Economy
Nigeria gets W’Bank $1.5bn for subsidy removal, tax bills
- /home/naijuinz/public_html/wp-content/plugins/mvp-social-buttons/mvp-social-buttons.php on line 27
https://naijablitznews.com/wp-content/uploads/2024/02/World-Bank.jpg&description=Nigeria gets W’Bank $1.5bn for subsidy removal, tax bills', 'pinterestShare', 'width=750,height=350'); return false;" title="Pin This Post">
- Share
- Tweet /home/naijuinz/public_html/wp-content/plugins/mvp-social-buttons/mvp-social-buttons.php on line 72
https://naijablitznews.com/wp-content/uploads/2024/02/World-Bank.jpg&description=Nigeria gets W’Bank $1.5bn for subsidy removal, tax bills', 'pinterestShare', 'width=750,height=350'); return false;" title="Pin This Post">
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
Nigeria’s crude oil production has climbed to its highest level in more than six years, with the country exceeding its Organisation of the Petroleum Exporting Countries production quota for the fourth consecutive month, buoyed by improved operational stability and fewer disruptions to oil infrastructure.
Latest figures released on Sunday in Abuja by the Nigerian Upstream Petroleum Regulatory Commission showed that the country’s average crude oil production rose to 1.56 million barrels per day in June 2026, while condensate output stood at 0.18 million barrels per day, bringing total crude oil and condensate production to 1,735,398 barrels per day.
The production level represents 104 per cent of Nigeria’s 1.5 million barrels per day crude oil production quota approved by OPEC and marks the country’s highest crude oil output since April 2020, making it a 74-month high.
The figures, contained in the commission’s latest production report and conveyed in a statement issued by its Head of Media and Corporate Communications, Eniola Akinkuotu, showed that June also marked the fourth consecutive month of production growth, reinforcing the recovery of Nigeria’s upstream oil sector after years of production losses caused by crude theft, pipeline vandalism and operational disruptions.
The statement read, “Nigeria’s crude oil and condensate production soared to an average of 1,735,398 barrels per day in the month of June 2026, representing positive growth for a 4th consecutive month. In the month under review, crude oil production hit 1.56mbpd while 0.18mbpd of condensates was produced. This means Nigeria met 104 per cent of the 1.5mbpd crude oil production quota set by the Organisation of Petroleum Exporting Countries.”
According to the commission, total crude oil and condensate production increased from 1.700 million barrels per day recorded in May to 1.735 million barrels per day in June, representing a 2.2 per cent month-on-month increase.
The report showed that combined production had earlier stood at 1.483 million barrels per day in February before rising steadily to 1.564 million barrels per day in March, 1.663 million barrels per day in April, 1.701 million barrels per day in May and 1.735 million barrels per day in June.
The NUPRC attributed the improved performance to stable production activities across major oil-producing assets and the absence of significant pipeline outages during the review period.
“The improved performance was primarily driven by stable production operations across most producing assets and the absence of any major pipeline outages during the period under review.
“This enhanced operational stability supported improved production uptime and crude evacuation efficiency. Although a limited number of assets experienced short-duration operational shutdowns, the overall impact on national production was minimal.
“In addition, scheduled turnaround maintenance activities were effectively managed and completed without significant disruption to production operations.
“The sustained growth recorded in June reflects the continued commitment of operators and industry stakeholders towards improving operational efficiency, maintaining asset integrity, and enhancing production reliability across the Nigerian upstream petroleum sector,” the statement added.
The commission also disclosed that Nigeria’s highest daily combined crude oil and condensate production during the month reached 1.89 million barrels per day, while the lowest daily production stood at 1.57 million barrels per day.
The peak production level underscores Nigeria’s growing potential to achieve the Federal Government’s medium-term ambition of producing two million barrels of oil per day, a target that has remained elusive for years due to insecurity in oil-producing communities, crude theft and ageing infrastructure.
An analysis of production by export terminals showed that Bonny Terminal retained its position as Nigeria’s highest-producing terminal, recording an average daily production of 318,280 barrels, compared with 293,880 barrels in May.
Forcados Terminal ranked second with 306,360 barrels per day, up from 289,900 barrels recorded in the previous month.
However, production at Qua Iboe Terminal declined to 164,730 barrels per day from 173,360 barrels per day in May.
Similarly, Escravos Terminal recorded a slight increase to 138,030 barrels per day, compared with 135,470 barrels per day in the previous month, while Bonga Terminal maintained steady output, producing 103,660 barrels per day, slightly above the 102,540 barrels per day recorded in May.
The sustained production growth is expected to strengthen Nigeria’s oil export earnings, improve foreign exchange inflows and provide additional fiscal revenues for the Federal Government at a time authorities are seeking to increase crude output and attract fresh investment into the upstream sector.
Nigeria has struggled in recent years to meet its OPEC production allocation because of widespread crude oil theft, pipeline vandalism, underinvestment and prolonged operational challenges.
However, reforms introduced under the Petroleum Industry Act, enhanced security around critical oil infrastructure and closer collaboration between government agencies and oil producers have contributed to the gradual recovery in production.
Maintaining production above the OPEC quota and sustaining operational stability will be critical if Nigeria is to realise its target of producing two million barrels per day and maximise the benefits of favourable global oil market conditions.
The Nigeria Deposit Insurance Corporation (NDIC) has intensified efforts to promote financial literacy and savings culture among young Nigerians by taking its financial education campaign to public secondary schools in Akwa Ibom State.
The NDIC, as part of activities marking the 2026 Financial Literacy Day, visited the Federal Technical College, Ukana Offot, in Uyo Local Government Area, on Friday where students were sensitised on the importance of prudent financial management and the culture of saving.
Speaking during the programme, the Controller of NDIC Port Harcourt’s Zonal Office, Mr. Adefemi Shaba, said the initiative was designed to improve financial literacy among young people and equip them with the knowledge required to make informed financial decisions in the future.
According to him, the programme, which featured discussions under the theme, “Smart Money Talks,” forms part of an annual awareness campaign jointly championed by the NDIC and the Central Bank of Nigeria (CBN).
He explained that the theme of NDIC in 2026 underscores the importance of having open conversations about money management and the need to build confidence among young people in handling financial matters.
Building a savings culture
Shaba said one of the major objectives of the campaign was to inculcate a savings culture in children and teenagers, noting that the habit of saving is best developed from an early age.
He stressed that while the lessons may not appear immediately relevant to some of the students, the knowledge acquired would become useful as they advance in their academic pursuits and eventually begin to earn and manage their own income.
“We are here to commemorate Financial Literacy Day 2026 and to introduce the students to saving habits and encourage them to cultivate the culture of saving. We do this so that as the students grow up, they already have the habit of saving embedded in them,” he said.
The NDIC official added that the sensitisation programme also provided an opportunity for the corporation to educate students on its mandates and its role in promoting stability and confidence in the Nigerian banking system.
According to him, many Nigerians, especially young people, are unaware of the functions of the NDIC and the importance of financial institutions in national development.
Empowering the younger generation
Also speaking, the Principal Manager, Communication and Public Affairs Department of the NDIC, Mrs. Sa’adatu Bowsan, described Financial Literacy Day as a global initiative aimed at promoting financial education and empowering young people with essential money management skills.
She said the programme specifically targets secondary school students because they represent the future of the country’s economy and financial system.
According to her, exposing children to financial education at an early stage would help them develop positive financial behaviours and prepare them to become responsible adults.
“We are here in Akwa Ibom State as part of the commemoration of Financial Literacy Day 2026, which is a global initiative of the Bankers’ Committee. We are here basically to teach financial literacy, targeting young people, particularly secondary school students,” she said.
Bowsan noted that the essence of the programme is to shape the mindset of young Nigerians towards prudent financial management, savings and responsible spending.
“The whole idea is to target them while they are still young. We realised that the young people of today will become the adults of tomorrow, and so we are inculcating the right habits in them so that they can become better managers of resources in the future,” she added.
Students commend initiative
Some of the students who participated in the programme expressed appreciation to the NDIC for selecting their school for the sensitisation exercise.
One of the beneficiaries, Miss Udeme Effiong, said the programme had broadened her understanding of financial literacy and the importance of developing good savings habits.
She noted that prior to the programme, she had little knowledge of financial planning and management but now understood the need to save and make informed financial decisions.
“I want to thank the NDIC for choosing our school for this important programme. I have learnt a lot about financial literacy and I can now explain to others what it means and why saving is important,” she said.
Promoting financial inclusion
Financial experts have continued to stress the need for increased financial literacy among Nigerians, especially young people, as part of efforts to deepen financial inclusion and encourage responsible financial behaviour.
The annual Financial Literacy Day campaign has become one of the key platforms through which the NDIC and the CBN seek to bridge the knowledge gap in financial education and promote a culture of savings among citizens.
Stakeholders believe that equipping young people with financial knowledge and skills will not only improve personal financial management but also contribute significantly to economic growth and national development.
The NDIC has, over the years, continued to expand its financial education campaigns across the country, targeting schools and other institutions with the aim of raising a financially informed generation capable of making sound financial decisions.
The Black Market Dollar-to-Naira Exchange Rate for 10th July 2026 Can Be Accessed Below.
IMPORTANT NOTE: The exchange rate changes hourly. It depends on the volume of dollars available and the Demand. This means…you can buy or sell 1 dollar at a certain rate, and the price can change (high or low) within hours.
The official naira black market exchange rate in Nigeria today, including the Black Market rates, Bureau De Change (BDC), and CBN rates.
Please note that the exchange rate is subject to hourly fluctuations influenced by the supply and demand of dollars in the market.
What’s the dollar to naira black market today, 10th July 2026?
The exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players sell a dollar for ₦1412 and buy at ₦1400 on Friday, 10th July, 2026, according to sources at Bureau De Change (BDC).
Please note that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market), as it has directed individuals who want to engage in Forex to approach their respective banks.
Dollar to Naira Black Market Rate Today
Dollar to Naira (USD to NGN) Black Market Exchange Rate Today
Selling Rate ₦1412
Buying Rate ₦1400
Dollar to Naira CBN Rate Today
Dollar to Naira (USD to NGN) CBN Rate Today
Highest Rate ₦1380
Lowest Rate ₦1376
PFIPC scandal: ‘I borrowed N400 million to secure the appointment’ – Adeyemi Adeniyi
May 18 primaries has come to a close, I appeal to all my people to support all APC candidates -Ize-Iyamu
Senate investigates N34tn Duty Waivers, Threatens Sanctions for Defaulting Agencies
-
News21 hours agoNSITF promises Gambia of technical support, stronger partnership …As study tour ends in Abuja
-
News18 hours ago‘He was our bread winner’: Dad laments 28-Year-Old Lieutenant Killed in Oyo School Rescue Mission
-
News20 hours agoDAY 24 of Projects Commissioning and Flag-Off in the FCT
-
News19 hours agoAfter 56 Days in Captivity, Oriire Parents Scared of Sending Rescued Kids Back to School
-
News20 hours agoOne dies, seven injured as Gombe Assembly Complex under construction collapses
-
News19 hours agoGunmen Kidnap 60-Year-Old Headmaster In Oyo, Demand N30m Ransom
-
News20 hours agoNorwegian Air adorns British Airways logo for 24hrs after losing 2026 World Cup wager
-
News13 hours agoJust in: Appeal Court halts Atiku’s presidential bid, declares Mark-led ADC congresses illegal
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