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World Bank calls for debt relief as funds vanish from poor countries

The World Bank’s top economist called on private lenders to shoulder some of the cost of debt forgiveness for the poorest countries, as record high repayments drain budgets that should be focused on health, education and infrastructure.
Interest payments alone by the lowest-income nations ballooned to a record $34.6 billion in 2023, quadrupling over the past decade, the bank said in its latest International Debt Report. Including principal, those 78 nations are paying $96.2 billion annually to service $1.1 trillion in debt.
More alarming, according to Chief Economist Indermit Gill, is that private lenders have pulled almost $13 billion more in service payments from those countries than they injected in new financing over the last two years. That burden is diverting funds from urgently needed investments at home, in areas from public health to climate change.
The World Bank’s latest warning caps a period of growing strain on the finances of poor countries, after a pandemic that forced higher spending and then a worldwide surge in interest rates that raised debt costs. Countries including Sri Lanka and Zambia have defaulted since Covid hit, while others like Pakistan and Kenya teetered on the brink — and international efforts to agree on a wider fix, including relief from private loans too, kept hitting snags.
“It’s time to face the reality: the poorest countries facing debt distress need debt relief if they are to have a shot at lasting prosperity,” Gill wrote in the forward to the report released Tuesday. “Private creditors that make risky, high-interest loans to poor countries ought to bear a fair share of the cost when the bet goes bad.”
For all developing countries, including massive and stable economies such as China and India, total debt payments hit $1.4 trillion last year — including interest of $406 billion — on $8.8 trillion in debt. Over the past two years, that broader group has paid private investors $141 billion more than they’ve seen in new loans, according to the World Bank report.
“That reflects a broken financing system,” Gill wrote, adding that the idea hatched a decade ago that private capital could flood into poor countries to turbocharge development “proved to be a fantasy.”
Gill’s verdict comes as the bank’s president, Ajay Banga, has made one of his top priorities incentivizing more private capital to invest in development alongside multilateral lenders.
The bank is also working with its sister institution, the International Monetary Fund, to steer countries in debt distress toward policies that bolster their finances and lower borrowing costs.
Many nations accumulated debt piles by borrowing heavily in the pre-Covid years when interest rates were low — especially from China and private lenders, which have grown to be significant creditors to poor countries. Problems escalated when the pandemic pushed governments into emergency spending, and then interest rates rose to fight post-Covid inflation.
The consequences are still playing out. A report by credit rating firm S&P Global in October predicted that “sovereigns will default more frequently on foreign currency debt over the next 10 years than they did in the past.”
The flight of private capital from emerging markets has continued this year. Investors using hard currencies such as dollars or euros have pulled roughly $13.6 billion from emerging-market debt funds in 2024, after withdrawing almost $23 billion the previous year, according to data from Bank of America.
The biggest risks are concentrated among the 78 poorest countries categorized by the World Bank as eligible to receive low- or no-interest financing and grants from its International Development Association fund.
Many of those countries face “a metastasizing solvency crisis that continues to be misdiagnosed as a liquidity problem,” Gill wrote.
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Abuja raid attack: Three NDLEA officers sustain gunshot injuries, hospitalized

Three officers of the National Drug Law Enforcement Agency, NDLEA, have been hospitalized for gunshot injuries sustained after they came under attack from some armed men during a raid operation in Jahi area of the Federal Capital Territory, Abuja on Thursday night.
The incident occurred when a team of NDLEA operatives acting on intelligence and surveillance report raided an uncompleted building at NNPC area of Jahi where 74 bottles of codeine, 10 litres of codeine syrup, 48grams of tramadol 225mg and 4.9kilograms of skunk, a strain of cannabis, as well as five android phones were recovered.
As the NDLEA team made their way out of the location, they came under gun attack.
Three of the NDLEA personnel involved in the raid sustained gunshot injuries: one in the rib and two others on their back and leg.
The wounded officers were initially stabilized at the Police Clinic in Garki Area 1 before they were transferred to the National Hospital Abuja for further medical attention.
Chairman/Chief Executive Officer of NDLEA, Brig Gen Mohamed Buba Marwa (Rtd) expressed appreciation to the staff of the Police Clinic for their prompt support. He also thanked the Chief Medical Director of the National Hospital who was personally reached by him for overseeing the treatment of the wounded officers.
The NDLEA boss who is in Kano on official engagements also spoke on phone with the injured officers to wish them quick recovery. He assured them that the Agency will deploy every means at its disposal and work in collaboration with other security agencies to fish out those responsible for the attack on them.
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Tinubu preaches hope at Easter gives directive to military to end insecurity

President Bola Ahmed Tinubu on Friday asked Christians in the country to use the Holy Week and Easter to reflect on the enduring values of sacrifice, redemption, love, and hope.
The President made the call in a message he signed on Good Friday, two days to the Easter celebrations.
According to Tinubu, he was saddened by the recent insecurity in the country. He also directed security operatives to decisively end the insecurity without delay.
“The recent tragic incidents and the loss of lives in some parts of our country deeply saddened me. I understand the pain and fear these incidents have caused. Let me assure you that my administration’s resolve to restore peace and security remains unshakable. Forces of evil will never prevail over our country,” Tinubu said.
I have given clear directives to the Armed Forces and all relevant security agencies to end insecurity decisively and without delay. With the unwavering courage and commitment of our gallant men and women in uniform, we are turning the tide and making steady progress in reclaiming peace and stability.
“As President of our blessed nation, I draw inspiration from this timeless message of hope and renewal. I remain steadfast in my commitment to delivering the promise of a Renewed Hope, a better, more just, and prosperous Nigeria for all.
“The Holy Week, which spans Palm Sunday through Holy Thursday and Good Friday and culminates in Easter Sunday, calls us to reflect deeply on the enduring values of sacrifice, redemption, love, and hope.”
“I have given clear directives to the Armed Forces and all relevant security agencies to end insecurity decisively and without delay. With the unwavering courage and commitment of our gallant men and women in uniform, we are turning the tide and making steady progress in reclaiming peace and stability.
“As President of our blessed nation, I draw inspiration from this timeless message of hope and renewal. I remain steadfast in my commitment to delivering the promise of a Renewed Hope, a better, more just, and prosperous Nigeria for all.
“The Holy Week, which spans Palm Sunday through Holy Thursday and Good Friday and culminates in Easter Sunday, calls us to reflect deeply on the enduring values of sacrifice, redemption, love, and hope.”
The President also expressed gratitude to Nigerians for their “patience and resilience as our economy begins to show encouraging signs of recovery.”
“We understand the economic challenges many of you are facing, and we are working tirelessly to restore investor confidence, stabilise key sectors, and build an inclusive economy that serves the interests of all Nigerians.
“During this Easter, we join the global Christian community in thanking God for Pope Francis’s recovery. We pray that his renewed strength continues to inspire his leadership and service to humanity.
“I earnestly pray that Easter’s spirit fills every heart and home with renewed faith in the immense possibilities ahead of us as a nation. Just as Christ triumphed over death, so too shall our country triumph over every challenge we face. The present moment may be cloudy, but it will usher in a glorious day,” he added.
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Easter: HoR Minority Caucus celebrates with Christians, urges love, peace, national cohesion, calls for end to killings nationwide

The Minority Caucus in the House of Representatives congratulates the entire Christian community in Nigeria, as they join others around the world on the occasion of this year’s Easter celebrations; marking the end of the Lenten period.
This was contained in a statement jointly signed by leaders of the caucus, Rep Kingsley Chinda, Leader, Rt. Hon. Dr. Ali Isa J.C
(Minority Whip) Rt. Hon. Aliyu Madaki , (Deputy Minority Leader)
Rt. Hon. George Ozodinobi
(Deputy Minority Whip) stating that:
” Indeed, Easter is a very unique, and sacred time for every Christian faithful, as it is of significance following the successful completion of the 40-day fasting; which is one of the cardinal tenets of Christianity.
“As our Christian brethren across the country join others around the world to mark this auspicious day; and confident that God Almighty has accepted all prayers and supplications during this time, the Caucus admonish all to sustain the teachings, practice, and lessons of the Lenten period which embodies spiritual, personal, and leadership growth. More importantly, it is necessary to deepen the pivotal messages of the Easter celebrations which are anchored on renewal of faith, resilience and re-invigoration of good deeds, forgiveness of wrong doings, expression of love, joy, and peace to one another, and fostering of compassion, and empathy to all mankind.
“Given our commitment to the preservation and protection of the lives of all Nigerians, and the need to ensure good governance, the Caucus calls on the Federal Government to tackle, headlong the disturbing trend of wanton killings in the country.
“The resumed cases of violence, maiming, kidnapping, and bloodletting in Plateau, Benue, and other parts of the country, portends serious dangers to meaningful growth and development.
“It is appropriate to call on all security agencies to ensure that the negative actions and vicious activities of this group of marauders are comprehensively curtailed, if not entirely wiped out.
“The Caucus urges Christians (and all other Nigerians) to continually pray for our Leaders; at all levels for the right wisdom, knowledge, and understanding towards navigating the country through multi-sectoral, and multi-layered challenges that are not only limiting the realization of Nigeria’s potentials but throwing our people into immeasurable hardship, debilitating hunger, and corrosive poverty.
“Finally, Easter is not just a period for feasting, but also for reflections, new beginnings, and connection with other people, the Caucus admonishes all Nigerians to constantly emphasize virtues that promote unity, and development above negative tendencies that cause divisiveness.
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