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Nigerian govt denies reports it plans to borrow pension fund for infrastructure

Published

2 months ago

May 17, 2024

The Nigerian government has denied reports that it plans to borrow the N20tn pension fund to finance infrastructural projects.

In a statement made in Abuja, Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, stated that the government would abide by the laws and guidelines in place pertaining to the pension fund.

Following a two-day Federal Executive Council meeting at the Presidential Villa on Tuesday, the minister reportedly informed reporters that the government would present a plan to use local funds, including the fund, to finance infrastructure development.

Edunstated that the government does not intend to exceed these legal boundaries, emphasising that the government was committed to protecting workers’ pensions.

“It has come to my notice that stories are making the round that the Federal Government plans to illegally access the hard-earned savings and pension contributions of workers. Nothing could be farther from the truth.

“The pension industry, like most the financial industries, is highly regulated. There are rules. There are limitations about what pension money can be invested in and what it cannot be invested in.

“The Federal Government has no intention whatsoever to go beyond those limitations and go outside those bounds which are there to safeguard the pensions of workers.

“What was announced to the Federal Executive Council was that there was an ongoing initiative drawing in all the major stakeholders in the long-term saving industry, those that handle funds that are available over a long period to see how, within the regulations and the laws; these funds could be used maximally to drive investment in key growth areas,” Edun clarified.

The plan to spend the pension fund was reported and was widely criticised. The Trade Union Congress of Nigeria and the Nigeria Labour Congress had earlier on Thursday urged the government to abstain from making any changes to the pension fund.

They stated, “Nigerian workers have entrusted their hard-earned savings for retirement security, not as a means for government projects. It is imperative to halt any further plans to tap into these funds, especially given the lack of transparency and accountability in past government borrowing practices.”

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Ethiopian PM reveals country could get $10.5 billion if talks with World Bank, IMF succeed

Published

22 hours ago

July 6, 2024

Ifeoluwa Dada

If lengthy negotiations with the World Bank and the International Monetary Fund (IMF) are successful, Ethiopia would get $10.5 billion in support over the next few years, Prime Minister Abiy Ahmed announced on Friday.

The most populous nation in East Africa had severe inflation and ongoing shortages of foreign currency in December, making it the third country on the continent to experience a debt default in as many years.

If lengthy negotiations with the World Bank and the International Monetary Fund are successful, Ethiopia will get $10.5 billion in support over the next few years, Prime Minister Abiy Ahmed announced on Friday.

“We have been having a wide range of talks, negotiations and discussions with the IMF and World Bank. Because we were a bit tough with them and they were also tough with us, the (talks) took five years,” Abiy told lawmakers.

“Now with the support of some friendly countries, it seems like many of our ideas have been accepted. If this succeeds and we can agree on the reforms, Ethiopia will get $10.5 billion in the coming years,” he said.

Without going into further detail, Abiy continued, “There were some reforms the government was unwilling to undertake right away.”

“There are some areas we think should be reformed now, and there are things we think should stay as it is. If all these suggestions get accepted and we agree, there is an opportunity ahead of us. This reform agenda will play a huge impact in alleviating the debt burden,” the prime minister said.

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Nigeria beats competitors to host Africa Energy Bank

Published

2 days ago

July 5, 2024

Ifeoluwa Dada

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.