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States hosting IDPs eye $12m World Bank loan

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States hosting internally displaced persons are set to earn up to $12m from a World Bank–backed loan if they meet a series of strict data, governance, and integration benchmarks under a new federal project targeting displacement and host communities.

The funding forms part of a $300m concessional credit approved by the International Development Association for the Solutions for the Internally Displaced and Host Communities Project, signed between the Federal Government and the World Bank.

The Solutions for the Internally Displaced and Host Communities Project was approved by the World Bank on August 7, 2025. The agreement ties disbursement of part of the loan to performance-based conditions rather than upfront spending, with states paid only after independently verified results are achieved.

Under Performance-Based Condition Two, which focuses on closing data gaps on displacement-related vulnerabilities, $12m has been earmarked for states that successfully register and profile displaced persons living within host communities. The disbursement is spread over three years, with escalating requirements.

In the first year after the project becomes effective, participating Tier 1 and Tier 2 states must launch registration and profiling of IDPs in selected host communities and complete comprehensive demographic and vulnerability assessments in at least two wards. States that meet this initial threshold are entitled to $0.25m ($250,000) each.

The report read, “Participating Tier 1 and Tier 2 States launched registration/profiling of IDPs in selected host communities, and completed: comprehensive demographic and vulnerability assessment; in at least 2wards. Each State which completes the assessment and surveys in the selected wards will receive $0.25m of the PBC allocation.”

By the second year, the requirements deepen for Tier 1 states, which must conduct intention surveys and stability index assessments in areas targeted for local integration. They must also produce detailed analyses of the drivers of displacement, including underlying causes, socioeconomic impacts on displaced persons, outward migration pressures, and risks linked to trafficking and smuggling. Completion of these tasks qualifies each Tier 1 state for an additional $0.5m ($500,000).

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The most substantial payout is tied to the third year, when 80 per cent of IDPs in host communities across all participating Tier 1 and Tier 2 states must be registered and profiled. Each state that meets this benchmark will receive $0.5m ($500,000), bringing the total allocation under this performance condition to $12m.

“80 per cent of IDPs in host communities in all Participating Tier 1 and Tier 2 States are registered and profiled. Each Participating State that completes all the above will receive $0.5m of the PBC allocation,” the report read.

By the fourth year, the agreement expects data gaps on displacement-related vulnerabilities to be comprehensively addressed, with no further payments attached. Beyond IDP data, the financing agreement outlines two additional performance-based conditions that states must meet to access other tranches of the loan.

Performance-Based Condition One focuses on improving asset management by participating local governments. Tier 1 states are required to issue asset inventory reporting guidelines and operations and maintenance standards aligned with international benchmarks, approved by state oversight agencies, and verified through project audits.

Selected local governments must then issue asset inventory reports and O&M plans, followed by full approval of all local government–level asset inventories by governors. Up to $9m is allocated to this condition, with states receiving $0.5m ($500,000) at each verified stage.

Performance-Based Condition Three targets the long-term integration of IDPs into development processes. Participating Tier 1 states must provide financial and technical support to local registration facilities to help IDPs access basic documentation such as birth, marriage, death and educational certificates, residence identification, travel documents and driving licences. States that complete this stage are eligible for $1m each.

Further requirements include legalising ownership transfer of land and property to IDPs through transparent processes, establishing monitoring mechanisms to manage tensions between displaced persons and host communities, and opening at least three development programmes covering skills development, livelihoods or infrastructure to displaced populations. A total of $12m is allocated under this condition, spread across successive milestones.

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Only states that meet strict eligibility criteria can participate. Tier 1 states must have an IDP population exceeding 150,000 and accounting for more than two per cent of the state population, while Tier 2 states qualify with at least 100,000 IDPs or an IDP share above one per cent.

States must also sign subsidiary agreements with the Federal Government and adopt approved security management plans before accessing funds. The agreement stipulates that all performance claims must be backed by eligible expenditures and verified by independent agents acceptable to the World Bank.

Failure to meet milestones within specified timelines allows the Bank to withhold, reallocate or cancel funds tied to the affected performance condition.

The broader $300m credit finances infrastructure, livelihoods support, institutional strengthening, and project management across northern Nigeria, but the performance-based components reflect the World Bank’s emphasis on accountability and measurable outcomes in displacement policy.

On repayment, the loan is structured as long-term concessional financing. Principal repayments will commence on January 15, 2031, and continue semi-annually on January 15 and July 15 each year until July 15, 2050.

Each instalment represents 2.5 per cent of the principal amount, spreading repayment evenly over 20 years. The payment currency is the US dollar, and the interest charge is based on a reference rate plus a variable spread, subject to agreed ceilings and floors

With repayments deferred for several years and disbursements tied to performance, the agreement places the burden on states not just to spend, but to deliver verifiable results in data quality, asset management, and the long-term integration of displaced persons into Nigeria’s development framework.

The World Bank Group remains Nigeria’s largest single creditor, accounting for $19.39bn of the total, comprising $18.04bn from the IDA and $1.35bn from the IBRD. This represents 41.3 per cent of the country’s external debt, underscoring the bank’s dominant role in financing Nigeria’s development initiatives.

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The PUNCH earlier reported that the World Bank loans to Nigeria between 2023 and 2025 are projected to reach $9.65bn by the end of this year as fresh approvals, ongoing negotiations, and disbursements gather pace across key sectors.

The amount covers International Bank for Reconstruction and Development and International Development Association loans only, according to an analysis of data on the bank’s website by The PUNCH. When grants are added, total World Bank support rises to about $9.77bn within the three-year window.

The International Bank for Reconstruction and Development provides loans on commercial or near-commercial terms to middle-income and creditworthy low-income countries, while the International Development Association offers highly concessional loans and grants to the world’s poorest nations.

The PUNCH also reported that Nigeria’s stock of World Bank International Development Association loans rose to $18.5bn, making it the largest IDA borrower in Africa and the third-biggest in the world.

Fresh data from the IDA’s unaudited financial statements for the third quarter of 2025 confirmed that the country has maintained the ranking it first attained in 2024, when it climbed to third place after overtaking India. The country was the fourth-largest borrower in 2023.

According to the report, Nigeria’s exposure increased from $17.1bn in September 2024 to $18.5bn in September 2025, representing a rise of $1.4bn or 8.2 per cent. The increase reflects the country’s heavier reliance on concessional financing to plug infrastructure gaps, stabilise its reform programme, and support social spending amid volatile oil earnings.

Economists warn that the rising loan pipeline, while potentially beneficial for long-term development, could deepen fiscal pressures if not matched with stronger domestic revenue mobilisation and prudent expenditure management.

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Tinubu launches N52,500 minimum pension for 173,209 retirees

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President Bola Tinubu on Tuesday launched a N52,500 monthly minimum pension guarantee for 173,209 eligible retirees under the Contributory Pension Scheme, ending a 22-year delay in implementing the provision of the Pension Reform Act.

The President also inaugurated the Pension Industry Healthcare Plan for Retirees, known as PenCare, to provide free essential healthcare services to low-income pensioners.

Tinubu, who was represented by Senate President Godswill Akpabio, announced the initiatives during the Presidential Pension Security Initiatives ceremony at the State House Banquet Hall, Abuja.

Declaring the minimum pension guarantee operational, he said, “By the authority vested in me as President, Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria, I hereby declare the Minimum Pension Guarantee Scheme commenced.”

The President explained that the guarantee, first provided for under the Pension Reform Act of 2004 and retained in the 2014 legislation, had remained unimplemented despite successive administrations.

“From this day, there is a floor beneath the Nigerian retiree. No one who contributed under the Contributory Pension Scheme will ever be allowed to fall below,” he said.

Tinubu urged future administrations to maintain the guarantee, declaring, “Raise it. But never remove the floor.”

On healthcare, he said the PenCare initiative would protect vulnerable retirees from medical expenses capable of exhausting their pension savings.

“PenCare gives our low-income retirees access to essential health care without charge,” he said, adding that beneficiaries would begin receiving healthcare access cards in the coming months.

The President also disclosed that his administration had issued a N758bn bond to address longstanding pension arrears and approved a N32,000 monthly consequential adjustment for affected federal pensioners.

He said states had spent over N1tn settling pension obligations, attributing their improved financial capacity partly to subsidy removal.

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Citing a World Bank report, Tinubu said states’ revenues increased by about 93 per cent in real terms between 2023 and 2025, while the share of their budgets devoted to capital projects rose from 46 to 61 per cent.

He also disclosed that government-backed credit initiatives had unlocked over N64bn for 174,000 borrowers, while more than 350,000 Nigerians had accessed approximately N53bn in consumer credit.

In her opening remarks, the Director-General of the National Pension Commission, Omolola Oloworaran, announced that the guaranteed minimum pension had been fixed at N52,500 monthly.

“The minimum pensions in the Federal Republic of Nigeria is 52,500 naira every month,” she said.

According to her, 173,209 retirees qualify for the guarantee, comprising 34 per cent from federal service, 12 per cent from state employment and 54 per cent from the private sector.

She explained that the amount had been actuarially validated and would be subject to periodic review.

“The figure was not plucked from the air. It has been validated by an actuary, and it is subject to review,” Oloworaran noted.

She disclosed that more than N400bn was available in the Pension Protection Fund to finance the guarantee, while more than 65 per cent of private-sector retirees currently earned below the new threshold.

The PenCom boss also revealed that states inherited over N2tn in pension liabilities, of which N1.07tn had been settled.

Source: punchng.com

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NERC okays N30bn to meter Band A customers, read details

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The Nigerian Electricity Regulatory Commission (NERC) has approved N30bn for the third phase of the Meter Acquisition Fund to accelerate the installation of electricity meters for unmetered Band A customers and expand coverage among Band B consumers.

The regulator has also directed electricity distribution companies to complete all meter installations under the programme by 31 May, 2027, warning that customers must not be charged for meters provided through the initiative.

The commission disclosed this in Order No. NERC/2026/121 on the operationalisation of Tranche C of the Meter Acquisition Fund, effective 2 November, 2026. It announced the order in a post on its official X handle on Tuesday.

The post read, “The Nigerian Electricity Regulatory Commission (NERC or the Commission) hereby informs electricity consumers and stakeholders of the issuance of Order No. NERC/2026/121 on the Operationalisation of Tranche C of the Meter Acquisition Fund, effective 2 November 2026.

“The Commission has approved N30 billion for Tranche C, to be allocated among the eleven Distribution Companies (DisCos) in proportion to their respective contributions to the Fund. The funding is intended to meter all remaining unmetered Band A customers and accelerate the metering of Band B customers, with equitable distribution across states within the respective DisCo franchise areas.”

The latest funding is part of the Federal Government’s Presidential Metering Initiative, which seeks to close the country’s persistent electricity metering gap, protect consumers from estimated billing and improve accountability in the power distribution system.

According to the order, the approved N30bn will be shared among the 11 electricity distribution companies in proportion to their respective contributions to the Meter Acquisition Fund.

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The funds will be used to provide meters for all remaining unmetered Band A customers while accelerating installations for Band B consumers. The commission also directed that the distribution should be equitable across states within each DisCo’s franchise area.

Under the arrangement, the distribution companies are required to conduct transparent procurement exercises involving eligible Local Meter Manufacturers and Assemblers and Meter Asset Providers with verified meter stocks.

NERC said it had prescribed maximum procurement prices based on the median national bid prices submitted by Meter Asset Providers during the September 2026 bidding cycle.

The commission also introduced a two-stage payment arrangement to strengthen accountability and ensure that providers deliver the meters before receiving full payment.

Under the arrangement, 70 per cent of the contract payment will be released after verification of delivered meter stocks, while the remaining 30 per cent will be paid after the complete installation of the meters has been confirmed.

The regulator reiterated that all meters supplied and installed under the fund must be provided free of charge to electricity consumers, warning against attempts by distribution companies or their agents to sell them.

It further directed that every meter supplied under the programme must prominently display the name of the relevant distribution company, the applicable tranche of the Meter Acquisition Fund and the inscription, “NOT FOR SALE”.

“The Commission reiterates that all meters supplied and installed under the MAF programme shall be provided FREE OF CHARGE to customers. Every meter must prominently display the relevant DisCo’s name, the applicable MAF tranche and the inscription “NOT FOR SALE.

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“Where a DisCo initiates the relocation of an existing customer’s connection point for revenue protection purposes, the cost shall be borne by the DisCo. The Order also provides sanctions where DisCo defaults impede meter installation,” the report added.

The order also addressed situations where distribution companies relocate customers’ existing connection points for revenue protection purposes.

According to NERC, where a DisCo initiates such relocation, it must bear the associated cost rather than transfer the financial burden to the affected customer.

The commission also provided for sanctions where defaults by distribution companies obstruct or delay meter installations, reinforcing the responsibility of operators to ensure that the programme is implemented within the stipulated period.

To prevent diversion of funds and ensure proper implementation, the regulator prescribed monitoring, reporting and evaluation requirements for the Fund Manager, distribution companies and participating meter providers.

It also directed that all supply and installation contracts executed under Tranche C must be submitted to the commission.

Source: punchng.com

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NDIC laments debtors’ refusal to repay failed bank loans

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The Nigeria Deposit Insurance Corporation has expressed concern over the refusal of some debtors of failed banks to repay outstanding loans, accusing them of deliberately frustrating recovery efforts through asset concealment, legal delays and intimidation.

The corporation warned that such practices undermine efforts to recover funds belonging to depositors and delay the payment of outstanding claims to customers of liquidated financial institutions.

The Director of the Asset Management Department of the NDIC, Ogungbemi Theophilus, raised the concerns on Monday during the Stakeholders’ Seminar and Public Relations Workshop held at Exclusive Serene Hotels and Suites, Wuye, Abuja.

Speaking on the challenges confronting the corporation in recovering assets of failed banks, Theophilus said, “Some debtors of failed banks believe that because a bank’s licence is revoked, he is not obliged to fulfil his responsibilities anymore. They hide assets. They frustrate service. Employ delay tactics in court. Sometimes, they try to intimidate. But we have to always do our job and professionally too.”

He explained that recovering outstanding loans remained one of the most difficult aspects of bank liquidation, particularly when borrowers failed to honour their obligations before the affected institutions lost their operating licences.

“A loan that was not repaid when the bank was alive does not become easier to recover when the bank is dead,” he noted.

The director noted that delays in recovering loans and disposing of physical assets could significantly reduce their value, ultimately affecting the amount available for distribution to depositors.

According to him, buildings left unoccupied for extended periods depreciate, while equipment deteriorates and outstanding loans become increasingly difficult to recover.

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“Every delay slows payment to depositors,” he warned.

Theophilus explained that the Asset Management Department was responsible for managing the loans, physical assets and investments of closed deposit money banks, primary mortgage banks and microfinance banks.

He said the department was mandated to recover outstanding loans, dispose of properties and investments, and convert recovered assets into cash to settle uninsured depositors.

He stressed that the corporation’s ability to compensate depositors whose balances exceeded the insured limits depended largely on the success of these recovery efforts.

The director explained that depositors of deposit money banks, non-interest banks and mobile money operators were insured up to N5m per depositor per bank, while those of microfinance banks, primary mortgage banks and payment service banks were covered up to N2m.

He said the existing coverage fully protected approximately 99 per cent of depositors, but customers with balances above the insured limits depended on liquidation dividends for the recovery of their outstanding funds.

“For them, the insured payment is only the first instalment. The balance — the uninsured deposit — can only be paid as liquidation dividend, from the proceeds of the assets we are able to realise and the loans we are able to recover,” he explained.

Theophilus disclosed that the corporation conducted public auctions through competitive sealed bidding on November 3 and 4, 2026, to dispose of physical assets belonging to three banks in liquidation.

He identified the institutions as Union Homes Savings and Loans, Heritage Bank, and Resort Savings and Loans, adding that the auctions took place in Lagos, Taraba and Adamawa states.

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He said the exercises were coordinated by the Asset Management Department and executed by appointed auctioneers.

The director also cautioned against excessive recovery costs, stressing that expenses incurred in recovering debts must not outweigh the value of recovered assets.

“If it costs us N10m to recover N8m, the depositor has lost. We must be disciplined about costs, timelines and reporting,” he said.

He further warned professionals engaged in asset recovery against insider dealing, deliberate undervaluation, collusion with buyers and diversion of proceeds.

“The Corporation has zero tolerance for insider dealing, under-valuation, collusion with buyers, diversion of proceeds, or any conduct that short-changes depositors,” he declared.

Theophilus announced that the NDIC was developing a comprehensive Asset Management Policy to strengthen asset identification, documentation, valuation, disposal procedures and accountability in recoveries.

He said the corporation would also deepen collaboration with auctioneers, valuers, sales agents, surveyors and other professionals to improve loan recoveries and accelerate the settlement of depositors’ claims.

The director explained that the Abuja workshop formed part of three stakeholder seminars scheduled for Abuja, Enugu and Lagos, aimed at identifying operational challenges, strengthening professional relationships and improving asset recovery outcomes.

He maintained that successful collaboration would ultimately benefit depositors awaiting payment following the collapse of their banks.

Source: punchng.com

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