News
SINKING COUNTRY: Nigeria Emerges Third-largest Debtor To World Bank’s IDA, Gets $2.2 billion Under Tinubu
As of June 30, 2024, under President Bola Tinubu’s administration, Nigeria has become the third-largest debtor to the World Bank’s International Development Association (IDA), marking a notable rise in the country’s borrowing from the institution.
World Bank financial statements reveal that Nigeria’s debt exposure to the IDA increased by 14.4%, growing from $14.3 billion in the fiscal year (FY) 2023 to $16.5 billion in FY2024. This $2.2 billion increase has elevated Nigeria to the position of the third-largest IDA debtor, up from fourth place in 2023.
The fiscal year for 2024 spans from July 2023 to June 2024, indicating that Nigeria has borrowed at least $2.2 billion from the World Bank during President Tinubu’s term. This debt is separate from any loans received from the World Bank’s International Bank for Reconstruction and Development (IBRD).
Other Major Debtors:
- Bangladesh remains the largest IDA debtor, with its debt increasing from $19.3 billion in 2023 to $20.5 billion in 2024.
- Pakistan holds the second spot, with its debt steady at $17.9 billion over the same period.
- India, previously the third-largest borrower with $17.9 billion in 2023, saw its IDA exposure decrease to $15.9 billion in 2024, allowing Nigeria to surpass it.
Other significant IDA borrowers include:
- Ethiopia, with an increase from $11.6 billion in 2023 to $12.2 billion in 2024.
- Kenya and Vietnam, both with $12.0 billion in 2024.
These countries, along with Tanzania, Ghana, and Uganda, make up the top ten IDA debtors, collectively representing 63% of the IDA’s total exposure as of June 30, 2024.
Additional Information:
The International Development Association (IDA) is a key branch of the World Bank, focusing on providing concessional loans and grants to the world’s poorest nations. These loans, which feature low interest rates and extended repayment terms, aim to drive economic growth, reduce inequalities, and enhance living conditions in developing countries. However, in Nigeria, concerns have been raised that these loans may be used more for government benefits rather than national economic growth.
It was previously reported that Nigeria secured $4.95 billion in World Bank loans under President Tinubu amidst worries about rising external debt servicing costs. Despite this, only about 16% of these new loans have been disbursed.
The Debt Management Office (DMO) reports that as of March 31, 2024, Nigeria owes the World Bank a total of $15.59 billion.
News
We’ll be forced to export 97% of our petrol – Dangote Refinery warns
Dangote Refinery has announced that it will need to export 95-97 percent of its Premium Motor Spirit (petrol) due to low interest from Nigerian marketers. The refinery, which processes 650,000 barrels per day, revealed that only 3 to 5 percent of petrol marketers are purchasing its fuel.
Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, shared these details during an X Space session hosted by Nairametrics on Wednesday. He highlighted the challenges facing both the Dangote Refinery and Nigeria’s oil and gas sector.
Edwin explained, “I’m selling 2 to 3 percent to small traders who are willing to buy, while the remaining 95 to 97 percent has to be exported,” referring to the local sales of the refinery’s products.
This situation arises as the NNPCL’s deadline for adjusting the Dangote Refinery’s fuel distribution approaches without a clear plan in sight. It is worth noting that while Aliko Dangote, President of Dangote Group, has announced the refinery’s initial petrol rollout, its distribution to marketers is contingent upon NNPCL’s decisions.
News
FIFA U-20 Women’s World Cup: Round of 16 fixtures confirmed [Full list]
The final sixteen teams for the 2024 FIFA U-20 Women’s World Cup in Colombia have been determined following the conclusion of the group stage.
In recent matches, Ghana triumphed over New Zealand with a score of 3-1, and Japan secured a 2-0 victory against Austria.
As a result, Japan has advanced to the Round of 16, joining the other 15 teams in this knockout stage.
The Round of 16 matches are scheduled for Wednesday, Thursday, and Friday.
The full lineup for the Round of 16 is as follows:
- Spain vs Canada
- Brazil vs Cameroon
- Colombia vs South Korea
- Mexico vs USA
- North Korea vs Austria
- Germany vs Argentina
- Netherlands vs France
- Japan vs Nigeria
News
Nigerian Army debunks reported mass resignation of soldiers
The Nigerian Army has refuted claims of widespread resignations among its soldiers due to issues like corruption and low morale.
In a statement, Major General Onyema Nwachukwu, Director of Army Public Relations, dismissed these reports as unfounded.
A news outlet had alleged that numerous Nigerian soldiers were resigning because of corruption and low morale. However, the statement condemned these allegations as misleading and a deliberate attempt to create discontent and undermine the Nigerian Army’s reputation and the dedication of its personnel.
Major General Nwachukwu clarified that, similar to other military organizations worldwide, service in the Nigerian Army is voluntary rather than mandatory. This means that personnel have the freedom to resign following established procedures.
He explained that the resignation process allows personnel to prepare and manage their entitlements, including pensions and gratuities, as outlined in the Harmonized Terms and Conditions of Service (Officers/Soldiers).
Contrary to the report’s implications, the statement emphasized that Nigerian Army personnel are highly motivated, and their welfare is a priority under the leadership of Chief of Army Staff, Lieutenant General Taoreed Lagbaja.
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