Latest news with #StateGovernments
Zawya
4 days ago
- Business
- Zawya
$21.5bln loan request is Nigeria's external borrowing plan for 2024–2026, FG clarifies
The Federal Government has clarified that Tuesday's $21.5 billion communication by President Bola Tinubu to the National Assembly was a formal request for consideration and approval of the 2024–2026 External Borrowing Rolling Plan, which includes the State Governments. It explained that a borrowing plan does not amount to taking a $21.5 billion loan but only shows a plan of what can be borrowed and where the loans will come from for specific projects that are important to the Federal and State governments, including what will be borrowed by the Federal Government in 2025. Additionally, the Federal Government noted that the proposed Borrowing Rolling Plan is an essential component of the Medium Term Expenditure Framework (MTEF), in accordance with both the Fiscal Responsibility Act 2007 and the Debt Management Office (DMO) Act 2003. According to Government, the Plan outlines the external borrowing framework for both the federal and sub-national governments over a three-year period, accompanied by five detailed appendices on the projects, terms and conditions, implementation period, etc. In a statement on Wednesday, Mohammed Manga, Director, Information and Public Relations in the Federal Ministry of Finance, said by adopting a structured, forward-looking approach, the plan facilitates comprehensive financial planning and avoids the inefficiencies of ad hoc or reactive borrowing practices. 'This strategic method enhances Nigeria's ability to implement effective fiscal policies and mobilize development resources. The borrowing plan does not equate to actual borrowing for the period. The actual borrowing for each year is contained in the annual budget. 'In 2025, the external borrowing component is US $1.23 billion, and it has not yet been drawn. This is planned for H2 2025. 'Also, the plan is for both Federal and several State governments across numerous geopolitical zones including Abia, Bauchi, Borno, Gombe, Kaduna, Lagos, Niger, Oyo, Sokoto, and Yobe States. 'Importantly, it should be noted that the Borrowing Rolling Plan does not equate to an automatic increase in the nation's debt burden. The nature of the rolling plan means that borrowings are split over the period of the projects. 'For example, a large proportion of projects in the 2024–2026 rolling plan have multi-year drawdowns of between 5 to 7 years, which are project-tied loans. These projects cut across critical sectors of the economy, including power grids and transmission lines, irrigation for improving food security, fibre optics network across the country, fighter jets for security, and rail and road infrastructure,' Manga stated. He informed that the majority of the proposed borrowing will be sourced from Nigeria's development partners, including the World Bank, African Development Bank, French Development Agency, European Investment Bank, JICA, China EximBank, and the Islamic Development Bank, as these institutions offer concessional financing with favourable terms and long repayment periods, thereby supporting Nigeria's development objectives sustainably. The government reiterated that the debt service-to-revenue ratio has started decreasing from its peak of over 90 percent in 2023, and it has ended the distortionary and inflationary ways and means. It highlighted that there are significant revenue expectations from the Nigerian National Petroleum Company Limited (NNPCL), and technology-enabled monitoring and collection of surpluses from Government Owned Enterprises (GOE) and revenue-generating ministries, departments, and agencies, including legacy outstanding dues. 'Having achieved a fair degree of macroeconomic stabilization, the overarching goal of the Federal Government is to pivot the economy onto a path of rapid, sustained, and inclusive economic growth. 'Achieving this vision requires substantial investment in critical sectors such as transportation, energy, infrastructure, and agriculture. These investments will lay the groundwork for long-term economic diversification and encourage private sector participation. 'Our debt strategy is therefore guided not solely by the size of our obligations, but by the utility, sustainability, and economic returns of the borrowing. Ensuring that all borrowed funds are efficiently utilized and directed toward growth-enhancing projects remains a top priority,' the Government further explained. Manga underlined that the government remains committed to keeping borrowing within manageable and sustainable limits in accordance with the DMO Debt Sustainability Framework.
Borneo Post
6 days ago
- Business
- Borneo Post
Deputy minister's visit to Sabah strengthens ties in agricommodity sector
From left: Saravana Kumar, Severinus Tukah, Datuk Chan Foong Hin, Datuk Seri Panglima Haji Hajiji Noor, Datuk Shahminan Sahari and Datuk Ceasar Mandela Malakun. KOTA KINABALU (May 28): The strategic relationship between the Federal and Sabah State Governments received a fresh boost following a courtesy visit by Deputy Minister of Plantation and Commodities, Datuk Chan Foong Hin, to Chief Minister Datuk Seri Panglima Hajiji Noor on Tuesday. Held at the Chief Minister's Office in Menara Kinabalu here, the meeting focused on strengthening cooperation in the agricommodity sector, a key pillar of Sabah's economy. Chan said the visit was part of the ministry's ongoing effort to enhance collaboration with state governments, especially in agricommodity-producing regions. 'Sabah plays a crucial role in Malaysia's agricommodity landscape, especially as a major producer of crude palm oil (CPO) and cocoa,' he said. During the discussion, several key issues were raised, including the need to increase the replanting rate among oil palm smallholders. The deputy minister highlighted that efforts to streamline land ownership verification under state jurisdiction would help facilitate applications for the Oil Palm Smallholder Replanting Financing Scheme 2.0 (TSPKS 2.0). 'This will ensure that Sabah's palm oil industry remains competitive and sustainable in the long term,' Chan added. Another critical issue discussed was the implementation of a digital registration system for foreign workers in Sabah's palm oil sector. The system is aimed at enhancing the management of labour resources more systematically and efficiently. 'Such initiatives require close cooperation and coordination between Federal and State agencies,' Chan said. The ministry also conveyed its deep appreciation to Hajiji for his strong support of the Federal Government's efforts to advance the agricommodity sector in Sabah. 'The Sabah Government's commitment is instrumental in ensuring the continued development of this vital sector, which benefits both the state and the country,' said Chan. He expressed confidence that closer cooperation would help boost the competitiveness of Sabah's agricommodity industry and bring greater economic returns to the people. Joining the deputy minister were Senior Division Secretary of Palm Oil and Sago Industries (BISS) Severinus Tukah, and Division Secretary for Industry Innovation and Human Capital Development (PIMI) Saravana Kumar a/l Marimuthu. Representing the Sabah State Government were Datuk Shahminan Sahari, Secretary for Home Affairs and Research, and Datuk Ceasar Mandela Malakun, Senior Private Secretary to the Chief Minister. The meeting concluded on a positive note, with both sides reaffirming their commitment to sustained cooperation in support of Sabah's agricommodity aspirations.
Times of Oman
23-05-2025
- Business
- Times of Oman
India: PM Modi to inaugurate Rising North East Investors Summit in Delhi
New Delhi: Prime Minister Narendra Modi will inaugurate the Rising North East Investors Summit on May 23, at around 10:30 AM, at the Bharat Mandapam in New Delhi. According to an official statement, this summit is being organised with an aim to highlight the northeastern region as a land of opportunity, attracting global and domestic investment, and bringing together key stakeholders, investors, and policymakers on a single platform. The Rising North East Investors Summit, a two-day event from May 23-24, is the culmination of various pre-summit activities, such as a series of roadshows, and states' roundtables, including the Ambassador's Meet and Bilateral Chambers Meet. It has been organised by the central government with active support from the state governments of the North Eastern Region. The Summit will include ministerial sessions, Business-to-Government sessions, Business-to-Business meetings, startups, and exhibitions of policy and related initiatives taken by State Governments and central ministries for investment promotion. The main focus sectors of investment promotion include Tourism and Hospitality, Agro-Food Processing and allied sectors, textiles, Handloom, and Handicrafts, healthcare, education and Skill Development, Information Technology or Information Technology-Enabled Services, infrastructure and Logistics, energy, and Entertainment and Sports. A strategic location that offers easy access to ASEAN markets, the Northeast Region, India's growth engine, is endowed with abundant natural resources such as oil, gas, coal, minerals, timber, medicinal plants, bamboo, forest products, and water resources for industries to harness. Northeast India provides direct access to ASEAN markets, positioning it as a vital trade hub. Considered India's Green Hub, the region is home to verdant forests and rich biodiversity, and is an ideal destination for eco tourism and agro-based industries. The region's GSDP at current prices is Rs 9.26 lakh crore in 2023-24. GSDP of NER states grew at CAGR of 10.8 per cent, from 2014-15 to 2021-22 (against national average of 8.1 per cent). At a curtain raiser event on May 14, Chanchal Kumar, Secretary, Ministry for Development of North Eastern Region (MDoNER) informed that the pre-summit activities organised by the Ministry have attracted investment proposals worth more than Rs. 1 lakh crore across all the Northeastern states. In the run-up to the summit, an Ambassadors' Meet was organised in coordination with the Ministry of External Affairs on April 15, 2025, here in the national capital, to give exposure to foreign investors to the region. The event saw unprecedented participation at the level of Ambassadors and High Commissioners of more than 75 countries.
