- Nigeria is moving swiftly to boost power generation. The government announced yesterday, that it had completed the signing of the World Bank Partial Risk Guarantees (PRGs) in support of the 450MW Azura-Edo Independent Power Project (IPP). The Guarantees comprise a Loan Guarantee (capped at $117 million) and a Payment Guarantee (capped at $120 million). The combined value of these Guarantees will leverage a total investment in the Azura power plant of more than $900 million made by a set of 20 international banks and equity finance institutions drawn from 9 different countries. Work on the site had been stalled when President Goodluck Jonathan failed to accede to a request by institutions funding the project, including the World Bank, for the waiver of Nigeria’s sovereign immunity to further de-risk the project.
- Deutsche Bank says the meltdown in global markets is “very serious” and will weaken prospects for growth worldwide. The bank said it was expecting some adjustments for the global economic outlook triggered by weaker growth in emerging markets and low oil price. Both factors will create another round of global earnings cuts said Henning Gebhardt, global head of equities at Deutsche Bank AG’s asset and wealth management unit. Developing economies are bearing the brunt of the sell-off, with the MSCI Emerging Markets Index sliding 4.4 percent in early trading (as at the time of writing) in Frankfurt, headed for the biggest one-day drop since September 2011.
- Back in Nigeria, equities have been battered, with up to
N1.2 trillion of equity value been lost so far this year. Foreign Direct Investment prospects also appear dim, as the price of major export product – oil continues to decline, impacting budget financing and foreign reserves.