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Nigeria Has $5.83bn Undisbursed Foreign Loans – DMO



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Nigeria Has $5.83bn Undisbursed Foreign Loans – DMO

Nigeria has more than $5.83bn foreign loans that have been approved but not yet disbursed, the Debt Management Office has said.

The DMO on its portal on Sunday listed a number of foreign loans that were to be disbursed as of December 31, 2020.

The disbursement of the loans will take the country’s total foreign debt commitment to more than $37.8bn.

Our correspondent reports that the country’s external debt as of September 30, 2020 stood at $31.99bn.

A table provided by the DMO titled ‘External loans signed but yet disbursed as at December 31, 2020’ showed that a larger percentage of the loans would come from the International Development Association, a member of World Bank Group.

The outstanding loans from the group stands at about $3.27bn.

Another $1.25bn is supposed to come from the Export-Import Bank of China. Apart from multilateral agencies, China has remained the nation’s largest creditor.

Other major sources of the undisbursed funds include Agence Francaise de Development from where the country will get more than 500 million Euros and the European Development Fund from where the country will collect about $425m.

The DMO also listed the projects and agencies that would benefit from the undisbursed funds.

These include Nigerian Supply of Rolling Stock and Depot Equipment for Abuja Light Rail Project, the Nigerian Greater Abuja Water Supply Project, Nigerian National Information Communication Technology Infrastructure Backbone Phase II Project; Four Airport Terminals Expansion Incremental Project, the Nigerian Four Airport Terminals Expansion Ancillary Project.

Others are Nigerian 40 Parboiled Rice Processing Plants Project, Say No to Famine of Nigeria, Nigeria Transmission Expansion Project Phase I (NTEP-1), Nigeria Transmission Expansion Project Phase I (NTEP-1) (AGTF); Second Africa Higher Education Centers of Excellence for Development Impact (ACE 3) Project; Rural Access and Agricultural Marketing Project; the Northern Corridor Power Transmission Project; and the Enhancing Vocational Training Delivery for the Power Sector in Nigeria.

The list also includes the Northern Core Dorsal Nord Regional Power Interconnector Project; the Ogun State Economic Transformation Project; the Innovation Development and Effectiveness in the Acquisition of Skills Project; the Immunisation Plus & Malaria Progress by Accelerating Coverage and Transforming Service; the Sustainable Procurement, Environmental and Social Standards Enhancement Project; the Power Sector Recovery Programme for Results Project; the Second Africa Higher Education Centers of Excellence for Development Impact Project and the Rural Access and Agricultural Marketing Project.

The Multi-Sectoral Crisis Recovery Programme for Lake Chad Recovery and Development (PROLAC) – Additional Financing; the Nigeria Covid-19 Preparedness and Response Project; the Edo State Basic Education Sector and Skills Transformation Operations; the Adolescent Girls Initiative for Learning and Empowerment Programme (AGILE) Project; the Nigeria Digital Identification for Development Project; the Nigeria Digital Identification for Development Project; and the Nigeria Climate Adaptation Erosion and Watershed Project were also listed among the beneficiary projects.

The DMO did not state why the funds had not been disbursed. However, some of the lending agencies disburse funds as agreed milestones or conditions are reached.

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

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Nigeria’s External Debt Rose From $18.3bn in 2010 to $103bn in 2022; Says World Bank

Nigeria spent $9.6 billion on debt servicing in 12 years




The World Bank stated yesterday that Nigeria’s external debt increased from $18.3 billion in 2010 to $103 billion in 2022. The bank added that the country spent $9.6 billion on debt servicing in 12 years. 

According to the “International Debt Report” released by the bank, Nigeria’s foreign debts rose astronomically by 305 per cent during the 12 years.

The report added that external debt stood at $76.21 billion in 2021 but rose quickly to $103 billion by the first half of 2022 (H2 2022).

Furthermore, cumulative annual interest payments on external debts rose sharply by 2,819 per cent to $1.73 billion in 2021 from $59.3 million in 2010.  

Investors King understands that the implementation of Nigeria’s budget heavily relies on external borrowings.  

An example is the construction of railway tracks which are heavily funded by the Chinese loan while the country’s 2023 budget proposal also has a deficit of about N10 billion which will be significantly sourced from international creditors.

Experts have warned that Nigeria’s rising debt could hamper the nation’s overall development, especially if the debts are not tied to projects with economic value.

Meanwhile, the report added further that principal repayment on the external debt gulped $30.66 billion during the 12 years period with annual principal repayment rising by 469 percent to $6.77 million in 2021 from $1.189 million in 2010. 

In the executive summary, the report noted that Nigeria and other developing countries are at risk of serious debt-related issues. The report cautioned that rising interest rates coupled with the recent sluggish economic movement may force a number of developing countries into a debt crisis. 

Speaking on the report, World Bank Country Director for Nigeria, Shubham Chaudhuri stated that Nigeria’s economy does not reflect the huge level of debt stock, adding that multilateral institution is worried that the cost of servicing debt could exceed the nation’s revenue.  

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Cashless Policy: CBN Caps Withdrawals at N20,000 a Day, N100,000 a Week

Nigerians can no longer withdraw more than N20,000 a day



ATM at lagos

In an effort to reduce cash transactions, frustrate activities of Kidnappers and other criminals, the Central Bank of Nigeria (CBN) on Tuesday directed all Deposit Money Banks (DMBs) and other financial Institutions (OFIs) to reduce their over the counter withdrawal to N100,000 per week for individual, while withdrawals by corporate organisations were capped at N500,000 per week.

According to the apex bank, withdrawals above these limits would attract 5% processing fees for individuals and 10% for corporate organisations.

For Automated Teller Machines (ATM), cash withdrawal was also capped at N100,000 per week with a maximum cash withdrawal of N20,000 per day. ATM operators are thereby advised to load only N200 denominations and below into their machines.

Similarly, Point of Sale (PoS) cash withdrawal was set at N20,000 a day.

However, in certain compelling circumstances, the central bank allows individuals and corporate organisations with legitimate reasons to withdraw cash of up to N15 million and N110 million, respectively.

Such transactions, however, will attract appropriate processing fees as stated above, in addition to enhanced due diligence and further information requirements as follow:

a. Valid means of identification of the payee (National ID, International Passport, Driver’s License).

b. Bank Verification Number (BVN) of the payee.

c. Notarized customer declaration of the purpose for the cash withdrawal.

d. Senior management approval for the withdrawal by the Managing Director of the drawee, where applicable.

e. Approval in writing by the MD/CEO of the bark authorising the withdrawal.

The apex bank advised financial institutions to start encouraging customers to embrace alternative channels for their financial transactions.

“Customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS. eNaira, etc.) to conduct their banking transactions.

“Finally, please note that aiding and abetting the circumvention of this policy will attract severe sanctions.”

The new directive would take effect on January 9, 2023, Investors King reports.

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JUST IN: CBN Limits POS Withdrawal to N20,000 Daily



point of sales

The Central Bank Of Nigeria has imposed fresh cash withdrawal limits across all financial channels. The withdrawal which takes effect from January 9, 2023, will affect both individuals and organisations.

According to the new memo issued to commercial banks late on Tuesday, cash withdrawal in banks is set to N100,000 while organisations are limited to N500,000 per week. Similarly, cash withdrawal from POS is set to N20,000 per day. 

“Only denominations of N200 and below shall be loaded into the ATMs. The maximum cash withdrawal via the point of sale terminal shall be N20,000 daily,” the memo partly read. 

The memo added that any transactions above the sat limit will attract charges. As contained in the memo, cash withdrawals above N100,000 and N500,000 will henceforth attract 5 per cent and 10 per cent, respectively. 

Investors King learnt that the new development is part of the overall measures to curtail the humongous circulation of naira. An important reason why the apex bank redesigned a portion of the naira notes. 

It will be recalled that while announcing the redesigned notes, the CBN Governor, Godwin Emefiele noted that the redesigned policy will help to address a number of prevailing issues which include currency circulation, counterfeiting and terrorism. 

In addition, the apex bank noted that Automated Teller Machines, (ATM) will henceforth dispense N200 and other lower denominations. 

The memo which was circulated to commercial banks and signed by the Director of Banking Supervision, Haruna .B. Mustafa included that withdrawal from the Automated Teller Machines for individuals is set to N100,000 while organisations can access N500,000 per week.

Following the release of this new policy, a number of Nigerians have showcased mixed feelings regarding the impacts it will have on the way people transact and the overall business environment. 

While some people welcome the new policy, claiming it will help tackle the excessive circulation of the naira among other issues, some hold the opinion that the new policy will make business transactions a bit difficult for both small and big businesses. 

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