The Federal government has finalized arrangement to take a fresh loan of $2.2 billion to improve immunization, enable a stronger business environment for the private sector, expanding the digital economy so as to promote job creation and increase public and private sector capacity on governance and social and environmental safeguards. The fund will come from the International Development Association (IDA), the French Development Agency, the European Investment Bank and the Federal Government of Nigeria. This loan comes barely a year after the global bank disbursed about $2.4 billion to Nigeria. Total debt is now put at $80 billion. (Domestic debt at $55.6b and Foreign component at $25.6b). However, the organised private has warned against the rising debt, which they argued it is not consistent with the national aspiration to build infrastructure and a competitive economy. Source: Punch Feb 20, 2020.
The AfDB, African Development Bank yesterday – Feb, 19, 2020 said it has earmarked $500 million loan for the development of four agro-industrial zones across various states of the Federation. The President of the Bank; Akinwumi Adesina, who was represented by his senior special adviser on industrialization, Professor Oyebanjo Oyelaran-Oyeyinka said the discussions with the Federal government started since April 2019. The plan is to have Special Agro Industrial Process, which will be similar to the free trade zone. The fund is to be used to provide roads and other infrastructure. “We are tired of people laughing at us in Nigeria. This project is working in other countries. It can also work here. The plan is for every state to be affected. Source – Punch – Feb 20, 2020.
The Federal Government in the last 3 years have spent about N1.7tn on electricity and declared it would no longer subside the DisCos noting that despite doling such amount to the companies in three years, they were only able to distribute 3,000mw out of about 10,000mw generated. While the DisCos were collecting 3,000mw, they were only paying for 1,000mw. The country can generate about 13,000mw, transmit about 7,000mw but can only distribute 3,000mw. Source – Punch – Feb 20,2020.
The move by the Central Bank aimed at providing a long-term naira contract for investors to hedge funds against a devaluation is a step in the right direction, however, the challenge of dollar scarcity persists, fund managers and private equity investors (PE) have said. More Here – CBN’s long-term naira contract positive, but FX scarcity raises red flag