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Debt crisis: Developing countries’ external debt hits $11.4trn

When governments must prioritize debt repayments over public services and investments, people pay the price. Schools are underfunded, hospitals lack supplies, and infrastructure crumbles.

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UN trade and development reports that developing countries are sinking deeper into a debt-driven development crisis. 

In the report, the organization said that the developing nations’ external debt – money owed to foreign creditors – has quadrupled in two decades to a record $11.4 trillion in 2023, equivalent to 99% of their export earnings.

It said:” A mix of factors has fuelled this surge, including increased borrowing for development projects, volatile commodity prices, and widening public deficits.

The COVID-19 pandemic worsened the situation, as countries borrowed heavily to offset the economic fallout and fund public health measures.

While debt can be a vital tool for economic growth and development, it becomes a problem when repayment costs outpace a country’s capacity to pay. 

That is now the case for two-thirds of developing countries.

Debt distress now looms over more than half of the 68 low-income countries eligible for the International Monetary Fund’s Poverty Reduction and Growth Trust – more than double the number in 2015.

High interest rates are worsening the burden. In 2023, developing nations paid $847 billion in net interest, a 26% increase from 2021.

They borrowed internationally at rates two to four times higher than the United States and six to 12 times higher than Germany. Defaulting on development:

The real cost of debt

When governments must prioritize debt repayments over public services and investments, people pay the price. Schools are underfunded, hospitals lack supplies, and infrastructure crumbles.

Yet, because existing debt workout mechanisms are inefficient and costly, most governments avoid default at all costs – even if it means sacrificing development goals and climate action.

As a result, countries may not default on their debt, but they default on their development.”

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Business

Dangote Refinery’s IPO Ends Tomorrow

“The level of investor interest reflects growing confidence in our business and in the strong financial results we have delivered,” the company said.

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[File photo] Opening ceremony of Dangote Refinery’s IPO on the NGX, September 14,2026

Dangote Petroleum Refinery & Petrochemicals has confirmed that its Initial Public Offering (IPO) will close on Tuesday, 27 October 2026 as scheduled, with no extension.

In a statement, the management said that the IPO has become a historic ownership moment, an opportunity for Africans at home and abroad to own a stake in one of the continent’s most strategic industrial assets.

“Investors recognise that this refinery is not merely an energy asset. It is a platform for industrial growth, foreign-exchange generation, regional trade, energy security and economic development across Africa,” management said.

The offer was structured to ensure ordinary investors participate alongside institutions, broadening ownership of the world-class asset.

“The level of investor interest reflects growing confidence in our business and in the strong financial results we have delivered,” the company said.

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Business

Dangote Visit London Stock Exchange Ahead of November Cement Listing

Unlike an initial public offering, a secondary listing would let Dangote Cement, already listed on the Nigerian Exchange, set up an additional presence in London.

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Aliko Dangote visited the London Stock Exchange on Friday, October 23, 2026, as Dangote Cement Plc prepares a proposed $1 billion share sale and a secondary listing in the United Kingdom.

The company is reportedly targeting November 2026 for the listing, subject to market conditions and regulatory approval.

A video circulating on social media captured the visit, with exchange officials and attendees welcoming Africa’s richest man.

The trip is part of efforts to pull international investment into his business empire.

The proposed deal could see Dangote Cement offer about 10% of its equity to international investors, potentially raising roughly $1 billion.

The final timetable is not fixed and remains subject to market conditions and regulatory requirements.

Unlike an initial public offering, a secondary listing would let Dangote Cement, already listed on the Nigerian Exchange, set up an additional presence in London.

That could raise the company’s visibility with international institutional investors, including pension funds, asset managers and other investment firms.

The share sale has not been completed. Its final structure, valuation and pricing are still subject to confirmation.

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Business

Olagunju to head JPMorgan’s Proposed Nigerian Merchant Bank

The proposed bank would expand JPMorgan’s presence beyond its representative office in Lagos. It could undertake a broader range of regulated banking activities after securing a final licence.

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The Central Bank of Nigeria has granted JPMorgan approval-in-principle to establish a merchant bank in Nigeria.

The regulator also approved Adedapo Adedayo Olagunju as Managing Director of the proposed JPMorgan Merchant Bank Nigeria Limited.

The approval came on Friday, October 23, 2026. The bank has not received its final operating licence.

Olagunju has led JPMorgan’s West African operations since 2018.

He is an Oxford-trained banker with more than two decades of experience in treasury management, financial markets, institutional banking and structured finance.

His appointment puts him in line to head the American bank’s proposed Nigerian merchant bank once final licensing is completed.

The CBN also approved four non-executive directors and three independent non-executive directors for the proposed institution.

The proposed bank would expand JPMorgan’s presence beyond its representative office in Lagos. It could undertake a broader range of regulated banking activities after securing a final licence.

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