Musings From Abroad

World Bank grants Nigeria’s request for a $2.25 billion loan

Published

6 months ago

June 14, 2024

According to a statement released by the World Bank on Thursday, Nigeria has been granted a $2.25 billion loan to help stabilize its economy after implementing reforms and increasing aid to the underprivileged.

Nigeria wants to borrow up to $2.25 billion from the World Bank, according to Finance Minister Wale Edun’s April announcement. The proposal is expected to be approved by the bank’s board in June.

The boldest reforms the nation has seen in decades were started by Nigerian President Bola Tinubu in May of last year. He eliminated a popular but expensive fuel subsidy and twice devalued the currency substantially in an attempt to spur economic growth. However, the actions exacerbated a situation caused by rising costs of living and increased inflation.

The International Monetary Fund predicted that gasoline subsidies could account for as much as 3% of GDP this year due to the devaluation since rises in pump prices have not kept pace with their dollar cost.

Additionally, labour unions have been putting pressure on Tinubu to undo changes. According to the World Bank, it has authorized two loans totalling $750 million to speed up tax mobilization and $1.5 billion to support Nigeria’s reforms.

Nigeria has taken “initial critical steps to restore macroeconomic stability, boost revenues, and create the conditions to reignite growth and poverty reduction have been taken.” Nigeria has also started important reforms to address economic distortions and strengthen its fiscal outlook.

According to the World Bank, the loan will aid Nigeria in its efforts to increase non-oil revenue and foster fiscal sustainability, both of which will enable the West African country to provide high-quality public services.

Related Topics:Featured Nigeria World Bank

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Musings From Abroad

France, Nigeria sign agriculture, infrastructure deals

Published

5 days ago

November 30, 2024

Ifeoluwa Dada

Two agreements to improve food security and infrastructure development have been struck between France and Nigeria, while Nigerian lenders, United Bank for Africa (UBA) and Zenith Bank, have expanded their operations into France.

The agreements were signed during President Bola Tinubu’s state visit to Paris, according to Nigeria’s presidential spokesperson, Bayo Onanuga, who said on Friday that the agreements included a 300 million euro investment plan to support the development of human capital, healthcare, transportation, agriculture, renewable energy, and critical infrastructure throughout Nigeria.

A letter of intent was signed by French Economy Minister Antoine Armand and Nigerian Finance Minister Wale Edun to enable the investments. Onanuga added in a statement that both countries have promised to simplify trade and investment procedures.

“The two countries committed to forge a strategic relationship in project implementation and enhance mutual trade and cross border services by removing fiscal barriers while protecting labour rights,” a joint statement said.

Zenith Bank opened its doors in Paris in addition to the government-level accords, and UBA is expected to follow after reaching an agreement with French authorities to start business in Paris, according to Onanuga.

Nigeria is the fourth-largest trading partner of France in Africa, behind Morocco, Algeria, and Tunisia, and the top trading partner in sub-Saharan Africa.

Nigeria Exports to France was US$4.26 Billion during 2023, according to the United Nations COMTRADE database on international trade.

Musings From Abroad

Chad terminates defence cooperation with France

Published

5 days ago

November 30, 2024

Ifeoluwa Dada

France’s influence in Sub-Saharan Africa has suffered a fresh setback as the government of Chad says that it has terminated its defence cooperation agreement with France, potentially leading to the withdrawal of French troops from the Central African nation.

After more than 60 years of independence, Chad, a crucial Western partner in the war against Islamic terrorists in the area, said in a statement that it wants to completely establish its sovereignty.

It stated that it would be allowed to reinterpret its strategic alliances as a result of the 2019 revision to the Defence Cooperation Agreement.

Although Chad has always worked closely with the military forces of Western countries, in recent years it has become more close to Russia.

After being forced to withdraw its soldiers from Mali, Niger, and Burkina Faso due to military coups, the decision represents yet another blow to France’s colonial and historic position in West and Central Africa.

Since then, the military juntas have looked to Russia, which has been developing stronger connections with Chad’s president Mahamat Deby and has mercenaries stationed throughout the Sahel area, a group of nations that stretches from the northwest to the northeast shores of Africa.

“Under the terms of the accord, Chad will respect the modalities of the termination including the necessary deadlines, and will collaborate with French authorities to ensure a harmonious transition,” the statement said.

The French foreign ministry is yet to officially comment on the development.

Although a French envoy to President Emmanuel Macron this week submitted a report with recommendations on how France could scale back its military presence in Chad, Gabon, and Ivory Coast, where it has stationed thousands of troops for decades, there were no signs that Paris had been informed in advance of the decision.

Approximately 1,000 French soldiers and combat aircraft are presently stationed in Chad.

In a further setback for France, Senegalese President Bassirou Diomaye Faye stated Thursday in an interview with French state television that French troops should not be stationed in his nation.

He stated that Paris would be the first to know, but he did not specify whether or when French forces would be ordered to depart. There are about 350 French soldiers stationed in Senegal.

The decision to terminate the country’s defence relationship with France should not in any way jeopardise the two nations’ cordial ties, according to a statement from Chad’s foreign ministry.