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Thailand Coup d’état leaves Foreign investors on High Alert

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BANGKOK — Foreign investors are on high alert after the Thai military’s declaration of a coup d’état Thursday, fearing more violence could disrupt their business operations and erode the country’s appeal.

The declaration of a coup comes amid seven months of political uncertainty that have weighed on Thailand’s economy and its industries.

In its first annual contraction since 2011, Thailand’s real gross domestic product shrank 0.6% in the first quarter from a year ago. Meanwhile, automobile sales and production continue to plunge, leading to thousands of layoffs in one of Thailand’s leading industries.

“People are shocked and surprised” by the coup, said Marc Spiegel, vice chairman of the Joint Foreign Chambers of Commerce in Thailand, which represents 29 chambers of commerce with 8,500 member companies. “They are wondering: Can I go to work? Can I do business in Thailand?”

Many manufacturers are sitting tight.

Japanese camera maker Nikon Corp., which makes around 90% of its digital single-lens reflex cameras in Thailand, said political upheavals in the kingdom don’t usually affect production facilities. If airports get shut down, however, there could be an impact on logistics, a Nikon spokesman in Tokyo said.

Toyota Motor Corp. and Ford Motor Co. said the declaration of a coup hasn’t affected auto production, although the companies are closely monitoring the political situation.

The long-term danger is that, without a functioning government in Thailand, foreign investors can’t get their projects approved, and they may turn to other countries to invest, analysts say.

“How long can you keep taking a punt that Thailand is going to get itself sorted out?” said Steve Wilford, director of global-risk analysis at consulting firm Control Risks. “This situation is pushing the country toward recession.”

Thailand has had 18 coups since the end of absolute monarchy in the 1930s, the latest in 2006.

Foreign investors have begun preparing emergency measures like evacuation routes in recent months, business-risk experts said, but whether they halt production and pull people out of the country will depend on whether violence erupts because of the coup.

The Japanese Chamber of Commerce in Bangkok said that so far, it has received no reports of members planning to pull Japanese nationals out of the country.

“It’s not like coups in other countries,” said Yoshito Kato, the chamber’s member coordinator, who said he’d already experienced two coups in his 13 years in Thailand. “There’s not so much danger for foreign nationals.”

The 1,552 members of the chamber include Japanese firms in the automotive, electronics and metalworking industries, many serving car makers like Toyota Motor Corp. and Honda Motor Co., which see Thailand as their manufacturing hub in southeast Asia.

The political uncertainty is hitting Thailand’s auto industry particularly hard as consumers pull back.

Jessada Thongpak, a Bangkok-based analyst for IHS Automotive, expects up to 30,000 auto workers, or 6% of the industry, to be laid off if the political crisis continues through the end of the year.

Thailand’s auto industry already laid off about 10,000 people in May, an auto-industry trade group said Thursday, after grappling with weak demand and falling production due to the political impasse and the end of the government’s stimulus for first-time car buyers.

“Thailand’s slowing economy and delayed investment projects are largely to blame for the layoffs,” said Kovit Wongkolkitsilp, secretary-general of the Auto Parts Industry Club.

In April, Thailand’s auto production fell more than a quarter from a year earlier to 126,730 cars while sales declined more than a third to 73,242 cars.

– WALLSTREET JOURNAL

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Marketers Eye Portion of FG’s Petrol Discount

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The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Federal Government to add its member-stations to the petrol discount programme.

It cautioned that the current arrangement could limit the reach and deny vast consumers in underserved communities the benefits of the 30-day discount window.

The PETROAN also urged the FG to allocate at least 30 percent of the discounted petrol volume to outlets operated by its members.

READ ALSO: Tanzania Nears Completion of $42bn Equinor, Shell-Led LNG Project

The calls followed last week’s announcement by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, of a petrol discount at Nigerian National Petroleum Company Limited (NNPC Ltd) retail outlets, with priority given to public transport operators nationwide.

According to the National Publicity Secretary, Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, the exclusion of independent marketers could undermine the programme’s effectiveness, particularly in communities where NNPC retail outlets have limited presence.

He argued that independent marketers, with their extensive nationwide distribution networks, were better positioned to extend the benefits of the intervention to consumers in remote and underserved areas.

“Independent oil marketers have over 90 percent coverage and presence in the nooks and crannies of this country. You are giving NNPC that is situated only in the town. So how do the poor masses, whom you intend to ensure that this petroleum product will alleviate their sufferings, how would they now get it?” Ukadike asked.

He said the association was not opposed to the government’s policy but insisted that independent marketers should be included to ensure wider access to the discounted product.

“But it’s government policies; we are not against government policies, but let it be all-inclusive; let independent marketers be part of it,” he said.

Ukadike also urged the government to extend the discount period to 60 days, citing logistical challenges that could delay the movement of petrol from coastal depots to other parts of the country.

“And the 30 days should be extended to 60 days. Because of the circulation of petroleum products, most times it takes two weeks for a truck to leave Apapa and get to Gombe, Maiduguri, because of the bad road and all the rest of them and loading process,” he added.

Similarly, PETROAN National President, Billy Gillis-Harry, urged the Federal Government to allocate 30 per cent of the discounted petrol volume to the association’s retail outlets to facilitate broader national distribution.

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Tanzania Nears Completion of $42bn Equinor, Shell-Led LNG Project

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In the bid to transform Tanzania into the East African regional energy hub, the country is on the verge of concluding an agreement with a consortium of energy companies, including a $42 billion LNG project.

It was gathered that the project is designed to tap the 47.13 tcf of gas discovered in Tanzania’s deep offshore fields, part of the country’s estimated 57.54 tcf in total discovered reserves, the sixth-largest in Africa, behind Nigeria, Algeria, Senegal, Mozambique and Egypt.

READ ALSO: Shell Identifies Keys to Nigeria’s Energy Future

Equinor and Shell would be the lead operators, alongside involvement from ExxonMobil Pavilion Energy and Medco Energi, while state oil major, the Tanzania Petroleum Development Corporation (TPDC), would also hold an equity stake in the project.

“It’s almost there,” Khamis Mussa Omar, Tanzania’s finance minister, told Reuters.

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Small Investors Take Centre Stage as Dangote IPO Nears Close

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President of Dangote Group, Aliko Dangote, has reaffirmed his commitment to ensuring broad-based participation in the Dangote Refinery’s Initial Public Offering (IPO).

In a statement, the industrialist announced that investors applying with ₦50,000 and below will receive priority consideration as the company seeks to democratize ownership of one of Africa’s most significant industrial assets.

Dangote made the declaration during the final leg of the nationwide IPO roadshow held in Port Harcourt, Rivers State, where investors, financial market experts, business leaders and other stakeholders gathered to discuss the investment opportunity and its implications for Nigeria’s economic transformation.

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Speaking at the event, Dangote emphasised that the IPO should be viewed not merely as an investment opportunity, but as a chance for Nigerians to become shareholders in a landmark enterprise that is reshaping the country’s industrial landscape.

“We will prioritise people with ₦50,000 and below,” Dangote stated, underscoring the Group’s determination to make the offering accessible to small and medium-scale investors across the country.

He noted that while international and African investors had already committed substantial capital to the refinery, the IPO now offers Nigerians a rare opportunity to participate directly in the ownership of a world-class industrial project built on Nigerian soil.

According to him, investing in the refinery goes beyond financial returns, representing a vote of confidence in Nigeria’s future, institutional development, corporate governance standards and industrial capacity.

“African investors have invested in this refinery. Now it is time for Nigerians to invest in themselves and participate in a project that is creating value, jobs and opportunities for generations to come,” he said.

Dangote also encouraged prospective shareholders to adopt a long-term investment perspective, noting that participation in the IPO presents a pathway to wealth creation, portfolio diversification and increased public engagement with the capital market.

He added that wider participation in the stock market would deepen financial literacy, promote a savings and investment culture, and enable more Nigerians to better understand how businesses create value and contribute to economic growth.

The roadshow also featured insightful presentations from leading economists and market analysts on the refinery’s economic significance and the broader opportunities associated with the public offering.
Renowned economist Bismarck Rewane highlighted the enormous economic potential of the South-South region and stressed the need to convert the area’s resource endowment into sustainable prosperity, infrastructure development and improved living standards. He also noted that the IPO presents an opportunity to deepen Nigeria’s capital market by encouraging citizens to participate actively in wealth creation.

Similarly, economist Dr. Muda Yusuf outlined the refinery’s far-reaching impact on economic diversification, domestic value addition, energy security, capital formation and employment generation.

According to Yusuf, the refinery represents far more than a petroleum-processing facility, serving as a catalyst for growth across multiple sectors including petrochemicals, packaging, manufacturing, logistics and other downstream industries.

He further emphasized that policy consistency, regulatory stability and sustained stakeholder engagement remain critical to maintaining investor confidence and attracting long-term capital into Nigeria’s industrial sector.

Speaking on the investment outlook, stakeholders urged prospective investors to consider the company’s operational performance, valuation metrics and long-term fundamentals when evaluating the offer.

Yusuf also described the refinery as a major example of domestic value addition, noting that its extensive local content and industrial linkages would significantly amplify its contribution to the Nigerian economy.

Discussions at the event further highlighted the importance of sound monetary policy, affordable financing and a predictable business environment in supporting investment-led growth and industrial expansion.

The Port Harcourt engagement was particularly significant for the South-South region, with legal luminary and business leader Paul Usoro expressing satisfaction at the level of participation from investors across the region.

“My joy is to see the South-South well represented,” Usoro said, stressing the importance of ensuring that investors from the region take advantage of the opportunity presented by the IPO.

The Port Harcourt event marked the final stop of the nationwide IPO roadshow, concluding a series of engagements designed to deepen public awareness and expand participation in what is widely regarded as one of the most significant capital market offerings in Nigeria’s history.

For Dangote Group, the objective remains clear: to provide Nigerians from all backgrounds with an opportunity to participate in the ownership of a transformative industrial enterprise while contributing to economic growth, employment generation and national development.

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