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Tag: Loan

  • Abia announces approval of $125m Islamic Bank loan

    Abia announces approval of $125m Islamic Bank loan

    The Abia State Government has announced the approval of $125 million Islamic Bank (IsDB) Loan financing facility by the Federal Executive Council at its meeting of Wednesday, Aug. 13.

    Mr Ukoha Njoku, the Chief Press Secretary to Gov. Alex Otti, disclosed this in a statement issued to newsmen in Umuahia on Thursday.

    Ukoha added that the facility would be used for the state Integrated Infrastructure Development Project.

    “This approval marks a major milestone in a project that has undergone extensive consultations and procedural steps.

    “The fund is a critical component of the overall co-financing arrangement for the state’s ambitious infrastructure development drive. The project’s total cost is $263.80 million,” Ukoha stated.

    He added that $100 million would be sourced from the African Development Bank (AfDB).

    According to him, $15 million will be obtained from the Canada–Africa Development Bank; while $23.80 million counterpart fund would come from the State Government.

    Ukoha described the IsDB facility as particularly significant “because its financing agreement must be signed for the project to proceed, given the integrated nature of the co-financing structure.

    He stated: “The AfDB and Canada–Africa Development Bank financing agreements have already been concluded, with the AfDB loan agreement signed earlier this year.

    “Under the project, the IsDB financing will support the construction of approximately 126 kilometres of road network in Aba and 35.57 kilometres in Umuahia.”

    He explained that the road projects would include a link road between the two cities, as well as critical erosion control works within the project sites.

    He stated that when completed, the projects would reduce travel time in Abia’s busiest urban corridors and create over 3,000 jobs for local residents.

    He further added that the project would reduce greenhouse gas emissions, improve access to social services; and attract private sector investments.

    Ukoha added that the project, owned by Abia Government, would be executed through the State Ministry of Works, under the supervision of the State Steering Committee.

    He noted that the steering committee would provide policy direction for the State Project Implementation Unit and all the stakeholders in the project.

    He further explained that the IsDB-financed components, covering civil works and consultancy services, would follow the bank’s procurement guidelines, with disbursements made directly to contractors and consultants.

    ”This milestone follows sustained engagement and intergovernmental coordination. This approval is also a direct complement to the visionary infrastructural development agenda of the administration,” he added.

    Ukoha stated that since assuming office, Otti had made Abia road network’s modernisation, revitalisation of urban centres, and integration of sustainable development principles a cornerstone of his administration.

    “The IsDB facility will strengthen these ongoing efforts, accelerating the pace of road reconstruction in Aba and Umuahia.

    “It will also address critical erosion challenges, and lay the groundwork for an integrated transportation network that supports commerce, improves quality of life, and enhances Abia’s competitiveness,” he added.

    Ukoha quoted Otti to have expressed appreciation to President Bola Tinubu for his trust and pragmatic leadership and the National Assembly for approving the borrowing plan.

    He added that the governor also thanked the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, for his leadership in concluding the financing process.

    The statement further quoted the governor as thanking the Secretary to the Government of the Federation, Attorney General of the Federation, the Vice President IsDB, Dr Mansur Muhktar and all other stakeholders that contributed to making the request for the facility successful.

    He also stated that Otti remarked that the project would complement his administration’s ongoing infrastructural development initiatives.

    “He believed that such initiatives are aimed at modernising Abia’s transportation network, revitalising urban centres, and positioning the state as a hub for sustainable economic growth,” the statement added.

  • Loans recovery: FMBN rakes in N18.9bn in 2024

    Loans recovery: FMBN rakes in N18.9bn in 2024

    Mr Shehu Osidi, the Managing Director and Chief Executive Officer of the Federal Mortgage Bank of Nigeria (FMBN), has said the bank raked in N18.9 billion in 2024 from the recovery of bad loans.

    Osidi made this known on FMBN Day at the ongoing Africa International Housing Show (AIHS) on Thursday in Abuja.

    The theme for the Housing Show is, “Re-imagining Housing Finance: Opportunities and Lessons for FMBN”.

    Osidi recalled that, at the same event  in 2024, the bank announced the constitution of seven recovery task teams to recover delinquent loans across the country’s geo-political zones.

    “By the end of 2024, the teams had raked in over N10.9 billion in bad loans.

    “This was in addition to our normal recovery activities which also yielded the sum of N3.1b in the same year. The recovery from the teams is currently at over N18.9bn,’’ he said.

    Osidi said that the bank also improved its loan approvals significantly within same period.

    According to him, a total sum of N71.5 billion in loan has been approved, compared to N39.7 billion in 2023.

    He added that under the National Housing Fund (NHF) operations, the bank’s collections grew by three billion naira in 2024 resulting in total collection of N103 billion.

    Osidi said this was compared to the N100 billion the bank recorded in 2023.

    “Notably, we were also able to clear a four-year backlog out of our outstanding unaudited accounts of 2018, 2019, 2020 and 2021, demonstrating our renewed commitment to financial transparency and good governance.

    “I believe by the time we come to this platform next year, FMBN should have been up to date in its audited accounts. Our target is to achieve this milestone by the end of this year 2025,” he said.

    Osidi said that FMBN’s financial performance has also improved; adding that the bank made an operational surplus of N11.5 billion, making it the first time it recorded such achievement in over 30 years of existence.

    He said that with prudent management and growing operations, FMBN was on track for another surplus in 2025.

    According to him, this is a proof that FMBN’s policies are yielding results, and the bank is on the right track.

    The Managing Director said FMBN was offering deliberate and substantial support for the Ministry of Housing on its housing delivery agenda under the Renewed Hope Housing programme of President Bola Tinubu.

    He said that the bank has so far provided N100 billion off-taker guarantee to facilitate the mobilisation of required funding for the Renewed Hope Housing and Estates programme across Nigeria.

    Osidi explained that those projects were currently ongoing in Abuja, Kano, Lagos and other locations across the country.

    He further said that FMBN has also extended additional funding facility of N19.9 billion for the Karsana project in Abuja.

    “This is apart from our funding of Renewed Hope City, Ibeju Lekki Lagos to the tune of N27 billion to deliver 1,500 units of two and three bedroom apartments.

    “The Bank is also providing mortgages for Nigerians who are contributors to the NHF to off-take the houses constructed under the programme across the country,’’ he said.

    Osidi said that the bank is also introducing new products to deepen affordable home ownership and promote financial inclusion.

    He disclosed that, starting from August, three ground-breaking products will be rolled out.

    These includes: The FMBN Non-Interest Mortgage Loan, which aligns with ethical finance principles to cater for the needs of Nigerians who prefer non-interest banking models.

    The second is, FMBN National Housing Fund (NHF) Diaspora Mortgage Loan, specifically designed to provide a safe and seamless homeownership pathway for Nigerians living abroad, to be launched on Aug. 31.

    Osidi said the FMBN National Housing Fund (NHF) Diaspora Mortgage Loan is in collaboration with NiDCOM and the Central Bank of Nigeria.

    He said the third product is Rent Assistance, a customised product tailored to meet the immediate needs of NHF contributors in both formal and informal sectors before they own their homes.

  • Edo PDP, Govt bicker over Okpebholo’s N100bn loan

    Edo PDP, Govt bicker over Okpebholo’s N100bn loan

    The Edo Chapter of the Peoples Democratic Party (PDP) and the APC-led government on Wednesday bickered over the state Assembly’s approval of a N100 billion loan request by Governor Monday Okpebholo.

    This was contained, in a statement, by Dr Anthony Aziegbemi, Chairman of the Edo PDP Caretaker Committee in Benin.

    It would be recalled that the House of Assembly on Tuesday approved N100 billion loan request for Okpebholo to carry out infrastructural development across the state.

    “According to the Debt Management Office, Edo’s total domestic debt since 1991 stood at ₦112 billion as of Dec. 31, 2024.

    “If accessed, this loan means that the current administration would have doubled Edo’s debt in just eight months what took 34 years to accumulate,” Dr Aziegbemi said.

    He alleged absence of transparency, adding that there were no details on projects, contractors, interest rates, or timelines disclosed to the public so far.

    He noted that Edo citizens deserved to know what financial commitments were being made in their name and what exact cost the burden placed on future generations.

    “It is unacceptable to incur such debt without scrutiny or explanation. The state assembly has failed its constitutional oversight duty by endorsing this vague borrowing plan.

    “Ordinarily, loans of this magnitude are sourced from development finance institutions with low-interest rates not from commercial banks charging exorbitant rates up to 30 percent,” he added

    According to Aziegbemi, when PDP flagged the IGR decline from eight billion to two billion, they falsely claimed Edo was generating N10 billion monthly.

    “Yet this same government reportedly inherited over N50 billion from the Obaseki administration less than eight months ago, so where has all the money gone,” Aziegbemi queried.

    Aziegbemi reminded the state government and Assembly that the Freedom of Information Act 2011 applied to all levels of government in Nigeria.

    He disclosed that in light of the supreme court’s 2025 ruling in Osakue v. Edo state, PDP would file an official FOI request demanding full loan transparency.

    The PDP, therefore, demanded the details of all projects to be financed: contractors’ names and profiles, the full loan agreement, and assembly records.

    ”Edo PDP says no to mortgaging our future. We will not stand by while our people’s resources are hijacked to fund private political greed,” Aziegbemi said.

    Reacting, the Chief Press Secretary to Governor Monday Okpebholo, Fred Itua noted that Edo government was not obtaining a direct N100 billion loan  in spite of the Assembly’s approval of the facility.

    In a statement, Itua stated that the state government was acting as a guarantor to contractors, enabling them to secure funding for key infrastructure projects from First Bank.

    He explained that the facility allowed selected contractors to access funds directly, supported by the state’s financial guarantee to ensure smooth project implementation.

    “Governor Okpebholo’s administration is adopting this innovative funding model to fast-track infrastructure development across Edo, with disbursements tied directly to project-specific needs.

    “First Bank Plc will release funds to contractors based on verified project requirements, with a total facility tenure of 40 months,” he said.

  • NELFUND disburses April upkeep payment to students

    NELFUND disburses April upkeep payment to students

    The Nigerian Education Loan Fund (NELFUND) has commenced the disbursement of April 2025 upkeep payments to eligible student beneficiaries across the country.

    Mrs Oseyemi Oluwatuyi, Director, Strategic Communications in NELFUND disclosed this  in a statement made available to newsmen in Abuja on Monday.

    Oluwatuyi said, while most payments had been successfully processed, a small number of beneficiaries might experience a delay due to the recent upgrade of the Fund’s payment and application processing system.

    According to her, the system upgrade is expected to enhance security and support the timely disbursement of upkeep allowances in subsequent payment cycles.

    “NELFUND is working closely with relevant stakeholders to resolve these issues promptly and ensure that all eligible students receive their entitlements without further delay.

    “We remain committed to transparency, operational excellence, and the timely delivery of student support in alignment with the Renewed Hope Agenda.

    “We appreciate the patience and cooperation of all stakeholders as we continue to improve service delivery for the benefit of Nigerian students,” she said.

  • Nigeria fully repays $3.4bn IMF loan – Minister

    Nigeria fully repays $3.4bn IMF loan – Minister

    Mohammed Idris, the Minister of Information and National Orientation, has confirmed that Nigeria has fully repaid the 3.4 billion dollars COVID loan from the International Monetary Fund (IMF).

    The Minister said this while briefing State House Correspondents after the sixth Federal Executive Council (FEC) meeting on Monday.

    Idris addressed some scepticism regarding the repayment, stating, “We can report that Nigeria has, indeed, exited from that debt, meaning we have paid it in full.”

    He explained that the loan was taken during the COVID-19 period, before the current administration, but that President Bola Tinubu viewed government as a continuum and directed that the country exited the debt.

    Idris emphasised that the move demonstrated Nigeria’s seriousness and capacity to meet its debt obligations, signalling to investors both domestically and internationally that Nigeria was responsible in managing its finances.

    Additionally, Idris announced that FEC had directed the Bureau for Public Procurement (BPP) to communicate the new procurement threshold for goods and services to Ministries, Departments, and Agencies (MDAs).

    He noted that the threshold had been in place for a long time and contributed to the number of approvals required from the council.

    He also stated that the council had directed all MDAs, especially the Ministry of Works, to collaborate more with the private sector on infrastructure development.

    “The government is saying that there is an increasing need for private sector participation in our economic growth,” Idris added.

  • MSMES: Delta Govt’s ₦1Billion Loan Available Soon – Ifeajika

    MSMES: Delta Govt’s ₦1Billion Loan Available Soon – Ifeajika

    Delta State Government, weekend, said the One Billion Naira loan approved by the State Executive Council, in February will be available to interested persons as soon as the state government completed documentation with the Bank of Industry.

    The Executive Assistant to the Governor on Public Enlightenment, Projects and Policies, Mr Olisa Ifeajika, stated this while speaking on a Live Voice of Delta radio programme in Asaba.

    He said the Governor Sheriff Oborevwori administration selected Bank of Industry as a partner in the scheme because of its track record as reputable financial managers with lots of testimonies from Nigerians on how the bank has assisted them in improving their businesses.

    He stated that the state government knew the role of Micro, Small and Medium Scale Enterprises in the economy of any nation hence it decided to provide soft loan for these businesses who were the major drivers of the economy and the loan which will be given to Deltans at single digit interest rate.

    He said the one billion naira revolving loan will revive small scale businesses in addition to boosting the state’s Gross Domestic Product (GDP).

    Mr Ifeajika said currently, the state was putting finishing touches to the Memorandum of Understanding with the bank so that in the first two weeks of April, government will formally launch the disbursement of the loan scheme.

    “The current interest rates by commercial banks had made it difficult for small businesses to thrive, this soft loan is a single digit interest rate and would not be above 9 percent.

    “Governor Oborevwori is doing it to grow the people and grow the economy by introducing a more efficient and flexible system for the administration of the loan by the Bank of Industry.”

    He further said that the continuous supervision of projects by the governor was a deliberate effort to enable Deltans get value for money in project execution.

    He commended Governor Oborevwwori for his giant strides in all sectors and gave assurance that with support from residents of the state, the MORE agenda will reach more communities.

  • Why I pulled out of World Bank loan, refused to borrow – Soludo

    Why I pulled out of World Bank loan, refused to borrow – Soludo

    Anambra State Governor, Charles Chukwuma Soludo says his administration pulled out of an existing loan arrangement with the World Bank to save the state from “debt overhang”.

    Soludo said this while addressing members of the Late Sen. Ifeanyi Ubah Media team who were on inspection of the ongoing Government House and Governors Lodge project in Awka on Sunday.

    He said his administration had not only refused to borrow from any bank or institution but also refused to access the Federal Government loan to states in 2024.

    He said that notwithstanding the development, his administration had embarked on ambitious and people oriented projects which were at various stages of completion.

    According to him, it may interest you to know that Anambra is the only state that pulled out of an existing World Bank loan arrangements which was signed before I came in.

    “I looked at the terms of the loan and I said it was not sustainable; it was easy to continue with it because the next generation will pay but based on the terms, it was a bad deal for Anambra.

    “Last year N438 billion was distributed to 35 states, Anambra was the only state that did not take it. I need money but I cannot borrow my state into slavery,” he said.

    Soludo said he was giving Anambra a permanent Government House and Governor’s Lodge 34 years after it was created, expressing regret that the facilities had exited at a construction company office and outside Awka respectively.

    He said that it was a magnificent project with about 34 buildings which were being built to last, such that in the next 200 years, they would still be standing like the White House in America.

    “I said we are going to break the jinx and we are doing that with the biggest and the best that somebody said is going to be like a mini city,” he said.

    Soludo said he had done over 750 kilometers of roads with about 410km completed with attention to parts of the state that had not seen tarred roads since their existence.

    “We have touched education, health, youth empowerment, social reorientation and bringing back our value of dignity in labour against this new get rich quick mentality that is destroying our youths.

    “I told Anambra people when I was sworn in that I will show them where every Kobo they gave me is channeled,” he said.

    Mr Kamen Ogbonna, the Leader of the Ubah media team said they were impressed with what the governor was doing as it aligned with their Philosophy.

    Ogbonna said it was interesting to note that Soludo had made such progress in three years without borrowing from any source.

    “The magnitude of the Government House and Governors Lodge will tell you why other governors carefully avoided the project,” he said.

    Nollywood stars including Steve Alajemba (Uwaezuoke) and Collins Monago who were on the trip lauded Soludo for his works and urged Anambra people to support him to continue the good job as they prepared  for Nov. 8 guber.

  • Student loan: N116.184bn disbursed since inception – NELFUND

    Student loan: N116.184bn disbursed since inception – NELFUND

    The Nigerian Education Loan Fund (NELFUND), said it has so far disbursed N116.184bn as at Jan 1st, 2025 for upkeep of students across 176, 252 beneficiary institutions in the country.

    The Managing Director, Mr.Akintunde Sawyer, said this on Thursday in Abuja, when he appeared before the National Assembly Joint Committee on Tertiary Institutions and TETFUND to defend the budget of the agency.

    He said out of the N116.184bn, N37.7bn was expended on institution loans.

    He said a total number of 352, 796 students applied for the loan , while 108,484 had successfully received the loan.

    On the 2025 budgetary proposal, the NELFUND boss said a budgetary envelope of N58.4bn was proposed for the agency.

    “Out of the N58.4 billion budgetary proposal for 2025, N12.2billion is earmarked for personnel cost, N24.7 billion for overhead cost and N21.4 million for capital expenditure”, he explained.

    After consideration of budgetary proposals of the agency, the joint committee accordingly approved it through voice vote put to members.

    Earlier before approval of the NELFUND’s budgetary proposal, Chairman of the Joint Committee, Sen. Dandutse Muntari, emphasised the need to ensure transparency on spending of appropriations approved for the organisation in 2025.

    “We will examine NELFUND’s financial plan for the upcoming fiscal year to evaluate its alignment with national educational goals and its capacity to meet the growing demands for student loans.

    “The agency plays an indispensable role in bridging financial gaps for students across our tertiary institutions,” Muntari said.

  • Senate ready to approve Tinubu’s N1.77tn loan request within 24hrs

    Senate ready to approve Tinubu’s N1.77tn loan request within 24hrs

    President Bola Tinubu has requested the National Assembly for approval of N1.767tn loan already captured in the external borrowing plan for implementation of the N28.7trillion 2024 budget.

    President Tinubu who made the request in separate letters read in Senate and House of Representatives during plenary on Tuesday, said if approved, the loan will be used to part-finance the budget deficit of N9.7tn for the 2024 budget.

    The Senate President , Godswill Akpabio after reading the letter , mandated the Senate Committee on Local and Foreign to work on the request and report back within 24 hours .

    “The Presidential request for $2.2billion , equivalent of N1.767trillion loan is already enshrined in the external borrowing plan for the 2024 fiscal year .

    ” The Senate Committee on Local and foreign debts , should therefore , give the request expeditious consideration and report back within 24 hours .

    The president has also forwarded the Medium Term Expenditure Frame work (MTEF) and Fiscal Strategy Paper (FSP) for 2025- 2027 to both the Senate and the House of Representatives .

    In giving the request expeditious consideration , Senator Godswill Akpabio after reading the letter containing it , mandated the Senate Committee on Finance , National Planning and Economic Affairs to consider it at committee level and report back in one week.

    Key parameters in the 2025 – 2027 MTEF/FSP documents needed for consideration and approval of the proposed N47.9trillion 2025 budget are ÷ $75 oil price benchmark per barrel, Daily Oil Production of 2.06 million barrels , Exchange Rate of N1,400 to $1 and targeted GDP Growth rate of 6.4%..

    President Tinubu in another letter to both chambers of the National Assembly , sought approval for Social Investment Programme Amendment Bill

    The proposed amendment aims to strengthen the framework for implementing the government’s social welfare programmes, ensuring greater transparency and efficiency.

    He explained further that the amendment seeks to designate the National Investment Register as the primary tool for targeting beneficiaries of social investment initiatives. This measure, he said, would ensure that welfare programmes are data-driven and deliver effective social protection to Nigeria’s most vulnerable citizens.

    “The amendment will make our social and welfare programmes more transparent, efficient, and impactful in addressing the needs of vulnerable Nigerians,” he said

    He further noted that the request was made in accordance with Section 58(2) of the 1999 Constitution (as amended) and urged the Senate to give the bill urgent consideration.

    The proposed amendment, if passed, will improve the management and delivery of social investment programmes, enhancing their capacity to combat poverty and inequality across the country. The Senate has referred the bill to relevant committees for review and is expected to deliberate on the proposal in subsequent sessions.

    This development indicates that the Tinubu’s administration is committed to leveraging technology and data to optimize the impact of its social welfare initiatives.

  • President Tinubu reveals real reason for fresh $2.2bn loan

    President Tinubu reveals real reason for fresh $2.2bn loan

    President Bola Tinubu has sought the approval of Senate for implementation of 2.2 billon dollars new external borrowing plan. Tinubu’s request is contained in a letter addressed to President of Senate, Godswill Akpabio and read at plenary on Tuesday.

    The letter is  titled, “Request for the resolution of the National Assembly for the implementation of external borrowing of about 2.2 billion dollars in the 2024 Appropriation Act”

    The President said the request is in accordance with the provisions of Sections 21(1) and 27(1) of the Debt Management Office (DMO) (Establishment, ) Act, 2003, and the approval of the Federal Executive Council..

    “I write to request for a resolution of the National Assembly to raise the sum of N1.7 trillion, equivalent of 2.2 billon dollars at the budget exchange rate of one dollar to N800 provided as new external borrowing in the 2024 appropriation act to part finance the budget deficit of N9.179 trillion.”

    The President said the funds were needed to give more impetus to the ongoing implementation of the projects and programmes in the 2024 appropriation act, which were designed to stabilise the economy. He said the key projects to which the proceeds would be deployed formed the priority sectors of the economy, such as power, transport, agriculture, defence and security.

    ”It is also important to add that the proceeds will increase the accrual to the external reserves as the proceeds will be received into the Central Bank of Nigeria’s (CBN) account, and thereby support the naira exchange rate”.

    He said the plan was to raise the new external borrowing from a combination of commercial sources, such as issuance of Eurobonds, Sovereign Sukuk,International Capital Market (ICM), among other sources. Tinubu said Nigeria could raise all or part of the new external borrowing fund through the issuance of eurobonds in the ICM.

    “Nigeria has been a regular issuer in the ICM and had raised 16.92 billion dollars out of which 15.12 billion dollars is outstanding. The ICM is now open to countries similar to Nigeria, and so far, Cote d’Ivoire, Benin, Kenya, and Cameroon have issued Eurobonds in the ICM in 2024.

    “A debut Sovereign Sukuk of up to 500 million dollars in the ICM with credit enhancement from the Islamic Corporation are for Insurance of Investment and Export Credit (ICIEC), subject to the terms and conditions,” he said.

    The President said lead managers such as Citigroup Global Markets Ltd, Goldman Sachs, JP Morgan and Standard Chartered have been appointed through an open competitive bid to advise on the issuance of eurobonds, where it becomes necessary.

    Tinubu seeks Senate’s approval of 2025–2027 MTF, FSP

    President Bola Tinubu has formally transmitted the 2025–2027 Medium-Term Fiscal Framework (MTF) and Fiscal Strategy Paper (FSP) to the Senate. Tinubu is seeking prompt legislative approval of the documents to guide preparation for the 2025 budget.

    In a letter addressed to the President of the Senate, Godswill Akpabio, Tinubu said that the MTEF/FSP had been approved by the Federal Executive Council (FEC) during its meeting on Nov. 10. He said that the 2025 budget would be prepared based on the parameters and fiscal assumptions outlined in the MTF/FSP.

    “It is imperative to seek the National Assembly’s expeditious legislative action on this submission. I trust that the Senate will consider the passage of this submission without delay,” the letter read.

    Akpabio, thereafter, directed that the document be referred to the Committees on Finance, National Planning and Economic Affairs for further review.

    The committees are expected to report back to the senate in due course to facilitate timely deliberations and approval. During the session, the senators voiced their support for the motion to refer the document to the relevant committees, with the motion receiving unanimous approval.

    The senate is expected to deliberate on the committees’ findings and provide a final resolution on the framework and strategy paper in the coming weeks.

    The MTF/FSP serve as critical policy instruments for Nigeria’s fiscal planning, outlining revenue projections, expenditure priorities and economic assumptions that guide budget formulation. Their timely approval is essential to ensure the smooth preparation and eventual implementation of the budget for the 2025 fiscal year.