Quick question on the “Paris club refund”

First a bit of background. Nigeria incurred a lot of debt in the 80’s mostly from the Paris club, a group of international lenders. The federal government took these loans and spent it alone. A proverbial chopping and cleaning mouth. The loans of course needed to be serviced and paid back. Now, since about 1995,… Continue reading Quick question on the “Paris club refund”

Woo hoo Eurobonds

  Finally some good news. The $1bn Eurobond sale was successful. It was almost 8 times oversubscribed with orders up to $7.8bn (we will still take only a $1bn). At 7.875% it is a lot lower than the 8.5% that was the initial target, although still a bit high. Especially considering returns elsewhere. You literally… Continue reading Woo hoo Eurobonds

The $30bn loan: Addendum

I had an article in the guardian last Tuesday where I argued that the country already had serious debt problems and that adding an extra $30bn might tip us into a debt crisis. I argued, at the very least, for a debt sustainability report detailing the outcomes given various scenarios. The debt management office does… Continue reading The $30bn loan: Addendum

The $30bn loan: The logic of elected officials and why the National Assembly must act

In 1978, due to strains on government finances and external reserves, the government resorted to international debt markets to finance itself. Between 1978 and 1982, a couple of “jumbo loans” were negotiated with international financiers. The logic seemed sound at the time. Establishment of a steel industry here. Industrial expansion there. And so on. In… Continue reading The $30bn loan: The logic of elected officials and why the National Assembly must act