Economy
Nigeria gets W’Bank $1.5bn for subsidy removal, tax bills
The World Bank has fully disbursed a $1.5bn loan to Nigeria following the Federal Government’s implementation of key reforms, including removing fuel subsidies and introducing comprehensive tax policies, The PUNCH reports.
The loan, part of the Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing initiative, is among the fastest disbursements Nigeria has received with both tranches released in less than six months.
According to a World Bank document obtained by The PUNCH on Sunday, the loan was approved on June 13, 2024, with the first tranche of $750m disbursed on July 2, 2024.
The second tranche, tied to the fulfilment of specific economic reform conditions, was disbursed in November 2024.
This rapid disbursement contrasts with other loan programmes, which typically experience delays due to slow or partial implementation of conditions.
For more context, another loan of $750m was approved on the same day (June 13, 2024) for the Accelerating Resource Mobilisation Reforms Programme for Results project in Nigeria.
The PUNCH observed that the World Bank has only disbursed about $1.88m to Nigeria at the time of filing this story, which is less than one per cent of the total approved $750m for the ARMOR project.
The PUNCH further observed that the $1.5bn loan disbursed to Nigeria was structured in two tranches with different maturity periods.
The first tranche was a $750m credit from the International Development Association, featuring a 12-year maturity and a six-year grace period.
The second tranche, a $750m loan from the International Bank for Reconstruction and Development, has a 24-year repayment period with an 11-year grace period.
The World Bank document read, “This document summarises the progress made under the Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing for the Federal Republic of Nigeria (Borrower or Recipient), which was approved by the Executive Directors on June 13, 2024.
“The DPF is a standalone operation comprised of two tranches: (1) first tranche comprising $750m credit from the International Development Association (Association) (Shorter Maturity Loan terms with 12-year maturity and grace period of 6 years, Credit No. 7567-NG); and (2) second tranche comprising $750m loan from the International Bank for Reconstruction and Development (Bank) (US dollar-denominated, commitment-linked loan with 24-year maturity and grace period of 11 years, Loan No.9683-NG).
“The Financing Agreement and Loan Agreement were signed and declared effective on June 19, 2024 and June 26, 2024, respectively. The first tranche was released on July 2, 2024.”
While the document itself did not clearly state when the disbursement for the second tranche was made, further findings by The PUNCH showed that Nigeria got a $750m disbursement from the World Bank in November.
According to the document seen by The PUNCH, a critical reform that unlocked the second tranche was the removal of fuel subsidies.
The World Bank commended the government for not only meeting the condition but exceeding expectations by fully deregulating the fuel market.
The document noted, “In terms of implementation, while the TRC [Tranche Release Conditions] formulation required introducing the change over a specified time-bound implementation period, the Borrower has moved ahead and made the change immediately, thereby overachieving the TRC in this respect.
“Effective October 2024, the price of PMS has been determined by the international market and the exchange rate set by the Central Bank of Nigeria.”
This move has allowed petrol prices to align with international market rates and exchange rates, effectively ending the implicit subsidies that had burdened public finances.
Fuel prices have increased more than fivefold since the reform process began in mid-2023, a change that has drawn both praise for its fiscal prudence and criticism for its impact on living costs.
In addition to removing fuel subsidies, the Federal Government introduced sweeping tax reforms aimed at improving revenue mobilisation.
The Nigeria Tax Bill 2024, submitted to the National Assembly, proposes a gradual increase in the Value Added Tax rate to 10 per cent by 2025, alongside measures to simplify tax compliance and expand input tax credits for businesses.
The document read, “The Borrower has successfully carried out the programme as outlined in the Letter of Development Policy, with progress along all areas supported by the DPF. Following the implementation of the reforms that constituted prior actions for the first tranche of the RESET DPF (disbursed on June 28, 2024), the Borrower continues to carry out the program as planned.
“The borrower has prepared and submitted to the National Assembly on October 3, 2024, a comprehensive package of tax reforms, which not only reform the VAT regime but also simplify tax policy laws and tax administration.
“Reforms have also been implemented to fully deregulate the fuel market, ensuring that retail prices are determined by market conditions and opening the sector to competition. The authorities are following through on their commitment to cease deficit monetization, relying instead on standard debt instruments to finance the deficit.”
There were three key conditions noted in the document, with the first being increasing net oil revenues.
For the first condition, the World Bank noted that there was a Presidential Executive Order that mandated that all fiscal transfers, including crude oil sales and gasoline imports, be executed at the prevailing market exchange rate, with Naira-based transactions starting in October 2024, effectively addressing implicit subsidies.
The second condition was to increase non-oil revenue, and in this regard, the government submitted a draft bill to the National Assembly proposing a VAT rate increase to 10 per cent in 2025, while also allowing input tax credits for capital and services.
The third condition is to ensure social protection delivery was strengthened, and the document noted the submission of an amendment bill mandating the use of the National Social Registry as the primary targeting tool for social investment programs.
The World Bank described the reforms as necessary for diversifying Nigeria’s revenue sources, given the country’s historically low tax-to-GDP ratio.
However, the tax bills have sparked controversy, with northern leaders arguing that the reforms could widen economic disparities between the north and the south.
The disbursement of the $1.5bn loan comes amidst widespread public dissent over the effects of the reforms.
The removal of fuel subsidies has led to soaring petrol prices, significantly increasing transportation and living costs.
Protests erupted in cities like Abuja, Kano, and Lagos, with citizens expressing frustration over rising economic hardships.
President Bola Tinubu and members of his cabinet defended the reforms, describing them as essential for Nigeria’s economic stability and growth.
Tinubu emphasised that the funds saved from the removal of subsidies would be redirected toward infrastructure development, social welfare, and economic diversification.
To mitigate the immediate impact of the reforms, the government has introduced relief measures, including direct cash transfers of N25,000 to 15 million vulnerable households.
However, only about four million households have benefited from this cash transfer programme, which is far below the target.
Also, efforts are underway to promote compressed natural gas as a cheaper alternative to petrol, with a target of converting over one million vehicles in three years to reduce transportation costs.
The World Bank praised the government’s swift and decisive actions, noting that Nigeria’s ability to meet the conditions for both tranches in record time reflects a strong commitment to economic transformation.
The global lender also acknowledged the government’s efforts in addressing structural inefficiencies, such as the high fiscal burden from subsidies and the challenges of revenue mobilisation, calling for sustained reforms.
Amid concerns over rising external debt and the debt service burden, the Federal Government, under the leadership of President Bola Tinubu, has secured loans worth $6.95bn from the World Bank in about 18 months.
The PUNCH earlier reported that the World Bank will decide on three major loan projects for Nigeria in 2025, totalling $1.65bn, as part of efforts to address critical developmental challenges in the country.
The loans, currently in the pipeline, will focus on internally displaced persons, education, and nutrition enhancement.
According to data from the external debt report released by the Debt Management Office, the World Bank’s share of Nigeria’s debt totals $16.32bn, with the majority owed to the International Development Association, which accounts for $16.32bn, which represents 38 per cent of Nigeria’s total external debt.
The International Bank for Reconstruction and Development, another arm of the World Bank, is owed $484.0m, or 1.13 per cent.
Credit: PUNCH
The Nigerian naira is trading at different rates against the United States dollar across the official Nigerian Foreign Exchange Market (NFEM) and the parallel market on Wednesday, September 23, 2026.
The latest available data show that the naira strengthened to N1,327.78 per dollar at the NFEM on Tuesday, from N1,329.80 recorded on Monday.
The latest movement represents a N2.02 appreciation by the naira against the dollar on a day-to-day basis.
In the parallel market, the dollar was quoted at about N1,389 on Tuesday, down from N1,390 recorded the previous day.
The parallel-market rate puts the gap between the official NFEM rate and the street-market selling rate at about N61.22 per dollar.
At the parallel market rate of N1,389, customers buying $100 would need approximately N138,900, while $1,000 would cost about N1.389 million.
The exchange rate available to individuals and businesses may vary depending on the dealer, location, transaction size and prevailing market conditions.
The naira’s recent performance has come amid developments in Nigeria’s foreign exchange market, including changes in dollar liquidity and monetary policy.
The Central Bank of Nigeria has continued to monitor conditions in the foreign exchange market as the naira trades around the N1,300-per-dollar level at the official market. Reuters also reported in September that the naira had remained relatively stable, supported by central bank dollar sales and subdued import demand.
For Wednesday, September 23, the latest confirmed figures put the dollar at N1,327.78 at the NFEM and around N1,389 in the parallel market.
The rates could change during the day as demand and supply conditions shift across both markets.
Moving abroad from Nigeria is one of those life changes that makes a suitcase suddenly feel much smaller.
What looks like enough luggage in your bedroom can seem painfully limited once you start choosing between clothes, documents, electronics, personal care items and the small things that make an unfamiliar place feel like home.
That is why a good diaspora relocation packing list guide should not be about squeezing everything possible into your bags. It should help you decide what deserves precious luggage space, what can be bought after arrival and what should never go into your suitcase in the first place.
The distinction matters because airlines have strict baggage limits, while destination countries have their own customs rules.
Baggage allowances vary by airline, route, cabin class and aircraft, while individual checked bags are generally recommended not to exceed 23kg for handling reasons. Power banks and spare lithium batteries, for example, must generally remain in carry-on baggage rather than checked luggage.
Start with documents, not clothes
Before thinking about clothing or food, create a secure travel folder for the documents you cannot afford to lose. Your passport, visa or residence documentation, flight information, accommodation details, employment or school documents, insurance information and important contact details should stay accessible throughout the journey.
Carry originals where necessary and keep encrypted digital copies or secure backups of important documents. If you are relocating with children, their birth certificates, school records, vaccination documentation and immigration papers may also be important depending on the destination and circumstances.
Do not put irreplaceable documents in checked luggage. A suitcase can be delayed, misrouted or damaged, but losing access to your passport or immigration paperwork at the same time can turn a manageable travel problem into a serious one.
Pack for your first two weeks, not your entire future
One of the easiest ways to overpack is to imagine every possible situation you might encounter after moving. Resist that temptation. Your first luggage should support your transition, not reproduce your entire Nigerian household overseas.
Pack enough everyday clothes for your initial period, but consider the climate of your destination before filling a suitcase with Nigerian weather essentials. A person moving to the UK in winter, for instance, needs a very different wardrobe from someone moving to a warmer country.
The better strategy is to prioritize versatile clothing that can be layered and reused. Comfortable shoes, underwear, sleepwear, basic toiletries and weather-appropriate outerwear deserve more attention than multiple outfits you may rarely wear.
This also reflects advice commonly shared in relocation communities: keep an “open first” collection of essentials so you are not searching through every box or suitcase when you are exhausted after arrival. The practical principle is simple, make your first few days easy before worrying about everything else.
Take the Nigerian items that are genuinely difficult to replace
Food is where relocation packing becomes particularly personal. Nigerians living abroad frequently mention missing familiar foods and ingredients, especially regional items that may be difficult to find or expensive in ordinary supermarkets.
Discussions among Nigerians abroad show that the issue is not necessarily basic rice, pasta or common spices; it is often the distinctive ingredients and flavors associated with home.
That does not mean you should fill an entire suitcase with food.
Instead, prioritise small quantities of dry, commercially packaged items that are legal to import into your destination and that you genuinely use. Depending on the destination, these could include permitted spice blends, seasoning, certain dried ingredients or packaged Nigerian foods.
However, never assume that because something is dry, packaged or commonly carried by other Nigerians, it is automatically permitted. Import rules differ significantly between countries.
For Great Britain, for example, travelers can bring some packaged foods such as biscuits, chocolate, pasta and packaged soup, while meat, dairy, fruits, vegetables, nuts and seeds can be subject to restrictions.
The EU is stricter in several respects. Travelers arriving from outside the EU generally cannot bring meat or dairy products into the bloc, although specific exemptions apply to certain products and circumstances.
So if you are relocating from Nigeria to London, Paris, Amsterdam or another destination, check the destination’s official customs rules before sealing that bag of food.
Do not sacrifice luggage space for easily replaceable goods
A relocation suitcase should contain things that solve a problem, preserve something important or save you meaningful money—not everything you happen to own.
Basic toiletries, ordinary kitchen utensils, cheap hangers, bulky bedding and generic household products can often be purchased after arrival. Carrying large quantities simply because they are cheaper in Nigeria may not make economic sense once excess-baggage charges and limited suitcase space are considered.
The same applies to appliances. Check the electrical system and plug standard of your destination before taking Nigerian appliances abroad. A device that is cheap to replace may not be worth carrying if it is incompatible with the local voltage or requires additional equipment.
Ask yourself a blunt question before packing anything: Would I still pay to transport this if I had to buy extra luggage for it? If the answer is no, leave it behind.
Give electronics and valuables special treatment
Your laptop, phone, chargers, external drives, camera equipment and other essential electronics should be packed with both security and airline rules in mind.
Keep valuable electronics in your carry-on whenever the airline permits it. IATA specifically advises passengers not to place valuable or irreplaceable items in checked baggage, while spare batteries and power banks have specific restrictions because of fire risk.
Keep chargers organized in a small pouch rather than scattering them throughout your luggage. If you use several devices, label unfamiliar cables before leaving Nigeria; it sounds trivial until you are sitting in temporary accommodation with three identical USB cables and no idea which one powers your laptop.
Think about health and personal-care essentials
Your relocation luggage should also cover the personal items that may be inconvenient to replace immediately. Prescription medicines, if applicable, should remain in their original packaging and be accompanied by the documentation required by the destination country.
Basic toiletries and personal-care products that you know work for you can be worth carrying in reasonable quantities, particularly during the first few weeks when you are still learning where to shop.
Do not, however, turn your suitcase into a pharmacy. Check the rules of the destination country for medicines and controlled substances before traveling, because something legally purchased in Nigeria may have different restrictions elsewhere.
Leave prohibited and questionable items behind
Some of the worst relocation-packing decisions are made with the assumption that customs officers will not notice.
That is a dangerous gamble. The UK, for example, prohibits or restricts items including controlled drugs, offensive weapons, certain endangered species and personal imports of meat and dairy products from most non-EU countries.
Food restrictions also deserve serious attention. If you arrive in Great Britain with banned food and declare it, the Border Force can confiscate and destroy it; failing to declare prohibited products can result in penalties or prosecution.
When in doubt, check the official customs guidance for your destination before packing. If an item requires a permit, certificate or declaration, find that out before you arrive at the airport, not while standing in front of a customs officer.
Build one ‘first-night’ bag
Finally, separate the things you will need immediately from everything else.
Your first-night bag should contain a change of clothes, basic toiletries, essential documents, medications, chargers, important electronics and anything else you would need if your checked luggage were delayed. This simple step can save you considerable stress during the first 24 hours.
Your relocation luggage should make your new beginning easier, not burden you with your old life. Pack the things that are valuable, difficult to replace, culturally meaningful or immediately useful. Leave behind what is cheap, bulky and readily available.
Most importantly, remember that your airline’s baggage allowance and your destination country’s customs rules are separate issues. Staying within the weight limit does not mean every item inside the suitcase is legally admissible.
IATA emphasises that baggage conditions remain airline-specific, while governments set their own customs and import requirements.
For Nigerians relocating abroad, the smartest suitcase is therefore not necessarily the heaviest one. It is the one that contains exactly what you will need to begin your new life with less stress, fewer unnecessary expenses and no avoidable customs problems.
(TRIBUNE)
President and Chief Executive of Dangote Industries Limited, Aliko Dangote, has announced plans for the Aliko Dangote Foundation to collaborate with state governments to empower vulnerable women across Nigeria through participation in the Dangote Petroleum Refinery and Petrochemicals Limited Initial Public Offering (IPO).
Dangote made the announcement in New York during the 81st United Nations General Assembly while responding to a question from the Secretary to the Yobe State Government, Dr. Goje Mohammed. The discussion focused on how partnerships between government and the private sector can help conflict-affected communities, particularly widows, build sustainable financial futures through investment opportunities.
According to Dangote, the Foundation will work closely with state governments to ensure that women from vulnerable groups, including widows and victims of conflict, can take advantage of the refinery’s share offering and begin building long-term wealth through equity ownership.
The initiative is designed to expand access to Nigeria’s capital market by giving women who might otherwise be excluded the opportunity to become shareholders in one of Africa’s largest industrial enterprises.
Speaking on the programme, Dangote revealed that the Foundation plans to provide additional support to participating women by donating shares to complement their investments.
“We are partnering with state governments to ensure that widows and other vulnerable women are able to buy shares in the refinery,” he said.
He explained that women who purchase shares under the IPO will receive an additional allotment of shares from the Foundation, helping them establish a long-term financial asset.
“Beyond enabling them to buy shares, the Foundation will also support them by donating additional shares that they can hold as savings for the future,” Dangote noted.
The programme targets up to two million women nationwide, making it one of the largest financial inclusion and women’s empowerment initiatives linked to Nigeria’s capital market.
“We are looking at reaching about two million women through this initiative,” he added.
The proposed intervention forms part of the broader objectives of the Dangote Refinery “People’s IPO,” which seeks to democratise ownership of the landmark refinery and enable more Nigerians to share in the value created by one of the country’s most significant private-sector investments.
The initiative is expected to have particular significance for conflict-affected states such as Yobe, where many widows and vulnerable households continue to face economic challenges resulting from years of insecurity. By facilitating access to investment opportunities, the partnership aims to provide a pathway to sustainable wealth creation and long-term financial security.
Dangote emphasized that collaboration between the Foundation and state governments will create a structured framework for supporting vulnerable women to participate in the IPO, reinforcing the role of investment and equity ownership as tools for economic empowerment, financial inclusion and social development.
Through this initiative, the ownership opportunity presented by the Dangote Refinery IPO will be extended to some of Nigeria’s most vulnerable women, helping them build assets, secure their futures and participate directly in the growth of a landmark national enterprise.
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