Connect with us

News

FG Seeks Fresh $580m W’Bank Loans

Published

on

The Federal Government is engaging the World Bank for two fresh loans totalling $580m, which are expected to be approved in March 2025, according to findings by The PUNCH.

Information obtained from the website of the World Bank on Wednesday showed that the funding is aimed at improving nutrition and education initiatives, with two projects currently listed in the bank’s pipeline.

The projects, Accelerating Nutrition Results in Nigeria 2.0 and HOPE for Quality Basic Education for All, are expected to receive final approvals on March 27 and March 20, 2025, respectively.

Advertisement

The HOPE for Quality Basic Education for All programme has a commitment of $552.18m, with $500m coming from the World Bank and an additional $54m from other sources.

The initiative is designed to tackle Nigeria’s education crisis, where over 17 million children remain out of school.

It is expected to enhance early childhood education, primary and junior secondary schooling, as well as expand access to learning resources.

Advertisement

The programme will be implemented by the Federal Ministry of Finance in collaboration with the Federal Ministry of Education and the Universal Basic Education Commission.

The project remains in the ‘Concept Review’ phase, requiring further consultations before being finalised.

READ ALSO: Abuja Residents Lament As NNPCL Shuts Stations Over Logistics Issues

Advertisement

The second loan project, the Accelerating Nutrition Results in Nigeria 2.0 project, is expected to secure $80m from the World Bank to address malnutrition and food insecurity.

The PUNCH further observed that $232m was approved on June 27, 2018, for the Accelerating Nutrition Results in Nigeria.

This initial loan project was faced with a number of challenges, leading to some changes, including the cancellation of some amount from the total approved loan.

Advertisement

However, the Federal Government is currently engaging the World Bank to get an extra loan for a second part of this project.

The PUNCH further observed that the approval day for the second part was moved from February 20, 2025, to March 20.

As Nigeria continues to struggle with a high rate of stunting among children, the project seeks to improve access to quality nutrition services, particularly for pregnant women, lactating mothers, adolescent girls, and children under five.

Advertisement

It will be implemented through primary healthcare facilities and community-based programmes.

READ ALSO: NDLEA Arrests 75-year-old Man, Seizes Illicit Drugs In Major Operation

Also, it will include interventions such as nutrition-smart agriculture to bolster household food security and dietary diversity.

Advertisement

Part of the funding will support project management, government coordination, and data-driven decision-making to enhance long-term sustainability.

This project is currently at the ‘Decision Meeting’ stage, indicating it is closer to final approval compared to the education initiative.

The approval of these loans is expected to enhance Nigeria’s human capital development by improving education and nutrition outcomes.

Advertisement

The World Bank has been a key development partner, funding various projects to address socioeconomic challenges in the country.

However, concerns persist over Nigeria’s growing debt burden, with economists questioning the government’s borrowing strategy.

It was observed that the Federal Government, under the leadership of President Bola Tinubu, has secured loans worth $6.95bn from the World Bank in about 18 months.

Advertisement

Not less than 10 loan projects have been approved by the World Bank under the current administration.

READ ALSO: Trump Set To Scrap US Education Department – Report

According to data from the external debt report released by the Debt Management Office, the World Bank’s share of Nigeria’s debt totals $17.32bn, with the majority owed to the International Development Association, which accounts for $16.84bn, which represents 39.14 per cent of Nigeria’s total external debt.

Advertisement

The International Bank for Reconstruction and Development, another arm of the World Bank, is owed $485.08m, or 1.13 per cent.

The PUNCH earlier reported that the Federal Government spent $3.58bn servicing its foreign debt in the first nine months of 2024, representing a 39.77 per cent increase from the $2.56bn spent during the same period in 2023.

This was according to data from the Central Bank of Nigeria on international payment statistics.

Advertisement

The significant rise in external debt service payments shows the mounting pressure on Nigeria’s fiscal balance amid ongoing economic challenges.

The World Bank, in its recent International Debt Report, revealed that developing nations spent an unprecedented $1.4tn on foreign debt servicing in 2023, driven by a surge in interest rates to their highest levels in 20 years,

Interest payments alone reached $406bn, a nearly 30 per cent increase from the previous year, severely impacting spending in critical sectors such as health, education, and environmental programs.

Advertisement

According to the report, the most vulnerable economies, those eligible for loans from the World Bank’s International Development Association, bore the brunt of the financial strain.

READ ALSO: EFCC Arraigns Travel Agency CEO Over N144m Hajj Fare Fraud

In a statement on Monday, the Federal Government reaffirmed its commitment to reducing reliance on external debt financing and driving economic independence through strategic partnerships with the World Bank.

Advertisement

The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, made this known during a meeting with the World Bank Executive Director, Dr Zainab Shamsuna Ahmed, where he outlined Nigeria’s shift towards private sector-led growth.

The statement read, “Edun emphasised that President Tinubu remains focused on strengthening Nigeria’s economic foundation, reducing dependency on external borrowing, and ensuring long-term, private-sector-led development.”

Edun acknowledged the critical role played by the World Bank in Nigeria’s development but stressed that the government is prioritising a business-friendly environment to attract sustainable investments.

Advertisement

This is part of a broader strategy to explore alternative financing models beyond traditional multilateral loans.

The administration’s economic plan focuses on fostering fiscal responsibility while ensuring that private capital is mobilised to drive economic expansion and job creation.

Ahmed, who previously served as Nigeria’s Minister of Finance, commended the government’s macroeconomic reforms, which she noted have improved fiscal stability and bolstered investor confidence.

Advertisement

She also highlighted recent financial reforms within the World Bank that have strengthened its lending capacity, unlocking an additional $150bn in funding over the next decade.

This, she said, presents an opportunity for Nigeria to tap into strategic support while maintaining fiscal discipline.
PUNCH

Advertisement

News

Trump Using FBI To ‘Intimidate’ Congress, US Lawmakers Cry Out

Published

on

By

US Democratic lawmakers accused Donald Trump on Tuesday of using the FBI to “intimidate” members of Congress and said the law enforcement agency had requested interviews with them following their criticism of the president.

The legislators were among six who this month called on military and intelligence personnel to refuse any “illegal orders” by Trump, who labeled them “traitors.”

President Trump is using the FBI as a tool to intimidate and harass Members of Congress,” said a statement released by Jason Crow, Chris Deluzio, Maggie Goodlander and Chrissy Houlahan, who are all Democratic members of the House of Representatives.

Advertisement

“Yesterday, the FBI contacted the House and Senate Sergeants at Arms requesting interviews,” they said. “No amount of intimidation or harassment will ever stop us from doing our jobs and honoring our Constitution.”

READ ALSO:Trump’s Military Threat To Nigeria Reckless – US Congresswoman

The FBI in an email declined to comment. The White House did not immediately respond to a request for comment.

Advertisement

The US military said on Monday it was weighing a court-martial against Democratic senator and former astronaut Mark Kelly, who had also appeared in the video released this month which urged troops to refuse unlawful orders.

Kelly, a decorated Navy combat pilot and former astronaut who commanded the Space Shuttle Endeavour’s final flight, fired back that he would not be intimidated or “silenced by bullies.”

Elissa Slotkin, another senator who appeared in the video, said in a post on X on Tuesday that the FBI “appeared to open an inquiry into me in response to a video President Trump did not like.”

Advertisement

READ ALSO:Saboteurs Against Presidential Amnesty Reforms – General Ndiomu

“The President directing the FBI to target us is exactly why we made this video in the first place,” she said.

The six Democrats who released the video did not specify which orders they meant, but Trump has ordered the National Guard into multiple US cities — often against local objections — to curb what he calls rampant unrest.

Advertisement

Overseas, Trump has ordered strikes on alleged drug-smuggling vessels in the Caribbean and eastern Pacific Ocean that killed more than 80 people and which experts say are illegal.

Trump initially accused the group of “seditious behavior, punishable by death.”

Over the weekend, he wrote in an all-caps social media rant that the “traitors” who told troops to disobey him “should be in jail.”

Advertisement
Continue Reading

News

Court Issues Arrest Warrant For Miss Universe Co-owner

Published

on

By

A Thai court has issued an arrest warrant for the media mogul and co-owner of the Miss Universe beauty pageant over alleged fraud worth $930,000, a court official told AFP on Wednesday.

This year’s Miss Universe contest concluded last week following a streak of scandals, including a tantrum by the host and allegations of sexism.

But after Miss Mexico was crowned winner, fresh outrage has targeted Anne Jakapong Jakrajutatip, whose JKN Global Group co-owns the contest.

Advertisement

The South Bangkok Civil Court issued a warrant for Jakapong on Tuesday after a plastic surgeon accused her of fraud and concealing information when persuading him to invest in JKN in 2023.

READ ALSO:N6trn: Court Orders Tinubu To Publish NDDC Audit Report, Name Indicted Officials

The defendant invited [the plaintiff] to invest knowing her inability to return the money within the appointed time,” said a court statement shared with AFP on Wednesday.

Advertisement

A verdict in the 30 million baht ($930,000) case was scheduled for Tuesday, but Jakapong failed to appear in court, and the warrant was issued because her behaviour “could be interpreted as fleeing,” it added.

The court has rescheduled the verdict for December 26, but some local media have reported that Jakapong had left for Mexico amid rumours of mounting financial woes.

READ ALSO:My Husband Shows His Other Wives More Affection, Woman Tells Court

Advertisement

The Miss Universe Organisation said in a statement earlier this year that “these legal proceedings are entirely separate” from its operations.

Miss Universe 2025 wrapped up in Bangkok on Friday, after drama stirred by a public bust-up between a male competition host and the eventual winner, Miss Mexico, Fatima Bosch.

In a livestreamed event, the host singled her out for failing to post promotional content and allegedly called her “dumb,” prompting Bosch to lead a walkout.

Advertisement

He apologised after a tearful news conference, though his behaviour drew the attention of Mexican President Claudia Sheinbaum, who praised her compatriot for speaking out.

AFP

 

Advertisement
Continue Reading

News

How To Access Your Pension Before Retirement

Published

on

By

Under the National Pension Commission’s rules for the Contributory Pension Scheme, Nigerian workers may access part of their retirement savings while still employed, though only under specific conditions.

Under the scheme, both employers and employees contribute monthly to a Retirement Savings Account.

Normally, these savings are intended to provide a regular pension income at retirement; yet, certain circumstances enable early withdrawal.

Advertisement

One such condition applies when a worker loses his job and remains unemployed for at least four months.

READ ALSO:VIDEO: Pastor Adefarasin Reacts To US Genocide Claims In Nigeria

In that scenario, the individual is eligible to withdraw up to 25 per cent of the balance in his RSA.

Advertisement

To qualify, the worker must present a formal acceptance letter of resignation or disengagement issued by his employer.

According to PenCom’s Q4 2022 report, the commission “granted approval for the payment of N6.31 billion (being 25% of their RSA balances) to 9,966 RSA holders under the age of 50 years, who were disengaged from employment and unable to secure another job within four months.”

In addition to mandatory savings, employees can make voluntary contributions to their RSAs, which offer further flexibility but are subject to rules and taxes.

Advertisement

READ ALSO:FG, UK Rally Support As 2 States, 150 LGAs Become Open Defecation Free

Under current guidelines issued by PenCom, half of the voluntary contribution is classified as “contingent” (available for withdrawal), while the remaining 50 per cent is locked until retirement to supplement pension income.

Any withdrawal from this contingent portion is subject to income tax.

Advertisement

PenCom’s guidelines for Voluntary Contributions stated, “In line with Clause 3.13 above, (50%) of every amount lodged as Voluntary Contribution shall be treated as ‘contingent’ and available for withdrawal by a contributor while the balance of 50% shall be treated as ‘fixed’ until retirement date.”

Informal-sector workers — self-employed individuals or those employed by very small firms — are covered under the Micro Pension Plan.

READ ALSO:Monarch’s Suspension Sparks Crisis In Delta

Advertisement

The PUNCH reports that after at least three months of contributions, they may withdraw up to 40 per cent of their RSA savings, with the remaining 60 per cent reserved for retirement.

This option opens pension access to Nigerians who lack traditional formal retirement benefits.

Another available route is using RSA savings to fund the equity portion of a home mortgage.

Advertisement

Under guidelines based on Section 89(2) of the Pension Reform Act 2014, eligible RSA holders may apply up to 25 per cent of their RSA balance to fund the equity portion of a home loan.

READ ALSO:Rivers Staff, Pensioners Audit Sparks Outrage

If they have made voluntary contributions, the “contingent” portion of those savings can also be tapped for the equity payment

Advertisement

While these features enhance flexibility and support goals like home ownership, experts warn they come with trade-offs.

Early withdrawals reduce the funds available at retirement, which could lower the monthly pension stipends.

Many of those who access both job-loss withdrawals and mortgage-equity funds may end up with only a modest pension at old age.

Advertisement
Continue Reading

Trending

Exit mobile version