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Tag: Loan

  • UK grants first loan to Zimbabwe in 24 years

    The United Kingdom will provide the first commercial loan to the Zimbabwean private sector since 1994, local media reported on Wednesday.

    The Financial Times reported that the CDC Group development institution, owned by the UK Government and the Standard Chartered Bank, would lend $100m to Zimbabwean companies.

    iHarare reported that Governor of Reserve Bank of Zimbabwe, John Mangudya, confirmed this latest development.

    “This is a significant move, in that it is a medium-term facility to be used for the revival of companies in Zimbabwe.
    “There has been a deficit of medium-term funding, which was not forthcoming to Zimbabwe.
    “This is going to improve the competitiveness of the industry in Zimbabwe in terms of retooling and improvement of productivity.”

    Another media outlet added, citing Nick O’Donohoe, the CEO of the CDC Group, that the last direct loan provided by the institution to Zimbabwe took place in 1994 and was given to a fish farm.

    Since the 2000s, Zimbabwe has been affected by the sanctions imposed by the U.S. and the EU over violations of human rights and democratic norms under the presidency of former leader Robert Mugabe.

    The restrictions had resulted in a collapse of foreign loans and investments to the economy of the African nation.

    The situation started changing in November, when Emmerson Mnangagwa, Zimbabwe’s former vice president, was sworn in as president.

    The inauguration took place after the army deployed its vehicles to Harare and confined Mugabe to his house.

    The Zimbabwean parliament subsequently approved Mugabe’s impeachment, after which the long-serving leader stepped down.

    Sputnik/NAN

  • DPP lauds Senate for rejecting El-Rufai’s $350m World Bank loan

    The Democratic People’s Party (DPP) on Wednesday praised the Senate for rejecting the 350 million dollars loan application by the Kaduna State Government.

    The National Chairman of the party, Mr Garshon Benson newsmen in Abuja that the rejection of the loan application was in the interest of people and future of the state.

    “My party’s view is that the National Assembly acted very well by rejecting that loan application from Kaduna State, under the leadership of Gov. El Rrufai.

    “From the information available to all of us, the National Assembly made us to know that Kaduna state is the second worse debtor states in the federation indebted to the tune of over 200 million dollars

    “So adding more debt is not the best for the people of Kaduna state.

    “We had expected Gov. El Rufai, given his wealth of experience in public life, to have tried to open up alternative sources of revenue for his state and increasing the Internally Generated Revenue (IGR).

    “That will have reduced the pressure of lack of funds on the state and make more funds available for development.

    “So, I praise the courage of the Senate Committee that did the job and the position of the entire Senate.’’

    The Senate recently rejected the request by the Kaduna State Government to obtain a $350 million loan from the World Bank.

    The three Senators from the state, Shehu Sani, APC, Kaduna Central; Suleiman Hunkuyi, APC, Kaduna north and La’ah Danjuma, PDP, Kaduna South said that it became imperative for the credit facility to be rejected because critical stakeholders from the state were never consulted and for the fact that the fact that the state was already heavily indebted.

    Benson said that the action of the Senate had saved Kaduna state and its economy from increased indebtedness.

    He, therefore, advised Nigerians not to see the rejection of the loan application as political vendetta.

    He said if the loan was approved, those that would suffer the consequences would be the unborn children of the state.

    “It is our view that Kaduna can raise its Internally Generated Revenue in such a way that they can take care of salary payment without touching their federal allocation.

    “If the state can generate IGR to pay salary, it will have a lot of money left over to meet other developmental needs.’’

    Benson also advised other state governors to take proactive measures to increase their revenue base rather that increasing their debt profile.

    He said that one of the reasons most states’ debt profiles were increasing was that political office holders failed to adequately prepare for the positions they were occupying.

    “Before you want to be a governor, president or Local Government chairman, you should be able to conduct research to know how healthy is the state you want to run in terms of economic viability.

    “How much is the salary wage bill per month? How much is the state of liquidation? What per month is income that comes to the state, both from federal and IGR.’’

    “Most of them are not prepared. That is why some of them would want to add to the existing debt, rather than thinking of how to reduce or add value to the income of the state.’’

  • We’ll pursue $350m World Bank loan without your approval – Kaduna Gov tells Senate

    The Governor Nasir El-Rufai led Kaduna State Government has reacted to the Senate’s rejection of its $350million loan from the World Bank insisting that it would go ahead to pursue with or without the Senate’s approval.

    Recall that the Senate decided not to approve the loan request after a committee headed by Shehu Sani (APC-Kaduna) advised against it on the ground that the state is the second most indebted in the country.

    Sani, who is the chairman, Senate Committee on Foreign and Domestic Loans, argued that the new loan if approved will erode economic viability of the State.

    His position was supported by two other senators from the state, Suleiman Hunkuyi (Kaduna North) and Danjuma La’ah (Kaduna South).

    Reacting to the federal lawmakers’ decision, the state government said nothing can stop it from obtaining the loan for the development of the state.

    The state Commissioner of Finance, Suleiman Abdu Kwari, at a news briefing in Kaduna on Friday said the excuse given on the floor of the Senate as to the size of the state’s loan was baseless.

    Mr. Kwari said with the way the three senators from the state spoke against the loan, it was apparent they had put their personal frustrations above the right of the people of the state

    He said the World Bank was convinced the state has met the conditions before given its approval for the loan.

    “Having checked our laws, our accounts and our performance, the World Bank was convinced that Kaduna State merits their support. Therefore, on 20th June 2017, the World Bank announced that it has decided to provide a budget support facility of $350m to Kaduna State.

    “Our Commissioners have appeared before the relevant committees of the Senate and the House of Representatives, and presented detailed explanations for the rationale and the purposes of the loan.

    “Our delegates were commended for the quality of their presentations. Nobody in those committees of the National Assembly can honestly claim not to be aware of the justification and the purpose of the loan.

    “In fact, the House of Representatives endorsed the loan. When our officials appeared before the Senate, no questions were asked,” the commissioner stated.

    “The excuse given on the floor of the Senate as to the size of the loan is baseless. The creditor and the ratings agency have adjudged that Kaduna State can sustainably manage the credit which has a 10-year moratorium and a 40-year repayment period.

    “The State average monthly FAAC allocation for the preceding 12 months is N3.295bn, while our current monthly debt service is N467.12million.

    “Also, the monthly debt service forecast of the FGN Budget Support Facility of N14.169bn with a moratorium of 18 months and World Bank Loan of $350mn with a moratorium of 10 years are N191.767 mn and N98.843mn respectively.

    “If the State is to repay all loans today, the total debt service would be N757.735mn representing 23% of total deductions as a percentage of total allocations.

    “This is less than the threshold for sub-national borrowing, which is capped at 40%. In view of this, Kaduna State is within the sustainable debt level.

    “What the Senate displayed was elevating the ego of some of its members above the demands of public policy.

    “As the three senators from Kaduna State spoke, it was apparent that they have put their personal frustrations above the right of the people of Kaduna State to decent investment in human capital development through good schools and hospitals, and better quality of life and accelerated economic growth through the provision of infrastructure.”

    Asked the next step the state government would take after the Senate rejected the loan, Mr. Kwari said: “There is still hope of getting the loan from the World Bank. This was because there are processes to be concluded at the National Assembly over the loan, including voting for or against by each lawmaker before final rejection or acceptance of the loan.

    “No amount of blackmail, no amount of intimidation, no amount of misrepresentation, there is no going back for us as long as moving the State forward is concerned.

    “We know the processes of the World Bank we passed through, it was like passing through the eyes of the needle to get the approval for the loan. So World Bank processes are not like any other institutions.

    “If we can pass through World Bank processes to get to this stage, then there is still hope to get the loan for the development of the State.

    “The National Assembly which I know very well, committees will be set up to look at the loan issue, and at the end of the day, the decision will be subjected to voting either for or against. In this case, no Senator or House Reps member has more than one vote.”

    On the fear expressed by the senators that the loan if approved may be diverted, the commissioner said: “There is no way you collect World Bank loan and divert it to another project because one of the conditions of the bank is that the loan must be used for the sole purpose it was collected.

    “I think the rate at which the state is moving in terms of development, some people will be made politically irrelevant because there is a new dawn in Kaduna where the traditional way of compromising development in the state is dead and buried.

    “The loan, if obtained, will be used to build community roads, primary schools, secondary schools, health centres, and the economy of such (benefitting) communities will improve as other social activities will take place there.”

     

  • Stakeholders appeal to new owner of 9mobile to resolve $1.2b loan owed banks

    Some capital market stakeholders on Monday appealed to Teleology, the new owner of 9mobile, to resolve amicably the 1.2 billion dollars syndicated loan owed some Nigerian banks.

    The stakeholders made the appeal in separate interviews with the News Agency of Nigeria in Lagos, while reacting to the emergence of Teleology as the new owner of the firm.

    Prof. Sheriffdeen Tella, the Professor of Economics, Olabisi Onabanjo University Ago-Iwoye, Ogun said the new owner should consider the outstanding loan as paramount.

    Tella said that an amicable resolution of the loan would bring stability to the telecom industry.

    He suggested that the laws guiding the establishment, operations and funding in the industry should be reviewed to enthrone an enabling working environment in the sector.

    “There is the need to encourage telecom firms to enlist on the Nigerian capital market to raise funds whenever they are about to run into troubled waters financially.

    “Eventual sale of 9mobile to a new private concern will lead to improvement in the services provided by the telecom firm, build confidence in the telecom industry and create employment,” Tella said.

    Mallam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd., said that if the new service provider settled the debts, it would bring a relief to the indebted banks.

    Kurfi said the restructuring of the loan by Teleology and eventual payment would reduce the banks liabilities.

    “It is a great relief to the Central Bank and particularly to the banks that have huge exposure,” he said.

    Mr Boniface Okezie, the President, Progressive Shareholders Association of Nigeria (PSAN) described the development as good news to the shareholders of indebted banks.

    Okezie said the loan repayment would enable the affected banks to recoup their money as a result of the loan to 9mobile.

    He called on the affected banks to work closely with the new owner to ensure prompt repayment of the loan.

    Teleology Holdings Ltd. beat the March 22 deadline for transfer of a non-refundable deposit of 50 million dollars for the acquisition of 9mobile.

    Teleology emerged the new owner of 9mobile ahead of Smile Communications, which was the only other firm in the final round of the takeover bid.

    At the beginning of submission of bids, more than 10 bidders indicated interest in acquiring the mobile network, but only five were shortlisted.

    The five firms are Bharti Airtel, Globacom, Helios Investment, Smile Communications and Teleology Holdings.

    The acquisition bid resulted when the largest shareholder, Mubadala Development Company of the United Arab Emirates, (formerly Etisalat), pulled out of the firm.

     

  • Unemployment: AfDB approves $300m loan to Nigeria

    The Federal Government on Thursday confirmed that the African Development Bank (AfDB) approved a $300m loan to contribute to job creation, food security and nutrition.

    The Secretary to the Government of the Federation, Boss Mustapha said this in Abuja at a round-table on tackling youth unemployment in Nigeria.

    The event was organised by the Bureau of Public Service reform in collaboration with the Department for International Development.

    The SGF at the event also constituted an Inter-ministerial task team to address the youth unemployment challenges in the country.

    He said members of the team would be drawn from the Office of the Head of Service, ministry of labour, ministry of finance, Central Bank of Nigeria, Nigerian Economic Summit Group and the National Directorate of Employment.

    The SGF said the Federal Government was committed to addressing the rising youth unemployment in the country through innovative ways.

    For instance, he said the government through the bank of Industry had launched a N10bn Youth Entrepreneurship Support program to empower youth with loans to start business.

    The program, he noted, is aimed at equipping young aspiring entrepreneurs with the right skills and knowledge to be self employed by starting and managing their own businesses.

    He said, “The Federal Government has accorded agriculture priority in order to create job opportunities for the youth.

    “We owe the youth in Nigeria today and tomorrow to work with determination and to do everything possible to win this battle.

    “And am confident that with the commitment and strong resolve, we will have the results we are striving in the not too distant future.”

    He said that the government is addressing the unemployment challenges through the implementation of the Economic Recovery and Growth Plan.

    He said through the plan, the government has identified various sectors that could be used to create jobs for the people.

    The Acting Director-General, BPSR, Mr Dave Arabi said agency had developed a policy note on how to effectively address the issue of unemployment in Nigeria.

    He said the roundtable would provide a veritable platform for all stakeholders to come up with the needed solutions to addressing the unemployment situation.

  • Boko Haram: Reps divided over Buhari’s $1bn loan request

    Plenary of House of Representatives on Thursday was rowdy as members disagreed over the propriety of the one billion dollars sought by President Muhammadu Buhari to fight Boko Haram insurgency.

    The confusion followed a motion by Rep. Ken Chikere (Rivers-PDP) on the “Need to deduct 13 per cent Derivation from the one billion dollars approved by the National Economic Council (NEC) to fight Boko Haram Insurgency”.

    Moving the motion, Chikere said that if 13 per cent derivation was not deducted from the one billion dollars and paid to oil-producing states, it would amount to double contribution by the states.

    He added that it would also be a breach of section 16 (2) of the 1999 Constitution and Section 1 of the Allocation of Revenue (Federation Account, etc) Act, Cap.A15, Laws of the Federation of Nigeria, 2014.

    “At the 83rd meeting of NEC held in the Presidential Villa, Abuja, on Dec. 14, 2017, the 36 states’ governors approved the deduction of one billion dollars by Federal Government from Excess Crude Account (ECA) to fight Boko Haram.

    “The proviso to Section 162 of 1999 Constitution states that 13 per cent of proceeds of oil-producing states as derivation funds payable to benefiting states of Akwa-Ibom, Rivers, Delta, Bayelsa, Cross River, Edo, Abia, Imo, Ondo, Anambra and Lagos.

    “That 13 per cent derivation fund payable to oil-producing states had not been deducted and paid to them from the one billion dollars before or after the approval of the said sum to fight Boko Haram insurgency.

    “Concerned that if the 13 per cent derivation fund is not deducted from the one billion dollars and paid to oil-producing states, it would amount to double contribution from the said states.

    ” It will also a breach of section 16 (2) of the 1999 Constitution and Section 1 of the Allocation of Revenue (Federation Account, etc) Act, Cap.A15, Laws of the Federation of Nigeria, 2014,” Chikere said.

    He urged Federal Ministry of Finance to ensure that amount representing 13 per cent of one billion dollars approved by NEC to fight Boko Haram was deducted and paid to oil-producing states.

    He said that the payment would be in compliance with Section 162 (2) of the 1999 Constitution.

    The lawmaker urged his colleagues to mandate the Committees of Finance and Legislative Compliance to ensure compliance.

    He added that “the amount involved is arguably a large sum of money but no sum of money is too large for security. I urge us to show resolve by supporting this motion’’.

    But, Rep. Shehu Garba (Kaduna-APC) opposed the motion, saying that the fight against Boko Haram insurgency should be seen as a national challenge than a sectional issue.

    He said that debating the issue would open up “a Pandora box” that may apparently heat up the polity.

    He said, “We do understand the reason behind this motion. However, I do have a different perspective. The basic question is whether Boko Haram is a regional challenge or national challenge.

    “We must accept that just as you as a person will not have a good night sleep when you have pain.

    “You must accept that any challenge in any part of Nigeria is a challenge for everyone. Boko Haram challenge is a national challenge.

    “The challenge requires the collective will of all Nigerians. On this note, I disagree with this motion. It will be opening a Pandora box.”

    Recognised by the Speaker, Mr Yakubu Dogara, a member, Rep. Henry Archibong (Akwa Ibom-PDP) raised a Point-of-Order.

    He sought to know whether the money had been approved by the National Assembly

    The lawmaker said “point-of-order, no money shall be withdrawn from the consolidated revenue funds.

    “This money that’s being given to fight Boko Haram, has it been approved by the national assembly.”

    Similarly, Rep. Aliyu Patigi (Kwara-APC) said that the issue at stake was of mathematical nature.

    “It is an accounting issue. It is an issue that relates to the Federation Account.

    “Now, the president has requested for one billion dollars and we can’t give the president less than that one billion. It should be one billion. What we need to do is to get Federal Accounts committee.”

    In his contribution, the Deputy Speaker, Mr Yussuf Lasun, said that it was necessary to understand the difference between the Federation and Consolidated Accounts before deliberating on the matter.

    “I think this motion is very important because of so many parts of the country it is touching.

    Whatever touches Boko Haram, let’s deal with it because we have suffered negatively from Boko Haram. It is a pure constitutional matter.

    In his remarks, the speaker reminded the House that the entirety of the money coming from the ECA had been approved by the State Houses of Assembly, allowing their respective governors to give consent to the request.

    He wondered whether the National Assembly had any significant input in the matter.

    He ruled that the motion be stepped down until the state of the Excess Crude Account was ascertained.

    Dogara committed the responsibility to the House Committee on Finance, and gave it four weeks to conclude the assignment.

     

  • Yobe state civil servants to benefit N300m furniture loan in 2018

    Yobe state civil servants to benefit N300m furniture loan in 2018

    The Yobe Government has earmarked N300 million as furniture loan to be granted civil servants on its payroll in 2018.
    The state Head of Service, Alhaji Saleh Abubakar, disclosed this to newsmen in Damaturu on Friday.

    Abubakar said the loan would be a revolving programme to enable every eligible civil servant access the funds.

    The head of service said government was up to date in payment of pension and gratuity to retired state civil servants, while local government retirees would be settled next year.

    “Government is working hard to complete verification of local government retirees to commence payment of their entitlements,” he said.

    Abubakar said the state service was evolving new skills with new ideas to improve service delivery to move the state forward, stressing that “it is now an idea driven service”.

    According to him, many state civil servants will be retiring in 2018 to create more employment opportunities for youths.

    “Most of the civil servants inherited from old Borno state will be retiring by next year, which means, more vacancies will be created for youths in 2018,” he said.

  • AMCON seeks Appeal Court’s intervention to recover N5trn debt from loan defaulters

    The Asset Management Corporation of Nigeria (AMCON) is seeking the collaboration of the Justices of the Appeal Court to recover about N5trillion owed the corporation by loan defaulters nationwide.

    The Managing Director and Chief Executive Officer (CEO) of the Corporation, Ahmed Kuru explained that despite the overwhelming powers granted AMCON by the law setting it up, it is yet to record major success in the recovery of this debt because of the slow pace of court proceedings.

    He said over 3,000 cases involving it and bank loan defaulters were currently stock in various courts in the country.

    Kuru spoke in Abuja Saturday at an event tagged: “AMCON interaction with Justices of the Court of Appeal,” under the theme: “AMCON Regime: A paradigm shift in debt recovery.”

    He said: “Currently, there is still over N5trillion debt unrecovered. Over 3,000 cases relating to this debt are still undecided in the various courts.

    “About 350 of our obligors (debtors) owe 80 per cent of the debt. 90 per cent of the debt is held up in cases currently pending in the various courts,” he said.

    He noted that, not only has the slow court process worked to AMCON’s disadvantage, lawyers to the defaulting debtors have also exploited legal technicalities to frustrate AMCON’s debt recovery efforts.

    Kuru, who prayed Justices of the Court of Appeal to come to his agency’s aid, canvassed for a special task force of the court to speedily consider and determine cases involving AMCON.

    President of the Court of Appeal, Justice Zainab Bulkachuwa noted that AMCON’s mandate was herculean and critical to the continued survival of the nation’s economy.

    Justice Bulkachuwa, who said her court will, within the limited of the law, support AMCON’s activities, noted that since debtors were reluctant to report their debt, AMCON must learn to be creative in its approach.

    She said: “To recover as much debts as possible within its defined lifespan, expediency is essential if AMCON is to achieve its value maximisation and financial stability goals.

    “Certainly, our court will be in a vantage position once the necessity surrounding the creation of AMCON, it’s revolutionary and unprecedented powers are appreciated by us,” she said.

    Justice Bulkachuwa advised AMCON and its lawyers to learn to imbibe the spirit of “ingenuity, proactivity, courage and dynamism” for them to accomplish the agency”s mandate.

    She said although her court was willing to assist AMCON succeed in its mandate, it would be helpless where the agency exhibits incompetence in the presentation and handling of its cases.

    Justice Bulkachuwa said: ” I must hasten to caution that our courts are certainly helpless when confronted with the incompetent and discouraging performance of some of your lawyers.

    “In fact, in some case, it is sad that an otherwise good case may be jeopardised by incompetent handling from even the court of first instance,” she said.

    Former Chief Judge of the Federal High Court, Justice Ibrahim Auta said the must has the patriotic responsibility to preserve the nation’s economy by ensuring speedy determination of cases involving AMCON.

    Justice Mohammed Idris, who gave detailed review of AMCON’s establishment Act, said the law gave overwhelming and unusual powers to the agency because of the circumstance that informed its creation.

     

  • CBN, NEXIM approve release of N550b loan to non-oil exporters

    The Central Bank of Nigeria (CBN) and Nigeria Export-Import Bank (NEXIM Bank) have approved the release of N550 billion loan to non-oil exporters.

    The loan will come at nine per cent interest rate and is expected to help the investors export more commodities, earn more foreign exchange from export proceeds and strengthen the economy.

    Central Bank Governor Godwin Emefiele said N500 billion of the fund is from the Export Stimulation Facility while the balance of N50 billion is provided by the Nigeria Export-Import Bank (NEXIM Bank) Direct Intervention Fund.

    He spoke after a meeting with non-oil exporters, producers and processors in Lagos, Friday night.

    The framework for the disbursement of the fund, he said, would be released in the next one week by NEXIM Bank and the CBN Development Finance Department.

    Emefiele said that exporters will send in their request and when they get the fund, their operations will be monitored to ensure there is no undocumented export.

    He said that funding remains a major problem that every business faces and funding at concessionary pricing will help them carry out more export volumes.

    The CBN boss said that in the last two years, the country’s revenue has dropped significantly prompting the CBN and the Federal Government to consider revenue sources outside crude oil to boost its foreign exchange earnings.

    The scheme will be driven by Produce, Add Value and Export (PAVE) principles. He said the CBN engaged exporters and identified various products in the non-oil sector- cocoa, cashew nuts, palm produce, sesame seeds, solid minerals and rubber to benefit.

    “In order to create jobs for our people, there is a need for us to advance further to value addition and begin to talk about processing of exportable items like rather than export raw cashew, we are thinking of exporting processed cashew. Rather than export raw cocoa, we are thinking of giving support to companies that process cocoa to cocoa butter and cakes and all that,” he said.

    “All transactions that will be done and that will receive funding from the CBN will be for documented export transactions and we are also saying that before those facilities are provided to them, these exporters will commit through their banks.”

  • Gov. Fayose approves N200m car loan for 645 workers

    Gov. Ayo Fayose of Ekiti on Thursday approved the disbursement of over N200 million as car loan to 645 workers in the state’s service.

    The State Commissioner for Finance, Chief Toyin Ojo, said that the loans would be disbursed to beneficiaries in sums ranging from N80,000 to N1.5 million.

    According to Ojo, the amount accruing to each individual depends on their status and grade level.

    “I just want to affirm the commitment of this administration to the welfare of workers.

    “As we speak, since the inception of this administration, N896.8 million has been given out as car loans to 2,942 workers in the state not counting the just disbursed loans.

    “Also, 2,165 workers have received N490,730,000 as housing loans during the same period.

    “It must be noted that government’s gesture is in spite of the paucity of funds in the state occasioned by the general economic downturn and dwindling allocation from the federation account,’’ the commissioner said in a statement.

    He advised the loan beneficiaries to make the most use of it, and cautioned them against spending the loan on items that would not add value to their lives.

    Ojo solicited the continued support of workers for government’s efforts to improve their lot and develop the state.

    The commissioner said that the state’s workforce was the engine-room of government.

    He stressed that it would be difficult for the government to achieve its set goals without the workers’ support and dedication to duties.