BlackRock’s iShares worth $400 million issues notice to exit Nigeria
BlackRock, one of the world’s top asset managers, announced it would liquidate its iShares exchange-traded funds (ETFs) worth $400 million over unprofitable business environments in Nigeria and Kenya, particularly the challenge of currency repatriation worsened by the naira devaluation.
iShares Frontiers, which invested millions of dollars in emerging market equities in Nigeria and Kenya over the years, fixed its last trading day for March 31, 2025, when the extended liquidation is anticipated to conclude.
“The board of directors of the company approved a proposal to liquidate the fund. In light of persistent liquidity challenges in certain frontier markets, including among other things, delays or limits on repatriation of local currency, the board determined that it is in the best interest of the fund and its shareholders for the fund to liquidate,” said iShares said in a recent statement.
The company said it was opting for an “extended liquidation” given the significance of the naira conversion on the liquidation, which cannot easily be predicted.
“Currency conversions, including conversion of Nigeria’s currency, the naira, will impact the timing of the fund’s liquidation. As a result, the fund will enter into an extended liquidation period,” BlackRock’s iShares stated. “After market close no earlier than August 12, 2024, but on a date as soon as practicable, the fund will cease trading and the creation and redemption of creation units.”
Already, the company has liquidated $5.2 million of its shares in Kenyan companies like Safaricom ($2.8 million), Equity Group ($1.5 million), and KCB Group ($885,000), which are quoted on the Nairobi Securities Exchange (NSE).
The planned exit of BlackRock’s iShares was another dent in Nigeria’s economic scorecard as the one-year-old President Bola Tinubu’s administration grapples with Nigeria’s dwindling economic fortunes.
Diageo, the parent company of the Guinness brand, on Tuesday announced it was selling its controlling shares to a third-party venture called Tolaram after recording an over N61 billion loss in its financial year that ended March 31.
UK pharmaceutical giant GlaxoSmithKline and tech giant Microsoft have also shut down their business operations in Nigeria.
We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.
More from Peoples Gazette
States
Independence: NBA urges Nigerians to expect better future
The NBA said that ordinary Nigerians should be deriving benefit from the subsidy removal rather than hardship.
Agriculture
FG tasks ECOWAS on leveraging financing strategies for agroecology
The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices
Politics
Katsina youths pledge to deliver over 2 million votes to Atiku
“Katsina State is Atiku’s political base because it is his second home.”
States
Delta health workers declare support for Tinubu, Oborevwori’s re-election
The workers particularly lauded the state government for improving access to healthcare services, among other interventions.
Anti-Corruption
EFCC returns N114 million to microfinance bank defrauded by fraudsters
The EFCC said the recovery effort followed a petition filed by Mr Ikechukwu in 2024.
Sport
Hyrox athlete who soiled herself during race says backlash ‘traumatic’
Wietrzyk said she is nervous about returning to the sport, but she didn’t want the incident to define her.
NationWide
Tinubu prays for Nigeria’s peace, unity at lesser hajj
Mr Tinubu also prayed for harmony and stability in Nigeria.
NationWide
Polish defence giant eyes Nigeria for drone technology transfer
Mr Stec said Nigeria’s strategic position in Africa made it an important partner for the company’s expansion into the African defence market.
Agriculture
NASGODAN: Tinubu govt urged to monitor prices of goats, sheep
The National Sheep and Goat Development Association of Nigeria has urged the federal government to establish a national livestock feed price monitoring system.
