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Nigeria targets fresh $1 billion loan from World Bank 

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In order to address the issues facing internally displaced persons and their host communities, as well as to support rural access and agricultural marketing in the nation, the Nigerian government is currently engaged in negotiations with the World Bank. These negotiations are part of the country’s efforts to secure over $1 billion in loans.

 

The request is contained in World Bank documents titled, ‘Solutions for the Internally Displaced and Host Communities Project’ and ‘Rural Access and Agricultural Marketing Project – Scale Up.’

 

There have been reports that some of the World Bank loans currently in consideration were started during President Muhammadu Buhari’s prior administration.

 

There is a $500 million estimate for the IDP loan, and a $550 million estimate for the loan for the rural access and agricultural marketing project.

 

The document from the World Bank revealed that “The proposed project will utilise a three-pronged approach to develop sustainable solutions for IDPs and host communities in Northern Nigeria. First, the proposed project aims to provide tailored solutions for each of the targeted states and communities, recognizing that each internal displacement situation is specific and localised, with conflict, violence and/or climate challenges presenting a different level and set of vulnerabilities for host communities.

 

“Gender, age, and special needs of individuals also play a role, as well as the length of displacement, number of times displaced and other factors. Thus, responses will be adapted to address the specific needs of vulnerable populations within displacement-affected states and communities. Second, the proposed project will follow a “People-in-Place” approach, integrating the needs of the people and the impacts on the place where they settle.

 

“Project activities will aim to improve the provision of infrastructure and basic services as well as livelihood opportunities in an integrated way, moving beyond capital investments to supporting operational improvements and sectoral reforms, and fostering income-generating opportunities within host communities.”

 

 

With an estimated appraisal date of February 11, 2025, and an approval date of April 8, 2025, the Solutions for the Internally Displaced and Host Communities Project is a focused attempt to enhance the lives of millions of people impacted by internal displacement as a result of conflict, violence, and climate challenges.

 

The National Commission for Refugee Migrants and Internally Displaced Persons and the North East Development Commission are the implementing agencies, according to the Washington-based lender, which also stated that the Federal Ministry of Budget and Economic Planning would serve as the borrower for Nigeria.

 

According to the Global Data Institute in a its last Displacement Tracking Metrix, a total of 2,375,661 Internally Displaced Persons (IDPs) were identified in 483,467 households in 2023, representing a decrease of 3 per cent (or 79,529 individuals) compared to Round 42 when 2,455,190 IDPs were recorded (July 2022).

 

Nigeria’s debt profile continues to raise despite its revenue generation challenges. Punch revealed last month that new borrowing approvals for the Federal Government and the securitization of the Central Bank of Nigeria’s N7.3tn Ways and Means advances could soon bring Nigeria’s total debt (federal government and state loans) to at least N107.38tn.

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Nigeria: Marketers predict further price cut as another refinery begins operations

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Oil marketers and the Nigerian Midstream and Downstream Petroleum Regulatory Authority expect refined petroleum product prices to reduce as another public refinery in Warri begins operations.

The marketers made the prediction when the Nigerian National Petroleum Company Limited launched the 125,000-barrel-per-day Delta State WRPC. NNPCL also wants to export locally refined goods for foreign cash. Last month, the 60,000-barrel-per-day Port Harcourt Refinery in Rivers State began operations.

During an inspection tour of the facility on Monday, the NNPCL Group Chief Executive Officer, Mele Kyari, explained that the inspection aimed to show Nigerians the level of work completed so far.

During a tour with NMDPRA CEO Farouk Ahmed and NNPC Board Chairman Pius Akinyelure, Kyari said that while facility repairs were not yet 100% complete, refining operations had begun and would produce straight-run kerosene, diesel and naphtha.

In a statement commemorating the milestone, President Bola Tinubu stated the plant is functioning at 60% or 75,000 barrels per day.

Kyari said, “We are taking you through our plant. This plant is running. Although it is not 100 per cent complete, we are still in the process. Many people think these things are not real. They think real things are not possible in this country. We want you to see that this is real.”

Since some of these goods would be shipped to foreign markets, he said, the reopening of the Warri refinery will help the country become a net exporter of petroleum products.

“Secondly, this plant had three stages; we have started plant one, which we call Area One. It can produce AGO (diesel), kerosene, naphtha, and a blend of crude oil. These are high-grade quality products required in the country, and we may need to export them. So this will give us cash, this company will make money and the promise of Mr President that this country must be a net exporter of petroleum products is already happening. Some of these products will go into the international market.

“Most importantly, I must put on record that Mr President believes that we can get this to work and get them to start and gave us the charge that we must start all three refineries. It’s already happening; we have started the 60,000 barrels per day refinery, and Area One of the Warri refinery is already working. Other plants that would produce PMS are being streamed and they would also come alive.

Mustapha Zarma, the Independent Petroleum Marketers Association of Nigeria’s National Operations Controller, stated that the rivalry in the downstream oil industry will become more fierce.

There will undoubtedly be a further decrease in pricing if the plant begins producing goods in bulk, he stated. This is because the market will ultimately be influenced by market forces and there will be fierce rivalry.

Until recently, none of Nigeria’s publicly owned refineries has worked to capacity for years, despite several investments to revive them. The failure of the government to revive them contributed to the high level of national anticipation surrounding the Dangote refinery whose operations appear to have revolutionalised the industry.

The refinery will concentrate on manufacturing and storing essential goods, such as heavy and light naphtha, automotive petrol oil and straight-run kerosene.

The country’s first fully owned refinery, the WRPC, was put into service in 1978 and is situated in Warri, Delta State, Nigeria. It was first built to process 100,000 barrels of crude oil a day, but in 1987 it was updated to process 125,000 barrels.

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Kenya: Consumer inflation rises to 3.0% from 2.8%

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Kenya’s statistics agency said on Tuesday that Kenya’s consumer price inflation increased slightly to 3.0% year-over-year in December from 2.8% the previous month.

According to a release from the Kenya National Bureau of Statistics, monthly inflation was 0.6%, down from 0.3% in November. Kenya aims to have a medium-term inflation rate of 2.5% to 7.5%.

With inflation under control, Kenya’s central bank said there was an opportunity for looser policy to assist economic development, lowering its benchmark lending rate by a larger-than-expected 75 basis points to 11.25% on December 5.

 

Kenya’s GDP expanded by 5.2% in 2023, up from 4.8% in 2022, thanks to a recovery in agriculture and a modest increase in services. Household consumption accounted for 70% of the growth on the demand side, while services and agriculture accounted for 69% and 23% of the growth, respectively, on the supply side.

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