Connect with us

News

Report: How Tinubu govt borrowed $6.45 billion from World Bank in 16 months

Published

on

ADVERTISEMENT
Zoom Ad
ADVERTISEMENT
Zoom Ad

The federal government, under the leadership of President Bola Tinubu, has secured loans worth $6.45 billion from the World Bank in just 16 months.

The amount increased to the new figure following the recent approval of three new loans totalling $1.57bn from the World Bank for various projects in Nigeria and is expected to increase further in the coming months, reports The PUNCH.

This was as the international lender approved no fewer than 36 loan requests to the Federal Government, amounting to a substantial total of $24.088bn within five years.

These approvals, aimed at financing various development projects nationwide, arrive alongside increasing concerns about the country’s escalating debt profile, prompting questions about the sustainability of these financial commitments and their potential long-term effects on the economy.

Advertisement

Some of the projects under Tinubu include loans for power ($750 million), women empowerment ($500 million), girl’s education ($700 million), renewable energy ($750 million), economic stabilization reforms ($1.5 billion) and resource mobilization reforms ($750 million),

For many Nigerians, long years of infrastructure decay and increased unemployment have triggered an increased feeling of bitterness whenever they hear the government’s intention to borrow.

Although some of them realistically agree that resources are thin, considering an outsized population; however, they believe the past borrowings have not been justified.

However, according to an analysis of documents obtained from the international lender website on Tuesday, the international lender has maintained an annual credit approval to the nation since 2020.

Advertisement

A cursory look showed that the lender approved 15 loan requests worth $6.36bn in 2020. Some of these projects include the Nigeria Rural Access and Agricultural Marketing Project with an approved project commitment of $510m, The Nigeria Digital Identification for Development project ($430m), and $750m for the Nigeria SATAN additional financing for COVID-19 response, amongst others.

In 2021, the loan requests were reduced to six projects worth $3.2bn while the nation, under the administration of former president Mohammadu Buhari, secured loans worth $1.26bn in 2022 for six projects.

For instance, a $500m loan request was approved for a livestock productivity and resilience support project on March 18, 2022. Another loan of $750m was approved under the Nigeria: State Action on Business Enabling Reforms Program in the same year.

Also, $3.9m was secured for the Umbrella organisation to support Nigeria for women’s projects.

Advertisement

However, in 2023, the loan request increased to $2.7bn to implement four projects, namely $750m for Nigeria- AF power sector recovery performance-based operation, $500m for Nigeria for Women Program Scale-up projects and $750m for the Nigeria Distributed Access through Renewable Energy scale-up project.

Similarly, the bank has approved $3.82bn already in 2024 for five projects, which include a grant of $70 million.

This means that the loan amount was $3.75bn so far in 2024, with more credit facilities expected before the end of the current year.

The World Bank has approved a series of loans to Nigeria, strategically targeting critical sectors such as economic reforms, resource mobilization, adolescent girls’ education, and renewable energy expansion.

Advertisement

Recall that on June 13, the World Bank announced the approval of two loan projects aimed at bolstering Nigeria’s economic stability and supporting its vulnerable populations.

According to a statement from the bank, the combined package, totalling $2.25bn, comprises the $1.5bn Nigeria Reforms for Economic Stabilization to Enable Transformation Development Policy Financing Program and the $750m Nigeria Accelerating Resource Mobilization Reforms Program-for-Results.

Already, the international lender has received $751.88m of the $1.5bn under the Nigeria Reforms for Economic Stabilisation to Enable Transformation.

The World Bank is expected to approve another loan request worth $500m by December 16, 2024, for the Rural Access and Agricultural Marketing Project – Scale Up project.

Advertisement

According to a statement released last week announcing the latest approval, the international lender said the credit facilities will help the government strengthen human capital through better health for women, children and adolescents.

It added that the approved projects would also help build resilience to the effects of climate change, such as floods and drought, by improving dam safety and irrigation.

The statement read, “The World Bank has today approved three operations for a total of $1.57bn to support the Government of Nigeria in strengthening human capital through better health for women, children and adolescents and building resilience to the effects of climate change such as floods and droughts through improving dam safety and irrigation.”

The international lender stated that this new financing includes $500m for addressing governance issues that constrain the delivery of education and health, $570m for the Primary Healthcare Provision Strengthening Programme and $500m for the Sustainable Power and Irrigation for Nigeria Project.

Advertisement

“The HOPE-GOV and HOPE-PHC programmes combined will support the Government of Nigeria to improve service delivery in the basic education and primary healthcare sectors which are critical towards improving Nigeria’s human capital outcomes.

“The SPIN project will support the improvement of dams’ safety and management of water resources for hydropower and irrigation in selected areas of Nigeria.

“The HOPE-GOV Programme will support Nigeria to address underlying governance weaknesses in the systems and procedures of government in two key human development sectors,” it noted.

The approval, made on September 26, 2024, highlights the World Bank’s commitment to strengthening Nigeria’s human capital and building resilience in the face of climate threats.

Advertisement

Data from the external debt stock report of the Debt Management Office shows that Nigeria owes the World Bank a total of $15.59 billion as of March 31, 2024.

Nigeria’s debt servicing expenses reached N6.04tn in the first half of 2024, marking a sharp increase of 68.8 per cent from the N3.58tn recorded during the same period in 2023, the latest data from the Central Bank of Nigeria showed.

This sharp rise in debt service obligations, likely driven by naira devaluation for foreign debt repayments, reflects the growing burden on the government as debt repayment consumes a significant portion of its financial resources.

Credit: PUNCH

Advertisement
Continue Reading
Advertisement
Click to comment

Warning: Undefined variable $user_ID in /home/naijuinz/public_html/wp-content/themes/zox-news/comments.php on line 49

You must be logged in to post a comment Login

Leave a Reply

News

Petrol costs over N3,000/litre in UK, Nigerians are enjoying — Okpebholo

Published

on

By

ADVERTISEMENT
Zoom Ad
ADVERTISEMENT
Zoom Ad

Edo State Governor, Monday Okpebholo, has said petrol costs more than ,000 per litre in the United Kingdom, claiming that Nigerians are “doing very well” with the current price of the commodity in the country.

Okpebholo stated this on Thursday while speaking at the “Operation Rescue Benin-Asaba Road” event in Edo State.

The governor said he visited London the previous week and decided to compare the price of petrol in the United Kingdom with what motorists pay in Nigeria.

“When we complained about cost of petrol, I was in London last week. I told my friend, ‘Let’s go and buy fuel just to know the cost of fuel between Nigeria and England.’

Advertisement

“Let me tell you, after conversion, it’s about 3,000-something for one litre of fuel,” he said.

Okpebholo said the comparison showed that Nigerians were getting petrol at a lower price.

“We are doing very well here. The President is stabilising the economy. He’s an economist,” he said.

His comment comes amid continued concerns over the cost of petrol and other essential commodities following the removal of petrol subsidy and subsequent changes in pump prices.

Advertisement

The governor said the economic reforms being implemented by the Federal Government were difficult but would eventually yield results.

“Because what we are seeing in Nigeria today is a reform. And that reform that is ongoing is a very difficult one,” he said.

He likened the economic reforms to an aircraft taking off, saying passengers do not receive food until the plane reaches cruising altitude.

“I make an illustration. When a plane is taking off, do you see them serving food? Do you see air hostesses serving food in the plane? They will never give you food until that seatbelt is released. That means on a cruising level. That is when they will start serving food.

Advertisement

“I want to let you know, very soon Nigeria will be on the cruising level. Nigeria will be on a cruising level,” Okpebholo said.

The governor also pointed to road construction across the country as evidence of ongoing development under President Bola Tinubu’s administration.

“Look at the kind of roads that are being constructed today—concrete pavement all over Nigeria,” he said.

Okpebholo spoke while expressing support for the Federal Government’s intervention on the Benin-Asaba Road, which has suffered deterioration and caused difficulties for motorists using the route.

Advertisement

The event, tagged “Operation Rescue Benin-Asaba Road”, was held in connection with efforts to address the condition of the major highway linking Edo and Delta states.

The governor also used the occasion to endorse Tinubu’s continued presidency, saying those planning to challenge the President in 2027 should reconsider their plans.

“Is Aso Rock vacant? Is Aso Rock vacant? So Aso Rock is not vacant,” Okpebholo said.

He added, “I agree with the Oba of Benin that said, ‘You don’t change a working President.’”

Advertisement

Okpebholo also said the economic reforms would eventually place Nigeria on a “cruising level”, adding that Edo State and the country were in “safe hands”.

He said, “That means even when Asiwaju leaves, whoever President that comes in the future after his… I want to let them know that Edo is in a safe hand. Nigeria is also in a safe hand.”

The governor ended by thanking those who attended the event over their concern for the Benin-Asaba Road.

Advertisement
Continue Reading

News

Bungudu Council Chairman, Four Others Escape From Terrorists’ Captivity In Zamfara

Published

on

By

ADVERTISEMENT
Zoom Ad
ADVERTISEMENT
Zoom Ad

The Chairman of the Bungudu Local Government Area of Zamfara State, Nura Umar Abdullahi, and four other kidnap victims have escaped from terrorists’ captivity and been received by troops of the Joint Task Force North West, Operation FANSAN YAMMA.

The five victims escaped in the early hours of Thursday in the general area of Kaura Namoda Local Government Area of Zamfara State.

According to a statement issued by the Media Information Officer of the Joint Task Force (North West), Operation FANSAN YAMMA, Lt Col Aliyu Danja, the victims escaped during an intelligence-led military operation targeting a suspected terrorists’ location in the area.

Danja said the victims were received by troops deployed in the vicinity after regaining their freedom.

Advertisement

“Troops of the Joint Task Force North West, Operation FANAN YAMMA, have received and secured the Chairman of Bungudu Local Government Area of Zamfara State, Hon. Nura Umar Abdullahi, and four other kidnap victims who escaped from terrorists’ captivity in the early hours of Thursday in the general area of Kaura Namoda Local Government Area,” the statement said.

Abdullahi was abducted from his residence in Bungudu town in July 2026. The Theatre Command had previously issued a statement concerning his abduction.

The military said the victims were provided with security cover and evacuated to a military medical facility after they were rescued.

“They were provided with security cover and evacuated to a military medical facility, where they are responding to treatment and undergoing evaluation and routine debriefing,” Danja said.

Advertisement

The victims are expected to undergo further assessment as part of the military’s routine process following their recovery from captivity.

The Joint Task Force also disclosed that one of the five victims had already been reunited with their family, while arrangements were being made to reunite the remaining victims with their families and the Zamfara State Government.

The Theatre Command commended the victims for their conduct during their captivity and their efforts to regain their freedom.

“The Theatre Command commends the courage, resilience and determination of the victims in regaining their freedom after a prolonged period in captivity,” the statement said.

Advertisement

It also praised the troops involved in receiving and securing the victims following their escape.

The command described the return of the victims as “a welcome relief” to their families, residents of Bungudu Local Government Area and the wider Zamfara State.

“The return of the victims is a welcome relief to their families and the people of Bungudu Local Government Area, and Zamfara State as a whole,” the statement said.

The development comes as security forces continue military operations aimed at disrupting terrorist activities and improving security in parts of Zamfara State and the wider North-West.

Advertisement

The Theatre Command said troops of Operation FANSAN YAMMA would sustain clearance and dominance operations across the general area to disrupt terrorist activities and protect communities.

“Troops of Operation FANSAN YAMMA will sustain clearance and dominance operations across the general area to disrupt terrorist activities and protect communities, and remain committed to securing the safe return of any other persons still held or missing,” Danja said.

Earlier in July, SaharaReporters reported that suspected bandits abducted the Chairman of the Bungudu Local Government Area of Zamfara State, Bungudu, after attacking his residence in a late-night raid that left four security personnel dead.

The attack occurred in the Zango area of Bungudu town, less than 20 kilometres from Gusau, the Zamfara State capital.

Advertisement

According to residents, the gunmen stormed the council chairman’s residence, where they engaged security personnel in a fierce gun battle before abducting the chairman.

A resident, who spoke on condition of anonymity, said that the assailants killed two police officers and two vigilantes assigned to protect the chairman’s residence.

“They killed two policemen and two vigilantes, including one volunteer vigilante who had been actively helping to protect the town from bandit attacks,” the source said.

Advertisement
Continue Reading

News

Nigeria-EU Push to Seal Long-delayed Readmission Deal

Published

on

ADVERTISEMENT
Zoom Ad
ADVERTISEMENT
Zoom Ad

By Gloria Ikibah

Nigeria and the European Union have renewed efforts to conclude the long-pending EU-Nigeria Re-Admission Agreement as both sides seek to deepen cooperation on migration, legal mobility and security.

The issue featured prominently during a meeting between the Minister of Foreign Affairs, Ambassador Bianca Odumegwu-Ojukwu, and the EU Commissioner for Internal Affairs and Migration, Magnus Brunner, on the sidelines of the 81st United Nations General Assembly in New York. The  .

In a statement by the Nigerian Foreign Ministry the proposed agreement which was initiated in 2016, was also extensively discussed during the eighth Nigeria-EU Ministerial Dialogue in March 2026.

Advertisement

Brunner stressed the importance of concluding the agreement, saying its finalisation would provide a basis for broader cooperation between Nigeria and the EU on migration.

Odumegwu-Ojukwu, however, emphasised that any migration partnership should address Nigeria’s development interests, including support for the reintegration of returnees, infrastructure development and expanded legal pathways for Nigerians seeking opportunities abroad.

She also stressed the need for structured and lawful mobility opportunities for Nigeria’s large and youthful population.

The EU delegation indicated that Nigeria’s concerns had been incorporated into a proposed broader migration and security cooperation framework.

Advertisement

The framework is expected to cover strategic dialogue on talent partnerships, legal migration pathways, reintegration of returnees, border management and support from the European Border and Coast Guard Agency, Frontex.

The proposed cooperation will also explore an arrangement for information exchange with Europol to strengthen Nigeria’s capacity to combat transnational organised crime.

Brunner said the EU was interested in developing legal migration pathways through talent partnerships, which could help address skills shortages in Europe while creating opportunities for Nigerian professionals.

The initiative is also expected to address concerns surrounding brain drain by creating more structured opportunities for Nigerians to work abroad while maintaining links with their home country.

Advertisement

The two sides further discussed cooperation against irregular migration, with Brunner indicating that progress in tackling irregular migration could help create greater opportunities for legal migration.

The European commissioner expressed interest in continuing discussions during a proposed visit to Abuja in November 2026, although the specific date is yet to be agreed by both sides.

The renewed engagement comes as the EU continues work towards formalising the readmission agreement. EU Council documents published in July 2026 also showed proposals for the signing and conclusion of an agreement with Nigeria covering the return and readmission of people who no longer meet the conditions for entry, presence or residence in the territories of either party.

The Nigeria-EU discussions therefore seek to address irregular migration and return while also expanding legal mobility, reintegration assistance, border management, security cooperation and opportunities for Nigerian professionals and young people.

Advertisement
Continue Reading

Trending

Copyright © 2024 Naija Blitz News