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Nigeria’s Loans From World Bank, AfDB Rise To $14.25 Billion Under Buhari

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Nigeria’s Loans From World Bank, AfDB Rise To $14.25 Billion Under Buhari
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Nigeria’s Loans From World Bank, AfDB Rise To $14.25 Billion Under Buhari

Nigeria’s liabilities to the World Bank and the African Development Bank rose from $7.14bn to $14.25bn between June 30, 2015 and March 31, 2021, data obtained from the Debt Management Office have shown.

This means that the commitment of the banks to the country rose by $7.11bn within the period under review. This represents an increase of 98.48 per cent.

As of June 30, 2015, the Federal Government had borrowed a total sum of $6.19bn from the World Bank.

A breakdown of the group’s portfolio in the country shows that a greater part of the loans was obtained from the International Development Association, an arm of the World Bank that specialises in giving concessional loans to poor and fragile countries.

The IDA commitment to Nigeria amounted to $6.09bn.

Another member of the group, the International Fund for Agricultural Development, had a commitment of $94.80m in the country.

Similarly, at the same time, the AfDB commitment to the country stood at $946.52m, comprising loans from various internal bodies such as the African Development Bank ($350m) and African Development Fund ($596.53m).

By March 31, 2021, the Federal Government’s debt to the World Bank had risen to $11.51bn, reflecting a $5.32bn or 86 per cent increase.

This debt portfolio included loans of $11.10bn and $410.23m from the International Development Association and International Bank for Reconstruction and Development respectively.

With a commitment of $11.51bn, the World Bank is responsible for 35.02 per cent of Nigeria’s foreign portfolio of $32.86bn as of March 31.

Nigeria’s Loans From World Bank, AfDB Rise To $14.25 Billion Under Buhari

At the same period, the Federal Government acquired $1.59bn from the AfDB, $0.21m from Africa Growing Together Fund and $942.51m from ADF.

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This brought the AfDB’s commitment to the country to $2.74bn, representing 8.3 per cent of the country’s total external debt.

Most of the loans from the World Bank and the AfDB were tied to a programme or infrastructure project.

On December 14 2020, for instance, the World Bank approved a $1.5bn loan to Nigeria, earmarked for two projects: Nigeria COVID-19 Action Recovery and Economic Stimulus Programme and The State Fiscal Transparency, Accountability, and Sustainability Programme.

On June 27, 2018, the bank approved a loan of $775m for the following projects: Fiscal Governance and Institutions Project, Nigeria Erosion and Watershed Management Project – Additional Financing, Nigeria Polio Eradication Support Project Additional Financing, Nigeria Electrification Project and the State Fiscal Transparency, Accountability and Sustainability scheme.

On March 23, 2017, the bank approved a $200m credit for the implementation of the Agro-Processing, Agricultural Productivity Enhancement and Livelihood Improvement Support Project and Nigeria, while $150m credit was offered for Mineral Sector Support for Economic Diversification Project on April 14 same year.

On June 7, 2016, the bank approved a $1.1bn credit as additional finance to fund the following projects: State Education Program Investment Project, Community and Social Development, Nigeria Youth Employment and Social Support, State Health Investment Project, Third National Fadama Development Project, NG-Polio Eradication Support Project and the National Social Safety Nets Project.

One of the loans approved by the Board of Directors of the AfDB to the Nigerian government is a financing package comprising $150m ADB loan, $100m ADF loan and the £5m RWSSI Grant Facility, to finance the Inclusive Basic Service Delivery and Livelihood Empowerment Integrated Programme on December 14, 2016.

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Also in 2016 but on December 16, another loan was approved, which was a financing package of $100m, comprising $80m loan and $20m equity for the rehabilitation of the Kainji and Jebba hydro plants.

On December 3, 2018, the Board of Directors of the AfDB approved a $150m sovereign loan to finance the Nigeria Electrification Project.

Another loan was approved on April 24, 2019, which was a $70m loan for a road project in Nigeria’s Southeastern Ebonyi State with the bank providing $40m and its co-financier, AGTF, contributing $30m.

On June 5, 2020, a $288.5m loan was approved to help Nigeria tackle the COVID-19 pandemic and mitigate its impact on people and businesses.

As of March 31 2021, 54.26 per cent of the country’s external debt portfolio belonged to multilateral organisations including the International Monetary Fund ($3.48bn), Arab Bank for Economic Development in Africa ($5.88m), European Development Fund ($51.33m) and Islamic Development Bank ($29.72m) and $223.28m from International Fund for Agricultural Development.

Bilateral debts make up $4.18bn or 12.73 per cent of the country’s external debt exposure.

Nigeria’s is currently indebted to the following bilateral agencies: Export Import Bank of China, with a portfolio of $3.40bn; the Exim Bank of India, with a portfolio of $34.95m; the Agence Française de Développement, with a portfolio of $486.6m; the Japan International Cooperation Agency, with a portfolio of $74.6m; and Germany, with a portfolio of $183.7m.

Commercial loans now comprise 32.47 per cent of the country’s external debt exposure, with a value of $10.67bn.

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These loans include $10.36bn Eurobonds, and $300bn Diaspora Bond, through which the Federal Government borrowed from Nigerians living abroad.

On the other hand, as of June 30 2015, Eurobond was the only commercial loan available and it constituted 14.54 per cent of the country’s external debt exposure with a value of $1.5bn.

Meanwhile, multilateral sources constituted 70.11 per cent of the country’s external debt exposure at the stated period while bilateral sources made up 15.35 per cent of the country’s total foreign debt exposure of $10.32bn.

Financial experts have continually condemned the huge borrowings of the Federal Government, noting that the country’s rapidly growing debt profile is detrimental to the economy.

The President of the AfDB, Dr Akinwumi Adesina, had during the virtual launch of the African Economic Outlook 2021 described debts owed by African countries including Nigeria as unsustainable.

Adesina had said, “The issue of debt is so fundamental because it’s like you are running up a hill but you have a bag full of sand on your back; you can’t go far. The amount of debt that we have is not sustainable.

“The amount of debt that we have right now is about 70 to 75 per cent of the Gross Domestic Product. It used to be sustainable, but what is even more alarming is the structure of the debt, where the debt right now is largely in the hands of commercial creditors, almost $337bn in terms of high creditors and those that are the private creditors without any type of securitisation for it.”

He added that this was very worrying.

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“Ore Industrial Park to employ not less than 120,000 workforces within twelve years” Femi Akinkuebi

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“Ore Industrial Park to employ not less than 120,000 workforces within twelve years” Femi Akinkuebi
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“Ore Industrial Park to employ not less than 120,000 workforces within twelve years” Femi Akinkuebi

By Amudipe Marcus

The Managing director of the Ore Industrial Park, Femi Akinkuebi has reiterated the commitment of the Akeredolu led administration in Ondo State to avail youths, small and medium scale business owners within and outside the state the platform to thrive by growing and developing their respective business enterprise; Mr. Femi Akinkuebi stated this while updating Newsmen in Akure, with level of progress made at the facility in Ondo State.

The Ore Industrial Park is a Public-Private Partnership[PPP] between Ondo State government and Hessmac Industry Limited, which is established on a massive 1000 hectares of eco-friendly, economic and industrially zoned land.

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According to him, the Ore Industrial Park provides the general public the opportunity to become a master of their destiny by tapping into the numerous benefits that the facility has to offer, the Ore Industrial Park was created by the Akeredolu led administration in order to eradicate poverty, improve the standard of living, boost wealth creation, unleash the nation’s industrial potential, build reputation for Nigeria in technology and industrialization.

Mr. Akinkuebi also revealed that there are about six companies which are currently on ground running(
Allecharis gas, Sulmont Solar, ASB, ATC Globalwide, Euro O&G Continental Ltd etc…) while another more companies will soon start working at the park, he also revealed that the Ore Industrial Park is made accessible to all because the government is more interested in giving opportunities to its people and also business minded thereby gaining more for the state. In the words of the managing director of the Ore Industrial Park.

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“Ore Industrial Park to employ not less than 120,000 workforces within twelve years” Femi Akinkuebi

In the words of Mr. Femi Akinkuebi, “As much as we are interested in foreign investors, we can’t forget our people, this necessitate our approach to encourage both local and international companies”

He further explained that the Akeredolu led administration in Ondo State through the Ore Industrial Park is willing to welcome interested youths and entrepreneurs who have the business skills and expertise to run any business venture, “even those with little or no startup capital are welcome to use our facility, we have a business conducive facility that will give your business the much needed leverage to thrive”

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“The Ore Industrial Park has the capacity to employ not less than 120,000 workforces within twelve years at the park”. he added.

The Ore Industrial Hub is designed to provide a world class infrastructure and ultra-fast operational efficiency, proximity to raw materials and target markets, uninterrupted power supply, easy access to gas with EPL gas pipeline and adequate security. The park has its own installed 30MW trio-fuel independent powecr Plant dedicated to providing power within the park.

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FIRS, not states should collect VAT – Umahi

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FIRS, not states should collect VAT – Umahi

Ebonyi State Governor David Umahi says the state is not in support of Rivers, Lagos and other states in their moves to collect Value Added Tax.

Umahi stated this at a dinner organised in honour of a former Chief of Army Staff and Nigerian Ambassador to the Republic of Benin, Amb. Tukur Buratai, on Monday night.

Umahi said Ebonyi was solidly and would continually throw its weight behind the Federal Inland Revenue Service’s collection of VAT.

Speaking at the dinner held at the Governor’s Lodge, Centenary City, Abakaliki, Umahi reiterated that state would not support any of the states collecting VAT, adding “Evil will continue to thrive if good people keep quiet.”

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He said, “We must make Ebonyi State very exceptional by rising to the challenges. When we shout true federalism, I say, I agree; but it should be administrative restructuring.

“Ebonyi State is not in support of any state collecting VAT. We are in support that FIRS should continue to collect tax and share.”

While urging the country’s leaders to speak up against dissenting voices that were capable of polarising the nation, Umahi stressed he was open to debate with any governor from the stable of the Peoples Democratic Party, who felt he had delivered more democracy dividends to his people than the APC-led administration in Ebonyi State.

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FIRS, not states should collect VAT – Umahi

“People are taking special interest in Ebonyi State and her Governor, positively and negatively; but it is very important to be in the news than for you to say there are 36 states, you will name 35 and say what is the other state?

“We have aborted it; we are now a state to reckon with and we have no apologies.

“When I say I have no apologies, you can talk everything about me but you can not say we have not delivered and so when people open their mouths in PDP to talk about APC, they should know that I belong to APC and if they like, let PDP offer any of their best Governors to come for debate with me and I will defeat any of them; it’s not just to be talking and talking. You don’t sit on people’s sweat and resources and be talking nonsense.

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“We have no regrets taking our people to the centre. We have always played at the centre. We are not playing party politics, we are playing politics that will be an advantage to our people, criticise me; no problems. But we need resources, we need friendship with the centre,” Umahi stated.

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Akeredolu Bans Unions’Associations’ Activities Over Public Exploitation

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Akeredolu Bans Unions’Associations’ Activities Over Public Exploitation

Press Release

The Ondo State Government has taken measures to protect residents in the state amid soaring costs and incessant increases in prices of goods and services by artisans including farm produce and food items.

In this regard, the state government has barred all Trading Unions and Associations under the umbrella of Ondo State United Artisan Group, from fixing and enforcing uniform prices of goods and services being sold/rendered by their members and non-members.

A statement by the Commissioner for Information and Orientation, Donald Ojogo said the decision was taken in the overall socio-economic interest of the people of the State.

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Akeredolu Bans Unions’Associations’ Activities Over Public Exploitation

The statement:

“Government had before now, watched with discomfort and dismay, the economic suffocation of the people with unimaginable increases in prices of goods and services in markets, shops and other sales outlets across the state.

“Even without due regard for market forces, it is obvious that associations and unions are largely behind this unwholesome act.

“The state government has decided to act decisively even as the public deserves protection from this undesirable exploitation under some guises.

“Therefore, fixing market prices and imposing fixed exorbitant prices on the people under the guise of association or union must be stopped forthwith.

“Accordingly, as part of the measures, Individuals, Artisans, Traders and providers of services as well as farmers are henceforth allowed to operate, sell their produce and render any service in any part of the state as they may deem profitable, based on the principle of demand and supply and prevailing market forces. This is just as membership of associations and unions remains voluntary as provided for in the constitution of the Federal Republic of Nigeria, as amended.

“Consequently, Government’s right to regulate the activities of Trading Associations and Artisan groups has to be invoked in the interest of residents. Therefore, on no account should any Union/Association fix or enforce prices of goods and services.

“Similarly, there shall be no sale of tickets to Artisans/Traders by any Association/Union without due approval of the state Government through the Internal Revenue Service”.

“All concerned are, therefore, advised to adhere strictly to this directive as any person or group found to be flouting it will be made to face the full weight of the extant laws.

“It is to be noted too that this directive takes effect from TODAY in all markets and sales outlets across the 18 LGAs of the state”.

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