Nigeria seeks South Africa's help to join G20, BRICS

The Nigerian government on Monday signaled a desire for South Africa's endorsement to join the G20 and BRICS groups of leading and emerging economies.

Nigeria's Minister of State for Foreign Affairs, Bianca Odumegwu-Ojukwu, officially made the request on a trip to Cape Town for bi-annual talks between the two countries, sometimes seen as political and economic rivals.

However, South Africa, which assumed the rotating G20 presidency on Sunday, welcomed the request.

"We will count on Nigeria's wise counsel as we assume this major responsibility," Minister of International Relations Ronald Lamola was quoted by Nigerian news agency NAN as saying.

"Our people expect South Africa and Nigeria, given our common roots, to continue working together and more closely in order that their conditions and prospects are improved and the quality of life enhanced," he added.

At the same summit, known as the Bi-National Commission Meeting (BNC), the two countries pledged closer cooperation in key areas of development such as mining and infrastructure.
 

BRICS account for major share of global GDP

In addition to being a member of the G20 bloc of the world's biggest economies, South Africa was also an early member of the BRICS group of emerging economies meant to offer an alternative to Western dominance. Other members include China, Russia, and India.

According to European Union figures, the BRICS group, which comprises nine nations, now represents about 37% of global GDP. Recently, several other African nations have joined, such as Egypt and Ethiopia.

On Tuesday, Odumegwu-Ojukwu and Lamola are expected to present their draft communique on Nigerian membership of both groups to South African President Cyril Ramaphosa and Nigerian President Bola Tinubu for their approval.

Earlier this year, President Tinubu announced a series of ambitious reforms that he hopes will diversify Nigeria's oil-dependent economy and revive flagging growth.

By Elizabeth Schumacher, DW

Nigeria Raises $2.2 Billion in First Eurobond Issue Since 2022

Nigeria raised $2.2 billion with its first eurobond sale since February 2022, attracting demand for more than four times the amount on offer.

Africa’s biggest oil producer offered two maturities: a 6.5-year note that priced at 9.625%, and a 10-year issue that sold at 10.375%, Nigeria’s Debt Management Office said in an emailed statement late Monday. It raised $700 million in the shorter issue and $1.5 billion in the longer-dated paper, according to the statement.

“The transaction attracted a peak orderbook of more than $9 billion,” with demand from a combination of fund managers, insurance, pension and hedge funds as well as banks and other financial institutions, it said.

African borrowers have returned to international debt markets this year after a two-year hiatus in which most governments were locked out by debt distress and the punitive cost of borrowing. The Nigerian sale follows offerings by countries including Benin, Ivory Coast, Kenya and South Africa.

Measures taken by Nigerian President Bola Tinubu’s government over the past 18 months have resulted in the yield spread of its sovereign bonds over US Treasuries narrowing by more than 153 basis points, after reaching a high of 713 basis points on Aug. 5, according to the JPMorgan EMBIG Nigerian Sovereign Index.

Since his inauguration May 2023, Tinubu has allowed a more flexible exchange rate and ended gasoline subsidies, while the central bank has embarked on an aggressive interest-rate hiking cycle in a bid to curb inflation that’s near a three-decade high. The policy measures have drawn praise from international investors as well as the World Bank and the International Monetary Fund, while triggering protests in the nation that hosts the most number of poor people globally.

Proceeds from the issue will be used to partly finance an expected budget deficit of 9.18 trillion naira ($5.86 billion) this financial year, Tinubu said in a proposal sent to lawmakers last week.

Chapel Hill Denham, Citigroup Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co. and Standard Chartered Plc acted as joint bookrunners, while FSDH Merchant Bank Ltd. was the financial adviser.

Nigeria deferred a planned $950 million Eurobond issue in May 2022 because of unfavorable yields, after raising a first tranche of $1.25 billion of seven-year paper at a yield of 8.375% in the same year. It shelved another planned issue earlier this year and instead sold dollar bonds in the domestic debt market, raising $900 million at a yield of 9.67%.

Bloomberg

Video - Nigeria looks to untapped minerals to diversify economy

Nigeria looks to untapped minerals to diversify economy.

CGTN

Video - Nigeria loses nearly 3.7 percent of forest cover annually to logging

Nigeria loses nearly 3.7 percent of forest cover annually to logging.

CGTN

Nigeria boat accident leaves five dead, 20 missing

At least five people were killed and 20 others are missing after a speedboat struck a submerged log and capsized in Nigeria's southern state of Delta, a police spokesperson said on Tuesday.

The incident happened on Friday in the remote Gbaramatu Kingdom of the state's Warri South-West district.

Emergency responders are still conducting a search and rescue operation to find the 20 missing people. Six survivors are receiving treatment at a local hospital.

Reuters    

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