Nigeria’s online payment service provider, Paga has reached an exclusive payment partnership deal with Orange Mall – an e-commerce platform with over 250 international retailers – for easy purchase and shipment to Nigeria. This was confirmed in a statement by Paga’s General Manager for Online & Mobile, Folakemi Falodun.
The new partnership agreement will see Paga providing payment services on Orange Mall, underscores its overarching commitment to making life possible for Nigerians. Paga’s customers will also be able to shop globally and pay locally, increasing the utility of their Paga wallets.
“Orange Mall will be supported by Mall for Africa to handle operations, customer care, and logistics, while Paga will process all payments made through its secure wallet which customers can link to their linked bank cards and accounts, or fund their wallets directly with cash” – Falodun
Nairametrics had reported that the Nigerian digital payments platform was gearing up to compete with the likes of PayPal, Alipay, and Safaricom’s M-Pesa at the international level.
The Founder and Chief Executive Officer (CEO) of Paga, Tayo Oviosu who took to Twitter to announce the development made the disclosure that the international expansion was valued at $10 million and the funding was led by Global Innovation Fund.
With the $10 million funding, Oviosu said the company was planning to release its payments product in Ethiopia, Mexico, and the Philippines.
Paga is a mobile payment platform that allows its users to transfer money and make payments through their mobile devices. It acts as a mobile wallet where any user equipped with a mobile device can conduct transactional activities using their device. Paga was founded in Nigeria in 2009 by Tayo Oviosu.
Since its launch, Paga has continued to grow, with 8.2 million users that processed over 2 million transactions worth over $131 million in March 2018. It has also processed over $3 billion worth of transactions from 48 million transactions since inception.
COVID-19 Update in Nigeria
On the 17th of January 2021, 1,444 new confirmed cases and 15 deaths were recorded in Nigeria
The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record significant increases as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 110,387 confirmed cases.
On the 17th of January 2021, 1,444 new confirmed cases and 15 deaths were recorded in Nigeria.
To date, 110,387 cases have been confirmed, 89,317 cases have been discharged and 1,435 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 1.15 million tests have been carried out as of January 17th, 2021 compared to 1.13 million tests a day earlier.
COVID-19 Case Updates- 17th January 2021,
- Total Number of Cases – 110,387
- Total Number Discharged – 89,317
- Total Deaths – 1,435
- Total Tests Carried out – 1,154,138
According to the NCDC, the 1,444 new cases were reported from 21 states- Lagos (901), Plateau (136), Kaduna (57), FCT (54), Ebonyi (53), Akwa Ibom (52), Nasarawa (32), Osun (29), Ogun (28), Imo (16), Oyo (16), Edo (15), Kano (14), Rivers (10), Ekiti (7), Borno (6), Abia (5), Benue (4), Yobe (4), Kebbi (3), Anambra (2).
Meanwhile, the latest numbers bring Lagos state total confirmed cases to 40,624, followed by Abuja (14,598), Plateau (6,753), Kaduna (6,178), Oyo (4,695), Rivers (4,392), Edo (3,261), Ogun (2,859), Kano (2,591), Delta (2,102), Ondo (2,070), Katsina (1,723), Enugu (1,583), Kwara (1,566), Gombe (1,489), Nasarawa (1,301), Ebonyi (1,259), Osun (1,215), Abia (1,134), and Bauchi (1,107).
Borno State has recorded 865 cases, Imo (857), Sokoto (677), Akwa Ibom (667), Benue (657), Bayelsa (608), Niger (547), Adamawa (540), Anambra (515), Ekiti (473), Jigawa (425), Taraba (258), Kebbi (251), Yobe (211), Cross River (169), Zamfara (162), while Kogi state has recorded 5 cases only.
Lock Down and Curfew
In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.
The movement restriction, which was extended by another two weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.
On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.
On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.
Governor Babajide Sanwo-Olu of Lagos State announced the closed down of the Eti-Osa Isolation Centre, with effect from Friday, 31st July 2020. He also mentioned that the Agidingbi Isolation Centre would also be closed and the patients relocated to a large capacity centre.
Due to the increased number of covid-19 cases in Nigeria, the Nigerian government ordered the reopening of Isolation and treatment centres in the country on Thursday, 10th December 2020.
FG yet to purchase Covid-19 vaccines – Minister of State for Health
According to a disclosure made by the Minister of State for Health, the FG is yet to purchase any COVID-19 vaccine.
The Federal Government has said that it is yet to purchase any Covid-19 vaccines as the country is still assessing the prices of different shots, their availability and the logistics required for a nationwide roll-out.
This is coming at a time when developed economies are rolling out the vaccines in their countries and concerns have been raised about the availability of the Covid-19 doses in the African continent.
This disclosure was made by the Minister of State for Health Adeleke Olurunnimbe Mamora, during a telephone interview with Bloomberg.
What the Minister of State for Health is saying
Mamora said that once the government determines which vaccines are accessible and affordable, authorities then have to consider storage and distribution issues as they prepare to give shots to 200 million people.
He said, “We haven’t made any purchases at this point in time.’’ He added that the government expects to have a definitive plan by the end of January.
Nigeria is working with the World Health Organization backed COVAX programme and hopes to receive its first doses in January. The Minister for Finance, Budget and National Planning, Zainab Ahmed, had said that the country is working on what type and quantity of Covid-19 vaccines to procure and financial provision will be made in the 2021 budget for the vaccines.
COVAX is a global initiative backed by the World Health Organization which aims to provide equitable access to Covid-19 vaccines, especially to poor countries.
What you should know
- It can be recalled that Bloomberg had reported that experts and a state governor had expressed doubts about the ambitious plan by Nigeria to vaccinate as much as 40% of its population this year due to lack of resources and infrastructure.
- The Chief Executive Officer of Nigeria’s National Primary Health Care Development Agency, Faisal Shuaib, said on Thursday the country expects to receive 100,000 doses of Pfizer Inc’s shot at the end of January through the Covax initiative.
- Nigeria has officially reported 107,345 Covid-19 cases, with 1,413 casualties, but testing is not easily accessible for most people, with only about 1.1 million tests conducted so far.
Nigerian government spends equivalent of 83% of revenue to service debt in 2020
The Federal Government of Nigeria achieved a debt service to revenue ratio of 83% in 2020.
The Federal Government of Nigeria achieved a debt service to revenue ratio of 83% in 2020. This is according to the information contained in the budget implementation report of the government for the year ended December 2020.
According to the data seen by Nairametrics, total revenue earned in 2020 was N3.93 trillion representing a 27% drop from the target revenues of N5.365 trillion. However, debt service for the year was a sum of N3.26 trillion or 82.9% of revenue.
Nigeria’s debt service cost of N3.26 trillion has now dwarfed the N1.7 trillion spent on capital expenditure of N1.7 trillion incurred in 2020. This is also the highest debt service paid by the Federal Government since we started tracking this data in 2009.
The total public debt (External and Domestic) balance carried by Nigeria as of September 2020 stood at N32.22 trillion ($84.57 billion). Included in the total debt is a domestic debt of about N15.8 trillion.
What this means: Nigeria’s debt to GDP ratio is estimated at about 22%, one of the lowest in the world and much below what is obtainable in most emerging markets.
- However, the challenge has always been the debt service to revenue ratio, a metric that reveals whether the government is generating enough revenues to pay down its debts as they mature.
- Since the first recession experienced in 2016, Nigeria has struggled with a higher debt service to revenue ratio as revenues slid in direct correlation with the fall in oil prices.
- Nigeria’s government spent about N2.45 trillion in debt service in 2019 out of total revenue of N4.1 trillion or 59.6% debt service to revenue ratio.
- At 83%, 2020 ranks as the highest debt service to revenue ratio we have incurred. Before now it was 2017 with 61.6%.
Breakdown of what debts were serviced
The following amount was spent on debt service during the year
- To service domestic debt, the government spent N1.755 trillion in 2020 as against a budget of N1.87 trillion.
- For foreign debts, a sum of N553 billion was spent against a target budget of N805.47 billion. The drop here is likely a result of lower interest rates on foreign borrowing as well as very limited borrowing from the foreign debt market during the year.
- The government only contributed N4.58 billion into its sinking fund instead of the budgeted N272.9 billion.
- The sinking fund is required to set aside funds that will be used to pay down on other loans such as bonds when they mature in the future.
- Finally, a sum of N912.57 trillion was spent on servicing CBN’s loans, granted via its Ways and Means provisions.
- Nairametrics reported last week that a total sum of N2.8 trillion was extended by the CBN to the FG as Ways and Means.
What happens next: In 2021, the government projects a debt service of N3.1 trillion against revenue of N6.6 trillion or debt service to revenue ratio of 46.9%.
- The government plans to spend N4.3 trillion on capital expenditure during the year.