Business

Senate approves Lagos state $200m world bank loan

Published

9 years ago

November 19, 2015

The Senate on Wednesday approved $200m foreign loan being the third tranche of the $600m which the Lagos State Government requested from the World Bank through the Federal Government External Borrowing Plan packaged to span 2015 to 2017.

The loan is a budget support facility under the World Bank Development Policy Operation, meant to finance deficits in the annual government budget, thereby enhancing its capacity to execute key projects.

President Muhammadu Buhari had, through an executive communication on September 29, requested the Senate approval for the loan which, according to him, would support Lagos to build systems and institutions to improve the quality of spending and strengthen investment climate while maintaining fiscal sustainability.

The Senate President, Bukola Saraki, consequently referred the request to the Senate Ad-hoc Committee on Local and Foreign Debts on November 3, with a mandate to carry out necessary legislative action and report back in two weeks.

The Chairman of the committee, Senator Kabiru Gaya, while submitting the report on Wednesday, noted that Lagos and Edo were the only two states in Sub-Saharan Africa that had been able to meet the stringent conditions of the World Bank to qualify for the DPO.

Gaya explained that Lagos, among others, had with the earlier funds approved for it in the first and second tranches, carried out various reforms in the health, education, social infrastructure and the environment, which were adjudged satisfactory by the bank.

He listed some of the projects executed with the loan to include the Lekki-Ikoyi Link Cable Bridge; Cardiac and Renal Centres at Gbagada General Hospital; Network of Roads in Apapa; and the 27km Light Rail along Lagos-Badagry Expressway to Marina.

The projects, he said, would greatly enhance economic growth, employment generation and increased revenue generation capacity of the state.

According to him, the credit facility will consolidate on the gains made in key sectors of the economy in the state from the first and second tranches.

However, before the final approval, the senators cautioned state governors against frivolous borrowings which would, at the end of the day, put their economy in critical condition as a result of huge indebtedness.

For instance, Senator Danjuma Goje reviewed the alarming rate at which states were seeking foreign loans and expressed fears that the nation was gradually drifting to the pre-Olusegun Obasanjo administration when Nigeria had huge foreign debts.

He said, “Most state governors were currently putting their states in serious critical situation having collected loans that cannot be paid by them during their tenure, thereby imposing great financial burden on their citizenry for decades.”

Punch

Business

Dangote Hails Tinubu on Impact of Crude for Naira Swap Deal

Published

2 hours ago

December 21, 2024

Sahara Weekly

Dangote Hails Tinubu on Impact of Crude for Naira Swap Deal

…As Dangote Refinery partners MRS to sell PMS at N935 per litre nationwide at its retail outlets

Sahara Weekly Unveils That The Foremost entrepreneur and President of the Dangote Industries Limited, Aliko Dangote has commended President Bola Ahmed Tinubu for the positive impact of the naira for crude swap deal on the Nigerian economy, which has led to reduction in prices of petroleum products in the country.

To provide succour to Nigerians, Dangote recently reduced the price of Premium Motor Spirit (PMS) from N970 to N899.50 at its Refinery loading gantry and provided generous credit terms to marketers.

“To ensure that this price reduction gets to the end consumer, we have signed a partnership with MRS to sell petrol from its retail outlets nationwide at N935 per litre” he added. This price has already commenced in Lagos, and it will be offered nationwide from Monday.

In his statement, he called on other oil marketers such as the NNPC Retail and all other marketers, “to work with us to ensure that Nigerians enjoy high-quality petrol at discounted prices.”

According to him, “The Dangote Refinery is for the benefit of Nigeria and Nigerians. We will therefore continue to work with various value chain players to deliver high quality petrol at cheaper prices. Our aim is for all Nigerians to have ready access to high quality petroleum products that are good for their vehicles, good for their health, and good for their pockets.

Recall that in September, the Federal Executive Council (FEC) under the leadership of Mr. President approved the sale of crude to local refineries in Naira and corresponding purchase of petroleum products in Naira. The move, which commenced on October 1, led to reduced pressure on the dollar and ensured the stability of the local currency.

Dangote thanked Nigerians for their unwavering support and the government for creating an enabling environment for the domestic refining industry.

Business

Port Harcourt Refinery Stays Active: NNPC Denounces Sabotage Rumors

Published

9 hours ago

December 21, 2024

Sahara Weekly

Port Harcourt Refinery Stays Active: NNPC Denounces Sabotage Rumors

NNPC Debunks Shutdown Rumors, Confirms Port Harcourt Refinery Fully Operational

The Nigerian National Petroleum Company Limited (NNPC Ltd) has dismissed reports circulating in certain media outlets claiming that the Old Port Harcourt Refinery, which was re-streamed two months ago, has been shut down.

In a statement released by Olufemi O. Soneye, the Chief Corporate Communications Officer of NNPC Ltd, the company clarified that the refinery is fully operational. The statement noted that the facility’s operational status was recently verified by former Group Managing Directors of NNPC during a site inspection.

“Preparation for the day’s loading operation is currently ongoing,” the statement confirmed, emphasizing that allegations of the refinery’s shutdown are baseless and intended to create panic or artificial scarcity in the fuel market.

NNPC Ltd urged members of the public to disregard such misleading reports, labeling them as the work of those seeking to exploit Nigerians.

The Old Port Harcourt Refinery has been in operation since its re-streaming, and the company remains committed to ensuring stability in the supply of petroleum products across the country.

Business

Nigerian Banks Donate Multimillion Naira Relief Materials to Jigawa Flood Victims

Published

1 day ago

December 20, 2024

Sahara Weekly

Nigerian Banks Donate Multimillion Naira Relief Materials to Jigawa Flood Victims

In a show of solidarity, the Committee of Banks in Nigeria has extended a helping hand to victims of the September 2024 floods in Jigawa State. On Thursday, a high-profile delegation led by Dr. Oliver Alawuba, Chairman of the Committee and Group Managing Director/Chief Executive Officer of United Bank for Africa Plc (UBA), visited Dutse, the state capital, to present relief materials to the state government.

The donated items, worth several million Naira, included essential food supplies such as rice and cooking oil, along with mattresses and beverages. Dr. Alawuba highlighted that the gesture aimed to alleviate the hardship faced by flood victims and support critical institutions, especially public hospitals, in their efforts to assist those affected.

“We stand in solidarity with the people and government of Jigawa State during this difficult time. This donation is our way of expressing empathy and supporting those who have lost loved ones, properties, and livelihoods,” Dr. Alawuba stated.

The delegation included notable banking leaders such as Mr. Roosevelt Ogbonna of Access Bank Plc, Dame (Dr.) Adaora Umeoji of Zenith Bank Plc, and Dr. (Mrs.) Nneka Onyeali-Ikpe of Fidelity Bank Plc, among others. Their collective presence underscored the banking sector’s commitment to corporate social responsibility and national development.

Governor Malam Umar A. Namadi expressed profound gratitude for the donation, describing the visit as a rare and commendable act of compassion. He assured the delegation that the relief materials would be judiciously distributed to the intended beneficiaries, emphasizing the importance of partnerships in rebuilding lives and communities.

The Committee of Banks also reiterated their commitment to supporting Nigerians during emergencies, drawing attention to previous interventions, including relief efforts during the 2011 and 2013 floods, the COVID-19 pandemic, and security initiatives like the Lagos State Security Trust Fund.

This humanitarian gesture reflects the collective resolve of Nigeria’s financial institutions to foster social and economic growth, making a meaningful impact in times of need.