Unilever Nigeria last week announced through Reuters a rights issue of N63bn. This is enormous. The mainstream media barked this like lap dogs.
The only decent analysis was completed by the excellent Nairametrics (credit where credit is due)
Why would they be announcing this?
Nairametrics suggests the reason for the issue is that Unilever International has lent Unilever Nigeria significant amounts of money in order for Unilever Nigeria to pay down its dollar denominated loans and release money to pay suppliers in dollars.
Nairametrics postulates that Unilever International now wants to turn this debt into equity in Unilever Nigeria.
There is no other way of looking at this than a vote of confidence from a large international fast moving consumer goods company in the long term future of Nigeria.
This bullish long term view of being “long” Nigeria, is held by the Secret Investor.
However, Unilever is the first international company to be leaping with both feet for sometime