Business News
FG spent highest on commercial loans in servicing external debt in Q1 2019
According to data obtained from DMO, commercial loans gulps 58.99% of the $357.26m the Federal Government spent on debt servicing in 2019 Q1.
Commercial loans gulped the largest chunk of the $357.26 million the Federal Government spent on external debt servicing in the first three months of the year (2019). This is according to statistics obtained from the Debt Management Office (DMO).
Breakdown: According to the data, a total of $210.76 million was spent on commercial loans. This represents 58.99% of the external debt servicing spending. The commercial loans include Eurobonds whose maturity dates range from 2018 to 2038.
Patience Oniha, DMO’s Director General
More so, multilateral loans consumed a total of $79.4 million, representing 22.22%. The multilateral loans include funds dispensed by the two arms of the World Bank – International Bank of Reconstruction and Development (IBRD), and the International Development Association (IDA), as well as the African Development Bank (ADB), and the Islamic Development Bank (IDB).
[READ MORE: CBN raises alarm over Nigeria’s rising debts profile]
Similarly, a total of $67.1 million, representing 18.78% was spent on bilateral loans. The bilateral loans included funding from the Export-Import Bank of China (Chexim) that funded the Nigerian Communications Satellite (NIGCOMSAT) project and the Nigeria National Public Security Communications Systems (NPSCS) project.
Why this matters: Nigeria’s accrued debt stock rose to N24.9 trillion (US$81.2 billion) at the end of March 2019. According to the latest report by the DMO, Nigeria’s total debt portfolio hits N24.9 trillion in the same period, compared to N24.3 trillion in December 2018. That is, quarter on quarter, Nigeria’s total debt stock rose by 2.3% or N560 billion.
[READ ALSO: Lagos remains the state with the highest debt profile]
- the African Development Bank (AfBD) recently revealed that Nigeria spends more than 50% of its revenue on debt servicing;
- the World Bank has claimed Nigeria’s debt is not sustainable; and
- the former Central Bank of Nigeria’s Governor, Sanusi Lamido, recently declared that Nigeria is “bankrupt and the country is heading to bankruptcy”.
Business News
BUA Group, French company announce progress in 200,000 bpd refinery project
This is coming about 6 months after both firms signed an agreement for the supply of process technologies and the design of the facility.
The BUA Group and Axens, a French-based petroleum technology company, have both signed a progress acknowledgement statement for the proposed BUA multi-billion-dollar integrated 200,000 barrels per day refinery in Akwa Ibom State.
This is coming about 6 months after both firms signed an agreement for the supply of process technologies and the design of the facility.
BUA, while making the disclosure in a statement on Wednesday, April 14, 2021, said that the French President, Emmanuel Macron, commended its Chairman, Abdul Samad Rabiu, for his commitment to developing lasting relationships between French and Nigerian businesses.
The statement said that this came as the French Minister for Foreign Trade and Economic Attractiveness, Franck Riester, paid a visit to the BUA Group Headquarters in Lagos where he handed over a personal invitation from Macron to Rabiu to attend the Choose France Summit in June in Paris representing business leaders from Nigeria and Africa.
The French minister also witnessed the signing of a progress acknowledgement statement between BUA Group and Axens of France for the proposed refinery project, according to the statement.
The statement also said that during the visit, it was announced that the BUA chairman had been appointed Chairman of the France Nigeria Investment Club.
While thanking the minister and Macron for their unwavering support in bringing BUA and French businesses together, Rabiu said BUA had so far initiated partnerships and had developed personal relationships with a few French businesses, including Axens.
He expressed confidence in the quality of expertise and technical know-how of the French companies BUA had partnered with.
Rabiu pointed out that the BUA refinery would reduce the huge cost of transporting Nigerian crude offshore, refining it and bringing it back into the country when fully operational.
He said that the choice of Akwa Ibom for the refinery was due to the huge availability of raw materials and its proximity to export petroleum products to regional countries.
The President of Axens, Jean Sentenac, in his statement, said he was pleased that the project was advancing on schedule and expressed delight for the very good cooperation between all the involved parties, reiterating the commitment of Axens in delivering the BUA Refinery Project on time and with the highest standards.
Bottom line
The completion and take-off of the refinery owned by the BUA Group would come as a huge boost for the Federal Government’s effort to stop the importation of refined petroleum products, ensuring that the country becomes a net exporter of these products.
This will also help to conserve the scarce foreign exchange as the completion and take-off of the Dangote refinery and other similar refinery projects will help ensure self-sufficiency in the country.
The BUA Group, just a few days ago, was listed as one of the companies with an active refinery license from the Department of Petroleum Resources (DPR).
President Macron lauds Abdul Samad Rabiu as BUA, Axens make progress on BUA’s 200,000bpd Refinery in Akwa Ibom
…Appoints Abdul Samad Rabiu as Chairman of the French Nigeria Investment Club.
Lagos – 14apr2021
./1 pic.twitter.com/tOoOsDW3lZ
— BUA Group (@BUAgroup) April 14, 2021
Coronavirus
Covid-19: Nigeria records over 1 million vaccinations
The NPHCDA has stated that it has vaccinated 1,043,737 persons, which is 51.9% of the targeted total proportion.
