Metro

Nigeria seeks fresh $400m World Bank loan. Here’s why

Published

1 year ago

October 15, 2023

The Nigerian government has, once again, approached the World Bank for a fresh loan of $400 million.

The government said the loan is for onward distribution to 15 million vulnerable households as part of palliatives to cushion the effects of the removal of fuel subsidy by President Bola Tinubu.

The scheme known as “conditional cash transfer” was instituted by former President Muhammadu Buhari, and involves transfer of cash to the poorest of the poor.

The fresh loan of $400m will bring Nigeria’s indebtedness to the global financial institution to $1.2 billion following an earlier loan of $800 million secured by the Buhari administration for the same purpose.

In the twilight of his regime, Buhari had secured the $800m from the Bank to provide what he called post-petroleum subsidy palliatives for over 50 million Nigerians, but the money was not disbursed as at the time he left office.

President Tinubu had announced the conditional cash transfer to 15 million households in an independence day address on October 1, which he said was part of his administration’s measures to cushion the effects of the subsidy removal on petrol which has led to a rise in the cost of living, and caused untold hardship for many Nigerians.

In the nationwide address, Tinubu had announced that the government would commence the payment of N25,000 monthly to 15 million households for three months, from October to December 2023.

However, following threats of a national strike by organized labour, President Tinubu reversed himself and announced a N35,000 provisional wage award for all treasury-paid Federal Government workers for six months. The decision followed consultations with the leadership of the Nigeria Labour Congress and the Trade Union Congress.

A top government official who spoke on the condition of anonymity, revealed that the Tinubu administration would fund the N35,000 cash award to civil servants by sending a supplementary appropriation bill to the National Assembly.

“The government is funding the N35,000 wage increase for all federal civil servants and it is not taking a loan.

“The one the government is taking a loan for is the one of N25,000 multiplied by three months for 15 million households. There is a loan of $800m on this one and the government is adding $400m, making it $1.2bn, which will be used for the conditional cash transfer.

“But, the other one (cash award to federal civil servants), the government will fund it. So, most likely there will be a supplementary appropriation for that because it is illegal to spend money out of the government budget.”

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Metro

World Bank pledges $3b to support Zambia’s development goals

Published

13 hours ago

November 14, 2024

Isaac Dachen

The World Bank Group has pledged to avail Zambia with approximately $3 billion to support the country’s development goals under the new Country Partnership Framework (CPF) for 2025-2029, with nearly half of the funds already disbursed.

World Bank Country Manager, Achim Fock, who made this known at the CPF launch at the Mulungushi Conference Centre in Lusaka on Wednesday, outlined the global lender’s focus areas, which included enhancing jobs, human capital, and climate resilience.

Fock highlighted that $200 million had been approved to strengthen Zambia’s social protection programs, including the Refugee and Host Community Project.

He also expressed optimism for upcoming approvals, including the Climate and Economic Resilience Financing and the Zambia-Tanzania Interconnector.

Zambia’s Finance and National Planning Minister, Situmbeko Musokotwane, who also spoke at the event, noted that 2.3 million Zambian households have so far benefited from social protection interventions such as the Cash for Work Programme, emphasizing the government’s commitment to safeguarding lives amid crises like the recent drought.

Musokotwane further reiterated the government’s commitment to protecting lives during times of crises such as the recent drought.

“More than two thirds of the Zambian population was affected by the drought. It was the government’s view that the first priority was to save lives,” Musokotwane stated.

Metro

Chinese mining giant CNMC set for $1.6 billion investment in Zambia

Published

1 day ago

November 13, 2024

Isaac Dachen

A Chinese mining giant, China Nonferrous Metal Mining Company (CNMC), has announced the investment of over $1.6 billion in Zambia, following successful discussions with President Hakainde Hichilema at the State House on Tuesday.

CNMC Chairman and Chief Executive Officer, Wen Gang, who held the discussions with Hichilema along with the Chinese Ambassador to Zambia, Han Jing, confirmed the company’s commitment to furthering Zambia’s economic development.

“We are actively investing in critical sectors of Zambia’s economy,” Gang said after the meeting.

He noted that CNMC was currently pumping water from Shaft 28 at Luanshya Copper Mine, where 29.9 million cubic liters have been cleared as part of intensified dewatering efforts, adding that the company plans to inject an additional $200 million to develop a greenfield mine on the Copperbelt.

President Hichilema who welcomed CNMC’s commitment, highlighted the potential economic impact of the firm’s investment which will include job opportunities for Zambians.

“This $1.6billion investment, alongside advanced technology and expansion, will extend operations and create more jobs and opportunities for Zambians, especially in mining contracting and supply,” the President said.

He also expressed gratitude to Chinese President Xi Jinping and the Chinese government for their shared commitment to fostering growth and cooperation between the two countries.