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World Bank Lists Nigeria, Nine Others As Countries With High Debt Risk Exposure

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The World Bank has stated that Nigeria is among a list of top 10 countries with high debt risk exposure.

It stated this in the financial statement for International Development Association, which was among the World Bank FY21 audited financial statements released on Monday.

The financial statement said, “IDA faces two types of credit risk: country credit risk and counterparty credit risk.

“Country credit risk is the risk of loss due to a country not meeting its contractual obligations, and counterparty credit risk is the risk of loss attributable to a counterparty not honoring its contractual obligations.

“IDA is exposed to commercial as well as noncommercial counterparty credit risk.”

It stated, “As of June 30, 2021, the 10 countries with the highest exposures accounted for 66 percent of IDA’s total exposure.”

Nigeria was rated fifth on the list with $11.7bn IDA debt stock, while India led the list with $22bn IDA debt stock, followed by Bangladesh with $18.1bn IDA debt stock, Pakistan with $16.4bn IDA debt stock, and Vietnam with $14.1bn IDA debt stock.

Other countries on the list in order of appearance included Ethiopia with $11.2bn IDA debt stock, Kenya with $10.2bn IDA debt stock, Tanzania with $8.3bn IDA debt stock, Ghana with $5.6bn IDA debt stock, and Uganda with $4.4bn IDA debt stock.

It added that there was a Single Borrower Limit for IDA, which for FY22, had been set at $45bn (25 per cent of $180.9bn of equity as of June 30, 2021).

It was further discovered that Nigeria’s undisbursed balance with the World Bank is about $8.656bn as at June 30, 2021.

According to the financial statement for the International Bank for Reconstruction and Development, Nigeria has a total of $589m undisbursed balance, consisting of $500m loans approved but not yet signed and $89m signed loan commitment.

The financial statement for IDA disclosed that Nigeria had a total undisbursed balance of $8.07bn, consisting of $1.462bn loans approved but not yet signed and $6.61bn signed loan commitment.

The financial statement for IBRD disclosed that although certain amount of loans has been agreed ‘the loans are not effective and disbursements do not start until the borrowers and/or guarantors take certain actions and furnish documents’.

A total of $1bn loans were agreed between Nigeria and the World bank’s IBRD, of which Nigeria’s outstanding loan is $411m.

For IDA, a total of $19.54bn loans were agreed upon, of which Nigeria’s outstanding loan is $11.47bn.

According to the Debt Management Office, Nigeria owes the World Bank a total of $11.51bn, consisting of $11.10bn IDA loans and $410.23m IBRD loans as of March 31.

Other financial statements released included the statements for International Finance Corporation and Multilateral Investment Guarantee Agency.

In a press statement titled ‘World Bank Group Releases FY21 Audited Financial Statements, the bank disclosed that the World Bank Group commitments rose to $84.3bn in the fiscal year 2021, 15 percent higher than FY20.

The statement quoted the World Bank Group President, David Malpass, as saying, “The World Bank Group support to client countries surged to $157bn over the last 15 months to address increased poverty, inequality, and the impacts of COVID-19.”

He added that the unprecedented level of commitments helped countries strengthen health systems, protect the poor and vulnerable, support jobs and businesses, promote economic growth, and lay the foundation for a green, resilient and inclusive recovery.

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UK To Reduce Voting Age To 16 In General Elections

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The British government announced on Thursday its intention to grant voting rights in general elections to 16- and 17-year-olds, marking a significant shift that would place the UK among countries with the lowest voting age globally.

This move stems from a commitment made by the ruling Labour Party before gaining power last year, and is part of a broader set of proposed reforms to the democratic process, which some have described as “in crisis” due to issues like low voter turnout.

The proposal is expected to spark debate, as opponents argue it could be politically motivated, with younger voters perceived as more inclined to favour the centre-left Labour party.

“I think it’s really important that 16- and 17-year-olds have the vote, because they are old enough to go out to work, they are old enough to pay taxes, so (they) pay in,” Prime Minister Keir Starmer said.

“And I think if you pay in, you should have the opportunity to say what you want your money spent on, which way the government should go,” Starmer added.

To implement the change, the government will need to present legislation in parliament, where it holds a solid majority.

Globally, only a few countries allow citizens as young as 16 to vote in national elections, according to online sources.

These include Austria — the first EU member to reduce its voting age to 16 in 2007 — along with Argentina, Brazil, Ecuador, and Cuba.

Labour ministers argue the reform is designed to “modernise our democracy” and increase participation, while also matching the voting age already used in elections for devolved parliaments in Scotland and Wales.

Other planned reforms include the adoption of automated voter registration — a system already in place in Australia and Canada — and allowing UK-issued bank cards to be accepted as valid ID at polling stations.

These proposals come after the former Conservative government implemented laws requiring voters to present photo identification, which the Electoral Commission reported resulted in around 750,000 people being unable to vote in last year’s election.

Harry Quilter-Pinner, executive director of the Institute For Public Policy Research, described the proposals as “the biggest reform to our electoral system since 1969”, when the voting age was reduced to 18.

He estimated that lowering the voting age and introducing automated registration could add as many as 9.5 million new voters.

“Our democracy is in crisis, and we risk reaching a tipping point where politics loses its legitimacy,” he said, expressing his support for the proposed changes.

 

Credit: AFP

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It’s Better For Anyone Holding PDP Down To Quit — Gov. Makinde On Atiku’s Exit

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Seyi Makinde, governor of Oyo state, has said that the departure of former Vice-President Atiku Abubakar from the Peoples Democratic Party (PDP) will not impact the party’s position.

Abubakar left the PDP on July 14, stating that the party has deviated from its founding principles.

The party, which serves as the main opposition, has been experiencing internal conflict since the 2023 presidential election.

Speaking on Wednesday during the 10th coronation anniversary colloquium of Aladetoyinbo Ogunlade, the Deji of Akure, Makinde said Atiku’s departure will not weaken the PDP’s foundation or momentum.

The governor noted that the PDP would be in a stronger position if those hindering its progress step aside.

“Politics is a game of interest. I don’t think his exit will make any dent on PDP as a party,” Makinde said.

“PDP is an institution. We have freedom of entrance and exit. Anyone who holds PDP down, it is better for such an individual to quit.”

Speculation continues to grow that Makinde may enter the 2027 presidential race.

Abubakar, who is also seeking the presidency, has aligned himself with the opposition coalition to advance his ambition.

Addressing the move by some opposition politicians to adopt the African Democratic Congress (ADC) ahead of the 2027 elections, Makinde said the coalition does not pose a threat to the PDP.

“I don’t see ADC as a threat to PDP. The goal is about the same. If you are not happy about the tempo and pace of governance, you are free to associate and see what can be done,” he said.

“But one thing we must all realise is that players will come and go, governors will come and go, presidents will come and go, but our state and country will remain.”

Makinde emphasized that traditional institutions are essential to good governance, conflict resolution, and community development.

“Too often, traditional institutions are misunderstood. Some imagine frail old men who have outlived their relevance,” he said.

“Others view them as mere instruments of political endorsement. That mindset must change.

“Traditional institutions are not relics of the past. They are enduring pillars of identity, legitimacy, and communal cohesion.

“Long before Nigeria’s formal administrative systems took root, traditional rulers dispensed justice, upheld values, coordinated local security, and kept communities united.

“Reforming legal frameworks to provide clarity on the roles, rights, and recognition of traditional councils and strengthening our security architecture to formalise community policing strategies rooted in traditional structures.”

Makinde said traditional institutions continue to be the custodians of the grassroots and warned that excluding them from nation-building would be a mistake.

“No wonder politicians continue to seek their blessings and validation,” he added.

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RCCG Pastor Absconds With $8000 Church Money, Abandons Wife, Marries New One

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A pastor with the Redeemed Christian Church of God has reportedly fled with “$8,000” in church funds, left his wife behind, and married another woman.

Pastor Folu Adeboye, wife of the General Overseer, Worldwide, of the RCCG, disclosed this while speaking at a men’s programme.

She explained in a video monitored by Church Times that the pastor was given the money for mission work in South Africa but instead abandoned his wife and relocated to the United States, where he married someone else.

Adeboye said the incident happened during a visit to Cape Town, South Africa, where she preached at the RCCG parish led by the pastor. The church service was held in a rented space at an eatery.

While she was ministering, a woman entered and began packing chairs, apparently indicating their allotted time was over. Surprised by this, Adeboye asked the pastor what it would cost to get a permanent site.

The pastor, who she said hails from Ekiti State, suggested that “$8,000” would allow them to begin the process by purchasing a used vehicle. He proposed giving the vehicle to a tourism agency to generate returns for acquiring a permanent church building.

Encouraged by the idea, Adeboye gave him the money.

However, the pastor had other plans. After receiving the funds, he travelled to the United States and left his wife behind in South Africa.

She noted that the abandoned woman is now in a distressed state, nearly “running mad.”

Church Times quoted Pastor Adeboye as saying: “RCCG men, what are we going to do? Are we going to continue with such a lying spirit, a deceitful spirit to the God of the kingdom?”

She stressed the need to return to core values of faith and truthfulness. Recalling past hardships, she said: “We must get to the point where we say wherever He leads, we follow. We were in this bush. For three years, there was no light. We went back to the days of the lantern and we were grinding with stone, whereas where we were coming from we had grinding machines, we had washing machines.”

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