Business

World Bank Commends NNPCL Public Private Partnership Model

Published

2 years ago

October 24, 2023

World Bank Commends NNPCL Public Private Partnership Model

Mr. Olufemi Aduwo, Permanent Representative of Centre for Convention on Democratic Integrity (CCDI) to ECOSOC /United Nations and Chairman, CSO-African Countries Group of World Bank, Civil Society Policy Forum (CSPF) who just returned from the World Bank/IMF boards governors meeting in Morocco speaks in this interview on some pressing issues about the Nigerian economy.

Excerpts…

How would you rate Nigeria’s current debt status, and to what extent might Nigeria’s debt status hamper/accelerate growth?

Since 2023 figures are fluctuating let 2022, be our guide. As at 2022, Nigeria’s debt reached an all-time high of NGN77 trillion. Over the past decade, Nigeria has experienced a notable surge in its debt levels. The debt to GDP ratio has more than doubled from 17.7% to 37.3% in 2022, and over 80% of the country’s revenue is being used to settle or service debt. Spending over 80% on debt servicing leaves about 20% of the country’s revenue thinly spread across other sectors such as health, education, security, road and infrastructure, agriculture, social welfare, etc. While many academic research may argue that increased borrowing increases GDP and household income, this is obviously not the case for Nigeria as it is clear from statistics and the faces of the masses that increasing government debt and loans have amounted to increasing poverty, which can only be attributed to the poor fiscal management in Nigeria.

There are many factors fueling Nigeria’s debt crisis, the main one being fiscal mismanagement. The Nigerian government lacks fiscal discipline. The Fiscal Responsibility Act of 2007 clearly stated that the government at all levels might borrow only for “capital investment” and “human development”. This Act has been flouted over the years and efforts to amend some ambiguities in the Act have not succeeded over the years. For instance, the Act prescribes the inclusion of “borrowing for important reforms of major national importance”. This is ambiguous and most often abused. The terminology is vague and increases the government’s borrowing power. The relevance of the Fiscal Responsibility Act is sabotaged by the lack of strict sanctions to enforce compliance.

The Fiscal Responsibility Commission, just like other oversight Agencies in Nigeria lacks sanction power and is poorly supported. The existing fiscal structure in Nigeria somewhat promotes the lack of accountability, transparency and corruption. For instance, government Audit Reports from the Auditor General’s office are never made for public usage or access. Even the National Assembly and Presidency over the years have ignored this lack of transparency in public reports. How do we fight corruption without public audit reports? The Fiscal Responsibility Act also requires that borrowed funds be managed in a separate account to allow for proper monitoring and a clean spell out of what the debts are used for. However, the norm has been to add the loans to the overall consolidated funds, without a clear public report on what capital projects are funded by the loans. It is sad that the only place where detailed progress reports of projects funded by loans, are the creditor websites, and never the Nigerian government or relevant MDAs public reports. Let me repeat, there is nothing wrong in borrowing if the conditionalities are okay and the purpose for investment. Borrowing to pay salaries is anathema.

One of Nigeria’s most concerning problems currently is the swift loss in value of the local currency. Is that a worry for the World Bank? Would the World Bank at some time in the future be willing to consider debt forgiveness for Nigeria? With what preconditions?

The first reason, which is also the root cause of the naira depreciation, is that supply of dollars into the economy has been declining while demand for dollars remains relatively unchanged courtesy of the country’s huge demand for dollars fuelled by dependence on imported goods for many economic activities. Foreign revenue generation is weak. Devaluation makes a domestic currency less expensive than other currencies, which has two main implications, according to the International Monetary Fund (IMF). “First, devaluation makes the country’s exports relatively less expensive for foreigners. Second, the devaluation makes foreign products relatively more expensive for domestic consumers, thus discouraging imports. This may help to increase the country’s exports and decrease imports, and may therefore help to reduce the current account deficit.”And in Nigeria’s specific case, the free float of the naira ended the Central Bank’s previous regime of foreign-exchange rationing for importers, which limited their capacities to obtain foreign currency, particularly to service their international debt and payment obligations. We note that most of the goods are imported. On Debt forgiveness, not only the World Bank and IMF Nigeria is indebted to, we borrow from China, London and Paris clubs as well.

In 1999 when democracy returned to Nigeria, its total debts stood at $28.04 billion. The figure dropped to $2.1 billion on the famous debt relief secured by President Olusegun Obasanjo. It went up to $7.3 billion under Dr. Goodluck Jonathan in 2015. Under Buhari the figure has gone up by as much as over 400 per cent to $41.8 billion. In October 2005, Nigeria and the Paris Club announced a final agreement for debt relief worth $18 billion and an overall reduction of Nigeria’s debt stock by $30 billion. The deal was completed in April 2006 when Nigeria made the final payment and its books were cleared of Paris Club debt. I doubt if such grace would ever be available to us again, for many obvious reasons.

What areas would the World Bank be willing to partner Nigeria to alleviate its myriad of economic challenges?

The World Bank is always available to provide advice and warning to developing countries on monetary policy and development related issues. It’s left for us to accept or not. The bank provides low-interest loans, zero to low-interest credits, and grants to developing countries. These support a wide array of investments in such areas as education, health, public administration, infrastructure, financial and private sector development, agriculture, and environmental and natural resource management.

Your organisation organised a sideline session on Public Private Partnerships in the just concluded World Bank/IMF boards of governors meetings in Morocco. What were the highpoints of the event?

Let me say this, any country that wants a robust economy and wants to create jobs must stay on top of its infrastructure and related services. But you and l know that government simply cannot afford to finance all the infrastructure costs from the budget. That was the major reason why the session was held. The session was moderated by Imad Fakhoury, World bank Director of infrastructure and PPPs and four renowned economists served in the panel of discussion. Because of the relevant of the topic, 340 guests from 84 countries were in attendance.

During the session, attention was on the tax scheme PPPs model as acceptable among others models, not only that it delivers, it reduces government borrowing. The session, the NNPCL’s involvement in the tax scheme in Nigeria was x-rayed by the panelists and they all agreed that it would serve as catalyst to the economic growth and development, if red tapism did not creep into the financing arrangement. The NNPCL has invested huge amounts in roads construction across the country. Not only that, the World Bank is studying the tax scheme in Nigeria; by the time we meet at World Bank /IMF Boards of Governors meetings in April in Washington DC, definitely the World Bank will issue an official statement on the effectiveness of tax scheme and assistances the bank plans to provide.

On 25 January 2019, President Buhari signed the Executive Order 007 on Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme. The scheme is aimed at closing the gap in the infrastructure deficit plaguing the country, particularly the road transport sector. Under this scheme, private companies are enjoined to fund the construction of major road projects in the six geo-political zones of the country. In return, these companies get a tax credit or reduction equal to the amount invested

What’s your take on the current status of the NNPCL under Mr. Mele Kyari and, do you think the model will impact positively on the nation’s economy. On a larger scale, with NNPCL as a reference point, how can public and private partnership function better in areas of building and managing infrastructure?

Your question is two in one or double barrel. To answer the first part of your question, the current status of the NNPC Ltd is a good omen, a new path to growth and prosperity. The Saudi Arabia National Oil Company (ARAMCO) has been listed on the stock exchange since 2019. Saudi Aramco reported earning $161billion in 2022, claiming the highest ever recorded annual profit by a publicly listed company. That should be the path the NNPCL should follow. I think that should be the path Kyari should follow; the sooner the NNPCL is listed on stock exchange the better. On the Private – Public partnerships, already NNPCL has shown good example. More private companies should follow and government should create enabling environment to encourage others. Infrastructure is a key component of sustainable development.

Business

Nigeria’s Inflation Drops to 15.10% as NBS Reports Deflationary Trend

Published

18 hours ago

February 19, 2026

Sahara Weekly

Nigeria’s Inflation Drops to 15.10% as NBS Reports Deflationary Trend

Nigeria’s headline inflation rate declined to 15.10 per cent in January 2026, marking a significant drop from 27.61 per cent recorded in January 2025, according to the latest Consumer Price Index (CPI) report released by the National Bureau of Statistics.

The report also showed that month-on-month inflation recorded a deflationary trend of –2.88 per cent, representing a 3.42 percentage-point decrease compared to December 2025. Analysts say the development signals easing price pressures across key sectors of the economy.

Food inflation stood at 8.89 per cent year-on-year, down from 29.63 per cent in January 2025. On a month-on-month basis, food prices declined by 6.02 per cent, reflecting lower costs in several staple commodities.

The data suggests a sustained downward trajectory in inflation over the past 12 months, pointing to improving macroeconomic stability.

The administration of President Bola Ahmed Tinubu has consistently attributed recent economic adjustments to ongoing fiscal and monetary reforms aimed at stabilising prices, boosting agricultural output, and strengthening domestic supply chains.

Economic analysts note that while the latest figures indicate progress, sustaining the downward trend will depend on continued policy discipline, exchange rate stability, and improvements in food production and distribution.

The January report provides one of the clearest indications yet that inflationary pressures, which surged in early 2025, may be moderating.

The data suggests a sustained downward trajectory in inflation over the past 12 months, pointing to improving macroeconomic stability.

The January report provides one of the clearest indications yet that inflationary pressures, which surged in early 2025, may be moderating.

Bank

Alpha Morgan to Host 19th Economic Review Webinar

Published

2 days ago

February 18, 2026

Sahara Weekly

Alpha Morgan to Host 19th Economic Review Webinar

In an economy shaped by constant shifts, the edge often belongs to those with the right information.

On Wednesday, February 25, 2026, Alpha Morgan Bank will host the 19th edition of its Economic Review Webinar, a high-level thought leadership session designed to equip businesses, investors, and individuals with timely financial and economic insight.

The session, which will hold live on Zoom at 10:00am WAT and will feature economist Bismarck Rewane, who will examine the key signals influencing Nigeria’s economic direction in 2026, including policy trends, market movements, and global developments shaping the local landscape.

With a consistent track record of delivering clarity in uncertain times, the Alpha Morgan Economic Review continues to provide practical context for decision-making in a dynamic environment.

Registration for the 19th Alpha Morgan Economic Review is free and can be completed via https://bit.ly/registeramerseries19

It is a bi-monthly platform that is open to the public and is held virtually.

Visit www.alphamorganbank to know more.

Business

GTBank Launches Quick Airtime Loan at 2.95%

Published

3 days ago

February 17, 2026

Sahara Weekly

GTCO increases GTBank’s Paid-Up Capital to ₦504 Billion

GTBank Launches Quick Airtime Loan at 2.95%

Guaranty Trust Bank Ltd (GTBank), the flagship banking franchise of GTCO Plc, Africa’s leading financial services group, today announced the launch of Quick Airtime Loan, an innovative digital solution that gives customers instant access to airtime when they run out of call credit and have limited funds in their bank accounts, ensuring customers can stay connected when it matters most.

In today’s always-on world, running out of airtime is more than a minor inconvenience. It can mean missed opportunities, disrupted plans, and lost connections, often at the very moment when funds are tight, and options are limited. Quick Airtime Loan was created to solve this problem, offering customers instant access to airtime on credit, directly from their bank. With Quick Airtime Loan, eligible GTBank customers can access from ₦100 and up to ₦10,000 by dialing *737*90#. Available across all major mobile networks in Nigeria, the service will soon expand to include data loans, further strengthening its proposition as a reliable on-demand platform.

For years, the airtime credit market has been dominated by Telcos, where charges for this service are at 15%. GTBank is now changing the narrative by offering a customer-centric, bank-led digital alternative priced at 2.95%. Built on transparency, convenience and affordability, Quick Airtime Loan has the potential to broaden access to airtime, deliver meaningful cost savings for millions of Nigerians, and redefine how financial services show up in everyday life, not just in banking moments.

Commenting on the product launch, Miriam Olusanya, Managing Director of Guaranty Trust Bank Ltd, said: “Quick Airtime Loan reflects GTBank’s continued focus on delivering digital solutions that are relevant, accessible, and built around real customer needs. The solution underscores the power of a connected financial ecosystem, combining GTBank’s digital reach and lending expertise with the capabilities of HabariPay to deliver a smooth, end-to-end experience. By leveraging unique strengths across the Group, we are able to accelerate innovation, strengthen execution, and deliver a more integrated customer experience across all our service channels.”

Importantly, Quick Airtime Loan highlights GTCO’s evolution as a fully diversified financial services group. Leveraging HabariPay’s Squad, the solution reinforces the Group’s ecosystem proposition by bringing together banking, payment technology, and digital channels to deliver intuitive, one-stop experiences for customers.

With this new product launch, Guaranty Trust Bank is extending its legacy of pioneering digital-first solutions that have redefined customer access to financial services across the industry, building on the proven strength of its widely adopted QuickCredit offering and the convenience of the Bank’s iconic *737# USSD Banking platform.
About Guaranty Trust Bank

Guaranty Trust Bank (GTBank) is the flagship banking franchise of GTCO Plc, a leading financial services group with a strong presence across Africa and the United Kingdom. The Bank is widely recognized for its leadership in digital banking, customer experience, and innovative financial solutions that deliver value to individuals, businesses, and communities.

About HabariPay

HabariPay is the payments fintech subsidiary of GTCO Plc, focused on enabling fast, secure, and accessible digital payments for individuals and businesses. By integrating payments and digital technology, HabariPay supports innovative services that make everyday financial interactions simpler and more seamless.
Enquiries:

GTCO
Group Corporate Communication
[email protected]
+234-1-2715227
www.gtcoplc.com