Home Latest Insights | News The Information-Immune Nigeria’s Stock Exchange And Lessons from EFCC Raids in Dangote Group

The Information-Immune Nigeria’s Stock Exchange And Lessons from EFCC Raids in Dangote Group

The Information-Immune Nigeria’s Stock Exchange And Lessons from EFCC Raids in Dangote Group

Nigeria is a special place. When the news broke that Economic and Financial Crimes Commission (EFCC) operatives raided the headquarters of Dangote Group, as part of investigations into possible misuse of foreign currency, I had expected that during the next trading day on the Nigerian stock exchange, the values of Dangote Cement and other companies in the Group would struggle.

But you know what? Investors did not care. It was similar to what happened when APC named Aliko Dangote as part of Buhari’s reelection committee member in 2019. On that one, investors did not pay attention also.

If this information does not move markets in Nigeria, what are investors trading on then? In the United States, Dangote properties would have suffered huge losses. But in Nigeria, just like in elections, no one cares about anything. 

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“We went to the head office of Dangote Group today to look into their books on the ongoing investigation on the abuse of the extant laws that govern the foreign exchange transaction during the tenure of Godwin Emefiele as CBN governor,” one of the sources told Reuters.

“Here, we are talking about multiple exchange rates and others. It is an ongoing investigation and it was the turn of Dangote Group today,”  

Sure, they do not re-price in near-real time, but over weeks and months, they do re-price. That simply shows the level of our stock market development. It is not driven by data and most times, it is all about herding and speculations. Once in, they tune off, and even a possible criminal investigation in a company does not constitute risk! What a nation!

Count yourself lucky of being a Nigerian because you can get away with most things!


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4 THOUGHTS ON The Information-Immune Nigeria’s Stock Exchange And Lessons from EFCC Raids in Dangote Group

  1. It’s also why we are very careless and reckless with numbers here, because most people who quote numbers often think in hyperbole, they have near zero understanding of what numbers are. Our politics is also decoupled from actual developmental issues, so it’s quite easy for the worst of us to be polished and presented as the next best thing, and you will always have enough supporters urging you on.

    We are that special, for good and bad reasons.

  2. We the black race are a disgrace to humanity . Greedy, tribalistic, fools that are ruled by idiots. Dogs fight together , monkeys move in a group. Ants are more organised than we Nigerians. The only way out for Nigeria, is that we should loan Nigeria plc to Britain for 50 to 100years

    Zero evidence we are capable of ruling ourselves at present!!!

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