News
AfDB offers solutions to Nigeria’s debt, forex challenges
The Bank’s Vice-President for Economic Governance and Knowledge Management, Prof. Kevin Urama, told the News Agency of Nigeria (NAN) that strategic borrowing and political stability were critical for growth.
Speaking on Nigeria’s debt profile, Urama, the AfDB’s Chief Economist, said that public debt itself was not inherently problematic.
“Debt for growth is a known way of growing economies. However, the quality and structure of the debt are crucial factors in determining its long-term impact,’’ he said.
The professor raised concerns about the growing trend of short-term, high-cost commercial loans in African countries, which came with higher refinancing risks.
“The problem arises when countries borrow short-term loans and are unable to repay them before investments mature. This cycle forces countries to continuously refinance, often at unfavourable terms.
“It is therefore important for African governments to focus on borrowing longer-term loans with lower interest rates, underpinned by clear investment plans that can generate returns capable of repaying the debt.
“For Nigeria, the key question should not be whether the country is borrowing more, but rather how borrowed resources are being used.
“If borrowed funds are invested in infrastructure that drives growth both in the short and long term, it is a smart move,” he said.
On foreign exchange and trade, Urama pointed to Africa’s dependence on imports, specifically food, as a critical area for reform.
He acknowledged the ongoing disruption of global supply chains due to geopolitical tensions, including the war in Ukraine, which had affected wheat imports to Africa.
The professor, however, urged African countries to address their dependence on imports, especially when the continent was home to vast agricultural potential.
“Africa has no business importing wheat from Ukraine because we have 65 per cent of the remaining arable land in the world.
“We also have a vibrant, youthful population eager to engage in productive activities. Africa has the capacity to feed itself and the world.
“And this can be achieved through initiatives such as the AfDB’s AgriPreneur and Special Agro-Industrial Processing Zones (SAPZ) programmes which are crucial tools for unlocking the continent’s agricultural potential,’’ he said.
Urama cited Ethiopia’s success in becoming a wheat exporter within just four years of focused agricultural investment.
He said this was a demonstration that Africa could transition from food dependence to food self-sufficiency and even become a global exporter.
On the broader economic challenges facing Nigeria and other African countries, the professor reiterated the importance of political stability and sound macroeconomic policy management.
Urama pointed to Botswana as an example of how stable governance and good policy could reduce capital costs, increase foreign investment, and improve economic growth.
“When political stability and good governance are in place, the cost of capital decreases, and investments flow more freely,” he said.
According to the AfDB vice-president, Africa’s economic challenges are solvable through long-term strategies focused on stability, sound economic management, and a shift towards local production and value addition.
“By doing so, African countries can reduce their dependence on external financing, stabilise their currencies, and ultimately foster sustainable economic growth,’’ he said.(NAN)
By Abubakar Yunusa
Dangote Petroleum Refinery has slashed its ex-depot price of premium motor spirit (PMS), also known as petrol, to N825.
Esan Sunday, head of media relations and branding communications at Dangote Group, announced the reduction in a statement on Wednesday.
The development comes more than three weeks after the refinery reduced petrol price from N950 per litre to N890.
The new price means that the refinery has significantly cut the ex-depot price by N125 from N950 per litre in January.
“This recent price reduction will also ensure that Nigerians pay between N860 and N865 per litre for petrol at the pump in Lagos,” the statement reads.
“This strategic price adjustment is designed to provide essential relief to Nigerians in celebration of the Ramadan season, while also supporting President Bola Ahmed Tinubu’s economic recovery policy by alleviating the financial burden on the Nigerian populace.
“It is important to note that Dangote Petroleum Refinery has consistently lowered the prices of petrol and other refined petroleum products to the benefit of Nigerians.
“This marks the second reduction of PMS prices in February 2025, following a previous decrease of N60 earlier in the month.
“Additionally, in December 2024, during the yuletide period, the refinery reduced the price of PMS by N70.50, from N970 to N899.50 per litre, as part of its commitment to easing the cost of living and providing relief to Nigerians during the holiday season.”
The oil firm refinery also said previous reductions have positively impacted the overall cost of living, benefiting various sectors of the economy.
Dangote refinery added that its high-quality products, which have become a favourite in both domestic and international markets, will remain available nationwide, particularly through its key partners — MRS Holdings, AP (Ardova Petroleum), and Heyden — at market-friendly rates.
The organisation assured the public of a consistent supply of petroleum products, with sufficient reserves to meet domestic demand and a surplus for export, thereby boosting the country’s foreign exchange (FX) earnings.
The refinery also called on marketers to support the initiative, ensuring that Nigerians remain the primary beneficiaries of its effort
Abdullahi Ganduje, the national chairman of the All Progressives Congress (APC), says the ruling party had a debt of N8.9 billion when he assumed office.
Ganduje took over from Abdullahi Adamu, who was the national chairman of the APC until his resignation in July 2023.
Speaking during the APC’s NEC meeting in Abuja on Wednesday, the former Kano governor said the expenses were incurred during pre-election legal battles, election cases, and appeals for legislative, governorship, and presidential elections.
“The current NWC inherited debts and legal liabilities to the total tune of N8,987,874,663, arising from various legal engagements,” Ganduje said.
However, the APC chairman said Kareem Kana, the national legal adviser, has been working to reduce the debt burden.
“We still passionately appeal to the national executive committee to intervene accordingly,” he said.
Earlier today, the chairman said the party is making efforts to mend internal divisions and bring aggrieved members back into the fold.
Ganduje explained that the APC had initiated high-level discussions among party leaders and stakeholders to address lingering disagreements and strengthen party unity.
The Economic and Financial Crimes Commission (EFCC) has arraigned Jude Okoye, the elder brother and former manager of Paul and Peter Okoye of the defunct music group, P-Square, on charges of laundering ₦1.38billion, $ 1 million and £34,537.59.
Jude was arraigned alongside his company, Northside Music Ltd, before Justice Alexander Owoeye of the Federal High Court, Lagos, on a seven-count charge
One of the counts read: “That you, Jude Okoye Chigozie and Northside Music Ltd sometime in 2022, in Lagos, within the jurisdiction of this Honourable Court, did directly acquire a landed property known as No 5, Tony Eromosele Street Parkview Estate, Ikoyi, Lagos worth ₦850,000,000.00 (Eight hundred and fifty million naira) only, which money you knew or reasonably ought to have known forms part of proceeds of unlawful act and thereby committed an offence contrary to Section 18 (2) (d) and punishable under Section 18 (3) of the Money Laundering (Prevention and Prohibition) Act, 2022.”
Another count read: “That you, Jude Okoye Chigozie and Northside Music Ltd sometime in 2022, in Lagos, within the jurisdiction of this Honourable Court, did indirectly using bureau de change convert the sum of $1,019,762.87 (One million nineteen thousand, seven hundred and six-two dollars eighty-seven cents), domiciled in Access Bank Plc operated by Northside Music Lid to the naira equivalent and remitted into various bank accounts with the intention of concealing that the said fund form part of the proceeds of an unlawful act and thereby committed an offence contrary to Section 18 (2)(a) and punishable under Section 18 (3) of the Money Laundering (Prevention and Prohibition) Act, 2022.”
He pleaded “not guilty” to the charges.
In view of his plea, the prosecution counsel, Larry Peters Aso, applied for a date for hearing as well as for the remand of the defendant in the correctional facility pending trial.
The defendant’s counsel, Inibehe Effiong, informed the court of a pending bail application. He asked for a short date for the hearing. Effiong also asked that the defendant be remanded in the EFCC’s custody pending the hearing of the application.
Aso objected to the request for the defendant to be remanded in the EFCC custody. He argued that the EFCC custody was already congested with suspects awaiting arraignment. He urged the court to remand the defendant to the correctional facility since he had taken his plea.
Justice Owoeye adjourned the matter till February 28 for bail hearing and April 14 for trial.
He also ordered that the defendant be remanded in the Ikoyi correctional facility.