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Report: Nigerian govt borrowed $6.45bn from World Bank in 16 months

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In just 16 months, the Nigerian government, under President Bola Tinubu, has obtained $6.45 billion in loans from the World Bank.

Following the recent acceptance of three fresh loans totalling $1.57 billion from the World Bank for various projects in Nigeria, the amount grew to the new figure and is anticipated to rise much higher in the upcoming months.

In just five years, the international organisation had granted the government 36 loan requests totalling a whopping $24.088 billion. These appravals, which are intended to fund different development projects across the nation, coincide with growing apprehensions regarding the nation’s rising debt load, raising concerns about the viability of these financial commitments and their possible long-term impacts on the economy.

Under Tinubu, some of the projects include loans for power ($750 million), resource mobilisation reforms ($750 million), women’s empowerment ($500 million), girls’ education ($700 million), renewable energy ($750 million), and economic stabilisation reforms ($1.5 billion).

Long years of deteriorating infrastructure and rising unemployment have made many Nigerians feel more resentful of the government’s plan to borrow money. Even while a few of them acknowledge that there aren’t enough resources given the large population, they don’t think the previous borrowing was necessary.

On Tuesday, an examination of records retrieved from the foreign lender website revealed that, since 2020, the foreign lender has continued to provide the country an annual credit approval.

A quick glance revealed that in 2020, the lender granted 15 loan requests totalling $6.36 billion. These initiatives include, among others, the $510 million Nigeria Rural Access and Agricultural Marketing Project, the $430 million Nigeria Digital Identification for Development project, and the $750 million Nigeria SATAN extra financing for COVID-19 response.

While the country, during the government of former President Muhammadu Buhari, received loans for $1.26 billion in 2022 for six projects, the loan demands were cut to six projects worth $3.2 billion in 2021.

For example, on March 18, 2022, a $500 million loan request for a project supporting cattle productivity and resilience was accepted. In the same year, a second $750 million loan was authorised under the Nigeria: State Action on Business Enabling Reforms Program. Additionally, $3.9 million was obtained to fund women’s projects in Nigeria through the Umbrella organisation.

Nigeria’s debt servicing reached N6.04 trillion in the first half of 2024, according to the most recent data released by the Central Bank of Nigeria earlier this week. This represents a notable rise of 68.8% over the N3.58 trillion recorded during the same time in 2023.

This implies that during the assessment period, the Nigerian government’s debt servicing costs were around three times more than its personnel costs.

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1,172 Nigerians killed, over 1,000 kidnapped in nine months— NHRC

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The National Human Rights Commission (NHRC) has put the figures of Nigerians killed and kidnapped by non-state actors from January to September 2024, at 1,172 and 1,463 respectively.

A new data released on Wednesday by the organization reveal that the month of May saw the 298 persons killed, making it the highest, while March recorded the highest number of abductions with 499 kidnappings.

These data which was presented at a workshop on the state of human rights in Nigeria by the commission and the European Union, in Abuja, attributed the rise in kidnappings, killings and child abandonment in Nigeria to the negligence and failure of the state to protect its citizens.

While presenting the data, NHRC Senior Human Rights Adviser, Hillary Ogbonna, gave a breakdown of what he described as the alarming rise in human rights abuses, including kidnappings, killings and child abandonment.

“By January 2024, we already had 150 kidnappings and 55 killings associated mainly with non-state actors. What has become the norm is the killing of law enforcement officers,” Ogbonna said.

“We started with seven policemen killed in January. From victims’ perspectives, we had quite a number of victims for human rights violations for January.”

Also speaking at the event, the NHRC Executive Secretary in Nigeria, Tony Ojukwu, said:

“In recent years, we have witnessed alarming trends and threats against those who dare to speak the truth to power.

“It serves as a stark reminder that the protection of human rights is an ongoing struggle that requires continuous vigilance, action and cooperation from all sectors of the society,” Ojukwu said.

A delegation from the EU which also made a presentation, reiterated its commitment to support Nigeria to overcome these challenges, while urging the Federal Government to work with the armed forces to end this trend.

“The European Union will continue to work around the world through diplomacy,” the Head of EU Delegation, Zissimos Vergos, said.h

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Dangote: Deregulation doesn’t excuse low-quality oil blends

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In Nigeria, Dangote Petroleum Refinery has warned Pinnacle Oil and Gas Limited and other oil marketers that the country’s national interests should not be undermined by substandard imported petroleum products because of the deregulation of the downstream oil industry.

In reaction to comments made by Pinnacle Oil and Gas Limited’s CEO, Robert Dickerman, regarding the importation and mixing of petroleum products, which the Pinnacle boss placed within the framework of a “deregulated commodity market,” the refinery issued this statement on Tuesday.

The company was confronted by the Dangote refinery on Sunday for establishing a blending unit near its Lagos facility to offer Nigerians inferior petroleum products.

Dickerman, the company’s CEO, denied the allegation. Still, the Dangote refinery said that his defence of a deregulated market could not mask the grave consequences of his actions, which it said endangered the welfare of Nigerians and the integrity of the country’s energy sector.

Dangote reiterated its support for industrialisation and deregulation but underlined that this support is based on a dedication to the nation’s economic sustainability and the defence of its citizens against exploitation. The refinery reaffirmed that the pursuit of profit should never come at the expense of Nigerians’ health and safety.

“The Dangote Petroleum Refinery and Petrochemicals Company has long been an advocate for deregulation and industrialisation in Nigeria, but our support is rooted in a commitment to the sustainable growth of the country’s economy and the protection of its people from any exploitation.

“Unlike Dickerman’s view, deregulation should not be a licence for the importation and distribution of off-spec products or the subversion of national interests,” it said.

The business added that Dickerman should be well aware of how his nation safeguards its industry as he is an American.

To emphasise the argument, it cited several recent American examples. As an illustration of protectionism that puts the interests of the country’s economy before of immediate financial gain, US President Joe Biden recently rejected the sale of US Steel to Japan’s Nippon Steel, emphasising the value of preserving robust American steel businesses backed by American workers.

According to the refinery, the US has also taken steps to limit the use of cranes manufactured in China in its ports, citing national security concerns.

To further show its commitment to defending home industries, the US has now placed a 50% levy on medical equipment imported from China and a 100% tariff on electric vehicles.

Concerns about national security and the need for economic self-sufficiency have also prompted the United States to step up efforts to increase its manufacturing of computer chips and medical supplies.

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