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Nigeria gets World Bank approval for fresh $750 million loan

Published

2 years ago

September 30, 2022

Despite its growing public debt, Nigeria has secured another $750 million loan from the World Bank to accelerate the implementation of critical actions.

According to a statement by the World Bank titled “Improving the Business Enabling Environment in Nigeria to Create Jobs and Boost Inclusive Growth”, the loan is in form of an International Development Association (IDA) credit to support the Nigeria State Action on Business Enabling Reforms (SABER) Program-for-Results.

The Washington-based organization in a report in August said Nigeria has moved into the fourth position on the World Bank’s list of countries with the highest debts, according to the Bank’s financial.

“The World Bank today approved the Nigeria State Action on Business Enabling Reforms (SABER) Program-for-Results. The $750 million International Development Association (IDA) credit will help Nigeria accelerate the implementation of critical actions that will improve the business enabling environment in states.”

The World Bank says Nigeria has made headway in pushing changes to remove barriers in the business climate, particularly through efforts spearheaded by the Presidential Enabling Business Environment Council (PEBEC) but maintained that the country’s ability to attract local and foreign investment remains limited.

Nigeria is considered a key regional player in West Africa, the county accounts for about half of West Africa’s population with approximately 202 million people and one of the largest populations of youth in the world.

Related Topics:DEBT CRISIS Featured Nigeria

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Nigeria’s inflation hits 28-year high of 33.20%

Published

1 day ago

April 15, 2024

Ifeoluwa Dada

The recent gains of Nigeria’s Naira as the best-performing currency worldwide in the last month have had little or no impact on the consumer price index in the West African country as its inflation rate reached a 28-year high of 33.20%.

According to the latest data from the National Bureau of Statistics, Nigeria’s inflation has continued its 15-month-a-row surge driven by soaring food and energy costs despite the central bank’s rate hikes aimed at halting its ascent.

This was 10.37% more than the 21.9% inflation rate seen in March 2023. Year-over-year, rural inflation was 31.45% in March 2024. Rural inflation fell from 2.9% in February 2024 to 2.87 % in March 2024, which was a 0.20 percentage point drop from February 2024.

It went up by 5.71% points from March 2023 to March 2024, when it was 19.79%. The average rural inflation rate for the twelve months finishing in March 2024 was 25.50%.

Food prices went up by 40.1% a year in March 2024, which was 15.56 percentage points more than the rate of 24.45% a year earlier. The statistics office said food and non-alcoholic beverages were the biggest contributors to the pickup in inflation. Food inflation rose to 40.01% year-on-year, from 37.92% a month earlier.

Since President Bola Tinubu ended an expensive gasoline subsidy and devalued the naira twice in his first year in office, price pressures have grown. To get the economy off of subsidies that have hurt the government’s finances, the government recently raised energy rates for people who use the most electricity.

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Diesel gulping over 80% of Nigerian manufacturers’ profit, association claims

Published

1 day ago

April 15, 2024

Ifeoluwa Dada

Following recent energy failure which has seen Nigeria suffer its worst blackout in decades, manufacturers in the country have lamented the high cost of diesel which is largely used as an alternate energy source for operations.

The Director General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, while addressing newsmen on Sunday on the
the plight of manufacturers against the backdrop of rising prices of their products stressed that automotive gas oil (AGO) gulped over 80℅ of manufacturers’ profit.

Ajayi-Kadir stated: “We have at different fora informed government and relevant agencies of what to do to bring down these inimical worsening high operating costs in the country. Nigerians should not blame local manufacturers for increasing the cost of goods, because they are being confronted with debilitating conditions.

“Do you know that diesel is taking 80 per cent profit of surviving manufacturing firms in Nigeria currently at the rate of about N1,700?

“Which manufacturer can cope with that astronomical price for energy to produce and you won’t expect him to increase his products in the country?

“Also, look at the new Customs exchange rate, new interest rate, scarcity of foreign exchange (FX), NAFDAC ban and others. How do you want to cope in production and make a profit?”

Although there was relief two weeks ago as privately run Dangote Refinery began diesel production which crashed the price of diesel by 29.4% production cost however remain daunting for manufacturers.