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Tag: loans

  • States slow down on loans following rise in revenue

    States slow down on loans following rise in revenue

    • Petrol subsidy removal raises income
    • DMO: 27 states have cut borrowing

    Majority of states have drastically reduced their debt exposure in the last two years.

    According to data from the Debt Management Office (DMO), which oversees the government’s debt management, more than three-quarters of the states reduced their loans over the past 15 months.

    This has been linked to a rise in their allocation from the consolidated revenue account following petrol subsidy removal by President Bola Ahmed Tinubu.

    Accruals to the purse have significantly increased.

    Federal, states, and local governments, which hitherto shared less than N1 trillion monthly, have been sharing an average of N1.6 trillion.

    In June, the highest distributable amount of N1.8 trillion was shared: Federal Government got N645.383 billion; states (N607.417 billion), and local governments (N444.853 billion).

    Additionally, N120.759 billion was distributed to oil-producing states as 13 per cent derivation revenue from mineral sources.

    A review of sub-nationals’ domestic debts showed that while some appeared to be avoiding fresh loans, others were reducing debts. A few accumulated more.

    In the first quarter of this year, total debts of the states and the FCT stood at about N3.869 trillion.

    This represented a decrease of N199.02 billion compared to N4.068 trillion recorded in the first quarter of last year.

    It also indicated a drop of N98.92 billion from N3.968 trillion recorded in the fourth quarter of 2024.

    A breakdown showed that Delta is atop the chart of 28 states that reduced their debts.

    It brought down its debt of N334.77billion in 2024 to N204.60 billion in the first quarter of this year.

    The reduction represented 38.87 per cent. 

    Abia cut its debt by N65.04 billion to N48.67 billion in the first quarter of 2025.

    Adamawa reduced its debt by N24.90 billion to N78.65 billion, while Akwa Ibom brought down its debt by N24.72 billion to N118.21 billion.

    Anambra also reduced its domestic debt by N6.23 billion to N28.20 billion.

    Bayelsa’s debt decreased by N2.05 billion to N129.56 billion.

    Borno lowered its debt by N9.37 billion to N107.03 billion, and Cross River cut its debt by N2.52 billion to stand at N174.60 billion in the first quarter of 2025.

    Ebonyi achieved a reduction of N1.34 billion to N80.60 billion; Ekiti decreased its debt by N2.05 billion to N117.81 billion; Imo cut N11.08 billion to bring its debt down to N210.87 billion.

    Jigawa, which maintained the lowest debt profile, reduced its liabilities by N25.68 billion to just N1.06 billion.

    Kaduna brought its debt down by N23.95 billion to N88.75 billion, while Kano lowered its debt by N3.66 billion to N109.43 billion.

    Katsina reduced by N10.32 billion to N63.66 billion. Kebbi’s debt decreased by N13.43 billion to N44.59 billion.

    Kogi recorded a reduction of N26.33 billion to N93.30 billion.

    Lagos, still Nigeria’s most indebted state domestically, cut its debt by N35.03 billion to N874.04 billion in the first quarter of 2025.

    Ogun’s debt dropped by N6.94 billion to N258.94 billion.

    Ondo also reduced its debt by N25.12 billion to N61.64 billion.

    Osun lowered its debt by N15.84 billion to N134.13 billion, while Oyo cut N24.58 billion to end the quarter at N106.63 billion.

    Plateau’s debt fell by N16.03 billion to N145.45 billion while Sokoto reduced its own by N17.47 billion to N47.25 billion. Yobe decreased its debt by N12.87 billion to N52.92 billion; Zamfara by N24.47 billion to reach N67.57 billion, and the FCT, by N1.46 billion to N9.41 billion.

    On a quarter-on-quarter basis, Edo achieved one of the largest reductions, lowering its debt by N30.60 billion to N82.49 billion in the first quarter of this year—a 27.08 per cent decline from the fourth quarter of last year.

    Rivers posted the highest increase by adding N131.82 billion to bring its debt portfolio to N364.55 billion in the first quarter of this year.

    Bauchi raised its debt by N34.01 billion to N142.40 billion, while Benue also raised its debt by N2.24 billion, thereby taking its profile to N66.72 billion.

    Edo recorded an increase of N10.36 billion to reach N82.49 billion.

    Enugu’s domestic debt climbed by N22.25 billion to N188.75 billion; Gombe by N15.22 billion to N107.13 billion, and  Kwara by N14.86 billion to N127.35 billion.

    Nasarawa’s domestic debt increased by N15.63 billion to N84.58 billion, Niger’s rose by N11.00 billion to reach N96.65 billion, while Taraba’s also rose by N10.60 billion to N63.92 billion.

    On a quarter-on-quarter basis, Enugu recorded the most significant increase, rising by N69.14 billion from the previous quarter to reach N188.75 billion in the first quarter of this year. Niger’s debt rose by N5.35 billion to N96.65 billion. Delta also saw a slight increase of N3.43 billion to N204.60 billion.

    Taraba added N3.66 billion to reach N63.92 billion. Kwara recorded an increase of N2.44 billion to N127.35 billion, and Benue by N2.36 billion to N66.72 billion.

    Analysts said the varying debt figures reflected the distinct approaches of Nigeria’s states to managing debt and financing development.

    While some appear to have used increased federal allocations to reduce outstanding liabilities, others opted to borrow more, possibly to fund new projects or address urgent fiscal pressures.

    Chief Economist, ARKK Economics and Data Limited, Dr. Samson Simon, said: “Those states still piling up debts despite increased FAAC allocation are those that are doing the right things or wrong things.

    “Those doing the right things are those who accumulated debts for infrastructure and other capital spending.

    “Those doing the wrong things are those fiscally irresponsible, and not managing their resources well.

    “If the debts accumulated are for noble causes like human capital development in areas of education and healthcare delivery or physical capital, that is good for the economy and the people.\

    Read Also: N1.57tr bad loans threaten industry without judicial support, says Alawuba

    “But, if the debt overhang is because of waste, inefficiency and indiscipline, then it is bad for the people and the economy.”

    Managing Director, Ambosit Capital Managers, Wahab Balogun, advised that every debt should be viewed in terms of its purpose.

    He noted that states where debts are rising rapidly risk undermining their fiscal space, especially if the new borrowings are used mainly to finance recurrent expenses rather than productive infrastructure.

    “Borrowing, in itself, isn’t bad, but what matters is the purpose, the cost, and the capacity to repay without sacrificing essential public services.

    “Responsible debt management is not just about numbers on a balance sheet; it’s about ensuring that today’s borrowing does not mortgage the future of citizens or limit the state’s ability to respond to unforeseen shocks,” Balogun said.

    He pointed out that differing figures might, however, be a reflection of a deeper challenge in public financial governance across subnational entities.

    “We can see that while many states have made deliberate efforts to reduce or stabilise their debt stock, others appear to be on a worrying path of debt accumulation.

    “This pattern often stems from differences in internal revenue generation capacity, fiscal discipline, and the willingness of political leaders to adopt medium-term planning rather than short-term spending,” Balogun added.

    The Ambosit boss explained that states experiencing declining debt levels usually have more effective revenue collection systems, better control over recurrent spending, and are cautious in contracting new debt, often ensuring loans are directed at projects that could either repay themselves or stimulate local economic growth.

    He urged state governments to invest more in boosting internally generated revenue by formalising local businesses, improving tax administration, and prioritising economic sectors with high growth potential.

    He also advised stronger adherence to transparent debt reporting, rigorous project appraisal, and the discipline to borrow only when necessary and for projects that can drive development and create jobs.

  • N32.8b given as loans to 169,000 students

    N32.8b given as loans to 169,000 students

    • Information Minister Idris lists Tinubu’s achievements
    • ‘Ministers to present scorecards’
    • From Onyedi Ojabor and Vincent Ikuomola, Abuja

    Minister of Information and National Orientation, Mohammed Idris yesterday highlighted some of the key achievements of the Bola Ahmed Tinubu Administration.

    Speaking at a news conference to herald a flurry of ministerial briefings to highlight the scorecards ahead of the second anniversary of the government, he explained that a huge impact had been made in the student loan scheme initiated by the Administration. 

    According to him, no fewer than 169,000 students got N32.8 billion in tuition and upkeep allowances under the Nigerian Education Loan Fund (NELFUND).

    The student loan is a major campaign promise of the President.

    The minister said President Bola Ahmed Tinubu has directed his ministers to present their scorecards to Nigerians.

    He said the presidential directive was to keep Nigerians informed about policies and programmes.

    Idris said the briefing will allow Nigerians the opportunity to interrogate the activities of the government.

    He said: “President Tinubu is determined to ensure that his administration engages and communicates robustly, and this ministerial briefing series is one of the measures he has directed to achieve this goal.

    “In 2024, we hosted 25 ministers at these briefings and reached millions of people in Nigeria and abroad on traditional and digital media platforms.

    “These briefings are an opportunity to highlight and explain government policies, programmes, and actions; to simplify and contextualise these for the benefit of all citizens, interest groups, and stakeholders at large, while also decisively tackling misinformation and disinformation.

    “Over the next three months, as we approach the second anniversary of the administration, we will bring honourable ministers to this platform, weekly.

    “This year 2025 is a year of consolidation, a year for building on the gains we have seen in the first 19 months of the administration.”

    The minister said NELFUND disbursed N32.8 billion to over 169,000 students (N20 billion in school fees and N12.8 billion in upkeep allowances).

    On security, Idris said in 2024, the armed forces neutralised more than 8,000 terrorists and bandits, and arrested 11,600 others, with more than 10,000 weapons recovered.

    “While we still have a lot of work ahead. Our highways have grown safer. The hitherto notorious Abuja-Kaduna highway is one example. We will not relent in our efforts. Additionally, about 8,000 kidnap victims were successfully rescued,” he said.

    Idris added that following its designation as a terrorist organisation by the Federal High Court, security forces are now empowered to apply maximum force against the Lakurawa armed group.

    Read Also: NELFUND’s loans hit N116.184b

    On the economy, Idris said the reforms are delivering significant results across key sectors.

    The removal of petrol subsidy, he said, blocked leakages amounting to hundreds of billions of Naira annually.

    He said the introduction of the Electronic Foreign Exchange Matching System (EFEMS) in December 2023 enhanced transparency in foreign exchange transactions, facilitated the clearance of billions of dollars in backlogs, and restored investor confidence in the country.

    “Last week, the Naira reached an eight-month high in the official market, while foreign capital inflow into the Nigerian Stock Exchange rose from 4 per cent in mid-2023 to an average of 16 per cent by the end of 2024,” Idris said.

    On food security and inflation, the minister restated the Federal Government’s commitment to lowering the cost of commodities through massive investments in agriculture.

    He said while the government will not impose price controls on food commodities in line with the principles of a free-market economy, it remains focused on reducing prices by boosting agricultural production and increasing supply.

    “We used to have these commodity boards where prices were fixed, but in the spirit of free market and encouraging entrepreneurship, especially within the agricultural value chain, the government didn’t feel that they needed to begin to control prices.

    “Now, what the government is doing is to ensure that there is massive production of food items and it’s a supply and demand issue.

    “Once you have whatever you need in abundance, the tendency is that the price will automatically come down,” he said.

    The minister recalled that in 2024, Nigeria emerged as the most attractive destination for oil and gas investments in Africa, securing over $5 billion in Final Investment Decisions (FIDs).

    He described 2025 as a year of consolidation and building on the progress made in the first 19 months of the Tinubu Administration.

  • 600,000 students received loans worth N104b – FG

    600,000 students received loans worth N104b – FG

    As part of efforts to strengthen Nigeria’s education sector, President Bola Tinubu has approved the sum of  N104 billion Nigerian Education Loan Fund (NELFUND). 600,000 Nigerian students will benefit from the initiative.

    Tinubu disclosed this at the 42nd Founders’ Day and 33rd Convocation Ceremony of the Federal University of Technology, Minna, Niger State.

    He said the move demonstrates his government’s commitment to making quality education accessible and affordable for all.

    According to him: “The NELFUND programme aims to provide financial support to students, bridging the gap between financial challenges and access to higher education. With this significant investment, the government is empowering students to pursue their academic dreams, driving human capital development, and fostering a knowledge-driven society,” he stated.

    The President who was represented by the Director of Universities at the Federal Ministry of Education, Hajiya Rakiya Gambo Iliyasu, said the government had allocated N940.5 billion to the Tertiary Education Trust Fund (TETFund), in the 2025 budget, which underscores the administration’s dedication to improving educational infrastructure and manpower.

    Tinubu reaffirmed his commitment to addressing the challenges facing the education sector, including ensuring industrial harmony in universities.

    He further disclosed that the renegotiation of the 2009 agreement with university staff unions and the resolution of salary issues were key steps towards fostering stability in higher education.

    Read Also: NELFUND’s loans hit N116.184b

    The president added that as the government continues to prioritise education, Nigerian students can look forward to a brighter future, equipped with the knowledge, skills, and support necessary to drive innovation, economic growth, and national development.

    Niger State governor, Mohammed Umaru Bago, speaking shortly after being conferred with an honorary doctorate in Agriculture by the university, said his administration was committed to collaborating with individuals to make education accessible to every citizen.

    Other recipients of honorary degrees included Governor Uba Sani of Kaduna State, who was conferred with a degree in Entrepreneurship; and Senator Muhammad Sani Musa, representing Niger East senatorial district, who received a degree in Technology.

    The Governor also announced a donation of N100 million to an endowment fund created by Senator Muhammad Sani Musa, who donated N200 million.

    Furthermore, the Vice Chancellor of FUT Minna, Prof. Faruk Adamu Kuta, stated that the event marks four decades of excellence in science, engineering, technology, and innovation.

    “The university has grown to be a leading institution in technological education in Nigeria, and we won’t compromise on our standards,” he said.

  • Finance firm offers loans without collateral, unveils new logo

    Finance firm offers loans without collateral, unveils new logo

    Finance company, Option Financial Services (OFS) midweek unveiled its latest product, Daily Loan Solutions (DSL) for small and medium scale entrepreneurs in Lagos.

    The loan, which is collateral-free, will attract interest as low as ten percent, and is aimed at helping small businesses grow.

    Explaining the decision to launch the innovative loan product at an elaborate launch/press briefing at the Lagos Marriot Hotel, Lagos midweek, US-based financial expert and founder of the organisation, Habeeb Fasuyi, said the DSL was a direct response to the clarion call by the Nigerian government to Nigerians in diaspora to come back and help in the nation building process.

    “We have always believed that one of the ways to support the government’s initiatives towards nation building is by encouraging the private sectors to engage in activities that would help stimulate growth.

    “Our loan product offers N100,000 to N500,000. We also provide a range of benefits, including free financial advisory services, business analytics and strategic alliances with other big companies.”

    He itemised some of the unique features of the product to include flexible repayment terms, competitive interest rates, minimal paperwork as well as quick disbursement of fund.

    Fasuyi explained that the loan is targeted at petty traders such as small restaurant owners, pure water sellers, street hawkers and several others, looking to expand their business, who ordinarily may not qualify for traditional bank loans because of collaterals.

    Read Also: Senate committee commends Tinubu’s policy direction, backs actions to hold contractors accountable

    Former Lagos State Commissioner for Economic Planning and Budget, and former DG Budget Office of the Federation, Ben Akabueze, delivering the keynote address, spoke on the challenges of daily loans, the necessity of daily loans for small businesses, emphasising that “daily loans are short-term loans which are repaid in small frequent daily or weekly installment.”

    Additionally, he emphasised that the DSL product will enhance financial inclusivity, ensuring access to affordable financial services for underserved populations and drive economic empowerment.

    The organisation also seized the occasion to unveil its new logo.

  • Tinubu: media free to access single-digit loan

    Tinubu: media free to access single-digit loan

    • President attributes 25 years of democracy to media
    • Obaigbena seeks support for reforms
    • Osoba, Amuka lament impact of economy on media

    The media are not exempted from accessing funds from the Bank of Industry (BoI) at a single-digit interest rate for the expansion of their operations, President Bola Ahmed Tinubu said yesterday.

    The President, who attributed 25 years of uninterrupted democracy in the country to the media, said his administration would continue to support them to grow.

    “The media is not left out of the Renewed Hope Agenda. You can now also access funds from the Bank of Industry at a single-digit interest rate, for the development and expansion of your businesses,” the President Tinubu announced during the 2024 All Nigerian Editors Conference  in Yenagoa, the Bayelsa State capital.

    He was represented at the event with  the theme: “Economic Growth and Development Strategies In Resource -Rich Country,” by Information and National Orientation Minister  Mohammed Idris.

      Idris had in May  told media organisations to develop bankable proposals to access single-digit interest rate loans from  BoI.

    The editors conference which was chaired by Chairman/Editor-in-Chief of Thisday Nduka Obaigbena had veteran journalists, including Vanguard Publisher Sam Amuka-Pemu and former Ogun State Governor Olusegun Osoba, in attendance.

    Listing his administration’s reform programmes, including  petrol  subsidy removal, President  Tinubu  saluted  the media for their ‘’longstanding legacy of deeply committed contributions to nation building.’’

    He said the democracy enjoyed by Nigerians today would not have been possible without the media.

    Tinubu said as someone privileged to be in the thick of the pro-democracy struggles, he would always acknowledge the very important role of journalists and their organisations.

    His words: “Indeed, in this room are many veteran journalists who played very important roles in ushering in the age of enduring democracy in Nigeria. I salute your individual and collective efforts,  not just at that time, but even right through to today, as we celebrate a quarter of a century of unbroken democratic experience. 

     “In any thriving democracy, the roles of the government and the media are intertwined, both essential in serving the public interest.

    ‘’And of course, the media must hold elected and appointed officials accountable, and ensure that we are doing our work in a manner that strengthens democracy – not weakens it. That important work must be done in a spirit of mutual respect and collaboration, not recrimination and opposition; this alignment enables us to achieve common goals that benefit society at large.

    Read Also: Govt begins disbursement of N75b loans to MSMEs

     “Indeed, our roles are most effective when they are not adversarial but cooperative. By viewing each other as allies in nation-building, we can create an environment where transparency, accountability, and mutual respect thrive. Together, the government and the media can empower citizens, strengthen democratic institutions, and build a more informed and resilient society.

     “As we gather to discuss a theme that is both timely and urgent, ‘Economic Growth and Development Strategies in a Resource-Rich Country,’ we find ourselves at a critical juncture in our nation’s journey toward sustainable growth and prosperity.’’

    On the reforms and economy, the President said the nation’s debt service to revenue ratio had dropped drastically from 100 percent to 65 percent, thereby making the economy rebound.

     He said while oil remained a significant source of revenue, the nation was also investing heavily in other sectors to diversify the economy.

    Tinubu described his administration’s   Compressed Natural Gas (CNG) initiative as a deliberate strategy to harness the country’s abundant gas resources to bring down the high cost of transportation by about 60 percent.

    Host Governor  Douye Diri said the significance of the media in democratic governance was immeasurable.

    According to him, as the fourth pillar of democracy, the press educates, informs, and entertains, shaping public agenda and debate.

    Diri said:  “Democracy relies heavily on the press to thrive.

    “As ethnic nationalities and diverse interests vie for attention, your work serves as a beacon of hope, promoting understanding and unity.

    “In these turbulent times around our nation and the world at large, your(media) roles as guardians of truth is more critical than ever.

    “Integrity remains the cornerstone of your profession; building trust with the public and fortifying the foundations of a healthy democracy is your mandate.’’

      Diri used the opportunity to decry a situation where Bayelsa State as a major contributor to the nation’s oil and gas production severe environmental challenges and economic hardship.

    He called for a rethink of the ‘’out-dated idea’’ that states have rights to surface land, while the Federal Government monopolises valuable underground resources.

    ThisDay Publisher Obaigbena, who served as the conference chairman, urged editors to support the economic reforms of the Tinubu-led administration.

    According to him, the future can be better ‘’if we give the reforms support that they desire and the poor given the necessary palliatives to survive.

    Veteran journalist Amuka said the media industry is in distress following the effects of the removal of fuel subsidy on the transportation sector.

    Amuka noted that revenue from newspaper sales could no longer sustain transport costs, adding that the newspaper business was on the verge of going extinct and regretted that online editions were not the same as hard copy.

    He noted that it is advertisement revenue which often supported newspaper sales has dwindled.

     Earlier, another  Veteran journalist, Chief Osoba urged editors to resolve the leadership crisis bedeviling the Nigerian Union of Journalists (NUJ).

    He noted that the crisis had been so deep to the extent that in the past two years, the NUJ had not held elections.

  • Understanding the Different Types of Loans

    Understanding the Different Types of Loans

    Loans are an essential part of modern finance, helping individuals and businesses meet their financial needs. Understanding the different types of loans available is crucial to making informed borrowing decisions. This guide explores the various loan types, their characteristics, and their common uses, providing you with the knowledge to choose the best loan for your situation.

    Short-Term Loans

    1. Payday Loans

    Payday loans are short-term, high-interest loans typically due on the borrower’s next payday. They are designed for emergency cash needs but come with very high fees and interest rates. Due to their cost, payday loans should be used sparingly and only as a last resort.

    2. Short-Term Personal Loans

    Short-term personal loans are unsecured loans with repayment terms usually under one year. They can be used for various purposes, such as covering unexpected expenses or small purchases. These loans often have higher interest rates than long-term loans but can be a useful option for short-term financial needs.

    Long-Term Loans

    1. Home Equity Loans

    Home equity loans are secured by the borrower’s home equity. They allow homeowners to borrow against the equity in their property, typically for home improvements, debt consolidation, or major expenses. These loans usually have fixed interest rates and long repayment terms, making them suitable for substantial financial needs.

    2. Student Loans

    Student loans are long-term loans designed to help students pay for education-related expenses. They can be secured or unsecured, with repayment terms extending up to 30 years. Government student loans often offer lower interest rates and more flexible repayment options compared to private student loans.

    Secured Loans

    1. Mortgage Loans

    Mortgage loans are secured by real estate property. They are typically used to purchase homes or refinance existing mortgages. The property acts as collateral, which means the lender can seize it if the borrower defaults. Mortgage loans usually have lower interest rates due to the reduced risk for the lender. They can be long-term, spanning 15 to 30 years.

    2. Car Loans

    Car loans are secured loans used to purchase vehicles. The car itself serves as collateral. These loans often have fixed interest rates and terms ranging from 2 to 7 years. Car loans make it possible for individuals to buy vehicles without paying the full price upfront, spreading the cost over manageable monthly payments.

    Unsecured Loans

    1. Personal Loans

    Personal loans are unsecured, meaning they do not require collateral. They can be used for various purposes, such as debt consolidation, home improvements, or unexpected expenses. Personal loans typically have higher interest rates than secured loans due to the increased risk for the lender. Repayment terms usually range from 1 to 7 years.

    2. Credit Cards

    Credit cards are a type of unsecured revolving credit. They allow users to borrow money up to a certain limit and repay it over time. Interest is charged on the outstanding balance if not paid in full each month. Credit cards offer convenience and can be used for everyday purchases, but high-interest rates make them expensive if not managed carefully.

    Business Loans

    1. Small Business Loans

    Small business loans provide financing to help businesses start, grow, or manage operations. These loans can be secured or unsecured, with varying terms and interest rates. Small business loans are vital for entrepreneurs looking to expand their businesses or manage cash flow.

    2. Business Lines of Credit

    A business line of credit is a flexible financing option that allows businesses to borrow up to a certain limit and repay over time. Interest is only charged on the amount borrowed. This type of loan is ideal for managing short-term cash flow needs and funding ongoing operational expenses.

    Peer-to-Peer Loans

    How They Work?

    Peer-to-peer (P2P) loans are funded by individual investors through online platforms, bypassing traditional banks. Borrowers apply for loans, and investors choose which loans to fund based on risk and return. P2P loans can offer competitive interest rates and are accessible to borrowers with varying credit histories.

    Advantages and Disadvantages

    Advantages of P2P loans include potentially lower interest rates and easier access for borrowers with less-than-perfect credit. However, they may come with higher risk for investors and less regulation compared to traditional financial institutions. Borrowers should carefully evaluate the terms and fees associated with P2P loans.

    Conclusion

    Understanding the different types of loans is essential for making informed financial decisions. Each loan type has its own characteristics, benefits, and potential drawbacks. By carefully evaluating your financial needs and circumstances, you can choose the most suitable loan option and manage your finances effectively.

    FAQs

    What is the main difference between secured and unsecured loans?

    The main difference is that secured loans require collateral, such as a house or car, while unsecured loans do not. Secured loans typically have lower interest rates due to the reduced risk for the lender.

    How do fixed-rate and variable-rate loans differ?

    Fixed-rate loans have a constant interest rate throughout the loan term, providing predictable monthly payments. Variable-rate loans have interest rates that can change over time, potentially leading to fluctuating payments.

    Are payday loans a good option for emergency cash?

    Payday loans should be used as a last resort due to their high-interest rates and fees. They can lead to a cycle of debt if not repaid quickly.

    Can government loans be used for any purpose?

    Government loans are usually designed for specific purposes, such as education or housing. They come with specific terms and conditions tailored to these uses.

    What should I consider before taking out a loan?

    Consider factors such as interest rates, repayment terms, fees, and your ability to repay the loan. Ensure the loan meets your financial needs and fits within your budget. Consulting with a financial advisor can also help you make an informed decision.

  • PAP begins disbursement of second tranche of loans to ex-agitators

    PAP begins disbursement of second tranche of loans to ex-agitators

    The Presidential Amnesty Programme Cooperative Society Limited (PACOSOL) has commenced the disbursement of the second tranche of loans to ex-agitators in the Niger Delta. 

    Speaking at the kick-off of the event, the Interim Administrator of the Presidential Amnesty Programme (PAP), Maj-Gen. Barry Ndiomu (retd), said it was in fulfillment of the earlier promise made by the Presidential Amnesty Programme (PAP) to engage more people in the scheme.

    Ndiomu, who was represented by his Special Assistant on Special Duties, Mr. Thomas Peretu, explained that with the commencement of the exercise, the number of entrepreneurs being created by the PAP would increase adding that the scheme would help to create more jobs and reduce poverty in the Niger Delta.

    A statement signed by the PACOSOL Management Consultant, Zigha Ayibakuro, said Ndiomu expressed optimism that the beneficiaries would make good use of the loan disclosing  that the scheme was running simultaneously with the other empowerment training programmes and initiatives of the PAP.

    He said: “This loan is just one aspect of the entire programme that will give the beneficiaries a sustainable means of livelihood and also for them to become employers of labour. 

    “Don’t forget that other initiatives are also ongoing. The scholarship programme, the vocational and aviation training. These are deliberate efforts to change the story of people of the region”.

    In his remarks, the Chairman of the PACOSOL Management Board, Retired Justice Francis Tabai, who spoke through a member of the board, General Emmanuel Salubi (retd), said the scheme was designed to discourage the over dependence on the monthly N65,000 stipend. 

    He said: “The N65,000 monthly stipend is not enough to sustain them and their family. And so this is the best thing for them. To embrace entrepreneurship so that they can make more money for themselves and contribute to the GDP of the region and country. 

    “What we did as the management of the scheme was to also introduce mentorship for them to guide their operations and show them the way to succeed in their different businesses. This way it will be difficult for them to fail”.

    Also speaking in his capacity as the Management Consultant of PACOSOL, Zigha Ayibakuro, commended beneficiaries of the first batch for making judicious use of the loan.

    He commended the Interim Administrator for graciously approving the disbursement of the second batch, saying those, who hitherto did not believe in the process had come to arrest to its reslity.

    Zigha said: “We have seen fund utilization in the first batch and that is encouraging. Currently we have ex-agitators in the Agric space, we have them in the transport business, they are in the service sector and other areas.

    ” It is so interesting that the little they got as loan from PACOSOL have been put to good use. That on its own speaks to the commitment of the Interim Administrator, which is why we are now continuing with the process. 

    Read Also: ‘Long-term foreign loans will stabilise naira’

    “We are also looking out for more opportunities for the ex-agitators on how we can make them entrepreneurs. We are looking at least impacting 300 to 500 ex-agitators in this new batch and we have commenced in Delta State”.

    Addressing the beneficiaries, Zigha charged them to surpass the achievement of their colleagues in the first batch by ensuring they put to proper use what they had received in order to pave the way for others.

    Some of the beneficiaries appreciated Ndiomu for the opportunity and assured him that they would work hard to make him proud.

  • Experts urge govt to secure long-term foreign loans to stabilise naira

    Experts urge govt to secure long-term foreign loans to stabilise naira

    Experts have called on the federal government to secure long-term foreign loans to clear foreign exchange forwards, foreign portfolio investors and airlines’ trapped funds.

    The Association of Bureau De Change Operators of Nigeria (ABCON) President, Aminu Gwadabe recently declared that the $ 2.2 billion prepayment facility from the African Import Export Bank (AFREXIMBANK) is not enough to stabilise the market.

    According to him, the $ 2.2 billion crude oil prepayment facility released by the African Import Export Bank (Afrexim Bank), is not enough to stimulate the market.

    Gwadabe said: “The $2.2billion Afrexim bank crude prepayment facility is a welcome development but I don’t think it’s enough to stimulate the market considering the situation because if we put $2.2billion into the market, we have been seeing demand in the I&E window alone ranging from $150million to $250million daily so, in 10 days, the $2.2billion will be exhausted. Speculators will speculate and we will run it out between 10 to 15 days.”

    However, speaking on how to make the market liquid, the founder, of Cowry Asset Management Limited, Johnson Chukwu, said that only a long-term loan with a span of at least five years.

    He said that would help the government plan the repayment as well as stabilise the foreign exchange market.

    Chukwu noted: “An option is to arrange a long-term loan that its latest repayment won’t be less than 5 years so that the government can clear the arrears and it also makes the government stabilise the foreign exchange market before repayment.

    Read Also: Overcoming challenges dragging down the naira

    “There are matured forwards of about $ 6 billion, there are money-owned airlines, Foreign Portfolio Investors, and so on, so the money owed will determine the loan that would be needed to pay the outstanding debt and make the market liquid.”

    Also speaking, Kunle Olasanmi, said expected inflows from external borrowing, donor support, oil production, and sales receipts would stabilise the FX market.

    According to him, a stronger Naira will attract foreign investment, encourage local businesses to expand, and increase the purchasing power of households.

    “Long-term loans from the International Monetary Fund (IMF), the Middle East among others will make the government settle all the outstanding obligations and as well stabilise the market,” he stated.

  • President seeks $8.6b, 100m euros loans ‘to improve livelihood’

    President seeks $8.6b, 100m euros loans ‘to improve livelihood’

    President Bola Ahmed Tinubu has sought the National Assembly’s approval to obtain a loan of $8,699,168,559 and €100 million.

    It is part of the Federal Government’s 2022-2024 external borrowing plan.

    In separate letters read by Senate President Godswill Akpabio and House of Representatives Speaker Tajudeen Abbas yesterday, the President stated that the World Bank and African Development Bank intend to provide $ 1 billion and $1.5 billion.

    President Tinubu, in the letter titled: “2022-2024 external borrowing plan” stated: “I write in respect of the above subject and to submit the attached Federal Government 2022-2024 external borrowing plan for consideration and early approval of the National Assembly to ensure prompt implementation of the projects.

    “The Senate may wish to note that the past administration approved a 2022-2024 borrowing plan by the Federal Executive Council (FEC) held on May 15, 2023.

    “The project cuts across all sectors, with specific emphasis on infrastructure, agriculture, health, water supply, roads, security, and employment generation as well as financial management reforms.

    “Consequently, the required approval is in the sum of $8,699,168,559 and €100 million.

    “I would like to underscore the fact that the projects and programmes in the borrowing plan were selected based on economic evaluations as well as the expected contribution to the social economic development of the country, including employment generation, skills acquisition, support towards the emergence of more entrepreneurs, poverty reduction and food security to improve the livelihood in all 36 states and the Federal Capital Territory.

    “Given the nature of these facilities, and the need to return the country to normalcy, it has become necessary for the Senate to consider and approve the 2022- 2024 external abridged borrowing plan to enable the government to deliver its responsibility to Nigerians.”

    Read Also: Tinubu writes Reps for approval for $8.6b, £100m external loans

    Senator Akpabio referred the executive request to the Senate Committee on Foreign and Local Debts for further legislative work and to report at plenary in one week.

    In the House, the Speaker quoted the President as stating that in the face of dwindling financial resources, it has become imperative to resort to prudent external borrowing to bridge the financial gap, which will largely be applied to key infrastructure projects.

    President Tinubu added: “Following the removal of the fuel subsidy and its attendant impact on our economy, the African Development Bank and the World Bank Group have indicated an interest in assisting the country to mitigate the impact with the sum of one billion USD and 1.5 billion USD respectively.” 

    President Tinubu also sought a review of the 2023 Statutory Appropriation Act of the Federal Capital Territory Administration (FCTA).

    According to him, the FCT statutory appropriation was not sufficient, hence the need for a supplementary appropriation.

    “The House is accordingly invited to know that a number of infrastructural projects with the potential to improve ease of transportation, provide gainful employment and ensure an impact on FCT residents have been identified by the Honourable Minister,” he stated.

    The President informed the House that he would present the 2024 appropriation bill today at 11 am.

  • Zero interest loans for women exporters

    Zero interest loans for women exporters

    First City Monument Bank (FCMB) has launched the SheVentures Export Readiness Programme, to support women-owned businesses in Nigeria looking to expand into global markets. The programme will give participants access to insightful knowledge, focused advisory, and zero-interest loans to fund their export trade logistics.

     “Our mission with the SheVentures Export Readiness Programme is to support women-owned businesses to export their products and services worldwide,” said Mrs. Yemisi Edun, Managing Director of FCMB. “We provide interest-free loans, training, and mentoring to help overcome common challenges such as lack of financial resources and knowledge gap. Our ultimate goal is to empower Nigerian SMEs to scale beyond their local markets by connecting them with other businesses globally and leveraging the vast opportunities of globalization.”

    The SheVentures Export Readiness Program is open to all women-owned SMEs in Nigeria who are interested in reaching new markets and growing their businesses. The program will include a series of training modules on topics such as export market research, product development, and export documentation. Participants will also have the opportunity to receive one-on-one mentoring from experienced exporters.

    “Nigerian businesswomen face many challenges in their quest to grow successful businesses,” said Ms. Yetunde Moito, Head of Women in Business (SheVentures) at FCMB. “That is why FCMB is giving added support to businesswomen who own or run a business in Nigeria, providing the support they need to thrive.”

    Read Also: FirstBank offers tips on sustainable business strategy  

    The SheVentures Export Readiness Programme is a game-changer for Nigerian women entrepreneurs, empowering them to scale globally and bridge the capacity and financial gap hindering their full potential.”

    A recent report by the National Bureau of Statistics (NBS) revealed that over 41 million SMEs operate in Nigeria, of which women own 40%. Women’s businesses are expected to create 8.9 million jobs in the next five years, contributing significantly to the country’s economy. This indicates the significant role women can play in the growth and development of the Nigerian economy if provided with the proper funding, capacity building, networking, and other opportunities.

    FCMB SheVentures has, over the past four years, impacted the female economy through its various initiatives for women SMEs. The Bank has offered up to One Billion Naira in zero-interest loans to hundreds of women SMEs nationwide and supported thousands of female entrepreneurs through free training, mentorship, and capacity-building programs.

    The SheVentures Export Readiness Programme strategically aligns with the government’s efforts to boost the nation’s non-oil exports and foreign exchange earnings. The program empowers women entrepreneurs to actively contribute to realizing this important national goal.

    First City Monument Bank (FCMB) is a member of the FCMB Group Plc. The Bank is committed to fostering inclusive and sustainable growth within its communities, and it aims to build a supportive ecosystem rooted in Africa, connecting people, capital, and markets. By offering innovative financial solutions like Energy Finance loans, FCMB is helping to improve the economic well-being of businesses and Nigerians.