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Business News

World Bank becomes Nigeria’s single largest creditor as loan increases

The loan portfolio of @WorldBank under President Muhammadu Buhari-led administration has increased by 29.98 per cent from December 31, 2016 to December 31, 2018, a Debt Management Office (@DMONigeria) statistics showed.

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World Bank, Mineral,World Bank approves $2.2 billion loan as the country’s debt rises to over $80 billion 

The loan portfolio of The World Bank under the President Muhammadu Buhari-led administration has increased by 29.98 percent, a Debt Management Office (DMO) statistics showed.

According to the DMO statisticWorld Bank’s credit facility to Nigeria peaked at $8.67 billion in 2018, increasing from $6.67 billion in 2016. This makes the World Bank Nigeria’s single largest creditor, even as the Breton Woods Institution holds 34.32 percent of the nation’s external debt commitment.

Nigeria’s external debt as of December 31, 2018, stood at $25.27 billion.

[READ MORE: Developing Nigeria’s private sector is key to sustainable growth – World Bank

The World Bank’s loan to Nigeria is disbursed through two arms of the bank: International Development Association and International Bank for Reconstruction and Development.

World Bank‘s IDA grants low-interest loans to developing countries while the IBRD is the commercial arm that lends at commercial interest rates.

International Development Association accounts for $8.55 billion of the World Bank portfolio in Nigeria, while the International Bank for Reconstruction and Development makes up $124.18 million of the portfolio.

[READ MORE: World Bank revises growth projection for Nigeria, Africa; here’s why

Nigeria’s capacity to repay N24.39 trillion debt worries IMF; FG replies

Recall that Nairametrics recently reported that Nigeria’s ability to repay its N24.39 trillion debt is in question after the International Monetary Fund (IMF) expressed concern about the rollover risks, arguing Nigeria’s capacity to refinance might drop in the future.

The concern was raised by the Financial Counsellor and Director, Monetary and Capital Markets Department, IMF, Tobias Adrian, while presenting the Global Financial Stability Report at the ongoing joint annual spring meetings with the World Bank in Washington DC.

[READ MORE: Nigeria’s External Reserves and SWF: Why IMF cannot be ignored

The Nigerian Government countered IMF statement, saying the nation’s debt burden is sustainable, adding that the debt burden will have no negative impact on Nigeria’s economy.

While reacting to IMF‘s statement, the Minister of Budget and National Planning, Senator Udoma Udo-Udoma said steps are being taken to ensure Nigeria doesn’t have a debt problem. One of the steps is widening of tax collection.

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Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: [email protected]

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Tech News

Twitter CEO auctions his first-ever tweet on Twitter, bidding at $2.5 million

Jack Dorsey is auctioning his first-ever tweet on a website that sells tweets as non-fungible tokens.

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Square buys $50 million worth of Bitcoins, Twitter warns political figures to abstain from fake, misleading statements, Has Twitter's Jack Dorsey changed the popular narrative attached to Nigerians?, Twitter forecasts future drop in revenue after milestone record in 2019 Q4 , Twitter founder, Jack Dorsey invest N2.3 million in Nigerian startup, DevCareer , Some Verified accounts may not be able to tweet, as Twitter freezes password reset to address cyberattack

Twitter CEO, Jack Dorsey is auctioning his first-ever tweet on Twitter “just setting up my twttr” on a website that sells tweets as non-fungible tokens (NFTs).

The tweet was listed for sale on ‘Valuables by Cent’ – a tweets marketplace that was launched three months ago. The tweet was first made in March 2006

The tweet received offers as high as $88,888.88 within minutes of Jack tweeting a link to the listing on” Valuables by Cent” on Friday.

Currently, bidding has reached $2.5 million (€2.1 million) indicating the potential in selling virtual objects that have been authenticated through blockchain technology.

The highest bid for the tweet — $2.5 million — came from Bridge Oracle CEO Sina Estavi. It topped cryptocurrency pioneer, Justin Sun’s $2 million bid.

The final buyer of the tweet will receive a certificate, digitally signed and verified by Jack Dorsey, as well as the metadata of the original tweet. The data will include information such as the time the tweet was posted and its text contents. Most of this information, however, is already publicly available.

According to Valuables by Cent’s terms, 95% of a tweet’s sale will go to the original creator while the remainder will go to the website.

What you should know

  • NFTs is a unique digital certificate that states who owns a photo, video, or other forms of online media.
  • Dorsey’s 15-year-old tweet is one of the most famous tweets ever on the platform.
  • Bidding had reached $2.5 million (€2.1 million) on Saturday, indicating the potential in selling virtual objects that have been authenticated through blockchain technology.
  • More people are currently bidding their tweets on the platform.

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Stock Market

Bamboo’s current rate for buying U.S Stocks weakens to N492/$1

Bamboo is currently offering its users a premium of more than 20% compared to the official exchange rate.

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The fast-rising Nigerian stock broking application, Bamboo, is currently offering an exchange rate of N492 to the dollar.

About two weeks ago,  the Nigerian stock trading app offered an exchange rate of about N484 to $1.

The green-colored trading app known for allowing local-based Nigerians to invest in stocks listed on the world’s biggest stock market (New York Stock Exchange and NASDAQ) is currently offering its users a premium of more than 20% compared to the official exchange rate set by the Nigerian apex bank.

READ: Nigerian Bitcoin P2P surges by 15% since CBN Crypto ban

That being said, Nairametrics’s most recent research observed Chaka. ng offers the lowest exchange rate charge of N480 to 1$, other Nigerian-based stock trading apps that include Trove and Risevest currently offer their clients N491.68 and N486 to $1 respectively.

In addition, other leading fintech platforms reviewed by Nairametrics also presently offer exuberant rates as high as about N519 to a dollar, thereby adding more transaction costs on a significant number of Nigerians hoping to trade such financial assets.

A growing number of Nigerians are currently increasing their exposure to the U.S stock market taking to the current bearish trend that is being witnessed in the Nigerian Equity market and growing urge in hedging against the weakening local currency.

Consequently, a lot of Nigerians are flocking the New York Stock Exchange (NYSE) on the account it has about 2,800 companies listed, while the NASDAQ has about 3,300 stocks listed. This gives Nigerian investors numerous options where they can invest their money. It is also why the US economy attracts billions of dollars in portfolio investments annually.

READ: Many Nigerians are trooping into foreign stock markets

Bamboo is an investment platform that gives Africans real-time access to invest in or trade over 3,500 stocks listed on the American and Nigerian exchanges right from their smartphones or personal computer.

In partnership with US-based Drive Wealth LLC, Bamboo provides seamless, secure access to US and Nigerian securities.

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