70% gains on the Nigerian market

The Nigerian Stock Market posted a 74% gain over 2007! Whilst many observers are anxious, we believe that the market will outperform S&P500 over 2008.

Nigeria is likely to receive an estimated $3.5 billion per month from oil taxes and royalties over the year, and the constitution forces it to be shared with the 36 state governments and 750 odd local governments at the end of each month. For an economy with a GDP of only $168 billion the party is only just begining.

Though banking stocks apear fully valued at PEs of around 25, many of the industrials, service companies and conglomerates have some way to go. Visit www.smartinvestorafrica.com to see what we are buying.

And with so much money sloshing around, Nigeria should benefit from a double gain. Earnings growth is likely to exceed 25% for most of the lead players. And all that money has to stay somewhere and between sitting in banks, sitting in real estate and sitting in the stock market, our guess is that the stock market will get more than its fair share.

The icing is that the Naira has been steadily appreciating against the US$.