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Nigeria beats competitors to host Africa Energy Bank

Published

6 months ago

July 5, 2024

Nigeria, the continent’s largest oil producer, defeated three rival nations to win the rights to host the newly established Africa Energy Bank (AEB), the country’s oil minister announced on Thursday.

Nigeria will be at the vanguard of Africa’s energy future thanks to a decision made at an extraordinary meeting of the Council of Ministers of the African Petroleum Producers Organization (APPO), according to a statement from Minister of State for Petroleum Resources, Heineken Lokpobiri.

After ratifying the bank’s charter and President Bola Tinubu approved an investment of $100 million, surpassing the needed $83.33 million for member nations, Nigeria’s quest to host the AEB was reinforced in late May.

Funded by Afrexim Bank and APPO, the fossil fuel-focused bank seeks to assist the continent’s energy transformation objectives and finance energy projects across the continent.

“This decision reflects our collective ambition to create African solutions to African energy challenges,” Lokpobiri said.

“The African Energy Bank will be instrumental in providing the financial backbone for energy projects that will drive growth and development across the continent,” he added.

When the AEB launches later this year, its first spending authority is $5 billion. According to analysts, Nigeria, one of Africa’s leading energy producers and an original member of APPO, has expressed a great deal of interest in the bank as it launches a fresh initiative to attract investment into its flagging oil and gas sector.

“Hosting the bank would be a vote of confidence in Nigeria at a time its energy industry badly needs a boost,” Clementine Wallop, director for sub-Saharan Africa at political risk consultancy Horizon Engage, said before the announcement.

After Ivory Coast and South Africa failed to meet the requirements, Algeria, Benin, and Ghana are the three other countries that bid to host the AEB.

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IMF, Egypt reach agreement for fourth review of Egypt’s $1.2 billion loan request

Published

6 hours ago

December 26, 2024

Ifeoluwa Dada

Egypt and the International Monetary Fund (IMF) have reached a staff-level agreement over the fourth review of the Extended Fund Facility arrangement, which might lead to a $1.2 billion payout under the program.

In March, Egypt, struggling with rising inflation and cash shortages, consented to the $8 billion, 46-month facility. Its economic problems were made worse by a precipitous drop in Suez Canal revenue over the last year due to regional tensions.

Over the next two years, Egypt’s government has committed to raising its tax-to-revenue ratio by 2% of GDP, according to the IMF, emphasising removing exemptions rather than raising taxes.

According to a statement from the IMF, this would allow it to expand social expenditure to support vulnerable populations.

“While the authorities’ plans to streamline and simplify the tax system are commendable, further reforms will be needed to enhance domestic revenue mobilization efforts,” the statement said.

According to the IMF statement, Egypt had also committed to maintaining its commitment to a flexible currency rate and to taking more urgent action to guarantee that the private sector became the primary driver of development.

The IMF’s executive board still has to accept the fourth review’s staff-level agreement.

VenturesNow

Libya’s eastern govt accepts petrol subsidy elimination

Published

6 hours ago

December 26, 2024

Ifeoluwa Dada

In a recent statement, the eastern government of Libya claimed it had reached a consensus on a plan to eliminate gasoline subsidies and would draft a mechanism to carry out the accord.

Additional information on the idea was not released by the administration led by Osama Hamad, a challenger to the internationally acknowledged Tripoli-based government.

However, it is uncertain if Hamad’s government would be able to carry out the plan in the divided nation.

According to the Global Petrol Prices online tracker, a litre of gasoline costs just 0.150 Libyan dinars ($0.03) in OPEC member Libya, making it the second-cheapest in the world.

Following an uprising against former ruler Muammar Gaddafi in 2011, smuggling networks have thrived in the ensuing political unrest and armed fighting. In 2014, conflicting eastern and western governments separated the nation.

A World Bank analysis estimates that the annual value of fuel smuggling from Libya is at least $5 billion.

In a meeting with Mari Barrasi, the deputy governor of the Central Bank of Libya (CBL), located in Tripoli, and four members of the bank’s board of directors, Hamad in Benghazi supported the idea of removing subsidies.

The CBL’s Benghazi branch offices served as the venue for the conference.

The eastern parliament appointed Hamad in 2023 to succeed Abdulhamid Dbeibah, who had been put in position in 2021 under a U.N.-backed procedure that the parliament said had lost its legitimacy.

Dbeibah, who is located in Tripoli, stated in January that he will conduct a public poll on the topic of eliminating gasoline subsidies, but he hasn’t done anything about it since.

According to CBL figures, gasoline subsidies cost 12.8 billion Libyan dinars between January and November of this year. 4.8 Libyan dinars to $1 is the official exchange rate.