Premium News
Economic Analyst Kalu Aja has stated that there is no greater demarketing of Nigeria than removing an elected governor and replacing him with a retired general while the highest court in the country maintains silence.
Aja was reacting to a statement by Dave Umahi, the minister of works, who urged Nigerians to only speak positively about the country.
In a post on X, he explained that the illegal removal of Sim Fubara as governor of Rivers State for six months is enough proof that any significant investment can be upended, and courts will also stay silent.
He noted that such action is called sovereign risk in finance, and it shows up in the risk premium for bonds.
“There is no bigger demarketing than removing an elected governor and replacing him with a general, and the Supreme Court stays silent.
“Rwanda, with a smaller economy and no crude oil, can borrow at a lower coupon rate than Nigeria. Rwanda’s Eurobond Yield for a 10-year USD Eurobond maturing in 2031 has a coupon rate of 5.5% and a yield of 5.5-6%. Rwanda’s risk rating is B+
“Nigeria’s Eurobond Yield for a 10-year USD Eurobond maturing in 2032 has a coupon rate of 7.875%, and Current yields are around 9-10% in 2025. Nigeria’s risk rating is B3.
“The market vigilantes are not emotional, he concluded.
There is no bigger demarketing than removing an elected governor and replacing him with a general, and the Supreme Court stays silent.
It means any significant investment can be upended, and courts will also stay silent. In finance, it’s called sovereign risk, and it shows up in… https://t.co/70ArLQoSwR
