Nigeria and its financial sectors have long been viewed as an intense risk pathway. Foreign investors and Nigerians in the diaspora have previously avoided investing in these sectors and the economy for fear of losing their money due to government turmoil under coups, sanctions, political witch hunts or other measures. With the developments in the Nigerian stock market and the amount of profit taking being seen at outsized rates, some investors were too tempted to pass up such huge opportunities and poured huge amounts of money into the Nigerian Stock Exchange with the fingers. crossed and anticipating losses while praying for gains.
African Petroleum, a company in the oil and gas sector of the Nigerian economy, was one such company he invested in. The company had a rich history but its recent times had been marred by political infighting, the company’s CEO was rumored to be a front for a former vice president of Nigeria who was not on very good terms with his president and yet Investors couldn’t resist. make investments in the company due to its presence in the profitable oil and gas sector of the Nigerian economy and the attendant benefits of being in that sector.
Political games ensued when the company was accused of having debts to the state-owned Nigerian National Petroleum Corporation, and to recover those debts, majority shares were forcibly transferred to the state and the company’s CEO and his henchmen were fired. Investors were concerned, but the company’s share prices were technically suspended to prevent any panic selling, that is, selling the company’s shares at a higher or lower price. The confusion ensued as nail-biting investors pondered what to do next.
When the technical suspension was lifted, prices only went higher and higher. Investors in the company who had still come in with bated breath saw prices rise even higher. Further political intrigue arose when a businessman known to be a favorite of the incumbent president and a major oil products trader made a bid for the majority of the company’s shares (now held by NNPC) against another man. business that was known to have a long history. permanent relationship with the company.
The issues were secured in court with the former winning the case amid a further series of technical suspensions. At the end of the intrigues, the investors who kept the shares they had bought at less than 100 naira were quickly rewarded with a share price that rose to around 300 naira. So far the myth of instability. Investors who had purchased African Petroleum shares at 6.2 million naira earlier would be rewarded with shares worth more than 30 million months later.
Having overcome the initial crises now, the company is about to expand its operating cost by issuing a public offering at the rate of N250 per share.
This stock is highly recommended as a must buy for any investor looking for profit.