How Might Nigeria’s Investment Cycle Pan Out in 2021?

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The COVID-19 pandemic was perhaps humanity’s first-ever health and economic crisis in the 21st century that brought the greatest of the nations to their knees.

No one knew how to handle the dilapidating economy, and people were at their wit’s ends when it came to containing the virus that claimed millions of lives across the globe. But life goes on, and nations had to pick what was left of them and start afresh.

It needs little mention that the global economy is in tatters, and most countries saw a sharp decline in their GDP and went into a phase of recession. Nigeria was one of those many nations that entered a period of recession and had to brave insurmountable economic challenges.

However, the Federal Government has asserted that there is hope for Nigeria to exit its phase of recession by Q1 2021 even amidst the second wave of the pandemic that has been disrupting the financial markets.

Nigerian investors and speculators, however, have taken cues from the first wave of the pandemic and are prepared better to deal with the economic crisis. They are anticipating more downside risks in the path of recovery to Nigeria’s economy in 2021.

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How Might Nigeria’s Investment Cycle Pan Out in 2021?

What Does the African Development Bank Have to Say?

The African Development Bank, in a data that has been retrieved, revealed that Nigeria could expect growth in its Real GDP to 3.3 per cent in 2021. However, there are a number of factors that shall determine if such a growth shall materialize in reality. It depends on whether Nigeria’s fiscal officials emphasize on economic diversification and implement the Economic Recovery Growth Plan. The apex bank has directed the Nigerian banks to hold loan-deposit ratios of 60 per cent. Only when all these factors are put in place, the Nigerian economy shall recover, and the GDP can rise as is expected.

Nigeria’s Export Earnings and Stock Market:

Now coming to Nigeria’s export earnings, the sector witnessed an increase. The Brent crude futures trades improved the foreign exchange reserves which further provided the central bank with an impetus to intervene in the foreign exchange market of Nigeria.

The Nigerian stock market has also shown some positive results over the last couple of months, even with the pandemic in full swing.

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The stock market closed Year-to-date return at 44.56 per cent, and the market capitalization was at N20.3 trillion. This led Nigeria to emerge as the best performing stock market in the world. It further promises to rebound higher in 2021.

How Might Nigeria’s Investment Cycle Pan Out in 2021?

How Does the Investment Sector of Nigeria Look in 2021?

Amidst all the growth and promising results, the question that is still bugging every investor and speculator is just one. How does the investment sector in Nigeria hope to look in 2021? It is still the beginning of the New Year, and there might be massive changes throughout the year, but some financial experts shared their wisdom and predictions.

Read Also:  What’s Fuelling The Rapid Hotel Growth In West Africa

Some speculators say that it is still too soon to predict how the investment sector shall pan out in 2021, and the performance of the same shall depend on how quickly the virus is contained. With the new strain of the coronavirus at large, the growth of Nigeria economy might take a backseat too.

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However, it is expected that with the gradual deployment of vaccines across the planet, the economy shall gain momentum. The prices of crude oil shall gradually pick up, economic activities shall increase that shall further drive capital flows and minimize uncertainties in 2021. It is also expected that the trend of tech companies’ stocks influenced investment behaviour shall continue well in the first half of 2021.

In 2020, the global economy was deluged with cheap funds, owing to very limited investment opportunities amidst the pandemic. However, this negative yield that we saw in the space of fixed investment promises to reverse in the first quarter. The government’s borrowing is expected to outrun the figures of 2020, and Nigeria’s administration shall successfully walk the economy out of its phase of recession in 2021.

This shall lead to the investors’ confidence to increase, and they shall once again be keen on investing in the right portfolios. More funds are expected to flow back into Nigeria’s economy and lead to higher yields. The sectors that are predicted to dominate the investors’ focus are the stocks in pharmaceutical, aviation and manufacturing.

The entertainment industry in Nigeria also looks hopeful with more and more investors showing interest in the gaming sector. These investments in the gaming sector shall help the sector grow in leaps and bounds and contribute to the economy. It is hoped that growth in this sector shall push the casinos in Nigeria to become almost equal to the online casino in Canada with the fastest payouts, which shall bring about a massive change.

The Takeaway:

Though there are several factors that hint at the steady growth of the Nigerian economy and show that the investment scenario in 2021 looks bright, Nigeria still has to enforce a number of economic reforms.

These economic reforms, when implemented rightfully, shall encourage foreign portfolio investors to invest more. A clear forex policy is the need of the hour to imbibe confidence amongst the investors in Nigeria.

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How Might Nigeria’s Investment Cycle Pan Out in 2021? - Brand SpurHow Might Nigeria’s Investment Cycle Pan Out in 2021? - Brand Spur

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How Might Nigeria’s Investment Cycle Pan Out in 2021? - Brand SpurHow Might Nigeria’s Investment Cycle Pan Out in 2021? - Brand Spur

Latest News

Kinaxis Named a Leader in the 2021 Gartner Magic Quadrant for Supply Chain Planning Solutions Report

Kinaxis evaluated on both execution and vision with furthest placement for completeness of vision in the Leaders quadrant

 

OTTAWA, CANADA - Media OutReach - 4 March 2021 - Kinaxis® Inc. (TSX:KXS), the authority in driving agility for fast, confident decision-making in an unpredictable world, today announced it has been named a Leader in the 2021 Gartner Magic Quadrant for Supply Chain Planning Solutions. The company is recognized for both the ability to execute and its completeness of vision. Kinaxis is positioned furthest on the Completeness of Vision axis amongst those in the Leaders quadrant 1.

Read Also:  Despite Challenges, Top Banks Sustain Profitability

A complimentary copy of the report can be downloaded from Kinaxis. This is the seventh consecutive time Kinaxis has been named a Leader in a Gartner Magic Quadrant related to supply chain planning 1 .

"In the face of the unprecedented level of disruption over the past year, corporate supply chains have never been more relevant and doing nothing to improve planning has become the biggest risk. Supply chain leaders at companies of all sizes have recognized a need for a transformational shift to agility and resiliency based on a new planning technique -- concurrent planning, that only Kinaxis can provide," said John Sicard, CEO of Kinaxis. "Kinaxis uniquely combines AI, analytics and human intelligence to empower innovative manufacturers to eliminate functional silos and cost-effectively optimize the potential of their supply chains in just a few weeks."

Continued Sicard, "We believe we are the leading innovator based on vision in the market and are thrilled with our positioning for our current, proven RapidResponse platform. Kinaxis takes pride in our talented team, the collaborative relationships we have with our customer and partner community and helping advance the craft of supply chain planning for the benefit of the planet."

Top-tier manufacturers around the world use Kinaxis in the aerospace and defense, automotive, consumer products, high-tech and electronics, industrial, life sciences and retail industries, including Unilever, Schneider Electric, Flex, Merck, Technicolor, Alstom and Honda, and many others.

"Schneider Electric's supply chain digitalization journey, including our work with Kinaxis, has allowed us to function as a truly global enterprise," said Mourad Tamoud, Chief Supply Chain Officer at Schneider Electric. "Through our engagement with Kinaxis, we have found them to be industry-leading, and the partnership has enabled us to have greater transparency, wider collaboration and increasingly autonomous high-quality decision-making throughout the organization."

Kinaxis RapidResponse® is a cloud-based software-as-a-service (SaaS) platform purpose-built for planning, leveraging patented in-memory database technology and always-on algorithms. Combined with Kinaxis' unique concurrent planning technique and AI, RapidResponse helps global manufacturers gain agile and resilient supply chains. The Kinaxis suite of ready-to-deploy planning applications (S&OP / IBP, Demand, Supply, Command & Control Center, Inventory, Live Lens Insights) is optimized with industry best practice processes and robust analytics that are synchronized across long and short-term planning and across the end-to-end network from customers to suppliers. The RapidResponse platform is uniquely extensible to build, access or connect to custom applications, algorithms and external systems across the supply network ecosystem.

Kinaxis helps customers accelerate value realization with multiple deployment options to go-live in as little as six weeks. These seamlessly expandable options allow companies to start now and focus on the most important initiatives. All based on RapidResponse, these options can grow over time to meet budget, team and change management needs along the digital transformation journey.

"Gartner defines a supply chain planning (SCP) solution as a platform that provides technology support which allows a company to manage, link, align, collaborate and share its planning data across an extended supply chain. It supports demand creation through to the detailed supply-side response and from strategic planning through tactical-level planning. An SCP solution is the planning decision repository for a defined end-to-end supply chain and is the environment in which end-to-end integrated supply chains are managed. It establishes a single version of the truth for the plan data and decisions, regardless of the underlying execution technology environment." 1

The SCP market was worth $5.2 billion in 2019 and is projected to grow at a five-year compound annual growth rate (CAGR) of 7.5% according to the Gartner Forecast: Enterprise Application Software, Worldwide, 2018-2024, 4Q20 Update. 2

According to Gartner, "Leaders demonstrate strong SCP solution vision and execution capabilities. They have a broad, deep and differentiated functionality that addresses a broad range of user requirements. Their coverage across the three categories of planning capability -- configure, optimize and respond -- is good enough, with a good balance across the categories now and/or planned for the future. They have a reasonable range of features to support a user's maturity journey. Their visions for supporting the three paradigms of SCP -- algorithmic SCP, digital supply chain planning and resilient planning -- align with Gartner's vision. When these three paradigms are blended together, they build the foundation to support a Level 5 SCP environment. Leaders anticipate where customer demands and markets are moving and identify how innovative technologies can be applied to planning applications. They have strategies to support these emerging requirements to build a future-proof SCP solution. Because leaders are well-established in leading-edge complex user environments, they benefit from a user community that helps them remain in the forefront of emerging needs." 1

For further information, you can access a complimentary copy of the full Magic Quadrant for Supply Chain Planning Solutions report here.

1 Gartner, Magic Quadrant for Supply Chain Planning Solutions, A. Salley, T. Payne, P. Orup Lund, Feb. 22, 2021

Gartner, Magic Quadrant for Sales and Operations Planning System of Differentiation, T. Payne et al, May 7, 2019; Gartner, Magic Quadrant for Supply Chain Planning System of Record, Payne, Tim, Pradhan, Alex, & Salley, Amber, 21 August 2018

2 Gartner, Forecast: Enterprise Application Software, Worldwide, 2018-2024, 4Q20 Update, Amarendra, N. Gupta, B. Abbabatulla, A. Woodward, C. Pang, C. Roth, E. Hunter, J. Hare, K. Quinn, J. Poulter, Y. Dharmasthira, J. Kostoulas, December 22, 2020

Gartner Disclaimer:

Gartner does not endorse any vendor, product or service depicted in our research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.


About Kinaxis Inc.

Everyday volatility and uncertainty demand quick action. Kinaxis® delivers the agility to make fast, confident decisions across integrated business planning and the digital supply chain. People can plan better, live better and change the world. Trusted by innovative brands, we combine human intelligence with AI and concurrent planning to help companies plan for any future, monitor risks and opportunities and respond at the pace of change. Powered by an extensible, cloud-based platform, Kinaxis delivers industry-proven applications so everyone can know sooner, act faster and remove waste. For more Kinaxis news, visit Kinaxis.com or follow us on LinkedIn or Twitter.

Forward-Looking Statements

Certain statements in this release constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements include statements as to Kinaxis' growth opportunities and the potential benefits of, and demand for, Kinaxis' products and services. These statements are subject to certain assumptions, risks and uncertainties, including our view of the relative position of Kinaxis' products and services compared to competitive offerings in the industry. Readers are cautioned not to place undue reliance on such statements. Kinaxis' actual results, performance, achievements and developments may differ materially from the results, performance, achievements or developments expressed or implied by such statements. Risk factors that may cause the actual results, performance, achievements or developments of Kinaxis to differ materially from the results, performance, achievements or developments expressed or implied by such statements can be found in the public documents filed by Kinaxis with Canadian securities regulatory authorities. Kinaxis assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.

How Might Nigeria’s Investment Cycle Pan Out in 2021? - Brand Spur
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