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

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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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Zambian activist highlights ongoing threats to media freedom on World Press Freedom Day

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As the world commemorates World Press Freedom Day on Friday, a youth activist from the Young Women Christian Association (YWCA) sheds light on the continued challenges facing the media landscape in Zambia.

Given Chifunda Moyo, YWCA Provincial Coordinator for the Southern Province, shares her analysis of the media environment in Zambia, emphasizing that the press still faces significant obstacles to operating independently.

Moyo pointed out that journalists and media houses were often targeted and threatened by those in power for publishing articles perceived critical of their policies or actions.

“In my opinion, we still face significant challenges. In the past, we witnessed journalists and media outlets being shut down for airing content that was deemed unfavorable to the government,” Moyo explained in an exclusive interview with the Zambia Monitor.

She highlighted the fear among journalists and citizens alike, noting recent instances where individuals were threatened for expressing their views on social media platforms.

Despite the enactment of media-friendly laws by the current government, Moyo observed that these laws were not always enforced.

“Following the elections, new media laws were introduced.
However, we continue to see individuals being threatened with arrest or cautioned for expressing their opinions or publishing certain articles,” she stated.

Moyo acknowledged the assurances from President Hakainde Hichilema that his administration would not interfere with the media’s operations.

However, she underscored the persistence of external interference that contradicts the president’s stance.

“While we appreciate the president’s commitment to media independence, there are still instances of interference from other quarters,” Moyo concluded .

The activist’s insights highlight the ongoing struggle for media freedom in Zambia, underscoring the need for concerted efforts by all stakeholders to safeguard press freedom and ensure a vibrant media landscape in the country.

This story is sponsored content from Zambia Monitor’s Project Aliyense.

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Nigeria’s economy will witness positive changes after painful sacrifice— VP Shettima

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Nigeria’s Vice President, Senator Kashim Shettima, has told Nigerians to look at the bigger picture as the country’s economy will soon witness positive changes after their painful sacrifices.

Shettima who was the special guest speaker at the second Chronicle Roundtable organized by 21st Century Media Services held in Abuja on Thursday, implored on Nigerians to be patient with the administration of President Bola Tinubu as he is determined to “steer the ship of state through the economic turbulence and storm he met on ground on assumption of office.”

“Soon, Nigeria’s economy will experience significant growth once we’ve overcome these sacrifices,” Shettima said while giving his keynote address.

“Positive changes will soon be evident across all economic indicators – inflation, per capita income, GDP numbers, poverty reduction, food security, and all aspects close to the hearts of our people,” he declared.

The Vice President went on to explain some key policy decisions taken by the Tinubu administration as well as its Economic and Social Agenda, including the removal of subsidy on petroleum products, which he described as the ‘biggest elephant in the room’ before President Tinubu took charge.

“We look forward to the positive impact on the economy that will be brought by some of our new initiatives in the oil and gas sector, creative arts sector, the newly rejigged steel and solid minerals sectors, our housing sector, the blue economy, and the digital sectors, to mention but a few.

“There is no doubt that there’s a time to plant and a time to reap. Between those times, we appeal for patience and seek collective sacrifice from all, especially from us. We wish there were a way to treat this ailment without surgery.

“His Excellency, President Bola Tinubu, chose the option that would save the life of the nation, instead of one that would merely prolong its imminent and predicted economic death. Before we took charge, the biggest elephant in the room was the question of fuel subsidy removal.

“We understood why our predecessor made the decision to remove it and refused to budget for it in their final fiscal year.

‘The year before we took office, Nigeria’s debt service-to-revenue ratio had grown to 111.8%. The anticipated debt crisis may sound like fancy economic jargon to the man on the street. But you and I are in a better position to understand how such miscalculations have played out in other countries. It’s an economic death sentence.

“In plain terms, our debt servicing was such that if you earned, say, N100,000, the entirety of the money wasn’t only paid to your debtor; you were forced to borrow an additional N11,800 to pay the debtor.

“How do you intend to survive this? And how many more loans before you become a pariah?

“We are not even discussing the nation’s budget deficits, diversions of resources from critical sectors of the economy, and corruption masterminded in the subsidy regime.”

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