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March 26, 2018

A warning from the IMF on borrowing for productive investment

Rex Tillerson, the then US secretary of state, made some punchy criticisms of Chinese lending policy in Addis on 08 March. This was his first, and last official trip to Africa. Without offering any examples, he opined that a sovereign borrower in difficulties with its loans from China can “lose control of its own infrastructure or its own resources through default”. For good measure, he added that Chinese investments “do not bring significant job creation locally”. We have seen some historic loan drafts between China and governments but will not be tempted into this highly sensitive territory. We can comment, however, on financing costs on the basis of the quarterly data releases from Nigeria’s Debt Management Office. Our simple calculations are based upon the stock of external debt mid-2017 and...

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March 5, 2018

Pharaohs in the spotlight

The week before last, both Egypt and Nigeria successfully tapped the Eurobond market. The former raised US$4.0bn from the sale...

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February 22, 2018

Digital economy, still scratching the surface

The growing appetite for mobile data usage as well as increased network coverage has increased the potential of Nigeria’s e-commerce...

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January 22, 2018

Utilising Nigeria’s human capital

As the most populated African country, Nigeria’s human capital is largely untapped. The high population is often viewed as a...

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