Data published by Nigeria’s Budget Office this week highlighted that, despite what should be a favourable high oil price environment, the public finances are actually getting worse. With the government’s options to finance a larger-than-expected budget deficit dwindling, officials may be tempted to turn back to deficit monetisation albeit at the risk of exacerbating Nigeria’s other economic problems. Elsewhere, recent Stage 6 loadshedding in South Africa has prompted President Ramaphosa to put forward another plan to deal with the country’s electricity problems. But a swift improvement seems unlikely.
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