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Depletion of ECA Leaves Nigerian Economy Vulnerable- World Bank

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Nigerian economy has become more vulnerable to shocks as a result of the depletion of the Excess Crude Account (ECA), according to the World Bank.

Depletion of ECA Leaves Nigerian Economy Vulnerable- World Bank

The ECA was established in 2004 to save revenues in excess of the budgetary benchmark price generated from the sale of oil, with the aim of protecting the country’s budgets against shortfalls caused by the volatility of crude oil prices.

The account was expected to insulate the Nigerian economy from external economic shocks.

The ECA rose from $5.1bn in 2005 to more than $20bn in November 2008, but during the last meeting of the National Economic Council in December 2019, Mrs Zainab Ahmed, minister of Finance, Budget and National Planning, reportedly disclosed that the balance as of  November 19, 2019 was $324.98m.

In its latest Nigeria Economic Update, the World Bank warned that a ‘moderate’ decline in oil price could trigger another recession, noting that the exhaustion of the ECA had made the country more vulnerable.

“Fiscal buffers in the Excess Crude Account have been exhausted, rendering Nigeria more vulnerable to shocks,” the bank said.

Noting that the account was mismanaged, the report added, “The ECA has rarely operated as envisaged. When it was established in 2004, it was to be drawn on only when the actual crude oil price falls below the budget benchmark price for three consecutive months.

“However,  state governments contended that the federal Fiscal Responsibility Act of 2007 creating the ECA was not binding on state and local governments.”

The World Bank observed that the   Sovereign Wealth Fund was established in 2011 by the three tiers of government to serve as the oil savings fund for the country.

The SWF has three components – future generations, infrastructure and stabilisation funds.

The stabilisation fund, like the ECA, was to support federation revenue in times of economic stress.

“It was envisaged that the balance in the ECA in 2011 would be transferred to the SWF.

The World Bank said, “Instead, in 2012 seed capital of only $1.5bn was transferred, plus another $0.5bn in 2017.”

The balance of the Stabilisation Account, reportedly  as of  December 17, 2019, was N30.5bn, while the Natural Resource Fund held N88.3 at the same date.

The World Bank further observed that Nigeria’s consolidated government revenue was very low by the standards of comparable countries.

“During the commodity boom Nigeria’s consolidated government revenue reached 12 per cent of GDP, among the lowest ratios for structural, aspirational and regional peers.

It said, “After oil price and production shocks and Nigeria’s first recession in over two decades, in 2016 general government revenue plunged to six per cent of GDP – second lowest of 115 countries for which data are available.

“Recovering to eight per cent of GDP in 2018, government revenues are projected to plateau there unless there are significant tax policy and administration reforms.”

The bank warned that the prevailing situation will continue to constrain the budget envelope and limit fiscal space for investing in physical and human capital.

In the absence of fiscal buffers such as the one that was supposed to be provided by the now exhausted ECA, Nigeria risks another recession, due to the country’s dependence on oil, the bank said.

It added, “A moderate decline in oil prices could lead to a recession in Nigeria due to its dependence on oil; the Nigerian economy is highly vulnerable to a drop in oil prices.

“The oil sector remains the dominant source of risk for growth of Nigeria’s economy, with sustained suboptimal policy decisions aggravating the size of the potential impact on the economy.

“For example, a sudden decline in oil prices to 2016 levels, sustained for a year, would undermine growth and fiscal balances and the lack of monetary and fiscal buffers would magnify the impact of any shock to the economy.

“If oil prices dropped again by about 25 per cent, the country could swing into a recession, with a more difficult recovery path.”

Evaluating the possible impact of a temporary decline in oil price, the bank noted that the development could subtract up to 0.5 percentage points from growth.

The report projected,  “Yet, the indirect (spillover) effects on external and fiscal balances and the financial sector would be significant, similar to, if not worse, than what happened during the 2016 recession.

“Since the Federal Government’s deficit is already twice the size of Nigeria’s revenues, the fall in fiscal revenues proportionate to the 25 per cent fall in oil prices would virtually eliminate space for infrastructure spending, with obvious long-term repercussions for growth.

“With no fiscal buffers available –the Excess Crude Account balance is less than $0.5bn – and no likelihood of external borrowing as investor confidence drops because of uncertainty over Nigeria’s policy response, deficits would have to be financed domestically, sending the cost of borrowing soaring.

“Because there are no buffers, the nonoil economy could contract by more than in 2016, with the economy as a whole shrinking by more than two per cent.

“Recovery would be slow in the absence of structural reforms, even if the oil price rebounded by about 15 per cent as the global economy recovers.”

However, world oil prices jumped nearly $3 on Friday after the United States killed Qassem Soleimani, Iranian military chief, a development which fanned fresh fears of conflict in the crude oil-rich Middle East.

The international oil benchmark, Brent crude, hit $69.16 per barrel, its highest since September 17, 2019, before easing to $68.81 per barrel, while the US West Texas Intermediate surged by $2.03 to $63.21 per barrel, having earlier spiked to $63.84 a barrel, its highest since May 1, 2019


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Japan, UNESCO Boost Digital Learning in 15 CoEs with Donation of ICT Equipment

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The Federal Government has received a major boost in its drive to strengthen teacher education and digital learning, as the Government of Japan, through the UNESCO International Institute for Capacity Building in Africa (IICBA), donated ICT equipment and learning materials to 15 teacher training institutions across Nigeria.

Speaking at the official handover ceremony held at the Federal Ministry of Education in Abuja, the Minister of State for Education, Prof. Suwaiba Said Ahmad, described the intervention as a significant contribution to the country’s efforts to improve teacher quality, digital literacy and inclusive education.

She said the donation forms part of a regional initiative launched in 2024 by UNESCO-IICBA, the Government of Japan and the African Union to strengthen teacher training and promote continuous access to safe, quality education for girls in West Africa.

According to the minister, the project, which covers Nigeria, Burkina Faso, Cameroon, Chad, Mali and Mauritania, aligns with the Federal Ministry of Education’s priorities under the Renewed Hope Agenda, particularly in the areas of equity, quality education, digital transformation and inclusion.

“Teachers remain the backbone of every education system. No education reform can succeed without well-trained, motivated and digitally empowered teachers,” Ahmad said, noting that the equipment would modernise teacher training institutions and improve access to digital learning resources.

The beneficiaries comprise 15 federal and state colleges of education spread across Nigeria’s six geo-political zones, including the Federal College of Education, Kontagora; Federal College of Education, Zaria; Federal College of Education (Technical), Gombe; Federal College of Education, Yola; Federal College of Education (Technical), Asaba; Federal College of Education (Special), Oyo.

Others are Federal College of Education (Technical), Umunze; College of Education, Zuba, FCT; Isaac Jasper Boro College of Education; Enugu State College of Education (Technical); Sa’adatu Rimi College of Education, Kano; Adamu Augie College of Education, Argungu; Shehu Shagari College of Education, Sokoto; Adamawa State College of Education, Hong and Taraba State College of Education, Zing.

The donated items include 65 laptop computers, 71 tablets, four desktop computers, five interactive smart boards, 19 all-in-one desktop computers, 14 projectors, 15 printers and 15 backup hard drives.

Ahmad said the facilities would enhance both pre-service and in-service teacher training by promoting innovation, digital competence and learner-centred teaching approaches, while preparing educators for the demands of a technology-driven world.

The event also featured a national consultation on school safety and infrastructure security, with participants discussing strategies for creating safer and more inclusive learning environments.

The minister stressed that safe schools remain critical to achieving quality education, particularly for girls and other vulnerable learners, adding that the ministry would continue to prioritise policies and programmes aimed at strengthening school security.

She further highlighted the ministry’s focus on Technical and Vocational Education and Training (TVET), Science, Technology, Engineering and Mathematics (STEM), girl-child education, quality assurance, data management and digital transformation as key pillars for improving educational outcomes nationwide.

Ahmad also disclosed plans to implement new interventions aimed at empowering female teachers and school leaders in crisis situations through mobile-based learning platforms, as well as programmes designed to integrate out-of-school children into formal education.

She commended UNESCO-IICBA, the Government of Japan, the African Union and other development partners for supporting teacher education in Nigeria and urged beneficiary institutions to utilise the equipment responsibly to improve learning outcomes and build a more resilient education system.

“The equipment will enhance digital literacy among our pre-service teachers and boost the attainment of education goals in Nigeria,” she said.

In their separate remarks, the Director of the UNESCO International Institute for Capacity Building in Africa (IICBA), Dr. Quentin Wodon, and the Chargé d’Affaires of the Embassy of Japan in Nigeria, Hitoshi Kozaki, reaffirmed their commitment to supporting efforts aimed at improving teacher education and expanding access to quality learning opportunities across Nigeria and the West African region.

They noted that the donation of ICT equipment to the beneficiary colleges of education reflects the shared commitment of UNESCO, the Government of Japan and their partners to strengthening the capacity of teacher training institutions, particularly in the area of digital learning.

According to them, equipping teachers with modern technological skills is critical to improving learning outcomes and ensuring that education systems are responsive to the demands of the 21st century.


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African Electric Vehicle Platform Raises $215m to Scale Electric Mobility in Nigeria, Others

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African electric vehicle (EV) platform Spiro has raised $215 million in equity to scale electric mobility and energy infrastructure across the continent.

The funding is backed by institutional investors including Impact Fund Denmark and Equitane.

The investment will accelerate the expansion of Spiro’s battery-swapping network, industrial footprint and next-generation EV infrastructure across high-growth African markets, the company said.

This funding comes as economies in the region aim to reduce dependence on imported fuel, reinforce energy and industrial sovereignty, and modernise urban transport systems.

Driven by rising fuel costs, growing demand for affordable transportation and increasing policy support for clean energy, investors are backing scalable EV platforms poised to support Africa’s next phase of urban and industrial growth.

Building on support from long-standing institutional partners such as the Fund for Export Development in Africa, Spiro’s latest equity round draws capital from Europe and Africa, reflecting growing global confidence in scalable infrastructure-led business models in emerging markets.

With operations in seven African countries—Kenya, Rwanda, Uganda, Togo, Benin, Nigeria and Cameroon—and plans to expand local production and enter new markets such as the Democratic Republic of Congo and Ethiopia, Spiro is building one of Africa’s most advanced EV and battery-swapping ecosystems.

Its industrial footprint includes manufacturing plants in Kenya, Rwanda and Uganda, alongside a battery recycling facility in Nigeria.

“This past year marked a defining strategic milestone for Spiro. Across seven active markets, our deployment of 100,000 electric vehicles and 2,500 smart-swap stations has made sustainable mobility an affordable, everyday reality,” said Gagan Gupta, founder of Spiro and chairman of Equitane.

“Spiro has become a major driver of local industrialisation, value creation and manufacturing across African markets, providing 6,000 sustainable direct and indirect jobs. Supported by our global investors, we are entering our next growth chapter to deliver clean, cost-effective energy and transport alternatives to millions of riders across the continent.”

Lars Bo Bertram, CEO of Impact Fund Denmark, added: “We are investing in Spiro and bringing Danish pension capital into one of Africa’s most promising growth markets because we see potential for significant commercial growth in Spiro and electric mobility across Africa, as well as measurable climate impact. That is exactly the type of investment we want to make.”


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FG Expands Digital Learning Drive, Delivers ICT Equipment to Colleges Across Six Zones

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Federal Government on Tuesday distributed Information and Communication Technology (ICT) equipment and materials to 15 federal and state colleges of education across the country to strengthen teacher training, promote digital literacy and improve access to quality education.

FG Expands Digital Learning Drive, Delivers ICT Equipment to Colleges Across Six Zones

Prof. Suwaiba Ahmad, Minister of State for Education

The intervention was facilitated through support from the Government of Japan and the United Nations Educational, Scientific and Cultural Organisation International Institute for Capacity Building in Africa (UNESCO-IICBA) under the project titled, “Capacity-building of Teachers to Promote Continuous and Inclusive Access to Safe and Quality Education for Girls in West Africa.”

Speaking at the handover ceremony in Abuja, the Minister of State for Education, Prof. Suwaiba Ahmad, described the initiative as a significant contribution to Nigeria’s education sector and one that aligns with the ministry’s strategic priorities.

Ahmad commended UNESCO-IICBA, the Government of Japan and the African Union for launching the regional project in March 2024, saying it reflected a shared commitment to strengthening teacher preparation systems and expanding educational opportunities, particularly for girls.

According to her, the project, which covers Burkina Faso, Cameroon, Chad, Mali, Mauritania and Nigeria, is in line with the Federal Ministry of Education’s priorities under the Renewed Hope Agenda.

“Teachers remain the backbone of every education system. No education reform can succeed without well-trained, motivated and digitally empowered teachers,” she said.

The minister said the ICT resources would enhance both pre-service and in-service teacher training through improved access to digital learning content, innovative teaching methods and learner-centred instructional approaches.

She noted that the beneficiary institutions include Federal College of Education, Kontagora; Federal College of Education, Zaria; Federal College of Education (Technical), Gombe; Federal College of Education, Yola; Federal College of Education (Technical), Asaba; Federal College of Education (Special), Oyo; Federal College of Education (Technical), Umunze; College of Education, Zuba; Isaac Jasper Boro College of Education; Enugu State College of Education (Technical); Sa’adatu Rimi College of Education, Kano; Adamu Augie College of Education, Argungu; Shehu Shagari College of Education, Sokoto; Adamawa State College of Education, Hong; and Taraba State College of Education, Zing.

According to Ahmad, the equipment distributed includes 65 laptop computers, 71 tablets, four desktop computers, five interactive smart boards, 19 all-in-one desktop computers, 14 projectors, 15 printers and 15 backup hard drives.

She added that the event also provided an opportunity to discuss school safety and infrastructure security.

“Safe schools are essential to achieving quality education, especially for girls and vulnerable learners.

“We must continue to ensure that our institutions remain secure, supportive and conducive spaces for teaching and learning,” she said.

The minister reiterated the government’s commitment to Technical and Vocational Education and Training (TVET), Science, Technology, Engineering and Mathematics (STEM), out-of-school children education, girl-child education, quality assurance and digital transformation.

She also disclosed plans for additional interventions aimed at empowering female teachers and school leaders through mobile-based learning platforms and integrating out-of-school children into formal education.

Speaking at the event, Mr Hitoshi Kozaki, Chargé d’Affaires of the Embassy of Japan, reaffirmed his country’s commitment to supporting educational development in Nigeria.

“I want to thank Nigeria for the collaboration that we have had for many years. I really hope that this project makes a difference for the future and the institutions represented here,” he said.

Kozaki said Japan’s partnership with African countries was built on mutual respect and local ownership, stressing that development efforts should be driven by the priorities of beneficiary nations.

He urged the institutions to make effective use of the ICT resources to improve teacher preparation and expand learning opportunities, especially for girls.

Also speaking, the Director of UNESCO-IICBA, Quentin Wodon, commended Nigeria’s commitment to education reforms and active participation in international education programmes.

Wodon stressed the importance of promoting female leadership in schools, noting that studies had shown positive learning outcomes when women occupied leadership positions.

“If there was one thing I would love Nigeria to do, it would be to see whether we could launch some kind of programme to encourage more women to become school leaders. It is really important,” he said.

He added that teachers in Nigeria remained critical to efforts aimed at improving learning outcomes and advancing inclusive education across Africa.


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