Musings From Abroad

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

Published

4 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

US President Biden to visit Germany, Angola next month

Published

2 days ago

September 26, 2024

Ifeoluwa Dada

The White House announced on Tuesday that US President Joe Biden will make his first trip to Africa as president, visiting Germany and Angola from October 10 to 15.

According to the White House, Biden’s first destination will be Germany, where he will thank the country for helping Ukraine’s defence against Russia, among other things.

Biden is scheduled to meet with President Joao Lourenco from October 13–15 while in Angola. According to the White House, the two presidents will talk about stepping up their cooperation on common goals, which include strengthening economic connections and advancing peace and security.

Due to the Israel-Hamas conflict that broke out in October of last year, Biden’s intended visit to Angola was cancelled. As Beijing makes significant investments on the African continent, Biden has committed to strengthening US ties with democratic nations there.

According to President Biden, the key to realising the potential of this pivotal decade is for the United States to work in partnership with African leaders as well as leaders from civil society, business, the diaspora, women, and youth.

Musings From Abroad

Eni of Italy to begin exploring in Ghadames basin of North Africa in 2025

Published

3 days ago

September 25, 2024

Ifeoluwa Dada

The director of Eni’s North Africa and Levant division for Italy stated on Monday that the company viewed Libya as a crucial nation for upstream operations and that it intended to begin exploring in the Ghadames basin the following year.

“We have never stopped looking at Libya as a crucial region for oil and gas production,” Martina Opizzi said during a panel discussion on Libya’s energy sector organised in Rome by Energy Capital & Power.

“We estimate that there are still resources to be discovered and we are also planning offshore exploration shortly,” Opizzi added.

Oil exports at major Libyan ports were halted last month. Production was curtailed across the country amid a standoff between rival political factions over control of the central bank and oil revenue.

Production started to recover in the first half of September, but the dispute on the central bank has not be resolved.

Parts of Algeria, Tunisia, and Libya are included in the vast intra-cratonic Ghadames Basin. The three nations are each carrying out separate petroleum exploration projects in their respective basins, employing various play models and, as a result, producing various exploration outputs.