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Foreign investors repatriate $5bn dividend from Nigeria in 6 months— Central Bank

Published

1 year ago

September 5, 2023

The Central Bank of Nigeria has revealed that foreign firms repatriated $5.86bn from the Nigerian economy between October 2022 and March 2023.

The CBN, in its ‘Economic Report, First Quarter 2023,’ said the higher dividend payments to non-residents further widened the deficit in its primary income account.

It stated that, “The investment income component relates to accrued income on existing foreign financial assets and liabilities. This income could take the form of earnings, interest, dividends, and royalties that direct and portfolio investors get or are paid. Also, it can be loan interest and commitment fees (Other Investment Income)”.

Giving a breakdown of payments, the bank stated, “The deficit in the primary income account widened by 18.7 per cent to $2.69bn in 2023Q1, due, primarily to the 34.9 per cent increase in investment income payments, which amounted to $3.09bn, from $2.77bn in 2022Q4.

“Income on direct investment in the form of dividends rose by 12.1 per cent to $2.71bn, relative to $2.42bn in 2022Q4. Similarly, interest payments on portfolio investments rose to $0.09bn, from $0.05bn in 2022Q4. Interest earnings on reserve assets increased by 35.7 per cent to $0.20bn, from $0.15bn in 2022Q4. Conversely, interest payments on loans declined by 0.7 per cent to $0.30bn.

“The compensation of employees’ account maintained a surplus position, increasing by 6.2 per cent to $0.06bn, relative to the level in 2022Q4.”

Latest data from Nigeria’s Central Bank has shown that the country’s external reserves dropped by $915m after the official floating of its currency, Naira.

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IMF mission concludes 4th loan program assessment in Egypt

Published

1 day ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

3 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.