Africa News blog
African business, politics and lifestyle
Few investors dispute the view that Nigeria’s banks look
cheap at the moment, with most of the major players trading at a
discount to book value and with earnings multiples way below
consumer stocks such as Guinness Nigeria.
Nor is anybody arguing against the long-term logic of the
financial sector’s potential growth in an oil-rich country of
140 million people but only 23 million bank accounts.
A new central bank head with a background in risk management
is also making all the right noises about improving the sector’s
notoriously murky financial disclosure – part of the reason the
shares crashed so spectacularly in the latter half of 2008.
Furthermore, Lamido Sanusi’s stated desire to relax limits
on foreign ownership has breathed new life into the view that
another wave of consolidation, this time involving major global
players, sits around the corner.
Does all this sound – like so many other Nigerian promises of easy money – too good to be true,
or are its banks set on a long-term trajectory that will ultimately see them realise the dream of making Lagos a financial hub to rival Johannesburg?
Nigeria marks its first 10 years of unbroken civilian rule on Friday after emerging from nearly three decades of uninterrupted military dictatorship on May 29, 1999.
The political elite in Africa’s top oil producer are rolling out the drums to celebrate the milestone. And why not?
Nigeria’s security forces have been carrying out their biggest co-ordinated operation for more than a decade – and possibly since the Biafran war – in the Niger Delta this month, using helicopters, aircraft and gunboats as well as three battalions of ground troops to try to flush militants and criminal gangs out of the creeks around Warri.
The military says it has destroyed camps belonging to Government Tompolo in Delta state which were seen as a key training ground for rebel fighters and a hub of oil bunkering – the theft of industrial quantities of crude oil worth millions of dollars a day – in the western delta.
The progress of two Nigerian teams into the group phase of the African Champions League defies the supposed impact of the continuing exodus of the country’s top talent to almost every distant footballing corner of the world.
Kano Pillars caused a major upset last month with their shock win over defending champions Al Ahly, albeit on the away goal rule, while Heartland FC eliminated last year’s runners-up Coton Sport of Cameroon at the same stage of the competition. Both results plunged the established order into disarray and offer now the Nigerians a chance to prove their immense resources.
For days now Britons have been regaled with newspaper stories detailing the dubious expense claims of their Members of Parliament.
The Honourable Members, it seems, have been charging for everything from a few thousand pounds for clearing a moat to a few pence for a new bath plug. An outraged nation has risen almost as one to denounce its greedy lawmakers.
Can Nigeria, the so-called “giant of Africa”, live up to its claim of being the biggest democracy in the black world? Not if its latest state governorship election is anything to go by, argue some in Africa’s most populous nation.
The re-run of elections for the post of governor in southwest Ekiti state were seen as a test of whether Nigeria’s electoral system has improved since flawed federal and state polls in 2007.
from Global Investing:
Nigerian banks were advertising their services on billboards in Terminal 5 last year, and travelling investors felt it showed the banks were rashly trying to keep up with international investment banks in aiming for a global profile, causing many to sell, a banker specialising in Africa told journalists this morning over breakfast.
Before the G20 meeting, there was a lot of talk inside and outside Africa about making sure the continent did not get left out while the world’s richest and most powerful set out plans to save their own economies.******So how did Africa fare?******On the face of things, perhaps not too badly.******“Our global plan for recovery must have at its heart the needs and jobs of hard-working families, not just in developed countries but in emerging markets and the poorest countries of the world too,” the communique says in paragraph 3.******In concrete terms:******• Resources available to the IMF will be trebled to $750 billion.***• There will be support for a new allocation of Special Drawing Rights of $250 billion – something that could help poor countries***• There will be support for $100 billion more lending by Multilateral Development Banks (those include the World Bank Group and the African Development Bank)***• There will be $250 billion support for trade finance.***• Use will be made of resources from IMF gold sales “for concessional finance for the poorest countries”.***• Global financial institutions will be strengthened and reformed, ensuring that emerging and developing economies, including the poorest, must have greater voice and representation.”******The point on the gold sales was something for which Africa, represented at the summit by Ethiopian Prime Minister Meles Zenawi, had made a particular push.******But not all appeared so impressed. In East Africa based Business Daily, Allan Odhiambo’s piece was headlined “Africa thrown to back burner at G20 meeting.”******According to Nigeria’s ThisDay newspaper, President Umaru Yar’Adua’s main lament was the fact that Africa’s most populous country was not there (South Africa, with the continent’s biggest economy, was represented).******South Africa’s President Kgalema Motlanthe was quoted as saying he was “quite pleased” with the results of the summit.******How well do you think the G20 did for Africa? Will Africa really have a bigger say over the global financial system in future? Will that help?
For all their prowess at the last two continental championships, and their glittering array of successes at club level, Egyptian soccer is becoming increasingly haunted by the spectre of continued failure to make it to biggest footballing showpiece of them all.
The overthrow of Madagascar’s leader may have had nothing to do with events elsewhere in Africa, but after four violent changes of power within eight months the question is bound to arise as to whether the continent is returning to old ways.
Three years without coups between 2005 and last year had appeared to some, including foreign investors, to have indicated a fundamental change from the first turbulent decades after independence. This spate of violent overthrows could now be another reason for investors to tread more warily again, particularly as Africa feels the impact of the global financial crisis.