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Breakingviews: African sunshine

Friday, Feb 21, 2014 - 02:53

Feb. 21 - Jeffrey Goldfarb talks to Martin Hutchinson about how global attention on the oil scandal in Nigeria might just be a good thing for the economy.

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We have our global watcher Martin Hutchinson in the office today so we're gonna talk about Nigeria. Where the Central Bank chief has been suspended by president good luck Jonathan. And does roiled the markets a little bit what's happening down there what why exactly did this happen. Well I think it's -- that politics I mean he comes out can sense the time with us artifacts here the Central Bank chief comes out in the sense that this twenty billion dollars with promising. From the Nigerian oil cap and French that's not big news for anybody because everybody's been the Nigerian oil companies. Have these problems the president fifteen years ago it got away with more than a billion and that's just what they found is almost certainly much Apple -- And so the suspension of his Central Bank -- that we wasn't fired. But sort of got the markets are roiled up what you think actually this could be a good thing for Niger. Well I think bringing it towels and having a pop a scandal about. Nigerian oil drop to about a good thing because. If twenty billion a year or twenty billion in eighteen months is going missy and which it seems to be a central bank's claims. More also. That in that case you know that's money that's being completely wasted and people Swiss bank accounts. I would be doing some good in Nigeria a Montauk and clean the place shop complete kits while that's little. Nice but you make the point that oil underpins the economy quite obvious about it. But that the non oil economy -- has been doing quite well. Yes because. People on stealing twenty billion dollar deal with all of its. And therefore that's been going at some of 8% to -- -- you know assess what's been the catalyst for that I mean it's all sorts of things it's agriculture roots. Hotels its property. A elevates the -- communications. Which means that Nigeria has 160 million self fashions on a population 165. Million. I'm basically this means little people out in the countries are able to find out what. It -- proxies are in Chicago and and therefore when the guy comes to them buys thankful that I get ripped off the ball security is that the satellite as a disinfectant. I guess a little bit more in the oil industry that it really help if you if you get a bit more sunlight you know an industry a bit more of the money that should be going to the government got into the government. So that doesn't have to tax say much doesn't -- his big deficits as involved as much. That the rest of the economy's doing so well would it should just take at all from the Nigerians. Having the ability to be a rich country great tennis to have an opportunity lost and they've not got a communications that they didn't have twenty again. All right thanks very much smarter and we will keep an eye on Nigeria. And be back with more breaking news next week.

Breakingviews: African sunshine

Friday, Feb 21, 2014 - 02:53

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