| Welcome to Next Africa, a twice-weekly newsletter on where the continent stands now — and where it's headed. Sign up here to have it delivered to your email. Nigeria's push to repair its stumbling oil sector has left it in a quandary. Africa's biggest crude producer wants output to return to its once-consistent 2 million barrels a day to fund a budget serving the continent's most-populated country. That's after vandalism and violence slashed production to as low as 1.1 million barrels in 2022 — the lowest level in half a century.  Gas flares at a plant in Idu, Nigeria. Photographer: George Osodi/Bloomberg The nation has, in recent years, been haunted by a narrative of oil majors such as Exxon Mobil and Equinor fleeing its fields due to security concerns, with the international companies holding out only on deepwater platforms. A steady improvement in production, though, has taken the industry closer to the ceiling it had agreed to with its partners in OPEC+, the cartel that seeks to influence prices by controlling their collective tap. Last month, Nigeria reached 99% of the cap. Its target will blow through the 1.5 million barrels it committed to. Yet, sticking to the quota won't generate the revenue the nation so desperately needs to revive as stuttering economy and alleviate a cost-of-living crisis. Authorities are banking on something changing.  WATCH: Bloomberg's Ondiro Oganga reports on Nigeria's oil production. Benefiting from greater output and honoring your duty to OPEC isn't that complicated, says Gbenga Komolafe, chief executive officer of the Nigeria Upstream Petroleum Regulatory Commission. Meet the budget aspiration and then negotiate a quota increase, he proposes. It wasn't so easy for Angola. Some African producers were pushed to accept reduced output targets that reflected their diminished production capabilities. Angola baulked, vowing to boost output and soon quit the group. Nigeria may have to curb its ambitions if it wants to stay in the club. — Paul Burkhardt Key stories and opinion:
Nigeria's Oil Comeback to Test Its Commitment to OPEC+ Cuts
Naira Reforms Offer Investors an Opportunity, Cardoso Says
Nigeria Banks on Higher Oil Revenue to Fund Budget
Shell, Partners to Invest $5 Billion in Nigeria's Deep-Water Oil
Can Nigerians Bear Pain of Economic Shock Therapy? South African coal and iron-ore exporters aim to sign agreements with state-owned logistics company Transnet next month that could pave the way for them to spend billions of rand to help fix crucial rail lines. The collapse of freight rail due to poor maintenance, vandalism and theft of equipment saw coal exports plunge to a 30-year low of 48 million tons in 2023 (there was a tick-up to 52 million tons last year), and iron-ore railings slumped to the lowest in a decade. Separately, President Cyril Ramaphosa signed off on a new law that makes it easier for the state to expropriate land in the public interest.  A driver in the cabin of a Transnet locomotive. Photographer: Guillem Sartorio/Bloomberg Angola plans to sell stakes in its biggest telecommunications company, Unitel, and two lenders in the coming months, according to the minister overseeing economic policy. The three firms are among the largest of almost 200 state-owned entities and assets the government initially earmarked for disposal in 2019 to raise cash and diversify the economy away from oil. José de Lima Massano also said in an interview at the World Economic Forum in Davos that the government is looking to raise as much as $2 billion through foreign bonds this year. Mozambique's new finance minister takes over a treasury sapped by months of unrest and is already having to contend with a potential debt restructuring and a wage strike by government employees. Even before months of post-election turmoil left at least 314 people dead and slammed the brakes on the southeast African nation's economy, the government was struggling to meet its obligations. Now, Carla Louveira must pick up the pieces and steady the state's finances.  President Daniel Chapo during his inauguration in Maputo, Mozambique, on Jan. 15. Photographer: Alfredo Zuniga/AFP/Getty Images Yellow Card, a pan-African focused digital-assets exchange, has received increased interest from traditional banks and expects regulators to act quicker to set up rules for the sector following crypto-friendly President Donald Trump's return to the White House. Despite widespread adoption of crypto assets by young Africans and businesses hedging against unstable currencies, trading is still illegal in most nations on the continent. The World Health Organization urged the US to reconsider Trump's decision to exit the agency, suggesting the move could undermine global health security. On this week's episode of the Next Africa podcast, health reporter Janice Kew joins Jennifer Zabasajja to explain how the planned departure will leave the WHO scrambling to replace its top donor. Losing that funding could put the work that the agency carries out on containing diseases such as HIV, polio and Ebola, as well as a recent outbreak of lethal Marburg virus at risk. Sasol is seeking a new path for South Africa's second-largest polluter to reach its emissions target after doubling down on coal to run its fuel and chemicals production. The company is falling back on coal after encountering obstacles in its plan to pivot to natural gas and green hydrogen to achieve net-zero by 2050. Shutting operations to meet climate goals "for me does not make any logical sense at all," CEO Simon Baloyi said in an interview. Next Africa Quiz — The former finance minister of which African nation was sentenced to 8 1/2 years in prison in the US for his role in a corruption scandal? Send your answers to gbell16@bloomberg.net. Data Watch - Gabon's sovereign dollar bonds rallied after the oil-rich nation's junta said it will hold presidential elections on April 12, raising the prospect of a return to civilian rule.
- Naspers-controlled technology investor, Prosus, has close to $20 billion to spend and is ready to grow in Europe, India, Latin America and Africa.
- South Africa's inflation quickened less than expected in December, providing room for policymakers to cut interest rates next week.
- Zimbabwean beer maker Delta's disputed tax bill has risen to $73 million as the local bottler of Coca-Cola continues its legal bid to pay these levies in local currency.
Coming Up - Jan. 27 Interest-rate decisions for Ghana and Mozambique
- Jan. 28 South African central bank's leading economic indicator & the statistics agency's latest income and expenditure survey
- Jan. 30 Interest-rate decisions for South Africa, Malawi and Democratic Republic of Congo, South Africa money supply & monthly budget data for December, Zambia inflation for January & trade balance for December
- Jan. 31 South Africa trade balance for December, Kenya and Uganda inflation for January
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