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“We expect COVID-19-related projects in 100 countries by end of April— David Malpass

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6 years ago

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World Bank Group President David Malpasshas said that the multilateral institution expects to have COVID-19 projects in 100 countries before the end of April 2020. Delivering his remarks at the IMFC virtual meeting in Washington at the Spring Meetings he said “The World Bank has been focused on taking fast, broad-based action, especially for the poorest countries. By the end of April, we expect to have COVID-19-related projects in 100 countries, and we are taking steps to provide unprecedented financing to help countries respond to the crisis. We thank our shareholders for the capital and funding that you provided for IBRD, IDA, IFC, and MIGA. I invite and urge your early subscriptions. This will help materially with the COVID-19 response. We very much appreciate yesterday’s subscription by the United States, which increased the subscribed capital of IBRD by nearly $9.8 billion.

“I strongly welcome the G20’s announcement yesterday to allow the IDA countries that request forbearance to suspend repayment of official bilateral credit on May 1st. Having the commitment and agreement of all official creditors is a huge achievement and I commend all involved. 

Kristalina and I championed the debt initiative, and we’re committed to taking all the possible steps to support it. Commercial creditors would be expected to provide comparable treatment. The World Bank will be providing massively scaled up and frontloaded net transfers to IDA countries on highly concessional terms and the IMF has its own highly impactful initiatives.

“This is a powerful, fast-acting initiative that will bring real benefits to the people in poor countries. Beneficiary countries will use the additional resources to respond to COVID-19 and will fully disclose their public sector financial commitments. The World Bank and IMF are being asked to monitor their disclosures and use of the fiscal space created by the debt relief. This type of broad debt and investment transparency is a high priority for development and recovery from the crisis. It is especially urgent in the context of COVID-19, and the low-for-long interest rate environment that Kristalina described in her remarks earlier today. 

“It is critical to create the principles of transparency that will reverse the huge capital outflow from developing countries and make debt and investment more productive. Many difficult steps are needed to provide debt transparency and improve the quality of investment. To name just five; disclosure of loan contract terms and payment schedules; full disclosure of the stock of public and publicly guaranteed debt, SOE liabilities, and debt-like instruments; steps by borrowers to request relief from excessive confidentiality clauses in order to proceed with transparent data reporting; effective and prudent use of collateral and liens in sovereign borrowing; and insistence that borrowers and lenders avoid violations of legal requirements of other creditors, such as negative pledge clauses.

“Transparency will help bring in new high-quality investment, with an increasing amount from private sector investors. Short-term financial instruments will be critical in providing working capital and trade finance. IFC’s programs in this area are growing fast during the crisis. The World Bank Group can help by borrowing long-term while lending the short maturities that are so vital to new companies and new market entrants. Yesterday, IBRD borrowed $8 billion in a 5-year global benchmark bond offering investors a yield of 0.7%. 

“It’s the largest ever U.S. dollar denominated bond issued by a supranational, with an orderbook that reached $12.5 billion from 190 investors. I also commend the many central banks that are developing facilities to provide short-term financing to relieve some of the inequality burden on small companies caused by the massive maturity mismatch inherent in central banks’ large long-term portfolios. To conclude, I am certain that substantial progress on the crisis has been made this week from many different angles and that this fast action to provide support during the crisis will help during the downturn and strengthen the recovery”.

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Economy

Nigeria champions African-Arab trade to boost agribusiness, industrial growth

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3 days ago

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December 5, 2025

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The Arab Africa Trade Bridges (AATB) Program and the Federal Republic of Nigeria formalized a partnership with the signing of the AATB Membership Agreement, officially welcoming Nigeria as the Program’s newest member country. The signing ceremony took place in Abuja on the sidelines of the 5th AATB Board of Governors Meeting, hosted by the Federal Government of Nigeria.

The Membership Agreement was signed by Eng. Adeeb Y. Al Aama, the CEO of the International Islamic Trade Finance Corporation (ITFC) and AATB Program Secretary General, and H.E. Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Federal Republic of Nigeria. The Agreement will provide a strategic and operational framework to support Nigeria’s efforts in trade competitiveness, promote export diversification, strengthen priority value chains, and advance capacity-building efforts in line with national development priorities. Areas of collaboration will include trade promotion, agribusiness modernization, SME development, businessmen missions, trade facilitation, logistics efficiency, and digital trade readiness.

The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for deeper trade collaboration between African and Arab nations, stressing the importance of value-added Agribusiness and industrial partnerships for regional growth. Speaking in Abuja at the Agribusiness Matchmaking Forum ahead of the AATB Board of Governors Meeting, the Minister said the shifting global economy makes it essential for African and Arab nations to rely more on regional cooperation, investment and shared markets.

He highlighted projections showing Arab-Africa trade could grow by more than US$37 billion in the next three years and urged partners to prioritize value addition rather than raw commodity exports. He noted that Nigeria’s growing industrial base and upcoming National Single Window reforms will support efficiency, investment and private-sector expansion.

“This is a moment to turn opportunity into action”, he said. “By working together, we can build stronger value chains, create jobs and support prosperity across our regions”, Edun emphasized. “As African and Arab nations embark on this journey of deeper trade collaboration, the potential for growth and development is vast. With a shared vision and commitment to value-added partnerships, we can unlock new opportunities, drive economic growth, and create a brighter future for our people.”

Speaking during the event, Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC and Secretary General of the AATB Program, stated: “We are pleased to welcome Nigeria to be part of the AATB Program. Nigeria stands as one of Africa’s most dynamic and resilient economies in Africa, with a rapidly expanding private sector and strong potential across agribusiness, energy, manufacturing, and digital industries. Through this Membership Agreement, we look forward to collaborating closely with Nigerian institutions to strengthen value chains, expand regional market access, enhance trade finance and investment opportunities, and support the country’s development priorities.”

The signing of this Agreement underscores AATB’s continued engagement with African countries and its evolving portfolio of programs supporting trade and investment. In recent years, AATB has worked on initiatives across agribusiness, textiles, logistics, digital trade, export readiness under the AfCFTA framework, and other regional initiatives such as the Common African Agro-Parks (CAAPs) Programme.

With Nigeria’s accession, the AATB Program extends it’s presence in the region and adds a key partner working toward advancing trade-led development and fostering inclusive economic growth.

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Economy

FEC approves 2026–2028 MTEF, projects N34.33trn revenue 

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4 days ago

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December 4, 2025

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Federal Executive Council (FEC) has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF), a key fiscal document that outlines Nigeria’s revenue expectations, macroeconomic assumptions, and spending priorities for the next three years. The approval followed Wednesday’s FEC meeting presided over by President Bola Tinubu at the State House, Abuja. The Minister of Budget and Economic Planning, Senator Atiku Bagudu made this known after the meeting.

The Minister said the Federal Government is projecting a total revenue inflow of N34.33 trillion in 2026, including N4.98 trillion expected from government-owned enterprises. Bagudu said that the projected revenue is N6.55 trillion lower than earlier estimates, adding that federal allocations are expected to drop by about N9.4 trillion, representing a 16% decline compared to the 2025 budget.

He said that statutory transfers are expected to amount to about N3 trillion within the same fiscal year. On macroeconomic assumptions, FEC adopted an oil production benchmark of 2.6 million barrels per day (mbpd) for 2026, although a more conservative 1.8 mbpd will be used for budgeting purposes. An oil price benchmark of $64 per barrel and an exchange rate of N1,512 per dollar were also approved.

Bagudu said the exchange rate assumption reflects projections tied to economic and political developments ahead of the 2027 general elections. He said the exchange rate assumption took into account the fiscal outlook ahead of the 2027 general elections.

The minister said that all the parameters were based on macroeconomic analysis by the Budget Office and other relevant agencies. Bagudu said FEC also reviewed comments from cabinet members before approving the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets expenditure limits. Earlier, the Senate approved the external borrowing plan of $21.5 billion presented by President Tinubu for consideration The loans, according to the Senate, were part of the MTEF and Fiscal Strategy Paper (FSP) for the 2025 budget.

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Economy

CBN hikes interest on treasury Bills above inflation rate

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4 days ago

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December 4, 2025

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The spot rate on Nigerian Treasury bills has been increased by 146 basis points by the Central Bank of Nigeria (CBN) following tight subscription levels at the main auction on Wednesday. The spot rate on Treasury bills with one-year maturity has now surpassed Nigeria’s 16.05% inflation by 145 basis points following a recent decision to keep the policy rate at 27%. 

The Apex Bank came to the primary market with N700 billion Treasury bills offer size across standard tenors, including 91-day, 182-day and 364 day maturities. Details from the auction results showed that demand settled slightly above the total offers as investors began to seek higher returns on naira assets despite disinflation.

Total subscription came in at about N775 billion versus N700 billion offers floated at the main auction. The results showed rising appetite for duration as investors parked about 90% of their bids on Nigerian Treasury bills with 364 days maturity. The CBN opened N100 billion worth of 91 days bills for subscription, but the offer received underwhelming bids totalling N44.17 billion.

The CBN allotted N42.80 billion for the short-term instrument at the spot rate of 15.30%, the same as the previous auction. Total demand for 182 days Nigerian Treasury bills settled at N33.38 billion as against N150 billion that the authority pushed out for subscription. The CBN raised N30.36 billion from 182 days bills allotted to investors at the spot rate of 15.50%, the same as the previous auction.

Investors staked N697.29 billion on N450 billion in 364-day Treasury bills that was offered for subscription. The CBN raised N636.46 billion from the longest tenor at the spot rate of 17.50%, up from 16.04% at the previous auction.

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