According to experts, Egypt’s economic bold reforms were held up as a model country for Nigeria as the country became the darling of investors. However, the country later undone the gains of those reforms with huge spending of borrowed funds on megaprojects from a new capital city to presidential palaces that have not delivered economic gains.
An economist familiar with the matter said that the spending spree, financed mainly by foreign loans, has put Egypt at risk of a rare bond default. He said Egypt’s case shows reform is not enough, if it is not complemented by purposeful leadership.
A public finance expert, Musa Adekunle said Nigeria can learn from some mistakes made by Egypt such as failed industrial development due to poor planning and heavy bureaucracy, and export policies that created a persistent trade deficit.
