Headline
Cash Transfer: FG Seeks Fresh $400m Loan To Fund 15 Million Households

The Federal Government has approached the World Bank for a fresh loan of $400m for the conditional cash transfer to 15 million households as one of the measures to cushion the effects of petrol subsidy removal on Nigerians.
The $400m will bring to $1.2bn the amount that the Federal Government is borrowing from the World Bank for the cash transfer as it had earlier secured a loan of $800m for the same purpose.
President Bola Tinubu announced the conditional cash transfer to 15 million households in a nationwide address to commemorate the country’s independence on October 1 as part of measures to cushion the effects of the subsidy removal on petrol, which has led to an astronomic rise in the cost of living.
He also announced that the Federal Government would commence the payment of N25,000 monthly to 15 million households for three months from October to December 2023.
The immediate past administration of President Muhammadu Buhari had secured $800m from the International Bank for Reconstruction and Development (World Bank) to provide post-petroleum subsidy palliatives for over 50 million Nigerians. The loan was meant to be accessed by the succeeding administration.
In his October 1 broadcast, President Tinubu also announced the approval of N25,000 provisional allowance for junior federal workers over the next six months.
He said the approval followed negotiations with labour unions and other stakeholders in the business community to increase the federal minimum wage without triggering undue inflation.
“For the next six months, the average low-grade worker shall receive an additional N25,000 per month,” the President stated.
However, following protests about the exclusion of other categories of workers and pensioners and the threat by the organised labour to embark on a nationwide strike, the government announced N35,000 provisional wage award for all treasury-paid Federal Government workers for six months following further consultations with the leadership of the Nigeria Labour Congress and the Trade Union Congress.
A top government official, who spoke on condition of anonymity because of the sensitive nature of the issue, told Sunday PUNCH that the Tinubu administration would fund the N35,000 cash award to civil servants by sending a supplementary appropriation bill to the National Assembly.
The source stated, “The government is funding the N35,000 wage increase for all federal civil servants and it is not taking a loan. The one the government is taking a loan for is the one of N25,000 multiplied by three months for 15 million households. There is a loan of $800m on this one and the government is adding $400m, making it $1.2bn, which will be used for the conditional cash transfer.
“But, the other one (cash award to federal civil servants), the government will fund it. So, most likely there will be a supplementary appropriation for that because it is illegal to spend money out of the government budget.”
Meanwhile, Nigeria has maintained its fourth position on the World Bank’s top 10 International Development Association borrowers’ list.
READ ALSO: Subsidy Removal: Tinubu Orders Review Of Proposed N8,000 Cash Transfer
This was after moving up from fifth position in the 2022 fiscal year.
Despite maintaining its fourth position, the country accumulated about $1.3bn debt within a one-year period.
The World Bank Fiscal Year 2022 audited financial statement showed that Nigeria moved to the fourth position on the list with $13bn IDA debt stock as of June 30, 2022.
However, the World Bank Fiscal Year 2023 audited financial statement showed that Nigeria owed about $14.3bn IDA debt stock as of June 30, 2023, but maintained its fourth position on the list.
Sunday PUNCH further observed that Bangladesh ($19.3bn) moved up the list to become the topmost IDA debtor, taking over from India ($17.9bn debt), which fell to the second position.
Pakistan maintained the third position from the last fiscal year with a debt of $16.9bn.
Nigeria has the highest IDA debt in Africa, while the top three borrowers, Bangladesh, India, and Pakistan, are from Asia.
READ ALSO: Uproar As Senate Okays Fresh $800m World Bank Borrowing
Also, in the World Bank 2023 Annual Report, Nigeria was among the top 10 countries that acquired fresh IDA loans this year.
The report showed that the bank committed $1.55bn to Nigeria in the fiscal year of 2023, with the country recognised as the ninth-highest beneficiary.
Sunday PUNCH recently reported that the Federal Government was engaging the World Bank on a fresh $1.5bn loan.
The loan is titled ‘Nigeria Human Capital for Opportunities and Empowerment’ based on information obtained from the website of the Washington-based bank.
The objective of the loan is “to strengthen systems for improved delivery of basic education and primary health services in participating states.”
The loan is meant to be implemented in 2024, pending approval by the board of the World Bank Group.
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The International Bank for Reconstruction and Development and the International Development Association, which make up the World Bank, have over the years advanced loans to Nigeria.
The IBRD lends to governments of middle-income and creditworthy low-income countries, while the IDA provides concessionary loans – called credits – and grants to governments of the poorest countries.
The World Bank is Nigeria’s biggest multilateral creditor, with the country owing about $14.51bn as of June 30, 2023.
Further breakdown showed that Nigeria had $14.03bn IDA debt and $485.75m IBRD debt by the second quarter of 2023.
The Debt Management Office recently said the country’s total public debt hit N87.38tn at the end of the second quarter of this year.
The figure represents an increase of 75.29 per cent or N37.53tn compared to N49.85tn recorded at the end of March 2023.
Further breakdown shows that Nigeria has a total domestic debt of N54.13tn and a total external debt of N33.25tn.
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While the domestic debt makes up 61.95 per cent of the total debt, the external makes up 38.05 per cent.
It was also observed that there was a significant increase in both domestic and external debt within three months.
The domestic debt rose by 79.18 per cent from N30.21tn while the external debt rose by 69.28 per cent from N19.64tn in Q1 2023.
In its 2022 Debt Sustainability Analysis Report, the DMO warned that the Federal Government’s projected revenue of N10tn for 2023 could not support fresh borrowings.
According to the office, the projected government’s debt service-to-revenue ratio of 73.5 per cent is high and a threat to debt sustainability.
It noted that the government’s current revenue profile could not support higher levels of borrowing.
In a report titled, ‘Report of the Annual National Market Access Country Debt Sustainability Analysis,’ the debt office said, “The projected FGN debt service-to-revenue ratio at 73.5 per cent for 2023 is high and a threat to debt sustainability.
“It means that the revenue profile cannot support higher levels of borrowing. Attaining a sustainable FGN debt service-to-revenue ratio would require an increase of FGN revenue from N10.49tn projected in the 2023 budget to about N15.5tn.”
The DMO stated that the government must pay attention to revenue generation by implementing far-reaching revenue mobilisation initiatives and reforms, including the Strategic Revenue Growth Initiatives and all its pillars with a view to raising the country’s tax revenue to GDP ratio from about seven per cent to that of its peer.
The Federal Government would be unable to borrow a lot as it nears its self-imposed debt limit of 40 per cent, the DMO said.
To reduce borrowing and budget deficit, it stated that the government should encourage the private sector to fund some of the capital projects that were being financed from borrowing through the public-private partnership schemes.
It added that the Federal Government could reduce borrowing through the privatisation and/or sale of government assets.
Headline
White House Threatens Mass Firings Amid Stalled Shutdown Talks
Efforts to swiftly end the US government shutdown collapsed Wednesday as Democrats in Congress went home without resolving a funding stand-off with President Donald Trump and the White House threatened public sector jobs.
Federal funding expired at midnight after Trump and lawmakers failed to agree on a deal to keep the lights on, prompting agencies to wind down services, while the White House warned of “imminent” firings of public sector workers.
Senate Democrats — who are demanding extended health care subsidies for low-income families — refused to help the majority Republicans approve a House-passed bill that would have reopened the government for several weeks while negotiations continue.
Voting in the Senate is now adjourned until Friday, frustrating hopes for a quick resolution.
Around 750,000 federal employees are expected to be placed on furlough — a kind of enforced leave, with pay withheld until they return to work.
READ ALSO:Judge Throws Out Trump’s $15bn ‘Rage’ Lawsuit Against New York Times
Essential workers, such as the military and border agents, may be forced to work without pay and some will likely miss their checks beginning next week. The National Air Traffic Controllers Association voiced fears for air safety as more than 2,300 members were sent home.
The crisis has higher stakes than previous shutdowns, with Trump racing to enact hard-right policies that include slashing government departments and threatening to turn many of the furloughs into mass firings.
Spokeswoman Karoline Leavitt told reporters the administration was “working with agencies across the board to identify where cuts can be made… and we believe that layoffs are imminent.”
The Department of Energy announced plans to terminate clean energy projects, all in blue states, according to White House official Russell Vought, who said the slashed funding had been used to advance “the Left’s climate agenda”.
The Department of Transportation also froze nearly $18 billion in federal funding for major infrastructure projects in New York, which Governor Kathy Hochul called “political payback”.
READ ALSO:Putin Has ‘Let Me Down’, Trump Laments As UK State Visit Ends
– ‘Ridiculous’ –
Shutdowns are a periodic feature of gridlocked Washington, although this is the first since a record 35-day pause during Trump’s first term in 2019.
They are unpopular because services used by ordinary voters, from national parks to permit applications, become unavailable.
“I think our government needs to learn how to work together for the people and find a way to make things not happen like this,” said Terese Johnston, a 61-year-old retired tour guide visiting Washington from California as the government shut down.
“You compromise. You find ways. So everybody gives a little bit, everybody takes a little bit, and things work.”
Democrats — spurred by grassroots anger over the expiring health care subsidies and Trump’s dismantling of government agencies — have been withholding Senate votes to fund the government as leverage to try and force negotiations.
READ ALSO:Trump Considering Deporting Kilmar Abrego Garcia To Uganda
As the messaging war over the shutdown intensified, Vice President JD Vance took center stage at a White House briefing normally headed by Leavitt to upbraid Democrats over their demands.
“They said to us, ‘we will open the government, but only if you give billions of dollars of funding for health care for illegal aliens.’ That’s a ridiculous proposition,” Vance said in a rare appearance in the briefing room.
US law demands that anyone who presents at a publicly funded emergency room is treated, regardless of their ability to pay. But it bars undocumented immigrants from receiving the health care benefits Democrats are demanding, and the party has not called for a new act of Congress to change that.
– No compromise –
Republicans in the House of Representatives have already passed a stop-gap funding fix to keep federal functions running through late November while a longer-term plan is thrashed out.
READ ALSO:Why I Plotted President Trump’s Assassination – 50-yr-old Woman
But the 100-member Senate does not have the 60 votes required to send it to Trump’s desk, and Democrats say they won’t help unless Republicans compromise on their planned spending cuts — especially in health care.
Senate Republican leaders, who have just one rebel in their own ranks, need eight Democrats to join the majority and rubber-stamp the House-passed bill.
They got three moderates to cross the aisle in an initial vote Tuesday and were hoping to peel off five more as the shutdown chaos starts to bite. But Wednesday’s result went the same way.
Congress is not voting Thursday out of respect for the Jewish Yom Kippur holiday but the Senate returns to work on Friday and may be in session through the weekend.
The House is not due back until next week.
AFP
Headline
NIS Begins Crackdown On Foreigners With Expired Visas
The Nigeria Immigration Service has commenced a nationwide crackdown on foreign nationals who have overstayed their visas or breached entry conditions, following the expiration of a three-month amnesty granted by the Federal Government.
The amnesty, which opened on July 5 and lapsed at midnight on September 30, allowed foreigners with irregular immigration status to regularise their stay without penalties.
“With the expiration of the amnesty period, effective October 1, 2025, enforcement actions will commence nationwide against foreign nationals who have overstayed their visa or violated their entry conditions,” NIS spokesperson, Akinsola Akinlabi, said in a statement on Wednesday.
READ ALSO:US Lifts Restrictions On Visa Validity For Ghanaians, Leaves Nigeria’s Unchanged
The exercise targets holders of expired Visa on Arrival, expired single and multiple-entry short visit or business visas, and individuals with expired Comprehensive Expatriate Residence Permits and Automated Cards.
Foreigners caught in violation face removal, daily fines, or entry bans. Overstayers of less than three months risk deportation, a $15 daily fine, or a two-year entry ban. Those who overstay between three months and one year face removal, daily fines, or a five-year entry ban, while individuals exceeding one year risk deportation and up to a 10-year or permanent entry ban.
The Service said the measures are aimed at safeguarding national security and ensuring strict compliance with immigration laws.
READ ALSO:H-1B Visas: Trump To Impose $100,000 Annual Fee For Skilled Foreign Workers
Interior Minister, Olubunmi, had earlier warned members of the diplomatic corps to advise their nationals to take advantage of the amnesty window, stressing that Nigeria’s immigration laws “are not meant to be abused but respected.”
The crackdown is part of wider reforms introduced in April, including a $15 daily surcharge for visa overstays, with a temporary moratorium to encourage compliance.
Headline
Earthquake Kills 72 In Philippines
The death toll from a powerful earthquake in the central Philippines rose to 72 on Thursday, officials said, as the search for the missing wound down and rescuers turned their focus to the hundreds injured and thousands left homeless.
The bodies of the three victims were pulled from the rubble of a collapsed hotel overnight Wednesday in the city of Bogo, near the epicentre of the 6.9-magnitude quake that struck on Tuesday.
“We have zero missing, so the assumption is all are accounted for,” National Disaster Risk Reduction and Management Council spokesman Junie Castillo said, adding that some rescue units in Cebu province have been told to “demobilise”.
The government said 294 people were injured and around 20,000 had fled their homes. Nearly 600 houses were wrecked across the north of Cebu, and many are sleeping on the streets as hundreds of aftershocks shake the area.
READ ALSO:Three Arrested For Killing Philippine Governor
“One of the challenges is the aftershocks. It means residents are reluctant to return to their homes, even those houses that were not (structurally) compromised,” Castillo said.
Cebu provincial governor Pamela Baricuatro appealed for help on Thursday, saying thousands needed safe drinking water, food, clothes, and temporary housing, as well as volunteers to sort and distribute aid.
President Ferdinand Marcos flew to Cebu with senior aides on Thursday to inspect the damage.
He also visited a partially damaged housing project in Bogo, built for survivors of the 2013 Super Typhoon Haiyan, one of the deadliest natural disasters to hit the Philippines.
Eight bodies were “recovered from collapsed houses” in the project following the quake, a local government statement said.
READ ALSO:Philippine Mayor Gives Singles Extra Pay On Valentine’s Day
A tiny village chapel in Bogo was serving as a temporary shelter for 18-year-old Diane Madrigal and 14 of her neighbours after their houses were destroyed. Their clothes and food were scattered across the chapel’s pews.
“The entire wall (of my house) fell, so I really don’t know how and when we can go back again,” Madrigal told AFP.
“I am still scared of the aftershocks up to now; it feels like we have to run again,” she added.
Mother-of-four Lucille Ipil, 43, added her water container to a 10-metre (30-foot) line of them along a roadside in Bogo, where residents desperately waited for a truck to bring them water.
“The earthquake really ruined our lives. Water is important for everyone. We cannot eat, drink, or bathe properly,” she told AFP.
READ ALSO:Messi, Inter Miami Fight Back For 3-3 Draw At Philadelphia
“We really want to go back to our old life before the quake, but we don’t know when that will happen… Rebuilding takes a long time.”
Many areas remain without electricity, and dozens of patients were sheltering in tents outside the damaged Cebu provincial hospital in Bogo.
“I’d rather stay here under this tent. At least I can be treated,” 22-year-old Kyle Malait told AFP as she waited for her dislocated arm to be treated.
More than 110,000 people in 42 communities affected by the quake will need assistance to rebuild their homes and restore their livelihoods, according to the regional civil defence office.
Earthquakes are a near-daily occurrence in the Philippines, which is situated on the Pacific “Ring of Fire”, an arc of intense seismic activity stretching from Japan through Southeast Asia and across the Pacific basin.
Most are too weak to be felt by humans but strong and destructive quakes come at random, with no technology available to predict when and where they might strike.
AFP
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