• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

Africa’s “Risk Premium” is a “Tycoon Tax”

2 years ago
in Business, Editor's pick, Features, highlights, Home, home-news, latest News, Opinions
1 min read
0 0
0
126
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Africa’s “Risk Premium” is a “Tycoon Tax”

The recent financial maneuvers by the Nigerian government, as articulated by Bright Simons, Honorary Vice President of IMANI Ghana, underscore the intricate nuances between economic decisions, external financing, and the ramifications for the continent’s wealthiest individuals, notably the shift in the title of Africa’s richest from a Nigerian to a South African magnate.

In navigating the economic challenges, Nigeria has entered into a deal with Afreximbank, securing an emergency dollar loan at an elevated interest rate of nearly 12%. Mr Simons argues that this reflects the country’s desperation to shore up its financial stability, raising questions about the efficacy of its financial management during turbulent times.

A critical point emphasized by Mr Simons is the reluctance of African governments, including Nigeria’s, to adopt stringent public financial management measures during economic downturns unless compelled by external entities such as the International Monetary Fund (IMF). This behavior, he further contends, has led to cycles of macroeconomic turbulence, eroding private wealth and contributing to the perceived “African risk premium.”

Additionally, Mr Simons argues against Nigeria’s resort to a “natural resource-backed loan” format to safeguard its USD reserve position. While oil serves as Nigeria’s primary economic weapon, the emphasis on leveraging it for loans poses challenges to domestic oil refining initiatives by the government. This raises concerns about the viability of projects like the refinery established by the former richest man in Africa – Aliko Dangote – potentially putting his fortune at further risk.

“What does Nigeria’s deal with Afreximbank to help it raise an emergency dollar loan at nearly 12% have to do with a Nigerian billionaire losing the top spot as Africa’s richest man? Quite a bit, actually.

“The unwillingness of African governments to considerably tighten public financial management during hard times unless forced to do so by an external party like the IMF has led to cycles of macroeconomic turbulence in recent years that have wiped away a lot of private wealth. Such conduct is the real source of the much lamented “African risk premium,” not groundless prejudice.

RelatedPosts

MTN Nigeria Now the Most Capitalized Stock in Nigeria

Nigerian Stock Market Creates Largest Pool of Billion-Dollar Stocks in 2025

OPEC+ Nears Decision Point on Next Oil Output Hike

“Not surprisingly, the new “richest man in Africa”,a South African, makes and keeps a lot of his money in Europe, whereas the Nigerian who previously held the spot makes and keeps most of his money in Africa.

“Second, Nigeria is resorting to the “natural resource-backed loan” format in a desperate struggle to defend its USD reserve position. Oil is its only weapon in this fight. It will keep using it. But that also endangers efforts to refine more oil domestically. It almost guarantees that the refinery set up by the former richest man in Africa cannot operate viably for many months henceforth, putting his fortune at further risk,” Mr Simons posited.

Source: Bright Simmons
Via: norvanreports
Tags: Africa's "Risk Premium" is a "Tycoon Tax"Risk Premiumtax
No Result
View All Result

Highlights

Europe’s Energy Future Hinges on Global Powers

US Companies Cut Investments in China to Record Lows, Here’s Why

How AI is Rewriting and Enhancing Water Risk Management

SheFarms Broiler Edition Kicks Off in Greater Accra

PharmAccess Ghana, Healthcare Federation of Ghana sign SafeCare License Agreement; to use Newest ISQua-Certified Version 5

Tanzania Sink Burkina Faso to Delight Home Crowd In TotalEnergies CHAN 2024 Opener

Trending

Features

MTN Nigeria Now the Most Capitalized Stock in Nigeria

August 3, 2025

MTN Nigeria Now the Most Capitalized Stock in Nigeria MTN Nigeria has surged to become the most...

Nigerian Stock Market Creates Largest Pool of Billion-Dollar Stocks in 2025

August 3, 2025

OPEC+ Nears Decision Point on Next Oil Output Hike

August 3, 2025

Europe’s Energy Future Hinges on Global Powers

August 3, 2025

US Companies Cut Investments in China to Record Lows, Here’s Why

August 3, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.