Tag: World Bank

Debt Burdens: Your report on Nigeria, others wrong, misleading, AfDB fires back at World Bank

The African Development Bank (AfDB) has clarified the debts incurred by Africa and explained that the World Bank, with a more substantial balance sheet, had significantly larger operations in Africa than the AfDB.

AfDB made this known in a statement by its Communication and External Relations Department on Thursday.

According to the bank, the World Bank’s operations approved for Africa in the 2018 fiscal year amounted to 20.2 billion dollars compared to 10.1 billion dollars by AfDB.

“With regard to Nigeria and South Africa, the World Bank’s outstanding loans for the 2018 fiscal year to both countries stood at 8.3 billion dollars and 2.4 billion dollars, respectively.

“In contrast, the outstanding amounts for the AfDB Group to Nigeria and South Africa were 2.1 billion dollars and 2.0 billion dollars, respectively, for the same fiscal year,” it said.

The bank was reacting to a report credited to the World Bank’s President, David Malpass, who said Multilateral Development Banks, including the AfDB, had a tendency to lend too quickly and in the process, add to the continent’s debt problems.

The AfDB faulted the claim and described it as misleading, inaccurate and not fact-based.

The bank noted that such report undermines its integrity and governance systems, and by incorrectly insinuated that it operated under different standards from the World Bank.

It stated that such notion went against the spirit of multilateralism and collaborative work between the banks.

“For the record, the AfDB maintains a very high global standard of transparency. In the 2018 Publish What You Fund report, our institution was ranked the 4th most transparent institution, globally.

“The Bank provides a strong governance programme for our regional member countries that focuses on public financial management, better and transparent natural resources management, sustainable and transparent debt management and domestic resource mobilisation.

“We have spearheaded the issuance of local currency financing to several countries to mitigate the impacts of foreign exchange risks while supporting countries to improve tax collection and tax administration.

“As well as leveraging pension funds and sovereign wealth funds to direct more monies into financing development programmes, especially infrastructure.

“The AfDB Legal Support Facility (ALSF) supports countries to negotiate terms of their royalties and taxes to international companies, and terms of their non-concessional loans to some bilateral financiers. We have been highly successful in doing so,” it explained.

The bank said its 2020 African Economic Outlook, at the end of June 2019, put total public debt in Nigeria amounted to 83.9 billion, 14.6 percent higher than the year before.

It stated that the debt represented 20.1 percent of GDP, up from 17.5 percent in 2018.

It added that of the total public debt, domestic public debt amounted to 56.7 billion dollars while external public debt was 27.2 billion dollars which represented 32.4 percent of total public debt.

The bank disclosed that South Africa’s national government debt was estimated at 55.6 percent of GDP in 2019, up from 52.7 percent in 2018.

The AfDB noted that South Africa raised most of its funding domestically, with external public debt accounting for only 6.3 percent of the country’s GDP.

The Bank reiterated its commitment to continue to play critical roles in development efforts and in the aspirations of developing countries, most especially in Africa.

February 14, 2020
AfDB, Others Worsening Nigeria’s Debt Burden – World Bank

The World Bank Group and the International Monetary Fund (IMF) have warned Nigeria, South Africa and other low-income nations to be careful with activities of the International Financial Institutions (IFIs) such as the African Development Bank (AfDB), Asian Development Bank, the European Bank for Reconstruction and Development and others because these international lenders are adding to their heavy debt profiles.

Speaking at at a World Bank-IMF Debt Forum on Monday in Washington DC, president of the World Bank, Mr David Malpass, noted that these development banks and IFIs were further worsening already-challenging debt situations.

“We have a situation where other international financial institutions and to some extent development finance institutions as a whole, certainly the official export credit agencies, have a tendency to lend too quickly and to add to the debt problem of the countries,” Mr Malpass said.

He said, “In Pakistan, the Asian Development Bank is pushing billions of dollars into a fiscally challenging situation.

“In the case of Africa, the African Development Bank is pushing large amounts of money into Nigeria, South Africa and others without the strongest program to sustain it and push it forward.

“In Kazakhstan, the EBRD is pushing forward with loans where lots of work is put in by other institutions and then the lower interest-rate investment is made.

“And so, we have a very real problem of the IFIs themselves adding to the debt burden. And there’s pressure then, I think, on IMF to sort through it and look at the best interest for the country.”

Recall that according to the latest figures by the Debt Management Office (DMO), as at September 2019, the total debt profile of Nigeria stood at N26.2 trillion, with Total External Debt at N8.3 trillion while the Total Domestic Debt was at N17.9 trillion.

To remedy this, the World Bank, through its fund for the poorest countries, the International Development Association, said it would be implementing a new set of lending rules on July 1, 2020 as it unlocks a new round of funding expected to make some $85 billion in loans and grants available.

According to Mr Malpass, these are aimed at setting new standards for transparency and require coordination with other multilateral lenders working with the same country.

During the event, the IMF Managing Director, Ms Kristalina Georgieva, warned that the interest cost derived by high volume of debt may take away precious resources from people in low-income countries like Nigeria.

“Why I worry so much about debt in low-income countries, because what it means is that if it is not proper managed, interest rates, often high, takes away precious resources from education and health and infrastructure investments,” she said.

The IMF and World Bank are both worried that lack of transparency could make the debt risk a bigger problem in the world.

February 13, 2020
World Bank, AfDB, others no longer willing to approve loan requests from Nigeria – FG

…Says only China responsive

Multilateral lending institutions including the World Bank and the African Development Bank (AfDB) are no longer willing to grant credit facilities to Nigeria, the Federal Government said on Tuesday.

It said that informed its decision to approach China for the bulk of the external loans.

Minister of Finance Budget and Planning Mrs. Zainab Ahmed the Federal Government resolved to borrow $17 billion from the China-Exim Bank as part of its external borrowing plan.

She appeared before the Senate Committee on Local and Foreign Debts to defend President Muhammadu Buhari’s administration decision to borrow $29.96 billion to execute critical infrastructure projects across the country.

With her were: Ministers of Information and Culture (Lai Mohammed); Federal Capital Territory (Mohammed Bello); Works and Housing (Babatunde Fashola); Minister of State for Transportation (Senator Gbemisola Saraki).

Mrs. Ahmed explained that the Eight National Assembly had approved about $6 billion out of the $29.96 billion loan, leaving a balance of $22.718 billion.

The minister told the committee that the federal and some state governments are jointly requesting the loans from various international lending institutions.

She said that a larger part of the loan (about $17 billion) would come from the China-Exim Bank while others would come from Islamic Development Bank and other lending institutions.

The senator representing Niger South Zone, Birma Enagi, had expressed worry at the level of loans being sought from China alone, which he put at $17 billion, representing 70 per cent of the $22.718 billion of the Federal Government’s external loan request.

But Mrs. Ahmed explained: “Of the $22.718 billion, $17 billion is indeed from the China-Exim Bank. I can tell you that in 2016 when we went into recession, we went out to borrow to be able to fund even the National Budget.

“So, we went to the World Bank and made a request and the World Bank jointly with the AfDB, I think it was $2.6 billion.

“After a while, the African Development Bank came through with $600 million within six months and I think about a year and a half later the World Bank came in with $400 million.

“So, there is a question of response. It is not that we don’t ask from other institutions, but the question is which ones are able to offer us what we are trying to raise.

“For China-Exim Bank, why it is so large is because most of our rail projects are funded by the China-Exim Bank and they are the largest component of this borrowing plan.

“We would have wished to borrow from other multilateral institutions, but when we make a request and you are not getting response, you go to the ones that are more amenable and that respond positively and more timely.”

Assuring that the funds would be channeled to the provision of infrastructure that will boost the economy, the minister.

Project to fund

She said: “Other projects are in the health care and education. It also included projects for the rehabilitation of the Northeast geopolitical zone.

“Others are the Mambila Hydro Power project ($4.9 billion); Lagos-Kano modernisation project ($4.1 billion); Development Finance project loan being provided by a consortium of World Bank and African Development Bank agencies ($1.28 billion).

“The facilities will support the setting up of the Development Bank of Nigeria through some development finance institutions in Nigeria to provide funds for small and medium size enterprises.

“This will make access to finance to SMEs easier, help them to grow and help more Nigerians to come out of poverty line.

“Above all, the loan would help us to improve our electricity supply, reduce poverty, create jobs, ensure access to finance, agricultural productivity, guarantee food security, achieve high school enrolment, provision of clean potable water, rehabilitation of major roads and development of the mining industry.”

On why Nigeria is seeking 70 per cent of the foreign loan from China, the minister said: “It is meant to make funds available to our own development institutions so that they can give out loans because access to finance has been difficult for the SMEs.”

On the debt profile, the minister said: “The 2016 – 2018 external borrowing plan is for the federal and the state governments. So, some states would be responsible for the repayment of some of the loans.”

On the sustainability of the nation’s debt portfolio, Mrs. Ahmed noted the current debt portfolio ceiling as set by the Fiscal Responsibility Act is 25 per cent of total debt to GDP.

“The ratio for December 2018 is 19.09 per cent, but it reduced to 18.9 per cent by the middle of 2019,” she explained, adding: “The debt service to revenue ratio is, however, high and it provides us strong justification for us to drive our revenue. For 2017, the ratio was 57 per cent and 51 per cent in 2018.

“Our debt level is low compared to other countries. For instance, the USA, United Kingdom and Canada has debt rate to GDP ratio of 105 per cent while their debt to revenue service is 12.5 per cent.”

Bello said that the $470 million being requested for would be used to fund water and rail projects in the capital city.

Fashola, Senator Gbemisola Saraki and Mohammed also gave the breakdown of their ministries component of the loan.

Kaduna defends loan

Also on Tuesday, the Chief of Staff to the Kaduna State Governor, Mohammed Abdullahi, defended the state’s $305 million external loan request.

Abdullahi said: “The loan is specifically designed to fund capital projects with socio-economic impact on Kaduna State and its residents in line with the state development plan. This is reflected from the budgetary provisions, where 22.13 per cent is allocated to the Ministry of Works, Housing and transport; 12.57 per cent is allocated to the Ministry of Education, Science and Technology; 8.71 per cent is allocated to the ministry of rural and community development; 8.36 per cent is allocated to the Kaduna Geographical Information Service (KADGIS); while the rest is distributed amongst other MDAs.”

On the sustainability of the state’s debt and ability to repay, Abdullahi said: “Based on the economic indices, Kaduna state can comfortably repay the loan.

“The state average monthly FAAC allocation for the preceding twelve months is N3.295 billion while our current monthly debt service is N467.12 million.

“Also, the monthly debt service forecast on the FGN Budget support facility of N4.169 billion with a moratorium of 18 months and World Bank loan of $350 million with a moratorium of 10 years are N191.767 million and N98.843 million respectively.

“If the state was to repay all loans today, the total monthly debts service would be N757.735 million representing 23 per cent of total deductions as a percentage of total allocations.

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

A representative of the Katsina State Government said the state also plans to borrow $100 million from the Islamic Development Bank.

He said the state would enjoy between 20 to 50 per cent grants and that projects to be executed would cover the entire local government areas of the state.

Besides, he said that the loan was interest free.

The Kogi State Government, represented by the Commissioner for Finance, Budget and Planning, Ashiru Idris, said the $100 million being requested by state was would be used to develop agricultural in the Staple Crop Processing Zone of the State.

February 5, 2020
World Bank predicts Nigeria, others economic outlook for 2020

Nigeria’s economy will grow by 2.1 per cent for three consecutive years covering 2020, 2021 and 2023, the World Bank has predicted.

The report which also showed that Kenya would record six per cent growth during the same period; puts global economic growth at 2.5 per cent.

The predictions are contained in World Bank’s January 2020 Global Economic Prospects released on Wednesday.

The report, however, described the country’s macroeconomic framework as not “conducive to confidence.”

According to the Bretton Woods Institution, the macroeconomic framework is characterised by multiple exchange rates, foreign exchange restrictions and persistent inflation.

For sub-Saharan Africa, regional growth is expected to peak at 2.9 per cent in 2020, assuming investor confidence improves in some large economies, energy bottlenecks ease, a pickup in oil production contributes to recovery in oil exporters and robust growth continues among agricultural commodity exporters.

The forecast is weaker than previously expected reflecting softer demand from key trading partners, lower commodity prices, and adverse domestic developments in several countries.

The bank pegged global economic growth at 2.5 per cent in 2020 as investment and trade gradually recover from last year’s significant weakness but downward risks persist.

It said growth among advanced economies as a group is anticipated to slip to 1.4 per cent in 2020 in part due to continued softness in manufacturing while growth in emerging markets and developing economies is expected to accelerate this year to 4.1 per cent.

World Bank Group Vice President for Equitable Growth, Finance and Institutions, Ceyla Pazarbasioglu, advised that with growth in emerging and developing economies likely to remain slow, policymakers should seize the opportunity to undertake structural reforms that boost broad-based growth, which is essential to poverty reduction.

”Steps to improve the business climate, the rule of law, debt management, and productivity can help achieve sustained growth,” Pazarbasioglu said.

World Bank Prospects Group Director Ayhan Kose, said low global interest rates provide only a precarious protection against financial crises,”

“The history of past waves of debt accumulation shows that these waves tend to have unhappy endings. In a fragile global environment, policy improvements are critical to minimize the risks associated with the current debt wave,” Kose added.

According to the report, in South Africa, growth is expected to pick up to 0.9 per cent, assuming the new administration’s reform agenda gathers pace, policy uncertainty wanes, and investment gradually recovers.

Growth in Angola is anticipated to accelerate to 1.5 per cent, assuming that ongoing reforms provide greater macroeconomic stability, improve the business environment, and bolster private investment.

In the West African Economic and Monetary Union, growth is expected to hold steady at 6.4 per cent.

In Kenya, growth is seen edging up to six per cent.

The report said economic recovery in Sub-Saharan Africa lost momentum, with growth in 2019 estimated to have moderated to 2.4 per cent. Intensifying global headwinds such as decelerating activity in major trading partners, elevated policy uncertainty, and falling commodity prices, have been compounded by domestic fragilities in several countries.

“In Angola, Nigeria, and South Africa — the three largest economies in the region — growth was subdued in 2019, remaining well below historical averages and contracting for a fifth consecutive year on a per capita basis,” it said.

Regional growth is expected to pick up to 2.9 per cent in 2020, assuming investor confidence improves in some large economies, energy bottlenecks ease, a pickup in oil production contributes to recovery in oil exporters and robust growth continues among agricultural commodity exporters.

In the West African Economic and Monetary Union, growth is expected to hold steady at 6.4 per cent.

Among the region’s exporters of agricultural commodities, sustained strong public infrastructure spending, combined with increased private sector activity in Madagascar, Rwanda, Uganda, or continued reforms to raise the productivity and competitiveness of export-oriented sectors, such as in Burkina Faso and Côte d’Ivoire, will continue to support output. In Kenya, growth is seen edging up to six per cent.

The World Bank said a sharper-than-expected deceleration in major trading partners such as China, the Euro Area, or the United States, would substantially lower export revenues and investment. A faster-than-expected slowdown in China would cause a sharp fall in commodity prices and, given Sub-Saharan Africa’s heavy reliance on extractive sectors for export and fiscal revenues, weigh heavily on regional activity.

A broad-based rise in government debt has led to sharp increases in interest burdens, crowding out non- interest expenditure and raising concerns about debt sustainability. Insecurity, conflicts, and insurgencies— particularly in the Sahel—would weigh on economic activity and food security in several economies.

Also, extreme weather events are becoming more frequent as climate changes, posing a significant downside risk to activity due to the disproportionate role played by agriculture in many economies in the region.

January 9, 2020
Nigeria, others’ external debts rise at slow pace – World Bank

The external debt stock of low and middle-income countries, such as Nigeria and many countries in sub-Saharan Africa, rose 5.2 per cent last year to $7.8 trillion, a slower pace of accumulation than in 2017, a World Bank report released at the weekend showed.

According to multi billionaire entrepreneur and lawyer, Dr Ned Nwoko, Nigeria’s external debt stood at $25.61 billion in the first quarter (Q1) of this year, The debt averaged $9.6 billion from 2008 to this year, reaching an all-time high of $29.59 billion in Q3 of last year.

The global bank’s International Debt Statistics (IDS) 2020 said excluding the top 10 borrowers (Argentina, Brazil, China, India, Indonesia, Mexico, Russia, South Africa, Thailand, Turkey) external debt stocks for low- and middle-income countries rose four per cent.

Net debt inflows (gross disbursements minus principal payments) to low- and middle-income countries fell 28per cent last year to $529 billion. At the same time, net financial flows (including both debt and equity) to low- and middle-income countries fell 19 per cent last year down 29 per cent excluding China.

IDS 2020 provides users with a summary of the key developments in external debt and other financial flows to those countries and highlights factors driving yearly changes in the data. This year’s report contains new features aimed at improving access to the underlying data.

The debt indicators suggest that debt burdens may be contributing to economic vulnerabilities.

For example, while the average external debt-to-gross national income (GNI) ratio of low- and middle-income countries held steady at a moderate at 26 per cent, excluding China, which has low external debt relative to GNI (14per cent), the debt-to-GNI ratio of low- and middle-income countries averaged almost 35per cent.

Also, again setting aside China, which has low external debt relative to exports (68per cent), the ratio of debt to exports among low- and middle-income countries was 120 per cent.

Further, there are more countries with higher debt-to-GNI levels. Since 2009, a smaller share of low- and middle-income countries have debt-to-GNI ratios below 30per cent (down to 25 per cent of countries last year from 42 per cent of countries). And over the last 10 years, the proportion of countries with debt-to-GNI rations above 60 per cent has risen to 30 per cent and the share of countries with debt-to-GNI ratios above 100per cent has risen to nine per cent.

Another message from the data is that a slowdown in new borrowing underscores investors’ concerns about debt sustainability in some of the countries that are eligible to borrow from the International Development Association (IDA), the World Bank’s fund for the poorest countries.

October 7, 2019
World Bank announces appointment of new Country Director for Nigeria

The World Bank has appointed Mr. Shubham Chaudhuri as the new Country Director for Nigeria, succeeding Mr. Rachid Benmessaoud who completed his term recently.

A statement issued by the World Bank’s Senior Communications Officer, Nigeria, on Wednesday in Abuja, said Chaudhuri assumed office on Tuesday.

It said that Chaudhuri, a U.S. national who grew up in India, joined the World Bank in 2004 and has held several leadership positions at the Bank, with his most recent position being Country Director for Afghanistan.

Chaudhuri said it was an honour to be in Nigeria and have the opportunity to help government partners, at the Federal and state levels, realize Nigeria’s full and considerable potential.

This, he said, the bank was doing by transforming the economy, catalyzing private investment and job creation, investing in Nigeria’s children and creating opportunities for Nigeria’s youth and women.

“The World Bank Group has a long-standing partnership with Nigeria and I look forward to deepening our engagement with government partners, with Nigeria’s very vibrant civil society and private sector and with international development partners to help lift millions of Nigerians out of poverty.”

In his new position, Chaudhuri’s top priorities would be to lead the strategic dialogue with government, development partners and other key stakeholders.

He would also help to develop and implement the new Country Partnership Framework and provide customized solutions and policy advice to Nigeria.

According to the statement, in the past, Chaudhuri had been Practice Manager in the Macroeconomics and Fiscal Management Global Practice for the South Asia Region.

He also held the position of Manager of the World Bank’s Poverty Reduction and Economic Management Department for East Asia and the Pacific and Lead Economist for Indonesia.

As a lead economist for Indonesia, Chaudhuri was responsible for leading the overall economic policy dialogue, advisory and development policy lending work in Indonesia.

He managed the Jakarta-based economic team, which works closely with partners in government and in the development community to further Indonesia’s development agenda.

Prior to relocating to Jakarta in early 2008, he worked primarily on China and on East Asia regional policy issues.

Before joining the Bank, Chaudhuri spent a decade as an Economics professor and Director of the Programme in Economic and Political Development at Columbia University in New York.

Chaudhuri obtained his bachelor’s degree from Harvard University and his Ph.D. from Princeton University, both in economics, the statement added.

October 2, 2019
Nigeria makes World Bank’s list of top-20 ‘improvers in doing business’

The World Bank Doing Business (DB) team has announced Nigeria as one of the top-20 improvers in doing business out of 190 countries.

Dr Jumoke Oduwole, Special Adviser to the President, Ease of Doing Business, disclosed this a statement on Friday in Abuja.

She said that the announcement came ahead of the Oct. 24 release of the 2020 World Bank Doing Business rankings.

Oduwole said that the World Bank Doing Business Report was an objective assessment of prevailing business environments based on a number of ease of doing business indicators.

According to her, in Nigeria, the report assesses doing business conditions in the two largest commercial cities of Lagos and Kano.

“The World Bank’s announcement acknowledges reforms spearheaded by the Presidential Enabling Business Environment Council (PEBEC) in the areas of operationalising a new electronic platform that integrates the tax authority and the Corporate Affairs Commission (CAC).

“It also acknowledges reforms carried out in some of the World Bank Doing Business indicator areas such as starting a business, registering property, getting construction permits, getting electricity, enforcing contracts, and trading across borders.

“The CAC also upgraded its name reservation platform and, in Kano, there is now an electronic platform for registering business premises online, eliminating the need to appear in person.

“In Lagos, land administration was made more transparent following the digitisation of cadastral plans in a geographic information system; digital copies of cadastral plans are now easily obtainable.

” Nigeria also made getting electricity easier by allowing certified engineers to conduct inspections for new connections. Initiatives also made commercial litigation of smaller cases more efficient.

“The Chief Judges in Lagos and Kano issued practice directions for small claims courts introducing pre-trial conferences and limit adjournments.

“ Finally, customs integrated more agencies into its electronic data interchange system, and port authorities launched an e-payment system, speeding up both exports and imports.”

She said that over the past three years, Nigeria’s score had steadily improved in the World Bank Doing Business Report, after years of decline in both score and ranking in the years preceding 2016.

Oduwole, who is also PEBEC Secretary, said that in 2017, Nigeria moved up by an unprecedented 24 places on the Doing Business rankings.

The presidential aide said that for the first ever, Nigeria was also recognised as one of the top 10 reformers in the area of doing business that year.

Oduwole, said that the recognition being given to Nigeria was one of the top 20 most improved countries, who had implemented the most reforms in 2019 was significant.

According to her, the validation confirms that PEBEC’s strategy is working and it will continue to push even harder.

“These improvements in the standing of Nigeria trail the reform agenda being implemented at national and sub-national levels across the country since the establishment of PEBEC by President Muhammadu Buhari in July, 2016.

“The PEBEC works towards the fulfilment of the projections of the Economic Recovery and Growth Plan (ERGP 2017-2020), which is striving to deliver sustainable economic growth in Nigeria by restoring growth, investing in our people, and building a competitive economy.

“PEBEC, through the Enabling Business Environment Secretariat, has carried out over 140 reforms so far in a bid to remove bureaucratic constraints to doing business in Nigeria and make the country a progressively easier place to start and grow a business.

“With the impending ratification of the Companies and Allied Matters Bill and the introduction of the Business Facilitation (Omnibus) Bill, 2019 in view, along with other pending regulatory, judicial and sub-national reforms, Nigeria is poised to meet its goal of being a top 100 ranked economy by 2020.

“The announcement indicates that our goal of moving into the top 70 doing business destinations by 2023 remains achievable,” she said.

September 28, 2019
Nigeria approaches World Bank for $2.5bn loan

Chairman of the Nigeria Governors’ Forum and Governor of Ekiti State, Dr Kayode Fayemi, has assured the Federal Government that the governors were prepared to pay back what their various states were owing it, if and when accounts were reconciled.

Fayemi announced this while reading the communiqué of the forum meeting held on Wednesday night in Abuja.

He was reacting to the Federal Government’s resolution to recover N614 billion loan facility from 35 states of the federation, saying that they were ready to pay but that there should be a reconciliation of accounts.

According to him, “If you borrow, you pay. We are never averse to payment of loans under legal environment and we don’t want a situation that will put our financial system in jeopardy.

“However, governors believe that we are ready to pay, we also have a duty to ensure a reconciliation of account as far as monies owed to states may be concerned.”

He lamented that “It is a storm in a teacup when we read about governors refusing to pay. We don’t have such an issue, we are ready to pay.”

Earlier, Minister of Finance, Budget and National Planning Zainab Ahmed had said that the Federal Government had resolved to recover N614 billion loan facility from 35 states of the federation.

The minister revealed this when she briefed State House correspondents on the meeting of the National Economic Council (NEC), presided by Vice President Yemi Osinbajo, at the State House, Abuja.

Mrs Ahmed said that each of the affected 35 states received N17.5 billion as bailout from the federal government.

She said that the council had already agreed to constitute a team to finalise modalities for commencement of repayment of the loan facility.

Fayemi also said that the forum received a presentation from Nigeria Meteorological Agency (NiMet), advising that the country should expect above-average rainfall which had already caused severe flooding in several states.

He added that the forum also received briefing on meeting with President Muhammadu Buhari and from the Inspector-General of Police “on the unlawful invasion” of some governors’ residences.

He regarded the incident as a direct violation of the immunity of the governors.

On World bank assisted programmes, he said “The forum received a briefing on the status of the world bank assisted State Fiscal Transparency, Accountability and Sustainability Programme (SFTAS).

“The team from the World Bank assured the forum that all assessments now imply that states have improved in transparency ratings over the last quarter,”he said.

Fayemi said that the forum also received the new Country Director of the World Bank, Shubham Chaudhuri, whose tour of duty would begin on October 1.

September 19, 2019
World Bank earmarks $350m for water supply, sanitation in Nigeria

The World Bank has said it earmarked $350 million to increase access to water, sanitation and hygiene services in rural communities and towns across Nigeria.

The bank said this is aside the $250 million it was spending on the Third Urban Water Sector Reform Project aimed at increasing access to pipe-borne water supply schemes in urban areas.

World Bank’s Country Director Rachid Benmessaoud spoke in Abuja, the nation’s capital, at the first national stakeholders’ consultation workshop on Nigeria’s rural WASH project hosted by the Minister of Water Resources, Suleiman Adamu.

The World Bank chief, who said Nigeria had made little progress in combating poverty due to its low human capital, added that low access to WASH services was a major reason for the poor performance.

He said: “Nigeria has made little progress in combating poverty due to its low human capital, even in comparisons to its regional peers. Low access to water supply, sanitation and hygiene (WASH) services is a major reason for this poor performance.

“A lack of WASH services leads to high infant mortality, takes away rights that are life-long held and reduces educational attainment, some of which in turn diminish laid down productivity.

“Since the launch of the WASH Poverty Diagnostics, our team has provided continued support to the ministry in the development and the implementation of the action plan.

“The $250 million third urban water sector reform project represents our latest engagement in the urban water sector. A partnership that has now spanned over 50 years to increase access to pipe-borne water supply services while increasing the investment money capacity of the participating states and improving the financial viability of the service providers.”

September 16, 2019
World Bank to invest $350m in Nigeria – Minister

Federal Government says World Bank will invest 350 million dollars to support the Partnership of Expanded Water, Sanitation and Hygiene (PEWASH) programme in Nigeria.

Mr Sulieman Adamu, the Minister of Water Resources said this at the National Stakeholders’ Consultation workshop on Nigeria Rural WASH Project on Thursday in Abuja.

“The World Bank has graciously considered our request and preparing a project in support of the PEWASH programme in the country.

“This is with an investment worth 350 million dollars to deliver sustainable and safe water and sanitation to millions of Nigerians and to support our efforts to end open defecation.

“I sincerely thank the Work Bank for this effort and hope this will open the gate for more supports from our esteemed development,‘’ he said.

Adamu said that the consultation workshop was also aimed at discussing modalities for the implementation of the propose Nigeria Sustainable Rural Water Supply and Sanitation Project to be supported by the World Bank.

He said the workshop was to review and fashion out modalities necessary for the taking off and the full implementation of the project.

The minister however said that states were expected to meet certain criteria to be qualified and to be ready to receive the support of the proposed project.

He said that these criteria were not anything new, rather the same requirements were necessary for adequate preparation and smooth implementation of the project.

“Mr President during inauguration of the National Action Plan for the Revitalisation of the WASH Sector in November 2018 directed that Federal Government support to state governments would be contingent upon their willingness to implement the National Action Plan.

“State governments must therefore be ready to make both political and financial commitment that will be needed for the project being prepare with the World Bank, ’’he said.

The minister while unveiling a report on the “Nigeria Rural WASH Services Access and Sustainability Report’’ said the report provides an assessment of the current rate of WASH services in the country.

He said that the reported had evaluated some of the basic drivers underpinning rates and undertook a comprehensive review of the various modalities of WASH provision in the rural Nigeria, among others.

Adamu therefore reiterated commitment to the Clean Nigeria, Use the Toilet campaign to stop open defecation in the country by 2025.

Mr Rachid Benmessaoud, the World Bank’s representative said that low access to water supply, sanitation and hygiene services (WASH) was a major reason for this poor performance.

“Lack of WASH services has led to high infant mortality, deteriorates lifelong health and reduces educational attainment that has in turn diminished labour productivity.

“The World Bank is proud to offer continued support as you embark on implementing the National Action Plan for the Revitalisation of Nigeria’s WASH sector.

“That is why this year, at the request of your government, our team has begun preparing a new 350 million dollars lending operation in support of rural communities and small towns,’’ he said.

He said that the project seeks to increase access to water, sanitation and hygiene services and strengthen capacity for service delivery.

Benmessaoud said that with the collaboration of all in the implementation of the Action Plan, the federal, state and local governments, development partners, stakeholders, Nigeria “ can make the impossible possible’’.

Mrs Comfort Ekaro, the Permanent Secretary, Ministry of Water Resources said the workshop was to ensure participants have a common understanding on issues that would enhance the preparation and implementation of the project under consideration by the World Bank.

September 12, 2019