President Bola Tinubu has said he has no regrets over the removal of the fuel subsidy, vowing that Nigeria will never go back to it as he likened any return to asking the biblical Moses to go back to Egypt.

Tinubu spoke on Monday evening at the forum tagged ‘Together till 2027: An Evening with Original City Boy’, organised by the City Boy Movement in conjunction with the Relax-Tinubu-Is-Fixing-Nigeria movement, both of which are geared towards his reelection at the 2027 polls.

Recalling the start of his administration, the President said he scrapped the subsidy on his first day in office.

“I came, and I removed the subsidy the first day,” he said, adding that Nigeria was heading for bankruptcy, with “nothing left to pay subsidy.”

The President threw jabs at the African Democratic Congress presidential candidate, Atiku Abubakar, who promised a return to subsidy.

Citing what he called his studies of scripture in the Bible and the Holy Quran, Tinubu recalled how the Red Sea parted when Moses left Egypt.

He likened the end of the subsidy regime to the exodus of the ancient Israelites from Egypt, saying, “You cannot ask Moses to go back to Egypt.”

Continuing, he said, “I could listen to my political opponents promising a return to subsidy. Most of all, sometimes I remember my scripture studies, both the Bible and the Holy Quran. When Moses left Egypt, they faced the challenge, and the Red Sea parted and gave way.

“You cannot ask Moses to go back to Egypt. We wake up with ideas, original thoughts, and deep thinking to move this country forward. With your energy, your support, Nigeria will never go back to Egypt. No regrets.

“Before I left home, I saw one of the greatest Chinese economic news growing by 4.6 per cent or thereabouts. We are on the right trajectory. We are in good company. The economy is growing steadily. You will have a future, a future to believe in.”

The President added, “Nigeria must win this election before any candidate does. You are not campaigning for me. You are campaigning for your own future, and that future is renewed hope. There’s nothing that will push us back.”

Tinubu said the past three years had not been easy, adding that his administration “took hard decisions.”

He described the condition in which he took over, stating that, “We owed money to airlines. They were almost cutting their flights to Nigeria. Our foreign reserve was nothing. We printed currencies as if there were no tomorrow.”

He said that rather than dwell on the flaws of the past, he chose to assume the responsibility and liability of his predecessor.

“We understood that a nation cannot borrow its way to greatness,” Tinubu said, adding that many people had predicted that young Nigerians would turn their backs on the reforms.

“They were wrong. You are here,” he said.

Turning to the January 16, 2027, presidential election, the President told the youths to take the message to their campuses, markets and villages.

“Make sure every young person you know has a PVC and use it. Tell them what we have done, and tell them what we will do. Campaign with your ideas.

“You are not campaigning for me. You are campaigning for your own future, and that future is Renewed Hope,” he stated.

On the Students Loan Act, which he signed in 2023, he said he also had no regrets, adding, “Today, more than a million students have been supported through NELFUND.”

Tinubu announced the end of the petrol subsidy when he took office on May 29, 2023.

The pump price rose from about N180 per litre to about N620 after the announcement, and to about N1,200 roughly a year later.

Atiku, on August 20, in an English rendering of a Hausa-language interview, said: “If elected, I will bring back the oil subsidy.”

He, however, proposed a capped, audited production subsidy tied to domestic refining, saying his proposal was not to resurrect the old subsidy regime.

The Presidency called the proposal a return to a “wasteful, corruption-ridden and financially burdensome” system.

At the event, Tinubu assured the City Boy Movement, especially the youth who had stood with him, that they would not be left behind.

“The future of this country does not belong to me, and it does not belong to my generation. It belongs to you.

“I am very proud, once again, that when I signed the Student Loan Act, I had no regrets.

“Today, more than a million students have been supported through NELFUND,” Tinubu stated.

On his son, Seyi, he said: “He is running after his father. Your young colleagues would have seen that you are investing your time effectively. We are with you. Thank you. You did it humbly.

“You did not ask for a title or an office. You went to the young people, your age mates, your group. You listened to them and organised them.

“I am proud of all of you. But I will tell you what every father tells a son: you have only started. Do more, not less. Serve harder. Set an example that your own children, my grandchildren, will be proud to follow.”

Speaking earlier, Vice President Kashim Shettima said Nigeria’s economy would have collapsed had President Bola Tinubu not taken what he called far-reaching decisions.

He said, but for the tough decisions, critics would by now be writing epistles on a collapsed economy from the comfort of their homes in Dubai, United Arab Emirates, and New York, United States.

The Vice President credited the President’s decisions for the economy’s recovery.

He said, “The President took those far-reaching decisions. He had the courage of conviction and the knowledge to take those far-reaching decisions that repositioned the Nigerian economy, so that now, the economy grew by 4.43 per cent in the last quarter.

“Most importantly, our foreign reserves are now hovering at the level of $60bn.

“Remember how far we have come. It’s only those who have been in the deepest valley that will appreciate how magnificent it is to be on a mountain top.”

To the critics of the administration, Shettima said, “The same people that are crying wolf, if the President had not taken those far-reaching decisions, Walahi, I am not talking to you as a politician. I am talking to you as a Nigerian; our economy would have collapsed.

“These people, by now, would be writing epistles on a collapsed economy from the comfort of their homes in Dubai, in New York, or in marriage with their young Moroccan wives. I have not mentioned anybody’s name.”

He admitted that Nigerians had endured hardship, but said it could have been worse.

“Your Excellency, distinguished ladies and gentlemen, the President has to be commended, not demonised. Yes, Nigerians have gone through some tough times, but it could have been worse.

“Be reassured that in the coming weeks, the President will come up with robust responses to agricultural challenges, and prices of foodstuffs will certainly come down,” he stated.

The Vice President said efforts were being made to reposition the economy, citing the Nigerian Education Loan Fund and investments in infrastructure.

He then asked the youth to carry the message to the streets.

“I urge the youth of Nigeria. I beseech thee. I implore you to go out to the streets and tell the truth to other Nigerians,” he stated.

At the inauguration of the All Progressives Congress Presidential Campaign Council on October 14, Shettima mocked the former Vice President, Atiku Abubakar, and the former Anambra State governor, Peter Obi, over their economic proposals.

Also speaking at the event on Monday, the Deputy Senate President, Barau Jibrin, commended the City Boy Movement, describing it as a “special purpose political vehicle” that was not only human-driven but also technology- and AI-driven.

He said he believed no other political organisation in the country was doing what the group was doing, and urged others to take a cue from it.

Jibrin asked the movement to build Tinubu’s ideology and philosophy into its AI content, citing his “spirit of philanthropy, the spirit of resilience, the spirit of perseverance, and of course patriotism.”

The Deputy Senate President also urged the group to load its AI platform with questions and answers to counter some of the candidates in the election whom he accused of “churning out things that they cannot achieve” in “false populism”.

He said, “We know their track records; we know their scorecards when they held offices before. So that people will not fall for their lies, so that people will not fall for the fallacy they are turning out every day.”

He further asked that the content explain the global rise in the cost of living, which he blamed on armed conflicts. He said the President was working very hard to deal with the situation.

The Speaker of the House of Representatives, Tajudeen Abbas, announced that he would publish an audit of what Tinubu had done for his Zaria constituency in Kaduna State, and called on all political officeholders serving under the President to do likewise.

He said he would hold a media briefing within 14 days, where he would also present a scorecard of the House’s bills, reforms and oversight work done in partnership with the administration.

“It will not be a celebration; it will be an audit. Every intervention will carry a location, a value and a status.

“And where something remains undone, I will say so, because an account that tries to hide its gap is merely an advertisement,” he said.

Abbas said many people who carried the President’s portrait on their posters had “never carried your record to their people.”

He urged officeholders, elected and appointed alike, to render an account of what their share of the President’s mandate had produced, and proposed a common format and a 90-day timeframe.

“The question before us will not be, whose side are you on. It will be, what did you do?” he stated.

Addressing the City Boy Movement, the Speaker asked it to verify these accounts by photographing projects and holding town halls where officeholders face their constituents.

“A leader learns nothing from applause. Become the feedback loop this administration requires, carrying the President’s record down to the people and the people’s verdicts back to the President,” said Abbas.

On his part, the Director-General of the City Boy Movement, Francis Shoga, told the President that Nigerian youths were ready to work and ready to serve.

“We are not a generation waiting helplessly on the sidelines. We are not a generation without direction, courage or purpose.

“We are a generation prepared to rise above every limitation, organise with discipline, confront challenges with courage and build the Nigeria of our dreams.

“Your Excellency, we are your foot soldiers, ambassadors of hope, defenders of our national unity and committed partners in the great task ahead of national transformation. Wherever young Nigerians are found, we will carry the message of Renewed Hope,” he stated.

Shoga said the movement drew its inspiration from the “courage, persistence, patriotism, visionary leadership and bold decision-making” that had defined Tinubu’s political journey and public service.

“Our mission,” he affirmed, “is to inform, engage, inspire and empower Nigerian youths so that they understand the direction of government, recognise available opportunities and participate confidently and responsibly in national development.”

Source: punchng.com

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The Nigeria Labour Congress has warned that Nigerian workers remain under severe economic pressure despite the increase in the national minimum wage to N70,000, insisting that its two-week ultimatum to the Federal Government over rising petrol prices and fresh wage negotiations remains in force.

The NLC president, Joe Ajaero, made the position clear on Monday in Abuja, where he criticised the implementation of the 2024 minimum wage agreement and called for urgent measures to address the rising cost of living.

Ajaero’s remarks came amid growing tensions between organised labour and the Federal Government over workers’ declining purchasing power, with the labour movement demanding petrol price relief and renewed negotiations on salaries.

While maintaining that the ultimatum stands, Ajaero urged the government to address workers’ hardship proactively rather than wait for strikes or protests to force action.

The Secretary to the Government of the Federation, George Akume, however, called for a balance between workers’ legitimate demands for improved remuneration and the government’s fiscal capacity, warning against avoidable industrial disputes.

The exchange underscores the widening challenge facing the government and organised labour as they seek to reconcile workers’ welfare with public finances amid economic reforms and rising expectations ahead of the 2027 general elections.

Ajaero said the government must address the declining purchasing power of workers rather than wait for organised labour to embark on industrial action before introducing measures to ease their hardship.

He said, “I’ve not come here to discuss my ultimatum. My ultimatum stands. I’ve said something about it, and this is not a table. The fact that the permanent secretary is here does not give us the opportunity to start negotiating an ultimatum. He has replied a letter, and we have replied him again. So, we will go into that game.

“But to the head of service, sir, Nigerian workers are really suffering. And if you do something, history and posterity will remember all of us for it.”

The labour leader’s remarks came amid growing tensions between organised labour and the Federal Government over the impact of rising petrol prices on household incomes and the adequacy of the existing minimum wage.

The NLC had issued a two-week ultimatum demanding a reduction in petrol prices and the commencement of fresh negotiations on the national minimum wage, arguing that prevailing economic conditions had eroded workers’ earnings.

Although Ajaero acknowledged ongoing exchanges with government officials over the ultimatum, he maintained that the retreat was not the appropriate forum for negotiations.

He said workers were facing severe financial difficulties, stressing that the N70,000 minimum wage agreed upon in 2024 had become inadequate to meet basic household needs.

Ajaero argued that workers were struggling to afford food and transportation, adding that the situation required urgent government intervention.

He said, “The point we are making is not strike. The point we are making is that whether you enter bus or you buy fuel, you will not be able to eat.”

According to him, governments in other countries introduce measures to protect workers from economic hardship before industrial disputes escalate, rather than waiting until unions mobilise for protests or strikes.

He said the Federal Government should adopt a similar approach by addressing the concerns of workers through timely interventions and meaningful negotiations.

“But to wait for Labour to be on the street before we address this is not really what is happening all over the world. Countries all over the world will come with interventionary measures even before Labour acts on it. I think we should be more proactive,” he stated.

The NLC president also criticised the salary adjustments implemented after the 2024 minimum wage negotiations, disputing claims that federal workers received increases of about 133 per cent.

According to him, the government added N40,000 to the salaries of federal public servants, an adjustment he argued did not represent the percentage increase being attributed to the wage agreement.

He said, “After the last minimum wage negotiation, which some of you have been arguing that it attracted about 133 per cent increase, what the head of service—what they did was adding 40,000 to every worker. That’s not the real way to negotiate.

“All the federal public service workers, they added 40,000 to them. 40,000 does not translate to 100 per cent or 133 per cent. And the consequences are what we are facing now, sir.”

Ajaero maintained that the adjustment had failed to provide meaningful relief, particularly as inflation and higher transportation costs continued to weaken workers’ purchasing power.

He also expressed concern over unresolved industrial disputes, recalling an 84-day strike by health sector workers that was suspended following the intervention of organised labour.

According to him, more than a year after the intervention, the issues that prompted the strike had yet to be adequately addressed.

He further disclosed that workers under the National Public Service Negotiating Council had considered industrial action but were persuaded by labour leaders to suspend their plans.

Ajaero rejected suggestions that organised labour was being influenced by politicians, describing such accusations as insulting to workers seeking improved living conditions.

“No politician can use us. That’s the greatest insult, to tell me at this age and time, you know, to say a politician is using you when you ask for increase of workers’ salaries,” he said.

He appealed to government officials and the leadership of the wages commission to take workers’ concerns seriously and pursue solutions that would prevent further deterioration in industrial relations.

The labour leader nevertheless expressed willingness to participate in the retreat and contribute to discussions on improving wage administration.

Meanwhile, the Secretary to the Government of the Federation, George Akume, called for a balance between workers’ demands for improved remuneration and the financial capacity of government.

Akume, represented by the Permanent Secretary, General Services Office, Office of the Secretary to the Government of the Federation, Dr Abubakar Kana, said wage decisions must reflect economic realities while promoting industrial harmony.

He said, “The commission must continually balance the legitimate expectations of workers with the fiscal realities of government and broader imperatives of national economic development.”

The SGF noted that ongoing economic reforms, rising public expectations and the approaching 2027 general elections had made the need for a fair and sustainable wage system more pressing.

He urged the commission to strengthen its capacity to anticipate emerging wage challenges and provide recommendations based on credible economic data and consultations with organised labour, employers and other stakeholders.

Akume identified three priorities for the commission, including stronger policy coordination, digital transformation and effective implementation of institutional reforms.

He also warned against avoidable industrial disputes, stressing that dialogue and cooperation were essential to maintaining economic stability.

“A credible and inclusive approach towards governance is indispensable to building trust, preventing avoidable industrial disputes like we’re about to have now, and promoting a stable environment for national development,” he said.

The SGF called for improvements in research, data management and administrative processes, alongside clear implementation timelines and measurable performance indicators.

He urged the commission’s newly constituted board and management to demonstrate accountability and ensure that decisions reached at the retreat translated into practical improvements.

Earlier, the Chairman and Chief Executive Officer of the National Salaries, Incomes and Wages Commission, Junaidu Bindawa, said Nigeria’s economic conditions required a more strategic approach to wage administration.

Bindawa noted that inflationary pressures, changing labour expectations and demands for public sector efficiency had increased the importance of sustainable salary policies.

He said wage administration directly affected workers’ welfare, public expenditure, industrial relations, productivity and the overall performance of the public service.

“Our work must reflect a careful balance between the legitimate expectation of workers, the imperatives of productivity and social justice, and the physical capacity of government,” he stated.

The chairman explained that the retreat, themed Vision, Strategy and Institutional Renewal, was designed to reposition the commission for greater effectiveness in addressing emerging wage and compensation issues.

He identified research, job evaluation, compensation management, public finance, industrial harmony and institutional accountability as critical areas requiring attention.

Bindawa also called for stronger collaboration between the board and management, improved internal systems and the adoption of digital tools to support evidence-based decisions.

He said the retreat should produce a practical roadmap with clear priorities and measurable outcomes, rather than recommendations that would remain unimplemented.

In her welcome remarks, the Secretary to the commission, Olajumoke Okoya-Thomas, said Nigeria needed to move away from reactive wage reviews towards a permanent system driven by credible data.

She recalled that previous wage review exercises were conducted through temporary commissions, including the Morgan Commission of 1964, Adebo Commission of 1971 and Udoji Commission of 1974.

According to her, the establishment of the NSIWC in 1993 provided a permanent institutional framework for advising the government on salaries, allowances and national incomes policy.

“We exist so that wage decisions rest on evidence, not emergencies,” she said.

Okoya-Thomas noted that the 2024 minimum wage more than doubled the previous statutory minimum, but stressed that future wage decisions must remain fair, informed and sustainable.

She said the retreat would examine five major issues, including data reliability, fair remuneration, social dialogue, institutional capacity and governance.

The secretary added that the commission intended to develop an action plan aligned with the Renewed Hope Agenda, Nigeria Agenda 2050 and the Medium-Term National Development Plan for 2027 to 2030.

She said the plan would contain specific responsibilities, implementation timelines and performance indicators, with the commission’s monitoring and evaluation division responsible for tracking progress.

Also speaking, the Head of the Civil Service of the Federation, Abel Enitan, said improved workers’ welfare, institutional efficiency and the modernisation of government operations were essential to achieving national development objectives.

The Head of Service described salary administration as a matter of national interest, noting that the civil service and the wages commission had complementary responsibilities in improving workers’ conditions and public sector performance.

The official said the government was prioritising capacity development and end-to-end digitisation of civil service operations, aiming to establish a fully paperless working environment.

He also linked public service reforms to President Bola Tinubu’s ambition to build a $1tn economy by 2030, arguing that the target would require a productive, well-equipped workforce.

Enitan said, “It is achievable. Just that the workforce must be mobilised behind that agenda.”

He identified efficiency, productivity, integrity and citizen-centred service delivery as essential attributes of a modern civil service.

Enitan expressed confidence that the retreat would produce recommendations to strengthen wage administration, improve workers’ welfare, and support the broader public service reform agenda.

Source: punchng.com

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The Federal Government has faulted the World Bank’s assessment of Nigeria’s debt position, dismissing concerns that interest payments of N7.7tn in the first half of 2026 threaten the country’s debt sustainability.

The Federal Ministry of Finance described reports that interest payments amounted to 124 per cent of Federal Government revenue during the period as misleading, arguing that the calculation relied on incomplete revenue figures and included debt obligations serviced on behalf of state governments.

The ministry stated its position in a statement issued on Sunday and shared on X by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.

According to the ministry, Nigeria’s fiscal position had improved, with revenue growing faster than interest payments.

It said, “The Federal Ministry of Finance has noted recent analysis and public commentary which, citing the World Bank’s October 2026 Nigeria Development Update, claims that Federal Government interest payments reached 124 per cent of revenue in the first half of 2026. This conclusion is misleading, for three reasons.”

The response followed reports based on the World Bank’s October 2026 Nigeria Development Update, which put Federal Government revenue at N6.2tn and interest payments at N7.7tn in the first half of the year.

An analysis of the published figures by The PUNCH showed that interest payments represented approximately 124.2 per cent of revenue, exceeding revenue by N1.5tn. The ratio was calculated from the figures published by the World Bank and was not expressly stated in the report.

However, the ministry argued that the calculation compared obligations covering multiple tiers of government with revenue attributed solely to the Federal Government.

“The interest figure includes debt the Federal Government services on behalf of other tiers of government, including external loans to states. Measuring this against federal revenue alone overstates the ratio, which is only meaningful when debt and revenue cover the same level of government,” it said.

The ministry also argued that the revenue figure excluded income earned by government agencies and enterprises but not yet remitted to the Treasury.

It added that statutory payment schedules meant some taxes were collected predominantly in the second half of the year, making first-half revenue an incomplete basis for assessing annual debt obligations.

According to the ministry, the interest-to-revenue ratio stood at 156 per cent in the first half of 2025, compared with approximately 124 per cent in the corresponding period of 2026.

It said the full-year debt-service-to-revenue ratio had fallen below 60 per cent, compared with 97 per cent before the current administration’s reforms, describing the reduction as evidence of improved fiscal management.

The ministry further stated that Federal Government revenue rose by 72 per cent, from N3.6tn in the first half of 2025 to N6.2tn in the corresponding period of 2026, while interest payments increased by 38 per cent, from N5.6tn to N7.7tn.

Consequently, it said, the interest-to-revenue ratio declined by about 32 percentage points, while the gap between interest payments and revenue narrowed from N2tn to N1.5tn.

“This is the result of reforms working, not a sign of fiscal distress,” the ministry declared.

It also rejected the use of a six-month fiscal snapshot as a definitive measure of debt sustainability, arguing that full-year projections provided a more appropriate assessment.

“The same World Bank report projects Nigeria’s full-year 2026 debt service, covering both interest and principal, at 46 per cent of revenue. This is the appropriate benchmark, and a guide to avoid the invalid conclusions being drawn,” the statement read.

The ministry also defended the Federal Government’s borrowing programme, insisting that all loans obtained by the current administration were lawful and duly approved.

It maintained that every naira borrowed fell within the limits authorised by the National Assembly under the 2026 Appropriation Act and the approved borrowing plan.

According to the statement, government borrowing complied with the Fiscal Responsibility Act 2007 and the Debt Management Office (Establishment) Act 2003, while details of the country’s debt obligations were regularly published by the Debt Management Office.

However, despite challenging the World Bank’s assessment and questioning the basis of the interest-to-revenue calculation, the ministry did not provide revised revenue and interest-payment figures or an alternative ratio to substantiate its position.

W’Bank’s $1.25bn loan

Meanwhile, the Federal Government will begin repaying the principal on a $1.25bn World Bank loan in December 2031, with the final instalment on one of the facilities due in June 2060, according to financing agreements reviewed by The PUNCH.

The facility, secured under the Nigeria Actions for Investment and Jobs Acceleration Development Policy Financing programme, is intended to support reforms aimed at expanding access to credit, improving electricity supply, strengthening trade competitiveness and increasing government revenue.

The PUNCH reported in July 2026 that the World Bank had approved the $1.25bn facility amid public concerns over Nigeria’s rising debt burden and calls for the Federal Government to reduce external borrowing.

In an earlier statement, the Washington-based bank said it had approved the Nigeria Actions for Investment and Jobs Acceleration Development Policy Financing operation to support Nigeria’s transition towards a more inclusive growth model that would stimulate growth and create jobs.

The bank said the operation would support reforms to strengthen the foundations for growth and competitiveness.

“These include deepening capital markets, modernising the regulatory framework for the digital economy and e-governance, advancing power sector reforms to accelerate electrification, lowering trade barriers in line with Nigeria’s ECOWAS and AfCFTA commitments to help ease price pressures, improving access to quality agricultural seeds, and strengthening domestic revenue mobilisation,” the statement added.

The loan was the second-largest single World Bank facility secured by Nigeria under President Bola Tinubu, after the $1.5bn Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.

Documents reviewed by The PUNCH showed that the $1.25bn financing comprises a $750m concessional credit from the International Development Association and a $500m loan from the International Bank for Reconstruction and Development, both institutions of the World Bank Group.

Differing repayment periods

Principal repayments on both facilities will begin on December 15, 2031, but their maturity dates differ. The IDA credit is scheduled to be fully repaid by June 2051, while the IBRD loan runs until June 2060.

The IDA provides concessional financing to low-income countries on more favourable terms, while the IBRD lends primarily to middle-income and creditworthy lower-income countries on market-linked terms.

The agreements were signed on behalf of Nigeria by the Minister of Finance, Taiwo Oyedele, on October 6, 2026, while the World Bank’s Country Director, Mathew Verghis, signed on June 30, 2026.

According to Schedule 2 of the IDA financing agreement, Nigeria will repay 2.5 per cent of the $750m credit every six months, beginning on December 15, 2031, and ending on June 15, 2051.

This amounts to $18.75m in principal repayments every six months, or $37.5m annually during full repayment years, excluding interest and other applicable charges.

For the $500m IBRD facility, the repayment schedule provides for semi-annual principal instalments of 1.72 per cent from December 15, 2031, through December 15, 2059, followed by a final instalment of 1.96 per cent on June 15, 2060.

The regular instalments amount to approximately $8.6m every six months, while the final principal payment is about $9.8m.

Combined, the facilities will require principal repayments of approximately $27.35m every six months between December 2031 and June 2051, equivalent to $54.7m annually during full repayment years.

The repayment obligations will extend across several administrations, with the final principal payment on the IBRD facility falling due nearly 34 years after the agreements were signed.

The schedules cover principal repayments only and do not represent the total cost of borrowing, which will also include interest and applicable charges.

Under the IBRD agreement, the interest rate is determined by the reference rate plus a variable spread. The IDA credit carries an interest charge calculated using the reference rate plus a variable spread, less 250 basis points.

The IDA agreement states, “The Interest Charge is the Reference Rate plus the Variable Spread minus 250 basis points,” subject to applicable rate limits and possible conversions.

The IBRD loan also attracts a front-end fee of 0.25 per cent, equivalent to $1.25m, as well as an annual commitment charge of 0.25 per cent on the undisbursed balance.

For the IDA credit, the agreement provides for a maximum annual commitment charge of 0.5 per cent on the undisbursed financing balance.

The documents do not specify a fixed dollar amount for total interest payments over the repayment period. The eventual borrowing cost will therefore depend on the applicable rates and other contractual provisions.

The $750m IDA credit is structured for disbursement in a single tranche, subject to the World Bank’s assessment of Nigeria’s economic policies and implementation of the agreed reforms.

The $500m IBRD facility is divided into two withdrawal tranches of $249.375m each, with the remaining $1.25m allocated to the front-end fee.

Release of the second tranche depends on satisfactory progress in implementing the programme, maintaining an adequate macroeconomic framework and completing agreed policy actions.

Under the IBRD agreement, if the government fails to take satisfactory corrective measures within 90 days of receiving notice from the bank, the lender may cancel part or all of the undisbursed balance.

Both agreements have a closing date of December 31, 2027.

Areas of reforms

The agreements identify two broad areas of reform: improving access to financial credit, digital services and electricity, and strengthening competitiveness through trade, taxation and agricultural reforms.

Among the measures recognised are the Investment and Securities Act 2025, the National Integrated Electricity Policy, electricity metering reforms and regulations facilitating private investment in interconnected mini-grids.

The government also committed to implementing trade reforms under the African Continental Free Trade Area, including the gradual liberalisation of 90 per cent of tariffs on goods from African countries over 10 years.

Other measures include removing import bans on specified essential food products and inputs, reducing import adjustment taxes on selected commodities by at least 25 per cent in 2026, and progressively eliminating applicable adjustment taxes between 2027 and 2036.

On taxation, the agreements recognise the introduction of mandatory electronic invoicing for Value Added Tax, a 15 per cent minimum effective tax rate for large companies and multinational enterprises, and an increase in the maximum personal income tax rate from 24 to 25 per cent.

The financing arrangements also impose reporting and accountability requirements on the government.

Nigeria is required to maintain dedicated dollar accounts for receiving the proceeds and ensure that equivalent amounts are reflected in its budget management system.

The Federal Ministry of Finance must report the amounts received, relevant account details and records of transactions to the World Bank within 30 days of each withdrawal

The agreements also require the accounts to be audited by auditors of the Central Bank of Nigeria acceptable to the World Bank. Certified audit reports must be submitted within four months of withdrawal and made publicly available.

The financing is intended to support Nigeria’s economic reform programme, with disbursement conditional on satisfactory implementation of the agreed measures and maintenance of an adequate macroeconomic policy framework.

Source: punchng.com

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