Nigeria gets World Bank $1.5bn loan - Newstrends
Connect with us

metro

Nigeria gets World Bank $1.5bn loan

Published

on

Nigeria gets World Bank $1.5bn loan

The World Bank has disbursed a $1.5 billion loan to Nigeria under the Reforms for Economic Stabilisation to Enable Transformation (RESET) Development Policy Financing initiative.

The loan, approved on June 13, 2024, was released in record time following Nigeria’s implementation of critical reforms, including the removal of fuel subsidies and comprehensive tax policies.

This fast disbursement contrasts with other loan programmes, which typically experience delays due to slow or partial implementation of conditions.

For instance, the World Bank has also disbursed $1.88 million of a $750 million loan for the Accelerating Resource Mobilization Reforms (ARMOR) project, approved alongside the RESET programme.

Loan disbursement timeline 

  • The first tranche of $750 million, a credit facility under the International Development Association (IDA) with a 12-year maturity and six-year grace period, was disbursed on July 2, 2024.
  • The second tranche of $750 million, issued by the International Bank for Reconstruction and Development (IBRD) with a 24-year maturity and 11-year grace period, followed in November 2024.

The World Bank document read: “This document summarizes the progress made under the Reforms for Economic Stabilization to Enable Transformation Development Policy Financing for the Federal Republic of Nigeria (Borrower or Recipient), which was approved by the Executive Directors on June 13, 2024.

READ ALSO:

“The DPF is a standalone operation comprised of two tranches: (1) first tranche comprising US$750 million credit from the International Development Association (Association) (Shorter Maturity Loan terms with 12-year maturity and grace period of 6 years, Credit No. 7567-NG); and (2) second tranche comprising US$750million loan from the International Bank for Reconstruction and Development (Bank) (US dollar-denominated, commitment-linked loan with 24-year maturity and grace period of 11 years, Loan No.9683-NG). The Financing Agreement and Loan Agreement were signed and declared effective on June 19, 2024 and June 26, 2024, respectively. The first tranche was released on July 2, 2024.” 

Key reform conditions 

A major trigger for the second tranche was the removal of fuel subsidies. The reforms allowed petrol prices to reflect international market rates and exchange rates, effectively ending implicit subsidies that strained public finances.

The deregulation, which began in mid-2023, saw petrol prices increase more than fivefold, drawing praise for fiscal discipline but sparking criticism over the rising cost of living.

The World Bank commended the government for not only meeting the condition but exceeding expectations by fully deregulating the fuel market.

The document noted: “In terms of implementation, while the TRC [Tranche Release Conditions] formulation required introducing the change over a specified time-bound implementation period, the Borrower has moved ahead and made the change immediately, thereby overachieving the TRC in this respect.

“Effective October 2024, the price of PMS has been determined by the international market and the exchange rate set by the Central Bank of Nigeria.” 

READ ALSO:

Additional reforms included the introduction of the Nigeria Tax Bill 2024, proposing a gradual increase in Value Added Tax (VAT) to 10% by 2025 and streamlining tax compliance processes.

The document read: “The Borrower has successfully carried out the program as outlined in the Letter of Development Policy, with progress along all areas supported by the DPF. Following the implementation of the reforms that constituted prior actions for the first tranche of the RESET DPF (disbursed on June 28, 2024), the Borrower continues to carry out the program as planned. 

“The Borrower has prepared and submitted to the National Assembly on October 3, 2024, a comprehensive package of tax reforms, which not only reform the VAT regime but also simplify tax policy laws and tax administration. 

“Reforms have also been implemented to fully deregulate the fuel market, ensuring that retail prices are determined by market conditions and opening the sector to competition. The authorities are following through on their commitment to cease deficit monetization, relying instead on standard debt instruments to finance the deficit.” 

The government also submitted amendments mandating the use of the National Social Registry for social investment programmes.

Socioeconomic impact and relief measures 

Despite commendations from the World Bank for exceeding reform targets, the impact of these changes has sparked public dissent. Fuel subsidy removal has led to surging transportation and living costs, triggering protests in major cities like Lagos, Kano, and Abuja.

To cushion the effects, the Federal Government introduced N25,000 monthly cash transfers for 15 million vulnerable households.

However, only about four million households have benefited so far, falling significantly short of the target. Efforts are also underway to promote compressed natural gas (CNG) as a cheaper fuel alternative, with plans to convert over one million vehicles in three years.

Nigeria gets World Bank $1.5bn loan

metro

Gunmen Storm Gbugbu in Kwara, Residents Flee as Panic Spreads

Published

on

Public Relations Officer, Kwara State Police Command, SP Adetoun Ejire‑Adeyemi
Public Relations Officer, Kwara State Police Command, SP Adetoun Ejire‑Adeyemi

Gunmen Storm Gbugbu in Kwara, Residents Flee as Panic Spreads

Edu Local Government Area of Kwara State was thrown into panic on Sunday night after suspected gunmen launched a violent attack on Gbugbu community, firing indiscriminately and forcing residents to flee into bushes and nearby safe zones. The assault is the latest in a string of violent incidents deepening insecurity in Kwara and neighbouring areas.

According to witnesses, the gunmen stormed the town shortly after 8:00 p.m., opening fire and creating chaos. One resident, speaking on condition of anonymity, said: “The bandits stormed the community immediately after Isa’i, shooting non-stop and throwing residents into panic. Everyone ran indoors or fled into the bush.” As of the time of reporting, there were no official confirmations of casualties or the number of abducted residents.

The attack has heightened fears in Edu, Patigi, Ifelodun, and Oyun local government areas, where residents have reported rising attacks by armed groups in recent weeks. Days earlier, similar raids were reported in Woro and Nuku communities in Kaiama LGA, resulting in the killing and abduction of several villagers.

READ ALSO:

While the Kwara State Police spokesperson, SP Adetoun Ejire-Adeyemi, was unavailable for comments, local sources said security forces were mobilized to pursue the attackers and secure the community. Reports also indicate that some families spent the night outdoors, fearing a repeat of the violence.

The spate of attacks comes as the Chief of Defence Staff, Olufemi Oluyede, recently launched Joint Task Force Operation Savannah Shield to combat insecurity in Kwara and parts of Niger State. The operation aims to target terrorists, bandits, and criminal gangs responsible for kidnappings, armed raids, and killings in rural communities.

Community leaders and residents have called for urgent intervention by security agencies to rescue any abducted villagers, restore peace, and prevent further escalation of violence. Analysts warn that without sustained military and police engagement, armed attacks could spread further across the state, destabilizing vulnerable communities and hindering local development.

The incident in Gbugbu underscores the ongoing security challenges in Nigeria’s middle belt, where banditry and terrorism continue to disrupt livelihoods, schools, and local economies. Authorities have urged residents to remain vigilant, cooperate with security forces, and report suspicious movements in their communities.

Gunmen Storm Gbugbu in Kwara, Residents Flee as Panic Spreads

Continue Reading

metro

FG to Launch Monthly Revenue Transparency Dashboards to Improve Fiscal Accountability

Published

on

Dr. Doris Uzoka‑Anite, the Minister of State for Finance and FAAC Chairman
Dr. Doris Uzoka‑Anite, the Minister of State for Finance and FAAC Chairman

FG to Launch Monthly Revenue Transparency Dashboards to Improve Fiscal Accountability

The Federal Government (FG) has announced plans to launch monthly revenue transparency dashboards to enhance fiscal accountability and provide public visibility of government income and expenditure across the three tiers of government. The initiative was disclosed by Dr. Doris Uzoka‑Anite, the Minister of State for Finance and FAAC Chairman, during the recent Federation Account Allocation Committee (FAAC) meeting in Abuja.

Dr. Uzoka‑Anite explained that the dashboards are necessary due to expected increases in government revenue following recent structural reforms, including a Presidential Executive Order (EO) on oil and gas revenue and expanded tax collections under the new Tax Act. These reforms are expected to significantly boost FAAC distributable funds, improve revenue discipline, and reduce leakages in the management of oil proceeds and tax inflows.

The planned dashboards will provide monthly, real-time access to detailed data on government revenue, including oil and gas receipts, tax collections, and other federal revenue streams. Citizens, policymakers, and analysts will be able to monitor allocations, track inflows, and scrutinize expenditure, promoting transparency and accountability across federal, state, and local governments.

READ ALSO:

Dr. Uzoka‑Anite urged all tiers of government to prioritize capital expenditure over recurrent spending, invest in sectors such as infrastructure, agriculture, energy, and productive enterprises, and avoid unsustainable wage growth or consumption spikes. She also emphasized the importance of using incremental revenue inflows to reduce debt burdens, clear arrears responsibly, and fund growth-enhancing projects.

The minister highlighted that a portion of one-off payments from the EO on oil revenues could be retained in a Stabilisation Fund, released gradually to support macroeconomic stability and prevent excess liquidity from driving inflationary pressures. She further said that production-to-remittance reconciliation reporting and detailed reporting of incremental gains from tax reforms and EO-driven inflows would be implemented to improve fiscal monitoring.

“The revenue outlook is changing, and structural reforms are expected to materially strengthen Federation revenues,” Dr. Uzoka‑Anite told state finance commissioners. “Improved revenue performance requires improved fiscal coordination. A sudden liquidity injection across all tiers of government could create inflationary risks and reduce the real value of allocations. Structured mechanisms and phased disbursements are therefore critical to safeguard macroeconomic stability.”

The introduction of these monthly revenue dashboards aligns with the FG’s broader commitment to open data, fiscal transparency, and responsible revenue management, ensuring that rising inflows from oil, gas, and taxes are tracked, reconciled, and used efficiently to promote economic growth and stability across Nigeria.

FG to Launch Monthly Revenue Transparency Dashboards to Improve Fiscal Accountability

Continue Reading

metro

Troops Repel Coordinated Attacks in Borno, Kill 25 Terrorists, Soldier Dies

Published

on

Nigerian military troop
Nigerian military troop

Troops Repel Coordinated Attacks in Borno, Kill 25 Terrorists, Soldier Dies

Nigerian troops of the Joint Task Force (North East) Operation HADIN KAI (OPHK) have killed 25 suspected Boko Haram and ISWAP fighters, lost one soldier, and wounded several others while repelling coordinated terrorist attacks in Limankara and Kukawa, Borno State, military sources confirmed. The intense clashes, which erupted on the night of February 20, 2026, underscore the growing pressure on insurgent camps, logistics networks, and leadership in the region.

Lt. Col. Sani Uba, Media Information Officer of JTF OPHK, said that troops also conducted precision operations in Lamusheri Village, Gujba Local Government Area, a known terrorist hub and logistics base. Supported by air surveillance and intelligence gathering, troops destroyed defensive structures, neutralised 15 insurgents, and recovered or destroyed weapons, ammunition, and vehicles. Several militants fled with gunshot injuries.

Earlier, terrorists attempted to infiltrate the Forward Operating Base (FOB) at Limankara, but alert troops engaged them in a fierce firefight. Combined ground and air support forced the attackers to retreat, leaving behind casualties and abandoned equipment. No soldiers were injured during this engagement.

READ ALSO:

In Kukawa, insurgents launched a multi-pronged assault using gun trucks, motorcycles, and foot soldiers, approaching from multiple axes. Troops mounted a determined defence, supported by air strikes, which destroyed a gun truck, five motorcycles, and neutralised ten additional fighters. Recovered items included rifles, loaded magazines, radios, stretchers, and shallow graves left by fleeing insurgents.

While one gallant soldier lost his life, others who sustained gunshot injuries are receiving treatment and are in stable condition, military sources said. Lt. Col. Uba commended the troops for their discipline, courage, and operational excellence, noting that the operations have significantly degraded the capacity of terrorist groups in the North-East.

The officer emphasized that sustained air-ground coordination continues to deny insurgents freedom of movement, disrupt logistics routes, and force them into chaotic withdrawals, enhancing the safety of local communities. Analysts say these operations reflect a growing reliance on intelligence-driven, technology-supported counter-terrorism strategies to dismantle insurgent networks in Borno State and the wider North-East region.

Troops Repel Coordinated Attacks in Borno, Kill 25 Terrorists, Soldier Dies

Continue Reading
HostArmada Affordable Cloud SSD Shared Hosting
HostArmada - Affordable Cloud SSD Web Hosting

Trending