President Bola Tinubu asserts that his administration’s reforms are a crucial step toward fostering lasting national wealth and prosperity for all Nigerians.

Mohammed Idris, the minister of information and national orientation, conveyed the president’s remarks on Sunday at the 2024 Nigerian Media Merit Awards, which took place at the Muson Centre in Lagos.

Tinubu explained that while opinions may vary on the specifics of the proposed tax reforms, there is a national consensus on the necessity of a complete overhaul of the current tax system.

“I will say with every sense of conviction that our policies are deliberate and well thought-out,” he stated.

“We are headed toward the restoration of Nigeria, on a path requiring a comprehensive approach that addresses economic diversification, human capital development, infrastructure development, wealth creation, and inclusive growth.

“Among our various landmark reforms is the one focused on tax, by far one of the most profound steps necessary for setting Nigeria onto the path of enduring national wealth and prosperity for all our people.”

“There is a consensus that the tax administration system in Nigeria requires reform. We may not all agree on every detail of the required reform, but there will be many areas of convergence.”

Tinubu mentioned that the tax bills currently before the national assembly aim to reduce the number of taxes and alleviate the burden on vulnerable Nigerians.

He emphasized that the reforms would also increase the proportion of taxes allocated to the states and encourage business growth through targeted incentives.

“Just days ago, the federation accounts allocation committee recorded the highest-ever revenue distribution figure in the history of our country,” he added.

“These are the much-needed resources being freed up for investment in critical areas of the economy.

“At the federal level, these revenues are already financing impactful initiatives like the consumer credit scheme, students loan fund, presidential grants & loans scheme, the MSME clinics, 3 million technical talent programme (3MTT), presidential CNG initiative, massive road infrastructure projects, among many others.

“In the spirit of our federation, the various state and local governments also have their policies and programmes, meant to complement ours.”

The air component of Operation Hadin Kai (OPHK) has reportedly killed numerous ISWAP fighters in the Malam Fatori area of Borno state.

According to Zagazola Makama, a counter-insurgency publication focused on the Lake Chad region, the missiles were launched on December 15.

The publication quoted intelligence sources as saying that the attack was carried out following reports that the insurgents were gathering around Malam Fatori.

The sources said “reconnaissance missions identified a number of vehicles and motorcycles purportedly being utilized for militants’ movements and logistics support by the terrorists.”

Makama added that military aircraft were deployed with advanced surveillance.

“As the aircraft swooped down with surgical precision, some vehicles and motorcycles were obliterated, resulting in a substantial loss of equipment for the terrorists,” the report reads.

“Impeccable sources’ accounts from the area describe a series of explosions that reverberated through the town, accompanied by thick clouds of smoke rising from the impact sites.”

“The sources confirmed that the operation resulted in the deaths of numerous ISWAP militants, with estimates suggesting that the casualty count may be in the dozens.”

“The air strikes in Malam Fatori were not just a standalone effort; they were part of a broader strategy in Operation Hadin Kai aimed at restoring security in northeastern Nigeria.”

“Ground forces, backed by the aerial campaign, have been actively engaging ISWAP elements, and air superiority has proven vital in these operations.”

The World Bank is set to decide on three major loan projects for Nigeria in 2025, totaling $1.65bn, as part of efforts to address critical developmental challenges in the country.

The loans, currently in the pipeline, will focus on internally displaced persons, education, and nutrition enhancement.

According to information obtained from the World Bank’s website, the loans are designed to support Nigeria’s social and economic recovery, particularly in vulnerable sectors requiring urgent intervention.

The first project, titled “Solutions for the Internally Displaced and Host Communities Project,” has a commitment amount of $300m and is scheduled for approval on April 8, 2025.

The project, which remains at the concept review stage, seeks to provide sustainable solutions for internally displaced persons and their host communities, addressing their social and economic challenges.

The second project, “HOPE for Quality Basic Education for All,” is expected to receive $553.8m in financing.

Its approval is slated for March 20, 2025, and it also remains in the concept review phase.

The third project, Accelerating Nutrition Results in Nigeria 2.0, involves the largest share of the proposed loans, with a commitment of $800m.

The World Bank is expected to hold a decision meeting on the project by February 20, 2025.

The $1.65bn financing package reflects the World Bank’s continued commitment to supporting Nigeria’s ongoing reforms.

The World Bank’s schedule indicates that decisions on these loans will be made in early 2025, with Nigeria’s ability to meet project prerequisites and demonstrate accountability in implementation likely to play a key role in getting the funds.

It was further observed that the Federal Government, under the leadership of President Bola Tinubu, has secured loans worth $6.95bn from the World Bank in about 18 months. The amount increased to the new figure following the latest approval of a new $500m loan from the World Bank for a project in Nigeria.

The Board of the World Bank Group approved a $500m loan to Nigeria last week Friday (December 13, 2024) to boost rural access and agricultural marketing in the country.

According to information obtained from the Washington-based institution, the loan is for the Rural Access and Agricultural Marketing Project—Scale Up.

It is designed to bridge the gap between rural communities and the broader marketplace, facilitating smoother access to agricultural markets, schools, and hospitals and promoting social cohesion among rural populations.

This was the 10th loan project from the World Bank under the administration of President Bola Tinubu.

The first project approved under Tinubu’s administration was the $750m Power Sector Recovery Performance-Based Operation.

This loan is designated as additional financing for the power sector recovery performance-based operation, a crucial component of Nigeria’s broader strategy to stabilize and enhance its power sector.

On June 27, 2023, the World Bank Group announced the approval of a loan of $500m to help Nigeria drive women’s empowerment.

This was the second loan approved by the bank under Tinubu’s administration. It provided a scale-up financing for the Nigeria for Women Program.

In September 2023, the World Bank approved a loan of $700m to bolster educational opportunities and empowerment for adolescent girls in Nigeria.

The loan was to support the ongoing ‘Adolescent Girls Initiative for Learning and Empowerment’ project. It aimed to encourage secondary education accessibility for girls residing in specific target states within Nigeria.

On December 14, 2023, the World Bank approved the $750m Distributed Access through Renewable Energy Scale-up project in Nigeria.

The project aims to provide over 17.5 million Nigerians with better access to electricity via distributed renewable energy solutions and tackle the electricity access deficit.

On June 13, 2024, the World Bank announced the approval of two significant financial operations aimed at bolstering Nigeria’s economic stability and supporting its vulnerable populations.

The combined package, totalling $2.25bn, comprises $1.5bn Nigeria Reforms for Economic Stabilization to Enable Transformation Development Policy Financing Program.

The second loan package approved on June 13 was $750m for the Nigeria Accelerating Resource Mobilization Reforms Programme-for-Results.

On September 26, 2024, the World Bank approved three new projects for Nigeria, totalling $1.57bn in financing.

This financing package, which includes a $1.5bn loan and $70m grant, is part of broader efforts to improve key sectors such as education, healthcare, and water management, while also tackling poverty and boosting productivity.

Under this financing package, the HOPE-GOV programme, was approved for $500m to improve governance in the education and health sectors.

Another $570m was earmarked for the Primary Healthcare Provision Strengthening Program, which was targeted at improving Nigeria’s healthcare system, particularly for women, children, and adolescents.

The remaining $500m was allocated to the Sustainable Power and Irrigation for Nigeria Project, which aimed to protect Nigeria from climate-induced challenges such as floods and droughts.

According to data from the external debt report released by the Debt Management Office, the World Bank’s share of Nigeria’s debt totals $16.32bn, with the majority owed to the International Development Association, which accounts for $16.32bn, which represents 38 percent of Nigeria’s total external debt.

The International Bank for Reconstruction and Development, another arm of the World Bank, is owed $484.0m, or 1.13 per cent.

Earlier report had it that the Federal Government spent $3.58bn servicing its foreign debt in the first nine months of 2024, representing a 39.77 per cent increase from the $2.56bn spent during the same period in 2023.

This was according to data from the Central Bank of Nigeria on international payment statistics.

The significant rise in external debt service payments shows the mounting pressure on Nigeria’s fiscal balance amid ongoing economic challenges.

The World Bank, in its latest International Debt Report, revealed that developing nations spent an unprecedented $1.4tn on foreign debt servicing in 2023, driven by a surge in interest rates to their highest levels in 20 years.

Interest payments alone reached $406bn, a nearly 30 per cent increase from the previous year, severely impacting spending in critical sectors such as health, education, and environmental programs.

According to the report, the most vulnerable economies, those eligible for loans from the World Bank’s International Development Association, bore the brunt of the financial strain.

Credit: The Punch