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Business Insider
06-05-2025
- Business
- Business Insider
Nigeria becomes 19th African country to gain full membership of the AIIB
Nigeria has officially secured full membership in the Asian Infrastructure Investment Bank (AIIB), following approval by the Federal Executive Council (FEC) in Abuja. Nigeria has secured full membership in the Asian Infrastructure Investment Bank (AIIB) The membership allows Nigeria to access global infrastructure financing and diversify its development funding sources. The AIIB, headquartered in Asia, supports sustainable infrastructure development and has a $100 billion capital base with global membership. The move positions Nigeria as a non-regional member of the Asian Infrastructure Investment Bank (AIIB), granting it broader access to global infrastructure financing and aligning with its strategic goals for economic growth and international investment partnerships. Nigeria's membership in the infrastructure bank makes it the 19th African country to bag full membership. As of 2021, Nigeria was listed as a prospective member. Having now completed the legal, administrative, and financial processes necessary for accession, the country has become a full member of the Asian Infrastructure Investment Bank. As of today, 22 African countries have been approved as members, with 19 holding full membership and 3 designated as prospective members. What Nigeria stands to benefit During the Federal Executive Council meeting at the State House in Abuja, Minister of Finance, Wale Edun highlighted the significance of this development, stating, " We've concluded that process now, and we are fully fledged members of the Asian Infrastructure Investment Bank, which is set up to promote infrastructure development and generally sustained economic growth in all its members." Edun noted that despite the AIIB being headquartered in Asia, it welcomes non-regional members committed to sustainable infrastructure expansion. China's stake in the Asian Infrastructure Investment Bank (AIIB) is evident in its role as a top donor, giving it the largest voting share at 26.58%. India (7.59%), Russia (5.97%), Germany (4.15%), South Korea (3.49%), and Australia (3.45%) follow. As the U.S. pulls back from its donor role in Africa, China is expanding its influence through infrastructure financing across the continent. Nigeria's initial commitment involved subscribing to 50 shares valued at $100,000 each, totaling $5 million. Nigeria's accession to the Asian Infrastructure Investment Bank (AIIB) represents a strategic step in diversifying its development financing sources, especially as the United States moves to end contributions to the African Development Fund (ADF), a key arm of the African Development Bank. As one of Africa's largest economies, Nigeria stands to gain significantly from AIIB membership, both financially and geopolitically. This membership is expected to unlock financing opportunities for key infrastructure projects and accelerate economic transformation across various sectors. With a capital base of $100 billion and global membership, the AIIB offers Nigeria access to substantial funding for infrastructure, less dependent on Western political shifts. As of today, the AIIB has 19 African countries designated as full members, which include the following countries listed in the table below. S/N Country Membership Date 1 Algeria Dec 27, 2019 2 Benin May 25, 2020 3 Côte d'Ivoire Feb 26, 2020 4 Djibouti Sept 5, 2024 5 Egypt Aug 4, 2016 6 Ethiopia May 13, 2017 7 Ghana Feb 21, 2020 8 Guinea Jul 12, 2019 9 Kenya Sept 4, 2024 10 Liberia Jan 4, 2021 11 Libya Sep 12, 2023 12 Madagascar Jun 25, 2018 13 Morocco May 4, 2022 14 Rwanda Apr 16, 2020 15 South Africa Nov 24, 2023 16 Sudan Sep 13, 2018 17 Togo Dec 19, 2023 18 Tunisia Apr 29, 2022 19 Nigeria 2025 20 Tanzania Pending 21 Senegal Pending 22 Mauritana Pending Tanzania, Mauritania, and Senegal were still listed as prospective members according to information sourced from the bank's website.
Zawya
18-04-2025
- Business
- Zawya
Nigeria: Power sector got $436mln boost in revenue in 2024 — Adelabu
Nigeria's power sector has recorded a significant leap in revenue generation, with an additional ₦700 billion realised in 2024, marking a 70% increase year-on-year. This was disclosed by the Minister of Power, Adebayo Adelabu, during a ministerial press briefing held on Thursday in Abuja, where he highlighted key achievements of the ministry under the Renewed Hope Agenda of President Bola Ahmed Tinubu. The Minister attributed this landmark growth to recent cost-reflective tariff reforms targeted at Band A customers, which raised total market revenue from ₦1 trillion in 2023 to ₦1.7 trillion in 2024. 'This growth is unprecedented,' he noted. 'It is the first time we're witnessing such a sharp increase, far above the previous record of 20%. More importantly, this has led to a 35% reduction in the government-subsidised tariff shortfall – down from ₦3 trillion to ₦1.9 trillion. It demonstrates that financial viability and service delivery can coexist harmoniously.' Speaking on broader sector reforms, Adelabu pointed to the formulation of two critical frameworks – the National Integrated Electricity Policy (NIEP) and the Integrated Resource Plan (IRP)- as pivotal steps in redefining Nigeria's energy future. Both frameworks, he said, are geared towards building a cost-effective and sustainable electricity ecosystem and have been submitted to the Federal Executive Council for approval. Other highlights of the past 100 days include the inauguration of the National Independent System Operator (NISO) to unbundle the Transmission Company of Nigeria, as mandated by the Electricity Act of 2023. The new entity will oversee grid operations independently, aimed at boosting efficiency and market transparency. The sector also achieved a milestone generation capacity of 6,003MW, the highest in Nigeria's history, with an average daily generation of 5,700MW in early 2025, compared to 4,100MW in Q3 of 2023 – representing a 40% increase. 'What took four decades to achieve in terms of 2,000MW of additional power, we have delivered in under two years,' the Minister said. Further gains were reported in transmission stability. 'Despite persistent grid disturbances last year, we have not recorded a major grid collapse in the first quarter of 2025,' he said, citing completed transformer installations and mobile substations across over 12 states. The Ministry also spotlighted gains in renewable energy and rural electrification, including new off-grid and mini-grid projects across Plateau, Niger, Cross River, Osun, and Oyo States, providing clean electricity to thousands of households. Additionally, investments are underway to evacuate full capacities from key hydropower stations like Zungeru and Kashimbila, while the Kaduna Thermal Plant is being restored after six years of dormancy. Adelabu reaffirmed the government's commitment to partnering with the private sector, noting that proposals from Sun Africa Energy and Skipper Electric to scale up solar power and grid expansion are currently under review. 'Our vision is bold, but it is achievable – a Nigeria where power no longer hampers progress but powers it,' he stated. Adelabu assured power generation companies (GenCos) that the federal government will pay at least ₦2 trillion of the ₦4 trillion debt owed them before the end of 2025 in a bid to avert potential disruptions to electricity supply. His remarks follow threats by GenCos to declare force majeure on their operations if the mounting debt remains unpaid. While acknowledging the financial strain, Adelabu said the government may not be able to clear the entire amount immediately but is committed to defraying half the liability by year's end. He explained that the payment would be made through a mix of cash and promissory notes, the latter of which can be discounted by banks to provide GenCos with immediate liquidity. 'We're not promising 100% payment, but we're working to settle close to ₦2 trillion of the debt this year,' Adelabu stated during a briefing. 'There are already budgetary provisions for cash disbursement, and we're also discussing the issuance of guaranteed debt instruments, such as promissory notes, which the GenCos can take to banks for discounting if they need quick access to funds.' The minister clarified that the debt stems from unpaid subsidies, with nearly half inherited from previous administrations and the rest accumulating from ongoing operations in 2024. 'This issue has been of serious concern to us,' Adelabu said. 'I've had tough discussions with the Minister of Finance and the Coordinating Minister for the Economy, who confirmed that work is ongoing to finalise the promissory notes. Once budget releases are made, cash payments will follow.' He also acknowledged broader challenges confronting the power sector, including the ₦4 trillion debt burden, vandalism of infrastructure, and a lack of sufficient investment. Despite these issues, Adelabu reaffirmed the Tinubu administration's commitment to clearing all inherited liabilities and restoring investor confidence in the sector. 'The administration is determined to turn things around. Clearing these debts is a critical step toward stabilising the sector and attracting much-needed investment,' he added. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
Zawya
03-03-2025
- Automotive
- Zawya
Nigeria's 2025 budget should accelerate automotive industry
ON December 16, 2024, the Federal Executive Council (FEC) approved the 2025 budget with a total expenditure of N47.9 trillion. This represents a 35 percent increase from the 2024 budget. And this significant increase, according to the FG, is aimed at lifting millions of Nigerians out of poverty. However, amid this ambitious spending plan, there is a glaring need for a thriving automotive industry in Nigeria. The 2025 budget is predicated on an oil price of $75 per barrel, with a production target of 2.06 million barrels per day. While the Federal Government remains optimistic about the oil sector, it has become pertinent for concerned Nigerians to be wary of the budget's projections due to Nigeria's history of budgetary difficulties: no thanks to ongoing deficits, mounting debt, and slow economic growth. Withal, a thriving automotive industry can play a crucial role in diversifying the Nigerian economy, while reducing dependence on oil exports and creating employment opportunities. Currently, the country relies heavily on imported vehicles, which puts a strain on the country's foreign exchange reserves. By developing a local automotive industry, Nigeria can reduce its reliance on imports, conserve foreign exchange, and promote economic growth. Brands like Innoson motors should be given every support they could get. But then, there is a need to highlight the key challenges facing the Automotive Industry in Nigeria like the lack of infrastructure which includes good motorable roads, transportation networks, and storage facilities. The high cost of borrowing and limited access to finance could also hinder the growth of the automotive industry in Nigeria. Need I add that the influx of imported vehicles undermines the competitiveness of locally assembled vehicles? In the midst of all these, however, there are opportunities for growth if the federal government is willing to see beyond the lens. If the Federal Government can provide incentives like tax breaks, subsidies, and investment in infrastructure, to support the growth of the automotive industry, there is big assurance this will contribute a meaningful quota to the economy growth. Investment in private sector investment can also provide the necessary capital to establish and expand automotive manufacturing facilities in Nigeria, likewise the regional market opportunities like the African Continental Free Trade Area (AfCFTA) which provides a vast market opportunity for Nigerian-made vehicles. To surmise, Nigeria's 2025 budget presents an opportunity for the government to prioritise the development of the automotive industry. By addressing the challenges facing the industry and leveraging opportunities for growth, Nigeria can reduce its dependence on oil exports, promote economic growth, and create employment opportunities.
Zawya
05-02-2025
- Business
- Zawya
Nigeria: FEC approves $509.3mln to clear pension liabilities
The Federal Executive Council (FEC) has approved the issuance of a Federal Government bond worth N758 billion to settle outstanding pension liabilities owed to retirees under the old Defined Benefit Scheme. This was disclosed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during a media briefing after the FEC meeting presided over by President Bola Tinubu at the Presidential Villa, Abuja, on Tuesday. Edun explained that the approval authorizes the Debt Management Office (DMO) to raise the funds needed to clear the backlog of pension arrears that have accumulated over the years, providing long-awaited relief to thousands of affected retirees. 'This approval is to clean up an important area and ensure people receive their rightful pension payments as and when due,' Edun stated. 'The government has put in place an approval for the DMO to raise N758 billion, which will pay down all these liabilities and be a tremendous relief to the beneficiaries.' The outstanding liabilities stem from accrued entitlements under the old pension system, which preceded the current Contributory Pension Scheme (CPS) introduced in 2004 and updated in 2014. Edun noted that these arrears had built up over time due to periodic wage increases that were not immediately reflected in pension adjustments. 'For instance, someone on the defined benefit scheme would need a top-up every time there was a wage review, typically every five years. These liabilities accumulated to a point where it became difficult to manage on an ongoing basis, hence the need for this bold intervention,' he added. In addition to addressing pension arrears, the FEC also approved a €30 million concessional loan from the French Development Agency to support student housing projects across Nigeria. The initiative, in partnership with Family Homes Fund Limited, aims to alleviate the acute shortage of student accommodation in tertiary institutions while promoting sustainable, clean-energy housing solutions. 'We all know how critical this intervention is for the education sector, given the significant shortfall in student accommodation nationwide,' Edun said. Furthermore, the FEC granted approval for the implementation of the National Single Window Project, a major digital initiative designed to streamline trade processes, enhance revenue collection, and boost Nigeria's competitiveness in international markets. 'This project speaks directly to improving Nigeria's economic efficiency, increasing government revenue, and enhancing our capacity to compete effectively, especially under the African Continental Free Trade Agreement (AfCFTA),' Edun noted. The National Single Window, which integrates customs and other regulatory processes into a unified digital platform, is expected to be fully operational within 24 months. Edun emphasized that the government remains committed to harmonizing and prioritizing its economic reform agenda, focusing on key areas such as attracting investments to stimulate growth and create jobs, enhancing food and energy security, improving fiscal conditions through increased revenue generation, strengthening social protection programmes, and timely implementation of the National Development Plan. 'The economic management team will continue to align these approvals with President Tinubu's priorities to stabilize the economy, reduce poverty, and ensure sustainable growth,' he said. Edun also highlighted that the benefits of ongoing reforms are beginning to materialize, citing improved fiscal strength and increased competitiveness of the Nigerian economy as early indicators of progress. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
Zawya
05-02-2025
- Politics
- Zawya
Nigeria: Tinubu approves $53.75mln for reconstruction, expansion of Alau Dam in Borno
President Bola Tinubu has approved the immediate release of N80 billion for the reconstruction and expansion of the Alau Dam in Borno State, following its catastrophic collapse in 2024 that resulted in severe flooding, the death of over 150 people, and the displacement of at least 419,000 residents. The approval was announced by the Minister of Water Resources and Sanitation, Prof. Joseph Utsev, while briefing correspondents after the Federal Executive Council (FEC) meeting presided over by President Tinubu at the Presidential Villa, Abuja, on Tuesday. Located in Alau community, Konduga Local Government Area of Borno State, the dam was originally constructed between 1984 and 1986 on the Ngadda River, a key tributary of Lake Chad. It served as a major reservoir supporting water supply, irrigation, flood control, and fisheries before its collapse in 2024 exposed critical structural vulnerabilities. Utsev revealed that the approval followed the submission of an interim report by a Ministerial Committee set up on September 23, 2024, to evaluate the structural integrity of dams across Nigeria. The committee, chaired by Utsev, includes key ministers from the Ministries of Finance, Environment, Works, Information, and the National Security Adviser. 'The mandate of the committee was to assess all dams in the country and come up with recommendations on how best the dams can be put to use in areas such as water supply, flood control, irrigation, and fish farming,' Utsev said. To support its work, the committee constituted a sub-committee that incorporated experts from the Nigerian Society of Engineers (NSE), the Council for the Regulation of Engineering in Nigeria (COREN), and the Council of Dams Experts in Nigeria. 'So far, the committee has assessed about 35 dams across the country. The interim report presented to FEC highlighted major challenges, especially the vulnerabilities exposed during the devastating floods of September 10, 2024,' the minister noted. The reconstruction and expansion of the Alau Dam will proceed immediately, with work expected to begin before July 2025 to prevent further flooding in Maiduguri and surrounding areas during the next rainy season. 'As it stands now, the approval for the reconstruction and rehabilitation of Alau Dam has been granted by Mr. President. The project is awaiting formal ratification by the Federal Executive Council after all due processes are observed,' Utsev said. The project will be implemented in collaboration with the Borno State Government and the Nigerian Security Adviser's Office, with active oversight from technical experts. 'We believe that between now and July this year, the first component of the work will be established to mitigate the risk of flooding. The other components, such as desilting, will commence by December 2025. The entire project is scheduled to span 24 months,' Utsev added. The reconstruction of Alau Dam is expected to significantly boost Borno State's efforts to recover from the devastating floods and enhance resilience against future environmental disasters. It will also restore critical infrastructure for water supply, irrigation, and agriculture, benefiting thousands of residents in the region.
