TheNewsGuru

Tag: World Bank

  • President Tinubu requests $800m loan to pay poor Nigerians N8,000 monthly

    President Tinubu requests $800m loan to pay poor Nigerians N8,000 monthly

    President Bola Tinubu has sought the approval of the Senate to obtain a loan of $800 million from the World Bank to finance the National Safety Net Programme of the Federal Government.

    The president’s request was contained in a letter read by the Senate President, Mr Godswill Akpabio, at plenary on Thursday.

    The letter is entitled: “Request for Approval of Additional Financing of the National Social Safety Net Programme Scale-up by the National Assembly”.

    It reads: “Please note that the Federal Executive Council, led by former President Muhammadu Buhari approved an additional loan facility to the tune of $800 million.

    “It is to be secured from the World Bank for the National Social Safety Net Programme.

    “The purpose of the facility is to expand coverage of shock responsive safety nets support for the poor and vulnerable Nigerians and to help them cope with the cost of meeting basic needs.

    “You may further wish to note that under the conditional cash transfer window of the programme, the Federal Government of Nigeria will transfer the sum of N8, 000 a month to 12 million poor and low-income people.

    “This is for a period of six months with a multiplier effect on about 60 million individuals.

    ‘In order to guarantee the credibility of the process, digital transfers will be made directly to beneficiaries’ accounts and mobile wallets.

    “It is expected that the programme will stimulate economic activity in the informal sector and improve nutrition, health and education outcomes for beneficiary households.

    “Given the above, I wish to invite the senate’s approval for the additional loan facility of $800 million to be secured from the World Bank for National Social Safety Net Programme.”

    Akpabio, thereafter, referred the matter to the Committee of the Whole in view of the fact that “we have not yet constituted all the other necessary organs of the senate.”

  • 55,000 Nigerians benefit from World Bank/FG APPEALS project, says Coordinator

    55,000 Nigerians benefit from World Bank/FG APPEALS project, says Coordinator

    The World Bank/Federal Government Agro-Processing, Productivity Enhancement and Livelihoods Improvement Support (APPEALS), Project, says the project has lifted over 55,000 Nigerians out of poverty.

    Mr Mohammed Jobdi, the National Project Coordinator of APPEALS disclosed this during the inspection of the level of implementation of the project in Enugu State on Saturday.

    The officials of World Bank, FG and APPEAL were among the team that visited the state.

    The team visited Poultry Processing Centre at Amechi Awkunanaw and Rice Mill Processing Center at Nara in Enugu South and Nkanu East council areas of Enugu state respectively.
    The coordinator said that the project started in 2017 Nigeria with the five components adding that more than 55,000 beneficiaries were supported.

    “I can categorically tell you that more than 55,000 beneficiaries have u been supported,” he said.
    He listed the beneficiaries to include farmers, producers, processors and marketers as well as youths and women whom they had empowered through capacity building.

    The national coordinator said the World Bank/ FG support project was being implemented in six states namely; Cross River, Enugu, Kaduna, Kano, Kogi and Lagos States.

    He however, disclosed that the project would come to closure by September.

    Jobdi said their mission in Enugu State was to access the level of implementation in different participating states which Enugu State was one of them.

    Jobdi who rated Enugu state high on project performance said, “We have visited two centres in Amechi and Nara and what we saw is encouraging and they assured us that necessary machine will be installedin two weeks for completion.

    “We have 15 number of aggregation and Cottage Centres with facilities that were proposed for Enugu State

    “Under the women and youth empowerment program, about 1,700 people had also been supported in each participating states in which five per cent of the physically challenged were trained because social inclusion is very important,” he said.

    The World Bank Task Team Leader, Dr Manieve Sene, said they were in Enugu state to get the beneficiaries’s success stories as well as their challenges and how to tackle them.

    Mrs Ihuoma Eze, the APPEALS Project Coordinator, Enugu State, while commending World Bank and FG for extending APPEALS project to Enugu State said the project had touched many lives.

    She explained that World Bank and FG had invested N350 million on APPEALS project in Enugu State to support farmers in the value chain of poultry, rice and cashew production.

    “We have 15 number aggregation and Cottage Centres in each senatorial zones of the state.
    “We have in Amechi Awkunanaw, Nara, 9th Mile, Udi, Orba, Ezeagu, Adani, Ehamufu and others,” she said.

    He thanked Gov. Peter Mbah for his support and pledge to sustain the project in the state.

    Some of the beneficiaries while thanking World Bank/ FG for the project, promised to maintain the centres and machine to ensure food production in Enugu S tate and Nigeria in general.

    Mrs Chinyere Iwundu, a member of Divine Cooperative, Amechi Awkwunaw said the project had empowered them and added value to their lives.

    “The facilities provided for us will enable us to store our farm produce and sell them later when the price is high,” she said.

     

  • Subsidy removal: Nigeria’s inflation expected to reach 25 per cent – World Bank

    Subsidy removal: Nigeria’s inflation expected to reach 25 per cent – World Bank

    As the fuel subsidy removal takes toll, the World Bank has predicted a significant rise in Nigeria’s inflation rate.

    The Washington-based bank revealed this in its June 2023 edition of the Nigeria Development Update.

    The bank predicts that the inflation rate will hit 25% in the coming months, attributing this surge to the adverse impact of fuel subsidy removal.

    This projection follows the recent increase in the pump price of petrol, soaring from N197 per litre to over 500 per litre after the removal of subsidies in June.

    The National Bureau of Statistics reports that Nigeria’s current inflation figure is 21.41%. However, the World Bank emphasises that this figure is expected to climb to 25% by 2023.

    Despite this alarming projection, the World Bank suggests a potential decrease in headline inflation during the first quarter of 2024. The removal of subsidy is anticipated to have a disinflationary effect, relieving inflationary pressures, despite the higher petrol prices.

    “Headline inflation is expected to rise from 18.8% in 2022 to 25% in 2023. However, by Q1 of 2024, the subsidy removal will start to have a disinflationary effect, alleviating inflationary pressures despite higher petrol prices. This is because the subsidy removal creates additional fiscal space and reduces reliance on financing from the CBN, curbing the growth of the money supply.”

    In light of these projections, the World Bank urges the Nigerian government to implement macro-fiscal policy measures that promote price stability and provide palliative measures to mitigate the impact of fuel subsidy removal.

    “To limit the risk of so-called second-round effects, where one-off price increases trigger more generalised inflation, including through wage-price spirals, it will be important to adopt macro-fiscal policy settings conducive to price stability,” the report said.

     

     

  • Subsidy removal: Over 7.1 million Nigerians may enter extreme poverty – World Bank warns

    Subsidy removal: Over 7.1 million Nigerians may enter extreme poverty – World Bank warns

    Following the removal of fuel subsidy, the World Bank has disclosed that over 7.1 million Nigerians may enter extreme poverty if the federal government fails to provide palliative measures.

    The World Bank disclosed this in its June 2023 edition of the Nigeria Development Update on Tuesday in Abuja.

    Recall that President Bola Tinubu introduced some economic policies, including fuel subsidy removal and foreign exchange window unification, resulting in a hike in the cost of transportation and prices of goods and services.

    The World Bank report on Nigeria Development Update noted that if no measures were implemented to cushion the rising 22.41 per cent inflation, insecure households will lose at least 5,700 income monthly.

    “The poor and economically insecure households will face an equivalent income loss of N5,700 per month, and without compensation, an additional 7.1 million people will be pushed into poverty”, the report stated.

    The World Bank warned that many newly poor and economically insecure households will likely resort to consequential coping mechanisms, such as “not sending children to school, or not going to the health facilities to seek preventative healthcare or cutting back on nutritious dietary choices.”

     

  • World Bank lauds Delta govt’s exemplary partnership

    World Bank lauds Delta govt’s exemplary partnership

    …extends program by extra 12months

    The World Bank on Tuesday hailed Delta State Government for its exemplary partnership in programme delivery.

    To this end, the world body has given Delta extra 12months extension to achieve its goals to indigent Deltans.

    The Bank’s NG-CARES Task Leader, Professor Foluso Okumadewa gave the commendation when he led a delegation of the Nigeria COVID-19 Action Recovery and Economic Stimulus Program on courtesy visit to Governor Sheriff Oborevwori at Government House, Asaba.

    He congratulated Governor Oborevwori and his deputy, Sir Monday Onyeme on their successful inauguration, adding that they were in the state for independent verification assessment to support the needs of the poor and vulnerable for those affected by COVID-19 in the state.

    “We express the congratulations of the World Bank for your election and inauguration as the governor of Delta state.

    “We thank the people of Delta state for the partnership with the World Bank, especially on this particular programme. I want to quickly express the appreciation of the Country’s Director of World Bank.

    “In the banks portfolio, Delta state represents one of the very high performing states and I am sure that members of your team who have been on this particular programme would probably have given you some good reports about the programme.

    “On this particular programme, I have come here to assist the state to look at their readiness for what we call the Independent Verification Assessment.

    “This programme, which is an emergency operation is an attempt to support the state to respond to the needs of the poor and vulnerable who have been affected, starting with the COVID crisis in the recent past.

    “That crisis did not only affect lives but also livelihood and at a point in time, the government of Nigeria and all the states agreed to put in place immediate palliative to support the poor and vulnerable.

    “Delta state has already effective platforms and systems that needed only to be supported with additional resources to be able to reach more people who have now been impacted by this crisis.

    “So it was very easy for Delta state to key into what we called the Covid Action Recovery and Economic Stimulus (CARES) programme,” he said.

    Responding, Governor Oborevwori thanked the World Bank for the sustainable partnership with the state, assuring that the state government would continue to show commitment to funding the program and urged the World Bank to extend more support to the state.

    He commended the World Bank for extending the program by 12 months, describing it as commendable.

    “I am always very happy when I have opportunity to interface with World Bank team and am also very happy that you have rated Delta state as high performing state.

    “Delta is always at the top in any thing that has to do with the people and we care for our people and we are committed to making lives of people better.

    “The team we have on ground is very firm, focused and articulate. They are hardworking and I have confidence that they will continue to do well.

    “We are also aware of the support we got in the time past and we are happy with that support. We want to request that more support is needed in the near future.

    “The rating is high for us and we promise to keep it up. I also want to thank you for the extension of the programme by twelve months. It is a commendable thing and we appreciate you for that.

    “We will continue to show more commitment in terms of finance and legal support. But we need more of your support at all time,” the Governor stated.

  • World Bank approves another $500 million loan for Nigeria

    World Bank approves another $500 million loan for Nigeria

    The World Bank has approved another $500 million loan for Nigeria to improve the livelihood of women in the country.

    According to the World Bank the loan will help to empower and improve the livelihood of the female gender in Nigeria.

    The approval for the $500 million loan for Nigeria was disclosed in a statement by the World Bank on Tuesday.

    The statement from World Bank reads, “The World Bank has approved $500 million for Nigeria for Women Program Scale Up (NFWP-SU). The scale-up financing will further support the government of Nigeria to invest in improving the livelihoods of women in Nigeria.

    “The NFWP-SU will help to ensure better economic opportunities for women which is essential for addressing gender inequality; guaranteeing better education, health, and nutrition outcomes for families; and building women’s and communities’ resilience to climate change.”

    According to the World Bank, women’s empowerment is essential to their ability to build resilience to climate change and, by extension, the resilience of their households and communities.

    It noted that by building assets, women can better respond to family needs and mitigate risks and the effects of climate and other shocks on livelihoods, adding that gender disparities in earnings hold back the Nigerian economy.

    Shubham Chaudhuri, World Bank Country Director for Nigeria, was quoted as saying, “We have seen promising outcomes from the parent NFWP which has helped to create economic opportunities for thousands of rural women through the Women Affinity Groups. NFWP’s model is helping to improve livelihood opportunities for women and enhancing their capacity to adapt to climate change and participating in local administrations for policymaking related to community empowerment.

    “closing the gender gap in key economic sectors could yield gains of between $9.3 billion and $22.9 billion, we are optimistic that this scale-up will help Nigeria to move closer to bridging this gap.”

    Task Team Leader for Nigeria for Women Project, Michael Ilesanmi, was also quoted as saying, “The Program aims to mobilize poor and vulnerable women into different institutions and, using these institutional platforms, link them to markets as well as financial and non-financial services. Through participation in Women Affinity Groups, project beneficiaries build social capital that can then be leveraged to access financial, political, and economic capital–thus leading to both social and economic empowerment.”

    The statement further noted that the NFWP has been implemented in six states and provides support to over 427,887 WAG members through the formation and strengthening of 20,506 of these groups.

    It added that in about two years, these WAGs have saved about NGN 4 billion ($8.9 million equivalent) with a significant percentage of these funds in circulation as loans at any given time. So far, 835,573 community members have benefited from the NFWP through different interventions.

  • Southern, Middle Belt leaders call on Buhari to rescind decision to request for $800m loan

    Southern, Middle Belt leaders call on Buhari to rescind decision to request for $800m loan

    The Southern and Middle Belt Leaders Forum (SMBLF) has appealed to President Muhammadu Buhari to rescind his decision to request for the approval of $800 million loan from World Bank.

    Recall that just few days to leaving office, president Buhari wrote to the  Senate and House of Representatives to approve the loan request to finance the National Social Safety Network Programme.

    However, in their reaction, the Southern and Middle Belt Leaders said in a communiqué issued at the end of its meeting held in Abuja on Wednesday that the country’s indebtedness has reached the skies.

    The meeting, chaired by elder statesman

    One of the leaders, Edwin Clark, deliberated on the present state of affairs in Nigeria, especially the renewed siege of insecurity around the country, the ongoing post-election judicial process in the various tribunals and the national economy.

    The SMBLF restated “its time-tested position that the future of Nigeria can only be sustained on the basis of true federalism and respect for the autonomy of the federating units.

    “Expresses shock at the escalation of killings, pogroms, total destruction of entire communities and means of livelihood in several targeted areas in select states since after the 2023 General elections, mainly in Plateau, Benue, Nasarawa, Taraba, Southern Kaduna, Kebbi, and various states of the South East, where hundreds of armless citizens are being slaughtered daily.

    “Notes with grave concern that the nation’s security agencies have continued to show unwillingness to decisively deal with the perpetrators of these monstrous acts, or rather, deliberately turned a blind eye to the atrocious occurrences, thereby exposing the country to a seeming state of war. It is shameful that non-state actors are allowed to openly tote dangerous weapons about and rampage the country unhindered.

    “Condemns, in unmistakable terms, the cavalier and totally nonchalant attitudes of the outgoing governors of some states over the collapse of security in certain parts of their states, which has continued to exacerbate the worrisome situation, and hopes their successors will show greater commitment to the welfare of their citizens who are the victims of this sad situation.

    “Further warns that the continuous abdication of Government’s primary and abiding constitutional responsibility of safeguarding the lives and properties of its citizens is an irresistible signal to Nigerians to exercise their inalienable rights of self-defence, by all means.

    “Again deplores the inhuman plight of thousands of indigenous people in the Middle Belt states driven out of their homes and have now become Internally Displaced Persons (IDPs) for years as well as several other Internally Displaced Persons in different parts of the country, left to live in conditions that impinge on their human rights as citizens of this country. Hence, calls on the Federal Government to, without any further delay, facilitate the return and reintegration of these Nigerians to their Communities.”

    Meanwhile, the Southern and Middle Belt leaders praised Nigerian youths for their courage and astuteness in expressing their interest in the future of this country and called on them not to become discouraged by some of the seeming outcomes.

    Southern, Middle BeltThe communiqué reads, “SMBLF strongly urges the Nation’s Judiciary to be aware that all Nigerians are watching with very keen interest the ongoing judicial processes at the Presidential Election Petition Tribunal as well as various election tribunals across the country.

  • FG denies seeking another $800m World Bank loan

    FG denies seeking another $800m World Bank loan

    The federal government has said that it was not seeking another $800 million loan from the World Bank to cushion the impact of the impending removal of petroleum subsidy.

    This was disclosed by the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, in a statement on Saturday.

    She said, her attention had been drawn to media reports suggesting that the federal government was seeking new loans to cushion the effect of the pending fuel subsidy removal, saying that the report was false.

    Recall that President Muhammadu Buhari had requested “the Senate to kindly approve an ‘additional’ loan facility to the tune of USD800 million to be secured from the World Bank for the National Social Safety Net Programme”.

    This triggered controversy from many Nigerians who interpreted the request to mean a fresh $800 million, different from the one already reportedly secured by the administration.

    The finance minister had at the end of the Federal Executive Council (FEC) meeting on April 5, 2023 announced that Nigeria had already secured $800 million from the World Bank to help provide palliatives to about 50 million poor Nigerians in the aftermath of fuel subsidy removal.

    But in the statement titled “Nigeria Seeks No New World Bank Loan-Ahmed,” and issued by her Special Adviser, Media and Communications, Yunusa Tanko Abdullahi said the $800 million in question was the same one secured from the World Bank recently.”

    According to the statement, “The news story is not correct. This is the same loan that the Honourable Minister had explained on several occasions that the $800 million facility the country recently got from the World Bank for post-petrol subsidy removal palliative was awaiting parliamentary approval for the federal government to commence disbursement.

    “The government is therefore not seeking another loan for the pending fuel subsidy removal. It is one and the same.

    “It will be recalled that the facility would be deployed to provide succor to 10 million households, who are expected to get N5,000 each for a period of six months.

    “The minister had explained that the initial duration of the palliatives meant to cushion the effects of the planned subsidy removal on vulnerable Nigerians was for six months, but would be reviewed upon extensive consultation with stakeholders.”

    The statement also quoted the minister as having recently explained that “The $800 million has been negotiated and approved by the Federal Executive Council (FEC) and we now have a request before the parliament for approval. And once the parliament approves it, the next administration can decide on the utilization.

    “We’ve also been doing preparatory work side by side along the approval process. This includes expanding the committee to include members of the transition team of the President-elect”.

  • Delta to access $20m from World Bank assisted water project

    Delta to access $20m from World Bank assisted water project

    The Delta government says it is working on plans to access a 20 million dollars grant under the World Bank Sustainable Urban and Rural Water Supply, Sanitation and Hygiene (SURWASH) programme.

    Mr Samuel Mariette, the state’s Commissioner for Water Resources, said this when a team of officials from the World Bank and the Federal Ministry of Water Resources paid a courtesy visit on the state Governor-elect Chief Sheriff Oborevwori on Thursday in Asaba.

    Mariere said that the SURWASH programme was geared toward providing the people with portable drinking water as well as access to improved sanitation services.

    Mariere said that the programme was a six-year programme, which had just commenced in the state.

    ”Recently, the sum of one million dollars was released to the state for the initial advance which we have already started putting into use.

    ”Although, we just got the money last week, but we have been able to award the first sets of contracts.

    ”We succeeded in awarding the Asaba/Okpanam/Ibuza Urban Water Supply project because it is actually not right that Asaba , the state capital does not have access to clean water.

    “Every household that drinks that water, will have access to 75 dollars and this is a good result for us as a state,” he said.

    He also said that the state intended to go into Public Private Partnership (PPP) where the contractor would run the project for one year.

    Mariere also said that aside the Asaba/Okpanam/Ibuza water supply project, the state has other rural water projects to be implemented under the SURWASH programme.

    On his part, the Task Team Leader from World Bank, Mr Garard Soppe, said that the delegation was in the state to discuss way forward toward the first 100 days in office of the governor-elect.

    “We are in Delta because the sate is ahead of the six other states where SURWASH programme is being implemented in the country.

    ”And we also wished to discuss way forward to your first 100 days in office,” he added.

    Responding, Oborevwori said that his administration would partner with the World Bank in its Small, Medium and long term development programmes.

    Oborevwori told the delegation that he had inaugurated a transition committee to midwife the smooth take off of his administration in the state.

    He said that the committee would among other things come up with Small, Medium and long term development plans for the state.

    Oborevwori while commending the team, sai that one of the priorities of his administration was to partner with the World Bank.

    ”My meeting with you people is a good start and if this project is what we can achieve in my first 100 days in office, we will support it.

    ”Our present Gôvernor, Sen. Ifeanyi Okowa has done well and I will do more,” he said.

    He assured that the visit would attract more development to the state.

    The programme was being implemented in Delta, Ekiti, Gombe, Imo, Kaduna, Katsina, and Plateau states.

  • World Bank president announces intention to step down

    World Bank president announces intention to step down

    The World Bank Group President, David Malpass has announced his intention to step down from his position by the end of the Bank Group’s fiscal year on June 30.

    This is contained in a statement obtained from the World Bank website on Thursday in Abuja.

    According to the statement, Malpass, who has served more than four years as the bank’s president, made his intentions known to the Board of Executive Directors.

    The statement said that during Malpass’s tenure, he focused on seeking stronger policies to increase economic growth, alleviate poverty, improve living standards and reduce government debt burdens.

    It said in the last four years, the bank five institutions (IBRD, IDA, IFC, MIGA, and ICSID) responded quickly to global crises.

    “They did this by mobilising a record 440 billion dollars in response to the COVID-19 pandemic, war in Ukraine, sharp global economic slowdown, unsustainable debt burdens, climate change, food, fertiliser and energy shortages.’’

    The statement quoted Malpass as saying, “it has been an enormous honour and privilege to serve as president of the world’s premier development institution alongside so many talented and exceptional people.

    “With developing countries facing an unprecedented crisis, I am proud that the Bank Group has responded with speed, scale, innovation, and impact. The last four years have been some of the most meaningful of my career.

    “Having made much progress, and after a good deal of thought, I have decided to pursue new challenges.

    “I want to thank our staff and Boards of Directors for the privilege of working with them every day to strengthen the effectiveness of our operations in the most challenging of times.”

    The statement said that with developing countries under severe financial pressure, Malpass met frequently with world leaders to discuss supportive policies, including debt reduction to break the cycles of unsustainable debt.

    It said under his leadership, the bank group more than doubled its climate finance to developing countries, reaching a record 32 billion dollars in 2022.

    The statement said Malpass led efforts to enable and increase private sector investment and trade.

    According the statement, Malpass also contributed purposeful leadership to the bank group’s analytical products on fiscal and monetary policy, currency systems, and governance reform.

    The statement quoted Malpass as saying, “the Bank Group is fundamentally strong, financially sustainable, and well positioned to increase its development impact in the face of urgent global crises.

    “This is an opportunity for a smooth leadership transition as the bank group works to meet increasing global challenges, and facilitate private investment,

    “It is also to sharpen its focus on global public goods, and maintain strong momentum on operational delivery and portfolio performance for client countries.”

    The statement listed the accomplishments of the bank during Malpass to include: “implementing record surges in the financing of over 157 billion dollars in response to the COVID-19 pandemic and 170 billion dollars in response to the war in Ukraine’’.

    It said the bank also inaugurated the Bank Group’s Climate Change Action Plan to better integrate climate and biodiversity with development and growth.

    “The bank made 30 billion dollars available in projects to address the food, fertilizer, and fuel crisis facing developing countries.

    The statement said one of Malpass’s key initiatives was to promote debt transparency and sustainability, which was key to rebuilding investment and growth.

    “Under Malpass’s leadership, the bank group inaugurated the 2023 Global Sovereign Debt Roundtable process with the IMF to strengthen the debt restructuring process.

    The statement said another key priority of Malpass was to strengthen the effectiveness of the bank group management.

    It said he did this by prioritising transparency of internal and external activities including through detailed financial and climate disclosures.

    The statement said he implemented an important realignment of World Bank operations to deepen collaboration and better integrate the Global Practices and Regional Operating units.

    “He partnered with the presidents of six Historically Black Colleges and Universities (HBCUs) to promote the sharing of knowledge and talent among the institutions and developing countries.

    “He also initiated the Sexual Harassment Working Group, Anti-Racism Task Force, and Task Force on Workplace Culture to help build a better, more cohesive, collaborative, and responsive working environment.’’

    According to the statement, he also navigated multiple threats to staff security, including staff evacuations from Afghanistan, Myanmar, Sudan, and Ukraine, and following coup d’états across the Sahel.