerian market is poised for growth and further listings, signaling a positive outlook for investors and stakeholders alike. Moving on to another significant story, data from the National Bureau of Statistics reveals a decline in Nigeria's crude oil revenue by 11 trillion in the first half of the year. This drop, attributed to various factors including currency devaluation and fluctuating crude oil prices, has raised concerns about the country's economic performance. With the local currency experiencing a 20% depreciation in the official market and crude oil prices surging to new highs, the dynamics of the oil sector have impacted revenue generation. The government faces challenges in combating crude oil theft and sustaining economic stability amidst external pressures. Addressing these issues is crucial for Nigeria's economic resilience and growth prospects. In a broader context, the global economy faces inflationary pressures and liquidity concerns, prompting central banks to raise benchmark rates. The Bank of Sierra Leone recently hiked its rate by 100 basis points to 17%, reflecting a trend seen across West Africa and globally. High inflation rates and liquidity influx present challenges for policymakers, who are tasked with striking a balance between curbing inflation and fostering investment. The complex economic environment calls for innovative solutions and long-term strategies to navigate the current landscape. Ghana's debt sustainability remains a key focus, with the World Bank projecting a debt-to-GDP ratio of 84.6% by the end of the year. Ghana's debt challenges serve as a cautionary tale for other African economies, highlighting the importance of prudent borrowing and fiscal discipline. Femi Oladehin underscored the significance of Ghana's case in shaping debt management policies across the continent, urging countries to prioritize economic growth and financial stability. As global uncertainties persist, countries must adapt to evolving market conditions and embrace sustainable practices to ensure long-term prosperity.
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