Following the handover of the Power Holding Company of Nigeria’s (PHCN) assets, talks will now move from the bidding process of the PHCN’s successor companies to the next set of challenges: what the possible roadblocks could be going forward, and what kinds of strategic decisions are the new owners likely to make? The finance and other types of...
Following a significant overhaul of the sector in 2012, Nigerian banks recorded their strongest performance since the onset of the banking crisis in 2009. With the cleaning of balance sheets over the past two years, a consolidated and restructured market has emerged, and competition and lending are set to increase over the coming years. The disposal...
Over the past decade, the thirst for fuel in emerging economies has mirrored their spectacular economic rise, shifting growth in demand for energy from the West to the East. The changing dynamics of energy demand have, in turn, affected the downstream petroleum sector, increasing the share of new investment flowing to emerging markets. Four out of...
As privatisation of Nigeria’s power sector evolves, one of the most pressing concerns will be that of risk guarantees. Given the stuttered progress in attracting investment to the sector prior to 2013, finding ways to reduce the risk profile of projects is considered important. The privatisation process has been designed with a reliance on...
a claw-back clause. AMCON’s exposure to unsecured loans, a minority of assets purchased, was limited to 5% of face value. By the end of 2011, AMCON had accumulated a total notional amount of N4.2trn ($26.46bn) in NPLs, at a cost of N1.76trn ($11.09bn). This amounted to four times more NPLs than banks had disclosed in their regulatory filings, according to CBN data.
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As the single most populous nation in Africa, Nigeria is widely expected to overtake South Africa as the largest economy on the continent within a matter of years. Increasingly, it is overhauling its markets – whether in electricity or rail – to improve efficiency, and growth has been robust even through the depths of the recent global slowdown...
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