Aminu Musa, Author at Gifted Analysts

How Countries Can Diversify Their Exports

By Aminu MusaPosted on September 22, 2021Posted in Africa & World Economy, AgenciesTagged Chile, Commodities, exports, Governance, imports, Malaysia, TradeNo Comments

By looking beyond commodities, the research shows that economy-wide policies such as governance and education help foster diverse exports more than narrowly targeted industrial policies, a finding that can better guide nations aiming to expand their international trade.
The examination of 201 countries and territories goes beyond the economic complexity indices that have traditionally been used by economists. Those proxies for the productive capability of a given economic system have strong sensitivity to commodities, which can distort their accuracy.

Cryptoassets as National Currency? A Step Too Far

By Aminu MusaPosted on July 27, 2021Posted in AgenciesTagged Assets, Bitcoin, Central Bank, Crypto, Digital CurrencyNo Comments

New digital forms of money have the potential to provide cheaper and faster payments, enhance financial inclusion, improve resilience and competition among payment providers, and facilitate cross-border transfers.

But doing so is not straightforward. It requires significant investment as well as difficult policy choices, such as clarifying the role of the public and private sectors in providing and regulating digital forms of money.

Some countries may be tempted by a shortcut: adopting cryptoassets as national currencies. Many are indeed secure, easy to access, and cheap to transact. We believe, however, that in most cases risks and costs outweigh potential benefits.

The Policymaker’s Trilemma

By Aminu MusaPosted on May 14, 2021Posted in Africa & World EconomyTagged Africa, Debt, GDP, Inflation, Pandemic, Revenue, TaxesNo Comments

Imagine you’re a policymaker in sub-Saharan Africa. You’ve been charged with lifting your country out of the worst health crisis in living memory, and nobody around you knows when it will end—the second wave that gripped the region earlier in the year has eased, but many countries are nonetheless bracing for further waves as winter approaches.

One piece of good news is that a global recovery is well underway. Key economies are rebounding sharply, global trade has improved, commodity prices are higher, and investment flows have resumed.

The bad news is that, for sub-Saharan Africa, at least, near-term growth prospects are somewhat more subdued. And as long as widespread vaccination remains out of reach, you will face the unenviable task of trying to boost your economy while simultaneously dealing with repeated COVID-19 outbreaks as they arise.

A Future with High Public Debt: Low-for-Long Is Not Low Forever

By Aminu MusaPosted on April 20, 2021Posted in Africa & World EconomyTagged COVID-19, Fiscal Policy, Interest Rate, Monetary Policy, Public DebtNo Comments

Many countries are experiencing a combination of high public debt and low interest rates. This was already the case in advanced economies even prior to the pandemic but has become even starker in its aftermath. A growing number of emerging market and developing economies are likewise enjoying a period of negative real rates—the interest rate minus inflation—on government debt. The IMF has called on countries to spend as much as they can to protect the vulnerable and limit long-lasting damage to economies, stressing the need for spending to be well targeted. This is especially critical in emerging market and developing economies, which face tighter constraints and associated fiscal risks, where greater prioritization of spending is of the essence.

[Infographics] Financial Performance Summary of Selected Companies in Nigeria (2020)

By Aminu MusaPosted on April 19, 2021Posted in AnalyticsTagged 2020, Companies, Financial Performance, NigeriaNo Comments

Get the 2020 financial performance summary of some of the big names listed on the Nigerian Stock Exchange.

How Rising Interest Rates Could Affect Emerging Markets

By Aminu MusaPosted on April 5, 2021Posted in Africa & World EconomyTagged Advanced Economies, COVID-19, developing economies, Emerging Markets, Fiscal Stimulus, Interest Rate, Vaccine developmentNo Comments

Emerging and developing economies are viewing rising interest rates with trepidation. Most of them are facing a slower economic recovery than advanced economies because of longer waits for vaccines and limited space for their own fiscal stimulus. Now, capital inflows to emerging markets have shown signs of drying up. The fear is of a repeat of the “taper tantrum” episode of 2013, when indications of an earlier-than-expected tapering of US bond purchases caused a rush of capital outflows from emerging markets.

Financial Perils in Check for Now, Eyes Turn to Risk of Market Correction

By Aminu MusaPosted on January 27, 2021Posted in Africa & World EconomyTagged Assets, Capital Market, COVID-19, Financial, Financial stability, IMF, market, VaccinesNo Comments

Prices for stocks, corporate bonds, and other risk assets have risen higher on the news of vaccine rollouts. Financial markets have shrugged off rising COVID-19 cases, betting that continued policy support will offset any bad economic news in the short term and provide a bridge to the future. As the apparent disconnect between exuberant financial markets and the still-lagging economic recovery persists, it raises the specter of a possible market correction should investors reassess the economic outlook or the extent and duration of policy backstop.

What 1919 Teaches Us About Pent-Up Demand

By Aminu MusaPosted on January 12, 2021Posted in AgenciesTagged 1919, 2021, COVID-19, demand, Pandemic, warNo Comments

1918 should have been a great year for baseball. A young left-handed pitcher named Babe Ruth began the year by pitching an opening-day victory for the Boston Red Sox. Shortly after, Ruth lobbied the team’s manager to let him play other positions so he could spend more time at the plate. The strategy paid off, and Ruth began his run as a home-run-hitting superstar, helping lead the Red Sox to the World Series.

Bank lending rates and spreads in EMDEs: Evolution, drivers, and policies

By Aminu MusaPosted on November 28, 2020Posted in Africa & World EconomyTagged developing economies, EMDEs, Emerging Markets, Financial Sector, Lending RateNo Comments

Banks dominate credit intermediation and savings mobilization in most emerging markets and developing economies (EMDEs). As bank lending interest rates and the lending-deposit interest spreads capture the efficiency with which banks allocate society’s savings to its most productive uses, high lending rates and spreads pose a challenge for policy makers in EMDEs: they can affect monetary policy transmission, hinder private investment and job creation, inhibit financial development and inclusion, and ultimately compromise financial stability.

Financial Highlights of SEPLAT in the first 9 months of 2020

By Aminu MusaPosted on November 10, 2020Posted in Business & FinanceTagged Gross profit, NPDC, Operating profit, Profit After Tax, Revenue, SEPLAT, tax, Total assets, Total equity, Total liabilitiesNo Comments

Although revenue declined, we note that the cost of sales surged during the period. Specifically, cost of sales was N103.94 billion compared to N70.65 billion recorded in the corresponding period of 2019. This was due to 95% increase in operational and maintenance expenses (N23.56 billion) and 59.4% increase in depletion, depreciation and amortisation (N33.75 billion).

Author: Aminu Musa