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FG’s $5bn loan requests for projects in 15 states – Presidency

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The Presidency has clarified that the the Federal Government’s latest external loan requests are for a total of 15 projects in the six geo-political zones of the country.

It stated that the projects would be financed with more than $4bn from multilateral institutions, under the 2018-2021 medium term (rolling) external borrowing plan.

Spokesman for the Presidency, Garba Shehu, in a statement said President Muhammadu Buhari had requested the Senate to approve sovereign loans of $4.054bn and €710m as well as grant components of $125m for the proposed projects.

According to the letter by the President, the sovereign loans will be sourced from the World Bank, French Development Agency (AFD), China-Exim Bank, International Fund for Agricultural Development (IFAD), Credit Suisse Group and Standard Chartered/China Export and Credit (SINOSURE).

Shehu said the President’s request to the Senate listed 15 proposed pipeline projects, the objectives, the implementation period, benefiting states, as well as the implementing ministries, departments and agencies.

A breakdown of the ‘Addendum to the Proposed Pipeline Projects for the 2018-2021 Medium Term (rolling) External Borrowing Plan’ shows that the World Bank is expected to finance seven projects including the $125m grant for ‘Better Education Services for All’.

The Global Partnership for Education grant is expected to increase equitable access for out-of-schoolchildren and improve literacy in focus states.

The grant, which will be implemented by the Federal Ministry of Education and the Universal Basic Education Commission (UBEC), will strengthen accountability for results in basic Education in Katsina, Oyo and Adamawa states.

Other projects to be financed by the World Bank are the State Fiscal, Transparency, Accountability and Sustainability Programme for Results as well as the Agro-Processing, Productivity, Enhancement and Livelihood Improvement Support Project.

The benefiting states for the agro-processing project are Kogi, Kaduna, Kano, Cross River, Enugu and Lagos with the Federal Ministry of Agriculture and Rural Development as the implementing ministry.

The objective of the project is to enhance agricultural productivity of small and medium-scale farmers and improve value addition along priority value chains in the participating states.

Similarly, the World Bank is also financing the Nigeria Sustainable Water Supply, Sanitation and Hygiene (WASH) project in Delta, Ekiti, Gombe, Kaduna, Katsina, Imo and Plateau states, for the next five years.

The project, when completed, is expected to improve rural water supply, sanitation and hygiene nationwide towards achieving Sustainable Development Goals (SDGs) for water supply and sanitation by 2030.

Under the external borrowing plan, the World Bank supported projects include Nigeria’s COVID-19 Preparedness and Response Project (COPREP), under the supervision of the Federal Ministry of Health and Nigeria Centre for Disease Control (NCDC).

The project, which has an implementation period of five years, will respond to threats posed by COVID-19 through the procurement of vaccines.

Furthermore, no fewer than 29 states are listed as beneficiaries of the Agro-Climatic Resilience in Arid Zone Landscape project, which is expected to reduce natural resource management conflicts in dry and semi-arid ecosystems in Nigeria.

The benefiting states for the project to be co-financed by World Bank and European Investment Bank (EIB) are Akwa Ibom, Borno, Oyo, Sokoto, Kano, Katsina, Edo, Plateau, Abia, Nasarawa, Delta, Niger, Gombe, Imo, Enugu, Kogi, Anambra, Niger, Ebonyi, Cross River, Ondo, Kaduna, Kebbi, Jigawa, Bauchi, Ekiti, Ogun, Benue, Yobe and Kwara.

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NCAA to demolish Globacom masts nationwide over ₦5.9bn debt

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The Nigerian Civil Aviation Authority has concluded plans to start dismantling some telecommunication masts belonging to Globacom Ltd, a Global Sattelite Mobile (GSM) telecommunications provider, in various locations across the country over failure to pay N5.9 billion renewal fees for height clearance to the agency.

The development followed a directive from the Nigerian government to some of its agencies and parastatals to go after debtors and defaulters and recover all the outstanding for the government.

SaharaReporters learnt that the matter came to a head following exchange of correspondence between Globacom and NCAA and scheduled meetings designed to ensure payment of the said accumulated fees by the telecommunication network which failed.

In a letter dated October 4, 2021, titled: “Re: Illegal Erection of High Structures and Refusal to Renew Expired Aviation Height Clearance Certificates by Globacom Limited” and addressed to the Managing Director, Globacom, obtained by SaharaReporters, it was affirmed that following the failure by Globacom to pay the the required fees amounting to N5.9 billion, the regulatory agency had no choice but to commence the dismantling of the its masts across the country.

“In the circumstance, having exhausted all avenues for a resolution of this matter, we are now left without choice but to apply the relevant sanctions, including the dismantling of all your non-compliant masts nationwide. And this shall be without further notice to you”, it said.

The letter signed by Legal Adviser/Head, Compliance and Enforcement, Mr. Emmanuel Chukwuma, recalled that, “The meeting to discuss the above subject-matter, was fixed for September 23, 2021, at your instance.

“You may wish to recall that you had on August, 25, 2021, requested that the meeting, earlier rescheduled, at your instance, from Monday, July 26, 2021 to Thursday, August 26, 2021, be further rescheduled to Thursday, September 23, 2021, to enable your Chief Operating Officer/COO to attend.

“It is unfortunate that despite our concurrence to a further rescheduling of the meeting to the requested date, and so informing you through our letter of 13th September, 2021, you failed to turn up for the meeting”, it said.

The letter noted that the Director-General of the NCAA had to abort an official assignment in Europe and return to Nigeria in order to be able to attend the meeting.

“Globacom only wrote the letter under reference three days after, asking that the meeting be rescheduled, without any explanation for the failure of any management staff to show up.

“I am directed to inform you that the NCAA is not disposed to granting this latest (fourth) request to reschedule the meeting, particularly, as no reason was given for your non-attendance on the last date.

“In the circumstance, having exhausted all avenues for a resolution of this matter, we are now left without choice but to apply the relevant sanctions including the dismantling of all your non-compliant masts nationwide. And this shall be without further notice to you”, it said.

In an earlier communication with Globacom, NCAA listed the indebtedness of globacom to include application fee for 2006 to 2007 at N100,000 per mast, totalling N689,800,000, annual renewal fee for 2007-2022 (15years), N50,000 per mast amounting to N6,898 and inspection fee covering N6,898 masts across the nation all totalling N6,064,230,000.

SaharaReporters learnt that Globacom paid the sum of N100 million on July 31, 2019 and had not made any further payment.

An earlier letter from NCCA to Global said total application fee for the period under review stood at N604,800,000 while cost of inspection amounted to N190,930,000.

The letter also stated the position of NCAA in law with regard to regulation of masts.

“Please be reminded that Section 30(3)() of the Civil Aviation Act 2006 empowers the Nigerian Civil Aviation Authority (NCAA) by law to prohibit and regulate the installation of any structure (including telecommunication mast), which by virtue of its ‘height or position is considered to endanger the safety of air navigation,” it said.

This is coming two years after the agency asked Globacom and other Global System for Mobile Communications (GSM) operators to remove their over 7, 000 masts or risk seeing them demolished.

The NCAA had claimed the masts, erected at different locations within the country close to the nation’s airports, are obstructing flight safety and could cause accidents if not removed.

SaharaReporters

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Nigeria’ll save 40% of forex earnings with Dangote Refinery – Emefiele

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Governor of the Central Bank of Nigeria, Godwin Emefiele, has said Nigeria will save 40 per cent of its foreign exchange earnings when the Dangote Refinery and Petrochemical Plant is in full operations in 2022.

The CBN governor stated this on the sidelines of the ongoing International Monetary Fund (IMF) and World Bank annual meetings in Washington DC.

Emefiele said the Federal Government currently spent about 40 percent of its dollar earnings on the importation of petroleum products, putting pressure on the naira to dollar rate.

“By the time the Dangote Refinery begins operation, it would be a major FX saving source for Nigeria,” he said.

“Right now, the overall forex we spend on imported items, the importation of petroleum products consumes close to 30 percent (by the time you add diesel, aviation fuel, petrol and the rest of that).

“The Dangote Refinery has the capacity to produce 650,000 barrels per day. There is a domestic component that is about 455,000 barrels. Even if the 455,000 is what is sold to Dangote in naira alone, it is going to be major forex saving for Nigeria.

“If you look at the cost of freight alone, it is a major saving for Nigeria. That is because if we have to go to Europe or other parts of the world to bring in petroleum products where we pay heavily in freight and in stocking those products in the high sea before we offload them, Nigerians would benefit a lot from the Dangote Refinery.

“That project is one of Nigeria’s backward integration programmes, and we are very proud of it.”

The CBN governor added that the petrochemical part of the Dangote Refinery would save five 5 percent FX from polyethene and polypropylene granules and another two percent from fertiliser.

“On the petrochemical, it is also expected to commence about same period next. That petrochemical plant will be producing 900,000 tonnes of polyethene and polypropylene granules. Nigeria’s annual consumption here is less than 200,000,” he added.

“What does that mean? It is going to save five per cent of our imports. If you save five percent of your imports and another 30 per cent on petroleum products and then on the fertiliser where we would save about two percent of our imports, we are moving close to saving 40 percent of the country’s imports.

“By that time, you will see what we would be doing when people talk about floating the naira, and then let’s see how the currency will depreciate.”

The Dangote Refinery is a 650,000 barrels per day integrated refinery project under construction in the Lekki Free Zone, Lagos. It is expected to be Africa’s biggest oil refinery and the world’s biggest single-train facility, upon completion.

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Nigeria’s inflation rate drops sixth consecutive time to 16.63%

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The National Bureau of Statistics on Friday announced a drop in the Nigeria’s inflation rate, the sixth consecutive decline this year.

Specifically, the NBS stated in its latest report that the consumer price index (CPI), measuring the rate of change in prices of goods and services, dropped to 16.63 per cent in September. This is 0.38 per cent points lower than 17.01 percent recorded in August 2021.

According to the report, increases were recorded in all classifications of individual consumption according to purpose (COICOP) divisions that yielded the headline index.

“On a month-on-month basis, the Headline Index increased by 1.15 per cent in September 2021, this is 0.13 per cent rate higher than the rate recorded in August 2021 (1.02) per cent,” the report stated.

“The percentage change in the average composite CPI for the 12-month period ending September 2021 over the average of the CPI for the previous 12-month period was 16.83 per cent, showing 0.23 per cent points from 16.60 per cent recorded in July 2021.

“The urban Inflation rate increased by 17.19 per cent (year-on-year) in September 2021 from 17.59 per cent recorded in August 2021, while the rural inflation rate increased by 16.08 per cent in September 2021 from 16.45 per cent in August 2021.

“On a month-on-month basis, the Urban Index rose by 1.21 per cent in September 2021, up by 0.15 the rate recorded in August 2021 (1.06), while the Rural Index also rose by 1.10 per cent in September 2021, up by 0.11 the rate that was recorded in August 2021 (0.99) per cent.”

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