Nigeria

African telcos finally get their big fintech prize

8 Nov 2021

After years of delay, Nigeria’s central bank is letting phone firms offer basic banking via handsets. For the regulator, it’s a way of staying relevant as consumers dabble in cryptocurrencies. For operators like MTN and Airtel Africa, it’s a multibillion-dollar payday.

African phone-mast IPO priced for smooth safari

11 Oct 2021

IHS, which operates 30,000 towers across the continent, is listing in New York after an aborted attempt in 2018. Though its exposure to turbulent Nigeria is a worry, telecom kit has proved its worth in chaotic places. A market value of up to $8 bln reflects a generous discount.

Nigeria flies the flag for corporate tax self-harm

20 Jul 2021

Abuja’s revenue collectors are trying to extract $4.4 bln from South African pay TV provider MultiChoice. Growing climate change pressures require Africa’s top oil producer to wean itself off energy receipts. Ad hoc squeezing of foreign companies is the wrong way to go about it.

Africa’s digital payments race becomes a scramble

5 May 2021

The pandemic has brought the region’s mobile-based money networks and their 159 mln users to a crossroads. Airtel and MTN may spin off their payment arms. Banks and card giants like Mastercard are joining in. The victors will hold sway over an increasingly cashless continent.

Nigeria unrest throws petrol on economic bonfire

23 Oct 2020

The army is offering to deploy to quell protests against police brutality. That would fan tensions, the last thing the country needs. Africa’s biggest economy is on the ropes due to Covid-19 and low oil prices. Trouble in the oil-producing Niger Delta would bring it to its knees.

Oil slump puts African states on devaluation hook

10 Mar 2020

Hydrocarbons account for 90% of exports in Nigeria and Angola, despite years of talk about diversification. With crude at $36 a barrel, they’re both in trouble. Speedy devaluation means inflation-related pain but should help make the shift to a greener, low-carbon future.

Africa’s Alibaba looks more lemon than unicorn

19 Dec 2019

Jumia’s post-IPO limp could be life-threatening. The continent’s first billion-dollar tech firm has just enough cash to make it to 2021. But with losses widening due to high delivery costs and short-sellers questioning online transaction numbers, raising more money will be tough.

Nigeria’s closed border makes case for free trade

27 Nov 2019

President Muhammadu Buhari has shut the land frontiers of the continent’s largest economy to stop food smuggling. Drastic protectionism undercuts the pan-African commerce deal he signed this year. The damage inflicted on the economy will underscore the benefits of open markets.

Nigeria’s $62 bln oil demand is bargaining chip

10 Oct 2019

That’s how much Africa’s top crude producer wants big oil companies like Shell and Exxon Mobil to cough up under a review of 1990s contracts. In theory Abuja could seize output. In reality it’s sending a message ahead of talks over deep-water production licences due for renewal.

Nigeria is right to fight $9 bln arbitration claim

25 Sep 2019

The African nation is refusing to honour a ruling by UK-based judges on a failed gas project. Abuja is on thin ice because it failed to appeal on time. But the contract awarded to a little-known Irish firm looks suspect. Reopening the case would be a victory for common sense.

Corporate South Africa feels expansion’s downside

5 Sep 2019

The nation’s banks, retailers and telcos have spread across the continent. With rioters in Johannesburg now attacking African migrants and their businesses, they’re facing boycotts in Nigeria and Zambia. That’s a problem for the likes of MTN that get lots of revenue from abroad.

Africa growth outlook puts democrats on back foot

3 Jul 2019

Ballooning populations mean per capita wealth is falling in key democracies Nigeria and South Africa. That’s a recipe for trouble. Alongside a stronger performance by autocratic Egypt, it also makes worrying reading for those who believe a democratic Africa is a more stable one.

Airtel debt diet prepares it for Africa price war

28 May 2019

The Indian telecom giant is floating 25% of its African arm in London to help cut debt. The continent’s telecom market is growing quickly but competition is fierce. With less debt Airtel will be better positioned to fight back.

MTN’s cut-price Nigerian float has silver linings

16 May 2019

The South African telecom group is listing its Nigerian unit for $5 bln. That looks cheap, but the move chimes with the government’s aim to develop local markets, and may ease a tax dispute. Exposing local shareholders to Abuja’s whims might even make it more predictable.

Jumia to test faith in the rare African unicorn

27 Mar 2019

The e-commerce startup from Rocket Internet is hoping for a $1.4 bln price tag when it goes public in New York. Sales are galloping but so are losses. That’s a punchy valuation given the poorest continent’s social and political problems – unless Alibaba or Amazon are the buyers.

Nigeria votes for another four years of drift

27 Feb 2019

Re-elected President Muhammadu Buhari faces a daunting to-do list. His first term suggests most of it will stay undone. Easing the state’s grip on the currency and oil sector could revive growth. That the former general’s main rival backed such reforms means neither is likely.

Nigeria challenger is lesser of two outmoded evils

15 Feb 2019

Voters in Africa’s most populous nation must choose between an ageing ex-military ruler and old-school political tycoon. Both are four times the country’s median age. Challenger Atiku Abubakar’s talk of relaxing the state’s economic grip at least has a whiff of the 21st century.

Thruppence: Who wins by sponsoring UK book prize?

29 Jan 2019

Man Group has ended its support for the UK’s prestigious Booker award. The hedge fund decided there were worthier recipients of its 1.6 mln pound annual cheque. Luckily for aspiring authors, Breakingviews columnists have a handy shortlist of those who could step into the breach.

Carlyle’s Nigerian banking bet is down but not out

18 Dec 2018

The U.S. private-equity firm’s stake in Diamond Bank is worth only a fraction of what it paid after the ailing Lagos-based firm agreed to sell itself to Access Bank. A likely rights issue may worsen the financial pain. Carlyle's consolation is a slice of Nigeria’s biggest lender.

MTN’s $8 bln Nigeria spat requires Goldilocks fix

26 Nov 2018

The African phone giant is close to ending a row with the West African nation over dividends. A face-saving deal will repair ties in its biggest market. After protesting its innocence, a reported $800 mln settlement looks excessive. But too little will keep MTN in Abuja’s sights.