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World Bank Okays $1.5Bn Loan to Nigeria in Support of Tax Bills

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World Bank has just released $1.5 billion loan to Nigeria, less than six months after approval.

World Bank Okays $1.5Bn Loan to Nigeria in Support of Tax Bills

This is in support for the Reforms for Economic Stabilisation to Enable Transformation (RESET) Development Policy Financing initiative.

The loan, approved on June 13, 2024, was released in record time following Nigeria’s implementation of critical reforms, including the removal of fuel subsidies and comprehensive tax policies.

This fast disbursement contrasts with other loan programmes, which typically experience delays due to slow or partial implementation of conditions.

For instance, the World Bank has also disbursed $1.88 million of a $750 million loan for the Accelerating Resource Mobilization Reforms (ARMOR) project, approved alongside the RESET programme.

The first tranche of $750 million, a credit facility under the International Development Association (IDA) with a 12-year maturity and six-year grace period, was disbursed on July 2, 2024.

The second tranche of $750 million, issued by the International Bank for Reconstruction and Development (IBRD) with a 24-year maturity and 11-year grace period, followed in November 2024.

The World Bank document read: “This document summarizes the progress made under the Reforms for Economic Stabilization to Enable Transformation Development Policy Financing for the Federal Republic of Nigeria (Borrower or Recipient), which was approved by the Executive Directors on June 13, 2024.

“The DPF is a standalone operation comprised of two tranches: (1) first tranche comprising US$750 million credit from the International Development Association (Association) (Shorter Maturity Loan terms with 12-year maturity and grace period of 6 years, Credit No. 7567-NG); and (2) second tranche comprising US$750million loan from the International Bank for Reconstruction and Development (Bank) (US dollar-denominated, commitment-linked loan with 24-year maturity and grace period of 11 years, Loan No.9683-NG). The Financing Agreement and Loan Agreement were signed and declared effective on June 19, 2024 and June 26, 2024, respectively. The first tranche was released on July 2, 2024.”

A major trigger for the second tranche was the removal of fuel subsidies.

The reforms allowed petrol prices to reflect international market rates and exchange rates, effectively ending implicit subsidies that strained public finances.

The deregulation, which began in mid-2023, saw petrol prices increase more than fivefold, drawing praise for fiscal discipline but sparking criticism over the rising cost of living.

The World Bank commended the government for not only meeting the condition but exceeding expectations by fully deregulating the fuel market.

The document noted: “In terms of implementation, while the TRC [Tranche Release Conditions] formulation required introducing the change over a specified time-bound implementation period, the Borrower has moved ahead and made the change immediately, thereby overachieving the TRC in this respect.

“Effective October 2024, the price of PMS has been determined by the international market and the exchange rate set by the Central Bank of Nigeria.


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E-Financial

BVN Registrations Hit 64.8m in January 2025 —NIBSS

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Enrolments for the Bank Verification Number (BVN) by bank account owners in the country increased to 64.8 million in January, according to the latest data released by the Nigeria Inter-Bank Settlement System (NIBSS).

BVN Registrations Hit 64.8m in January 2025 —NIBSS

The latest data shows that 800,000 bank account owners did their enrolments between November 2024, when the figure was 64 million and January 2025.

The NIBSS data also showed that there is still a wide gap between the number of active bank accounts and the number of BVN in the country, which is now a compulsory requirement for opening an account.

According to data by NIBSS, the number of active bank accounts in Nigeria stood at 231.1 million in July 2024.

According to Enhancing Financial Innovation and Access (EFInA) Access to Financial Services in Nigeria 2023 Survey report, 5% (3 million) of banked adults do not have a BVN or NIN.

In October 2024, Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, announced that NIBSS would launch a non-resident BVN platform to enable Nigerians in the diaspora to operate their local bank accounts, run their businesses, and sort out KYC issues with financial institutions from anywhere in the world.

This has, however, not been officially launched despite the December 2024 timeline given by Cardoso, who had said the initiative is part of efforts to ensure that Nigerians irrespective of their location anywhere in the world can participate in the Nigerian economy without any hassles and diversify their businesses.

According to the recent directives from the CBN, every financial account, including that of fintechs, must now be linked with BVN before it can be operational.

 

 


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Over 562m People Own Cryptocurrency Globally

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The global adoption of cryptocurrency has reached a historic milestone, with over 562 million people now owning digital assets, according to a new industry report.

Over 562m People Own Cryptocurrency Globally

This figure represents a significant increase from previous years, underscoring the growing popularity of cryptocurrencies across diverse demographics and regions.

The report, published by a leading blockchain analytics firm, attributes the growth to several key factors:

Increased Accessibility: Advancements in blockchain technology and user-friendly platforms have made it easier for individuals to buy, store, and trade cryptocurrencies.

Institutional Support: Major financial institutions have embraced digital assets, offering cryptocurrency investment products and payment solutions, thereby legitimizing the market.

Inflation Hedging: In countries experiencing economic instability and currency devaluation, cryptocurrencies have become a preferred alternative for preserving wealth.

Younger Generations: Millennials and Gen Z are leading the charge, viewing cryptocurrencies as a way to participate in decentralized finance and break away from traditional banking systems.

Regional Breakdown

The report highlights varying adoption rates across different regions:

Asia: Leading the charge with over 200 million cryptocurrency owners, driven by strong participation from countries like India, China, and Vietnam.

North America: Approximately 90 million owners, fueled by widespread institutional adoption and regulatory clarity in the United States and Canada.

Europe: Close to 80 million owners, with a focus on Bitcoin and Ethereum as popular investment assets.

Africa and Latin America: Rapid adoption in nations such as Nigeria, Argentina, and Brazil, where cryptocurrencies are seen as a hedge against hyperinflation and unstable local currencies.

Broader Implications

The rise in cryptocurrency ownership reflects shifting attitudes toward digital finance. Experts note that this growing user base enhances the utility and value of cryptocurrencies in everyday transactions and investments

“The increasing adoption of digital assets signals a new financial paradigm where individuals have greater control over their wealth,” said a senior economist from a major financial think tank.

“It also highlights the urgent need for governments and institutions to establish comprehensive regulatory frameworks.”

Challenges and Opportunities

Despite its growth, the cryptocurrency market faces challenges, including regulatory uncertainty, environmental concerns, and security issues. However, the potential for financial inclusion and innovation remains immense.

Companies and governments are responding to this trend by developing blockchain-based solutions, from decentralized finance (DeFi) platforms to central bank digital currencies (CBDCs). Additionally, crypto education initiatives are helping new users navigate the complexities of digital assets.

The Road Ahead

As cryptocurrencies become more integrated into mainstream finance, experts predict that ownership numbers will continue to rise.

Innovations in blockchain technology and increasing acceptance of digital assets in global commerce are likely to drive further growth.

The milestone of 562 million cryptocurrency owners marks a turning point in the evolution of finance.

With more people embracing the opportunities offered by digital currencies, the future of money is becoming increasingly decentralized and digital.


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SEC Sets January 31 Deadline for CMOs Registration Renewals

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Securities and Exchange Commission (SEC) has reminded capital market operators (CMOs) to ensure that they renew their registration on or before January 31, 2025.

SEC Sets January 31 Deadline for CMOs Registration Renewals

The Commission said this in a circular issued to ask the operators to begin their annual renewal of registration from January 1 to January 31, 2025.

The annual registration renewal of capital market operators aims to ensure that only fit and proper persons operate in the Nigerian capital market.

SEC in the secular stated: “This is to inform all Capital Market Operators (CMOs) and the general public that the annual renewal of registration of CMOs for the year 2025 will commence from January 1, 2025.

“All CMOs applying for renewal must include their 2025 annual subscription receipt from their respective trade groups as part of their application.

“In line with the Commission’s Rules & Regulations, all CMOs are to complete the process of renewal of registration for 2025 on or before January 31, 2025, via the renewal of registration portal, www.eportal.sec.gov.ng. For enquiries or support in completing the process, please contact [email protected]

The Commission emphasised that CMOs without valid registration will be penalised and may be excluded from carrying out capital market activities.

The SEC had in 2021 re-introduced periodic renewal of registration by capital market operators, which was premised on the need to have a reliable data bank of all CMOs registered and active in the Nigerian capital market.

The aim was to provide updated information on operators in the Nigerian capital market for reference and other official purposes by local and foreign investors, other regulatory agencies, and the public.

The renewal was also introduced to increasingly reduce incidences of unethical practices by CMOs, such as those that may affect investors’ confidence and impact negatively on the Nigerian capital market, as well as strengthen supervision and monitoring of CMOs by the commission.

Consequently, the SEC amended its rules and reintroduced the requirement for yearly renewal of registration by all CMOs, which is carried out electronically to ensure efficiency.


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