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EFCC to Help NERFUND Recover N17.5bn Loans



  • EFCC to Help NERFUND Recover N17.5bn Loans

The National Economic Reconstruction Fund on Thursday sought the assistance of the Economic and Financial Crimes Commission in the recovery of its non-performing loans, estimated at about N17.5bn.

About 1,143 projects in the Small and Medium Enterprises sector were financed with the loans between 2010 and 2013.

The Acting Managing Director, NERFUND, Dr. Ezekiel Oseni, said during a meeting with the Acting Chairman of the EFCC, Mr. Ibrahim Magu, that the agency was having difficulties recovering its non-performing loans.

Oseni was appointed as the in August last year following allegations of mismanagement by the interim management team of NERFUND.

He lamented that the inability of debtors to repay loans collected from the agency was making it difficult to achieve its mandate of funding entrepreneurs, creating jobs and supporting the economy.

Oseni said that NERFUND was currently having problems recovering the loans, adding that out of the N17.5bn, the sum of N14.2bn or 80 per cent were borrowed by a few people.

The few people, according to him, were assisted to get the loans without collateral by politicians.

Oseni added that the ratio of non-performing loans was high because many of the loans were not collateralised.

For instance, he said that while some of the huge debtors had no collateral, those who had assets to back up their loans had engaged the services of lawyers to frustrate the takeover of such assets.

He said, “We can no longer support entrepreneurs owing to the fact that we gave huge debts of N17.5bn that are yet to be paid back by customers. While the small customers who collected the sum of N1m and N2m have started repaying, we are having difficulties in recovering these loans from the big customers who took N50m and above.

“Some of these big customers borrowed this money without collateral through the influences of politicians, and they don’t want to pay back because they feel it is government money. We have reported them to the EFCC and we want to plead with you to assist us with a special task force to go after these people who have refused to pay.”

According to him, the inability of the debtors to repay the loans is affecting the operations of NERFUND as some members of staff were relieved of their duties last year due to financial constraints.

He said if the development should continue, more workers would be asked go this year as the agency was not enjoying any budgetary allocation from the Federal Government.

Magu, who was represented at the meeting by his Chief of Staff, Mr. Ola Olukoye, said that the commission would be willing to support NERFUND in its debt recovery drive.

He said that the EFCC had in recent times signed memoranda of understanding with various government agencies as part of efforts to investigate issues of diversion of funds and other financial crimes and prosecute perpetrators.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq,, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Federal Government Set to Seal $3.8bn Brass Methanol Project Deal in May 2024




The Federal Government of Nigeria is on the brink of achieving a significant milestone as it prepares to finalize the Gas Supply and Purchase Agreement (GSPA) for the $3.8 billion Brass Methanol Project.

The agreement to be signed in May 2024 marks a pivotal step in the country’s journey toward industrialization and self-sufficiency in methanol production.

The Brass Methanol Project, located in Bayelsa State, is a flagship industrial endeavor aimed at harnessing Nigeria’s abundant natural gas resources to produce methanol, a vital chemical used in various industrial processes.

With Nigeria currently reliant on imported methanol, this project holds immense promise for reducing dependency on foreign supplies and stimulating economic growth.

Upon completion, the Brass Methanol Project is expected to have a daily production capacity of 10,000 tonnes of methanol, positioning Nigeria as a major player in the global methanol market.

Furthermore, the project is projected to create up to 15,000 jobs during its construction phase, providing a significant boost to employment opportunities in the country.

The successful execution of the GSPA is essential to ensuring uninterrupted gas supply to the Brass Methanol Project.

Key stakeholders, including the Nigerian National Petroleum Company Limited and the Nigerian Content Development & Monitoring Board, are working closely to finalize the agreement and pave the way for the project’s advancement.

Speaking on the significance of the project, Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, emphasized President Bola Tinubu’s keen interest in expediting the Brass Methanol Project.

Ekpo reaffirmed the government’s commitment to facilitating the project’s success and harnessing its potential to attract foreign direct investment and drive economic development.

The Brass Methanol Project represents a major stride toward achieving Nigeria’s industrialization goals and unlocking the full potential of its natural resources.

As the country prepares to seal the deal in May 2024, anticipation grows for the transformative impact that this landmark project will have on Nigeria’s economy and industrial landscape.

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IMF Report: Nigeria’s Inflation to Dip to 26.3% in 2024, Growth Expected at 3.3%



IMF global - Investors King

Nigeria’s economic outlook for 2024 appears cautiously optimistic with projections indicating a potential decrease in the country’s inflation rate alongside moderate economic growth.

The IMF’s revised Global Economic Outlook for 2024 highlights key forecasts for Nigeria’s economic landscape and gave insights into both inflationary trends and GDP expansion.

According to the IMF report, Nigeria’s inflation rate is projected to decline to 26.3% by the end of 2024.

This projection aligns with expectations of a gradual easing of inflationary pressures within the country, although challenges such as fuel subsidy removal and exchange rate fluctuations continue to pose significant hurdles to price stability.

In tandem with the inflation forecast, the IMF also predicts a modest economic growth rate of 3.3% for Nigeria in 2024.

This growth projection reflects a cautious optimism regarding the country’s economic recovery and resilience in the face of various internal and external challenges.

Despite the ongoing efforts to stabilize the foreign exchange market and address macroeconomic imbalances, the IMF underscores the need for continued policy reforms and prudent fiscal management to sustain growth momentum.

The IMF report provides valuable insights into Nigeria’s economic trajectory, offering policymakers, investors, and stakeholders a comprehensive understanding of the country’s macroeconomic dynamics.

While the projected decline in inflation and modest growth outlook offer reasons for cautious optimism, it remains essential for Nigerian authorities to remain vigilant and proactive in addressing underlying structural vulnerabilities and promoting inclusive economic development.

As the country navigates through a challenging economic landscape, concerted efforts towards policy coordination, investment promotion, and structural reforms will be crucial in unlocking Nigeria’s full growth potential and fostering long-term prosperity.

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South Africa’s March Inflation Hits Two-Month Low Amid Economic Uncertainty



South Africa's economy - Investors King

South Africa’s inflation rate declined to a two-month low, according to data released by Statistics South Africa.

Consumer prices rose by 5.3% year-on-year, down from 5.6% in February. While this decline may initially suggest a positive trend, analysts caution against premature optimism due to various economic factors at play.

The weakening of the South African rand against the dollar, coupled with drought conditions affecting staple crops like white corn and geopolitical tensions in the Middle East leading to rising oil prices, poses significant challenges.

These factors are expected to keep inflation relatively high and stubborn in the coming months, making policymakers hesitant to adjust borrowing costs.

Lesetja Kganyago, Governor of the South African Reserve Bank, reiterated the bank’s cautious stance on inflation pressures.

Despite the recent easing, inflation has consistently remained above the midpoint of the central bank’s target range of 3-6% since May 2021. Consequently, the bank has maintained the benchmark interest rate at 8.25% for nearly a year, aiming to anchor inflation expectations.

While some traders speculate on potential interest rate hikes, forward-rate agreements indicate a low likelihood of such a move at the upcoming monetary policy committee meeting.

The yield on 10-year bonds also saw a marginal decline following the release of the inflation data.

March’s inflation decline was mainly attributed to lower prices in miscellaneous goods and services, education, health, and housing and utilities.

However, core inflation, which excludes volatile food and energy costs, remained relatively steady at 4.9%.

Overall, South Africa’s inflation trajectory underscores the delicate balance between economic recovery and inflation containment amid ongoing global uncertainties.

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