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Afreximbank launches $4bn facility to assist African countries cushion effects of Russia-Ukraine war

Published

2 years ago

April 7, 2022

To cushion the effects and fallout from the ongoing Russian-Ukraine war, the African Export-Import Bank (Afreximbank) has launched a $4bn credit facility to assist African countries and businesses.

The economic fallout of the war, according to economic experts, is expected to be substantial for Africa, leading to higher food prices especially in countries which import from the warring region, while non-oil and gas producers on the continent will also face rising prices.

The bank’s facility known as the Ukraine Crisis Adjustment Trade Financing Programme for Africa (UKAFPA), is aimed at helping African nations increase their import price and refinance over-collateralised loans as a result of high oil and metal prices.

The facility will also help African countries and companies stabilise commodity export revenues by structuring derivative contracts.

In a statement on Wednesday by the President and Chairman of Afreximbank, Benedict Oramah, the UKAFPA’s compliant financing requests received across Africa has already exceeded $15bn.

“What this means is that there is some urgency to meet these requests to avoid catastrophic social conditions across Africa and reduce the risk of their morphing into political challenges,” Oramah said.

“Given the importance of both Russia and Ukraine as sources of crude oil and gas, raw materials and grains, the outbreak of the conflict has wider repercussions on a global scale, including adversely affecting African economies, especially those that rely heavily on grain, fertiliser and fuel imports

“We must now add the consequences of the ongoing Ukraine crisis to the catalogue of emergencies a strong Afreximbank has to contend with.

“This initiative will contribute immensely to averting social anxiety and upheaval that may arise from looming food shortages and high costs of fertiliser and petroleum products,” Oramah added.

Related Topics:Afreximbank Africa Featured Russia and Ukraine war

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Nigeria’s Bola Tinubu presents N27.5 trillion 2024 budget of ‘Renewed Hope’

Published

12 hours ago

November 29, 2023

Ifeoluwa Dada

Exactly six months after his inauguration, Nigeria’s President, Bola Tinubu, presented the N27.5 trillion 2024 budget proposal to a joint session of the 10th National Assembly in Abuja.

The president said, “The 2024 Appropriation has been themed the Budget of Renewed Hope” with intentions to achieve job-rich economic growth, macro-economic stability, a better investment environment, enhanced human capital development, as well as poverty reduction and greater access to social security.

“Defence and internal security are accorded top priority. The internal security architecture will be overhauled to enhance law enforcement capabilities and safeguard lives, property, and investments across the country,” he said in his presentation on Wednesday.

The budget also prioritizes human development, with particular attention to children, whom he called “the foundation of our nation”.

The Nigerian government under Tinubu has sought to stabilize the country’s economy with two major policy actions: the removal of petrol subsidies to address fiscal wastage, and the unification of the exchange rate. Although the policies have yet to positively impact standard of living, Tinubu insisted that the Nigerian economy had performed well in 2023 despite the challenges, and the government continued to meet its obligations.

According to him, “an aggregate revenue of 11.045 trillion naira was projected to fund the 2023 Budget of 24.82 trillion naira with a deficit of about 6.1% of GDP. However, as of September 30, the Federal Government’s actual aggregate revenue inflow was 8.65 trillion naira, approximately 96% of the targeted 8.28 trillion naira”.

Tinubu commended the legislature for its swift consideration and passage of the 2023 Supplementary Appropriation Bill and the 2024–2026 Medium-Term Expenditure Framework and Fiscal Strategy Paper last week. He noted that their “prompt action underscores your devotion to economic development and to the greater welfare of our people.”

Nigeria’s main revenue source is oil, but earnings have been affected by its industrial-scale theft, and dwindling global oil prices. However, it produced 1.49 million barrels of oil per day last month, the most in nearly two years, after increasing its output by 60,000 barrels per day.

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Nigeria’s Tinubu to present N27.5trn budget on Wednesday

Published

2 days ago

November 28, 2023

Ifeoluwa Dada

The Nigerian President, Bola Tinubu, will present the 2024 Appropriation Bill to a joint session of the country’s bicameral legislature, the National Assembly, on Wednesday.

The bill is an increase from the N26.01tn earlier considered by the council, according to the Minister of Budget and Economic Planning, Abubakar Bagudu, who confirmed the approval to State House correspondents after the close of FEC’s weekly meeting presided over by President Tinubu.

In addition, the minister disclosed that the government had projected N18 trillion in revenue for the fiscal year 2024. Bagudu stated that more information regarding the appropriation bill would be made public on Wednesday when the president brought it before a joint session of the National Assembly.

The minister stated that the Council was currently reviewing the Medium-Term Expenditure Framework, which was approved by the National Assembly.

Bagudu said, “Equally, the Federal Executive Council approved the 2024 Appropriation Bill and the presentation of such to the National Assembly by His Excellency, Mr. President.

“The bill has an aggregate expenditure of N27.5tn which is an increase of over N1.5tn from the previously estimated, using the old reference prices.”

He added, “The forecast revenue is now N18.32tn which is higher than the 2023 revenues, including that provided in the two supplementary budgets. Equally and commendably, the deficit is lower than that of 2023. Details of the Renewed Hope Budget will be announced by Mr. President when he makes the presentation to the National Assembly”.

With two key policy initiatives—halting the fiscal bleeding caused by petrol subsidies, and unifying the exchange rate—the Nigerian government, led by Bola Tinubu, has attempted to stabilise the economy of the nation. With its currency value declining even further and the cost of living rising sharply, the results have not been favourable.