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Beyond the Dollar: Paul Kagame Calls for a Unified, Resource-Backed African Currency

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Kigali, Rwanda – Rwandan President Paul Kagame has issued a powerful challenge to African leaders, calling for the creation of a single, unified African currency that would be “grounded in our own natural wealth, not in the Dollar or the Euro.”

Speaking at the African Economic Summit in Kigali on Tuesday, December 9, 2025, Kagame argued that economic sovereignty is unattainable until the continent frees itself from its heavy reliance on foreign currencies for intra-continental trade and investment.

The Vision: A Currency Grounded in African Assets

Kagame’s proposal echoes a long-standing Pan-Africanist ambition, most famously championed by the late Libyan leader Muammar Gaddafi, who pushed for a gold-backed African dinar. The Rwandan President stressed that Africa possesses abundant natural resources—from minerals and precious metals to vast agricultural capacity—that could serve as the foundation for a stable, common currency.

“Africa must build a unified currency, one grounded in our own natural wealth, not in the Dollar or the Euro. A unified currency is key to strengthening our economic sovereignty and ensuring that the prosperity we create stays here, serving our people first.”

The Challenge of Economic Fragmentation

Kagame pointed to the current economic fragmentation as a major barrier to realizing the continent’s full trade potential, particularly under the African Continental Free Trade Area (AfCFTA) agreement.

  • Inter-Country Trade Barrier: The current system means a Sierra Leonean cannot use the Leone in Nigeria, nor can a Nigerian use the Naira in Sierra Leone. This currency incompatibility extends across the continent, forcing businesses to constantly convert currencies into dollars or euros, adding significant costs, complexity, and currency risk to every transaction.

  • Capital Flight: The reliance on major global currencies often facilitates capital flight and makes African economies vulnerable to monetary policy decisions made in Washington or Brussels, rather than local African needs.

The Call to Action: One Currency, One Africa

President Kagame insisted that the time for debate is over, framing the creation of a single currency as a matter of political will and urgent necessity.

He concluded with a sweeping call for continental integration: “The time is now for one currency, one passport and one Africa.”

The vision, if realized, would simplify cross-border trade, boost tourism, create a massive unified market for investment, and provide the continent with greater leverage in global finance. However, such a project faces immense political hurdles, including agreeing on a common central bank, coordinating diverse fiscal policies, and ensuring economic stability across 54 unique nations.

BREAKING: Burkina Faso Detains 11 Nigerian Soldiers, Seizes NAF Aircraft Over Airspace Violation

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Bobo Dioulasso, Burkina Faso – The military junta in Burkina Faso has detained 11 Nigerian soldiers and seized a Nigerian Air Force (NAF) C-130 transport aircraft after it was allegedly forced to make an emergency landing in the country on Monday, December 8, 2025.

The incident was confirmed in a strongly worded statement issued late Monday by the Alliance of Sahel States (AES), the military confederation comprising Burkina Faso, Mali, and Niger. The AES condemned the incursion as a violation of its airspace and national sovereignty.

The Incident: Emergency Landing and Detention

The AES communiqué, reportedly signed by Malian junta leader General Assimi Goïta, stated that the NAF aircraft, identified as a C-130 Hercules, was forced to land at the airport in Bobo Dioulasso following an “in-flight emergency situation” while operating in Burkinabe airspace.

  • Personnel Onboard: The aircraft was carrying two crew members and nine passengers, all of whom were confirmed to be members of the Nigerian Armed Forces.

  • Detention: The statement confirmed that all eleven Nigerian military personnel are currently being detained by Burkinabe authorities as part of an ongoing investigation.

  • The Violation: Burkinabe authorities immediately launched an investigation which, according to the AES, revealed the aircraft “did not have authorization to fly over Burkinabe territory.”

The AES described the unauthorized entry as an “unfriendly act carried out in disregard of international law and international civil and/or military aviation regulations.”

⚔️ Heightened Regional Tensions and Retaliation Warning

The timing of the incident immediately raises regional tensions, as it occurred barely 24 hours after Nigeria deployed fighter jets and ground forces to Benin Republic to help foil an attempted coup against President Patrice Talon. The Nigerian military intervention was carried out at the request of the Beninese government, a key member of ECOWAS, the regional bloc with which the AES nations have a deeply strained relationship.

The AES response indicates a severe escalation of military posturing between the two blocs:

  • Maximum Alert: The communiqué warned that, on the instruction of the Heads of State of the AES, the air defense and anti-aircraft systems of the confederal space have been placed on “maximum alert.”

  • Neutralization Order: The statement explicitly authorized the AES defense systems “to neutralize any aircraft that would violate the confederal space” in the future, citing the need to guarantee the security and sovereignty of the member states (Burkina Faso, Mali, and Niger).

As of the time of this report, there has been no official response from the Nigerian Air Force or the Federal Government regarding the forced landing, the detention of its personnel, or the accusations of airspace violation. The development marks a major diplomatic and security crisis for the ECOWAS leadership under Nigerian President Bola Tinubu.

Africa’s Wildest Takeovers: A Timeline of Major Coups Since 2020

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When soldiers stormed Benin’s state TV on Sunday, December 7, 2025, announcing the removal of President Patrice Talon, many Africans simply sighed.1 Another one? Again?

For a region that has endured more coups in the last five years than the World Cup has goals, Benin’s attempted takeover—even if later foiled—felt like a continuation of a very familiar and deeply troubling playlist.

From the sands of the Sahel to the coastal states, West and Central Africa have been doing “military musical chairs.” Here is a detailed explainer on the coups that are reshaping the continent, the common drivers behind them, and why the latest drama in Benin matters so much.

The Coup Belt: A Timeline of Military Takeovers (2020 – 2025)

The last five years have seen an alarming reversal of democratic progress, primarily across the Francophone countries of the Sahel and West Africa, an area now grimly referred to as the “Coup Belt.” Since 2020, there have been at least nine successful coups on the continent, alongside numerous failed attempts.

Date Country Leader Ousted New Military Leader Outcome
August 2020 Mali Ibrahim Boubacar Keïta Col. Assimi Goïta Successful. Pledged transition.
April 2021 Chad Idriss Déby (Killed in battle) Gen. Mahamat Déby Itno (Son) Military transition, widely viewed as a dynastic coup.
May 2021 Mali Bah Ndaw (Interim Civilian President) Col. Assimi Goïta Second Coup. Goïta named Transitional President.
September 2021 Guinea Alpha Condé Lt. Col. Mamady Doumbouya Successful. Condé was attempting a controversial third term.
October 2021 Sudan Abdalla Hamdok (Civilian PM) Gen. Abdel Fattah al-Burhan Successful. Ended power-sharing with civilians.
January 2022 Burkina Faso Roch Marc Christian Kaboré Lt. Col. Paul-Henri Damiba Successful, citing failure to curb insurgency.
September 2022 Burkina Faso Paul-Henri Damiba Capt. Ibrahim Traoré Second Coup. Coup leader removed by a junior officer.
July 2023 Niger Mohamed Bazoum Gen. Abdourahamane Tiani Successful. Highly destabilizing to the region.
August 2023 Gabon Ali Bongo Ondimba Gen. Brice Oligui Nguema Successful, following widely disputed elections.
October 2025 Madagascar Andry Rajoelina Col. Michael Randrianirina Successful, following weeks of anti-government protests.
November 2025 Guinea-Bissau Umaro Embaló Military officers Successful, following contested general elections.

🔥 The Coup Playbook: Why Soldiers Are Taking Over

While each coup is unique, analysts point to four critical, interconnected drivers that fuel the widespread disaffection exploited by military plotters:

1. The Security Crisis in the Sahel

The most frequently cited justification for the coups in Mali, Burkina Faso, and Niger is the failure of civilian governments to contain relentless jihadist insurgencies linked to Al-Qaeda and ISIS. Armies, often feeling underequipped and constrained by politics, have seized power, claiming they can do better. Ironically, attacks have often intensified under military rule.

2. Democratic Backsliding and Constitutional Tweaks

Many of the toppled leaders were highly unpopular before the military intervened.

  • Term Limits: Leaders like Guinea’s Alpha Condé and Gabon’s Ali Bongo were accused of rigging elections or altering the constitution to extend their stay in power, effectively “blocking political succession” and discrediting the democratic process.

  • Corruption and Poverty: Beneath the political turmoil lies deep public frustration over endemic corruption, high unemployment among the youthful population, and the government’s failure to deliver basic public services.

3. Anti-French Sentiment and Geopolitical Shifts

A strong thread running through the Francophone coups is a resurgence of anti-colonial and anti-French sentiment.6 Juntas in Mali, Burkina Faso, and Niger have severed security ties with France and the West, turning instead toward alternative foreign partners, most notably Russia and its mercenary Wagner Group, to manage their security crises.

4. Weak Regional Response (ECOWAS Strain)

The regional bloc, ECOWAS, has struggled to contain the wave, with its sanctions delivering mixed results and, in the case of Niger, sparking defiance.8 The inconsistent application of rules—where some successful coups are eventually tolerated—has emboldened plotters by lowering the perceived risk of intervention.

Why Benin’s Latest Drama Matters

The attempted coup in Benin—a coastal state that had enjoyed decades of relative political stability since the 1970s—is a crucial development that threatens to expand the “Coup Belt” southward.

1. Breaking the Coastal Firewall

Benin borders military-ruled Niger and Burkina Faso.11 Had the coup been successful, Benin would have become the first littoral (coastal) West African state to fall to a military junta in this wave, creating a terrifying precedent and significantly increasing the political risk for neighboring states like Nigeria, Ghana, and Côte d’Ivoire.

2. Targeting a President Who Altered the Rules

While President Patrice Talon has been praised for boosting the economy, he has faced heavy criticism for his role in eroding democracy. His administration oversaw constitutional changes that tightened control over elections and effectively barred opposition leaders from contesting, leading to widespread accusations of authoritarian drift—a key ingredient in the modern coup playbook.

3. ECOWAS’s New Resolve

The swift and decisive response by ECOWAS, led by Nigerian President Bola Tinubu, was highly significant.13 The immediate condemnation and the rapid deployment of elements of the ECOWAS Standby Force (ESF) to support the Beninese government signals a heightened commitment to defending constitutional order.14 This action serves as a strong deterrent, aiming to prevent the “military musical chairs” from reaching the more stable coastal democracies.

COMPILED BY Adesina Kasali (Medullar Concept)

NITDA Issues Cybersecurity Alert Over ChatGPT Vulnerabilities

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Lagos, Nigeria — December 2025 Nigeria’s National Information Technology Development Agency (NITDA) has sounded the alarm over emerging cybersecurity risks linked to ChatGPT, one of the most widely used AI-powered tools in the country.

In an urgent advisory released through its Computer Emergency Readiness and Response Team (CERRT.NG), the agency warned that new vulnerabilities in ChatGPT could expose users to data-leakage attacks. The advisory urges Nigerians — especially businesses, researchers, and public-sector institutions — to exercise caution when interacting with the platform.

🚨 What’s the Risk?

According to NITDA, the vulnerabilities stem from how AI tools like ChatGPT engage with unsafe or unverified web content. This interaction could potentially lead to sensitive information being exposed or misused, especially in environments where the tool is used for high-stakes tasks such as financial analysis, policy drafting, or customer data handling.

📈 Why It Matters

ChatGPT has become a go-to resource for millions of Nigerians, powering everything from academic research and business strategy to government workflows. But with growing dependence comes increased risk — and NITDA’s advisory is a reminder that cybersecurity must evolve alongside technological adoption.

🛡️ What You Should Do

NITDA recommends that users:

  • Avoid sharing sensitive personal or organizational data with AI tools.
  • Monitor AI-generated outputs for accuracy and security.
  • Stay updated on cybersecurity best practices and advisories from CERRT.NG.

As AI continues to reshape how Nigerians work and communicate, this alert underscores the need for vigilance, digital literacy, and proactive risk management.

Nigeria’s Housing Market at Risk: The 70% Import Dependence Trap

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A new housing market report has issued a serious warning that Nigeria’s housing and construction sector is critically exposed due to its heavy reliance on imported building materials. With an estimated 70% of construction inputs sourced internationally, the market remains highly vulnerable to foreign exchange (forex) pressures, global supply shocks, and escalating input costs, thereby deepening the country’s housing affordability crisis.

Key Risks of Import Dependence

Nigeria possesses abundant local raw materials for construction (like aggregates, timber, and laterite), yet the capacity for local processing and production remains severely limited. This structural flaw exposes the country to three major economic risks:

1. Forex Volatility

Because most crucial materials (like reinforcement steel/iron rods, aluminum, finishing tiles, and certain chemical additives for cement) must be purchased in foreign currency, any devaluation or instability of the Naira directly translates into soaring local prices.

  • Direct Impact: Research indicates a strong positive correlation where a unit increase in the exchange rate can lead to significant corresponding increases in the price of building materials.

  • Cost of Projects: Fluctuations in forex rates are a predominant cause of project delays and abandonment, as construction costs spiral beyond initial budgets.

2. Global Supply Chain Disruptions

The high import reliance means Nigeria’s housing pipeline is sensitive to external events, such as international conflicts, port closures, and shipping crises. These disruptions not only delay project timelines but also introduce steep increases in freight and logistics costs, which are then passed directly to Nigerian developers and ultimately to the consumer.

3. Escalating Costs and Housing Affordability Crisis

The combined effects of forex instability and supply shortages have caused a dramatic escalation in the prices of essential building materials, making housing unaffordable for the majority of the population.

  • Price Surge Example (Iron Rods): The cost of iron rods (10mm–16mm) saw a massive surge. After rising sharply in 2023, the price escalated further, reaching ₦1,600,000 per tonne or more in 2024, representing a 100% increase from 2023 levels in some cases. As of October 2025, prices for 10mm–16mm rods were around ₦1,040,000 per tonne.

  • Construction Costs: For many urban projects, material costs now account for an estimated 50% to 70% of the total cost of building a house. This has inflated the final cost of housing beyond the reach of low- and middle-income earners, deepening the national housing deficit, which is estimated to be over 17 million units.

Recommendations for Stabilisation

To mitigate the risks and address the severe housing deficit, the report recommends a multi-pronged approach focused on enhancing local self-sufficiency:

  • Enhancing Local Production: Providing targeted support, affordable financing, and tax incentives to indigenous manufacturers to increase the production capacity of key items like steel, aluminum, and finishings.

  • Policy Consistency: Implementing stable and consistent government policies that encourage investment in local manufacturing hubs and discourage unnecessary importation.

  • Promoting Local Materials: Encouraging research, development, and the utilization of quality-assured, affordable local building materials (like laterite, timber, and innovative local composites), which are currently underutilized due to issues like doubtful durability and social acceptability.

  • Optimizing Supply Chains: Reducing bureaucratic impediments and improving logistics infrastructure to lower the cost of transporting domestically produced materials.

The structural issues within the building materials market severely compromise the efficiency and affordability of the construction sector’s projected growth trajectory, making the pivot to import substitution an economic imperative.

Nigerian Banks Pivot: The Shift to Sustainable Non-Interest Income

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Nigeria’s banking sector is undergoing a profound structural pivot as the era of easy, foreign-exchange (FX)-driven windfalls comes to an end. Following the Central Bank of Nigeria’s (CBN) successful efforts to unify the exchange rate and stabilize the Naira, the massive one-off revaluation gains that turbocharged bank profits in 2023 and 2024 are fading.

In response, Nigerian banks are strategically repositioning themselves, exploring new and sustainable revenue streams that focus on core financial services and technological innovation, marking a transition toward a more normalized earnings environment.

1. The Decline of FX-Driven Profitability

The record profits posted by banks in the immediate aftermath of the 2023 and early 2024 Naira devaluations were largely a result of FX revaluation gains on their net foreign currency assets.

  • Profit Pressure: As the Naira stabilizes and FX volatility subsides, this significant profit component is muted. Banks like GTCO and Zenith Bank have already reported profit declines in the first half of 2025, reflecting the absence of these one-off gains.

  • Cost Headwinds: Profitability is further expected to weaken in 2025 due to surging impairment charges, tighter funding conditions, and high regulatory costs (such as AMCON levies).

2. The Strategic Pivot: Non-Interest Income (NII)

The new revenue model is anchored in rapidly expanding the sources of Non-Interest Income (NII), which include fees, commissions, and income from digital services. This transition is crucial for ensuring profitability that is less reliant on macro volatility.

Key diversification strategies driving NII growth include:

A. Digital and E-Banking Services

The CBN’s push for a cashless society, combined with Nigeria’s surging smartphone and internet penetration, has created a massive market for digital finance.

  • Transaction Fees: Banks are aggressively leveraging their investments in FinTech products and digital payment infrastructure. Income from electronic businesses (e-banking) has become a major component of NII, derived from:

    • Automated Teller Machine (ATM) charges.

    • Point-of-Sale (PoS) transactions.

    • USSD and internet banking fees.

  • Data: In the first six months of 2024, the electronic business income for four major banks rose significantly, comprising between 25.8% and 30.2% of their total non-interest income, underscoring the growing success of this strategy.

B. Pan-African Expansion and International Subsidiaries

Major Nigerian financial groups are deepening their presence across Africa to create stable, diversified income streams that are cushioned against Nigeria’s domestic macroeconomic volatility.

  • Profit Engines: Banks like UBA and Access Holdings have strategically expanded their continental networks. In the first half of 2025, the rest of Africa contributed nearly 37% of Access Holdings’ pre-tax profits, almost matching the contribution from Nigeria for the first time.

  • Risk Reduction: This geographic diversification lowers concentration risk and provides revenue stability, making the overall group more resilient.

C. Corporate Finance, Listing, and Capital Raising

The CBN’s directive for commercial banks to meet a new minimum paid-up capital of ₦500 billion ($325.8 million) by March 2026 has created a boom in corporate finance activity.

  • Fees and Commissions: Banks are generating high transaction and listing fees by advising on and underwriting the massive capital raises required for recapitalization, a trend that saw the Nigerian Exchange Group’s (NGX) revenue surge in 2024.

3. The New Profit Landscape

Moving forward, the Nigerian banking sector’s profitability will be determined less by unpredictable FX volatility and more by two fundamental pillars:

  1. High Interest Income: The sustained high-yield environment due to the CBN’s tight monetary policy (with the Monetary Policy Rate recently holding at 27.50%) continues to create robust interest margins on loans.

  2. Sustainable Non-Interest Income: The continued growth and efficiency of digital platforms and international operations will be key differentiators for high-performing banks.

The structural shift confirms that the future of Nigerian banking lies in leveraging technology and geographical diversification to generate stable, fee-based revenue.

Fuel Price Relief: Dangote Output, Stronger Naira Drive Down Petrol Costs in Nigeria

 Nigerian consumers are experiencing significant relief at the pump as the price of Premium Motor Spirit (PMS), commonly known as petrol, continues its downward trajectory. The price drop is attributed to a powerful combination of increased domestic refining output from the Dangote Refinery, a strengthening Naira, and improved supply chain efficiency in the downstream sector.

Oil marketers confirm these factors are working in tandem to ensure a steady supply, curb smuggling, and introduce competitive pricing dynamics that were absent when the country relied solely on imports.

1. The Dangote Refinery Effect: Domestic Supply Surge

The 650,000 barrels-per-day Dangote Petroleum Refinery has fundamentally altered Nigeria’s petroleum product market since commencing partial operations, driving multiple price cuts throughout 2025.

  • Price Reduction: The refinery has consistently lowered its prices for marketers. In November 2025, the refinery’s coastal price was cut from ₦854 to ₦806 per litre, prompting major depot operators to adjust their gantry prices downward to an average of ₦840 per litre as of early December.

  • Supply Pledge: The company has made a landmark commitment to national fuel security, pledging to supply over 1.5 billion litres of petrol monthly (equivalent to 50 million litres daily) beginning in December 2025. This move is specifically designed to guarantee an uninterrupted supply through the festive season and beyond, with a plan to increase monthly supply to 1.7 billion litres from February 2026.

  • Competitive Pressure: The presence of a massive local supplier like Dangote has introduced competition that forces imported products, which often struggle with higher logistics and foreign exchange costs, to lower their prices to compete.

Alhaji Aliko Dangote stated that the elimination of fuel queues in Nigeria, a historic problem, is now happening “not through imports but by producing locally.”

2. Macroeconomic Boost: The Strengthening Naira

Oil marketers, including the Independent Petroleum Marketers Association of Nigeria (IPMAN), have explicitly credited the recent gains of the Naira against the US Dollar as a key factor in price moderation.

  • Reduced Import Cost: Since refined products are traded internationally, the cost is dollar-denominated. As the Naira gains value, the cost of converting Naira to dollars for importation or even for purchasing locally-refined crude feedstock (which is priced at international rates) decreases, leading to lower final pump prices.

  • Market Sentiment: The improved stability and strengthening of the Naira—with Nigeria’s external reserves surpassing $45 billion for the first time in six years—have fostered market confidence, which helps subdue speculative pricing.

3. Supply Chain Efficiency and Smuggling Deterrence

Market efficiency has also contributed to the stable price trend:

  • Improved Logistics: According to marketers, the assurance of steady domestic supply from the Dangote Refinery has eased pressure on logistical bottlenecks typically associated with end-of-year product loading and distribution.

  • Subdued Smuggling: Despite Nigeria’s domestic petrol price still being significantly cheaper (about 55%) than in neighboring countries, Dangote noted that the price moderation and consistent supply have “reduced [smuggling] significantly, though not completely.” The continuous availability of competitively priced local products makes high-volume cross-border smuggling less profitable and riskier.

The combined effect of a strengthened domestic refining capacity and improved currency stability is signaling a new era for Nigeria’s downstream petroleum sector, shifting the dynamics from total import dependence to energy self-sufficiency.

Nigeria Nets $62 Million from Airline Ticket Taxes in 2024, IATA Reports

Nigeria generated $62 million from airline ticket taxes and related charges in 2024, contributing a notable share to the total aviation revenue collected across Africa.

The figure was disclosed in new data released by the International Air Transport Association (IATA), which provided a global breakdown of ticket-specific charges governments impose on air travel.

Nigeria’s Contribution to African Revenue

The IATA data confirms Nigeria’s position as a significant contributor to the continent’s aviation tax earnings:

  • Nigeria’s Revenue: $62 million

  • Africa’s Total Revenue: $1.97 billion

  • Global Total: $60.3 billion

While Africa accounted for a small fraction of the global total, Nigeria’s earnings helped form the bulk of the continent’s revenue alongside major hubs like:

  • South Africa: ~$410 million

  • Egypt: ~$360 million

  • Ethiopia: ~$310 million

  • Kenya: ~$215 million

Africa’s taxes averaged $14.9 per passenger, with almost all the continent’s revenue derived from international travel, where the average charge was around $20.7 per passenger. Domestic ticket taxes across the entire continent amounted to only $49 million, highlighting the focus on international flights for revenue generation.

Context of High Taxes and New Levies

The revenue generated comes amid ongoing criticism from both IATA and the African Airlines Association (AFRAA) regarding the high cost of taxes and charges on air travel in Nigeria, which ultimately burdens passengers.

  • Comparative Cost: An earlier AFRAA report highlighted that passengers flying internationally from Nigeria paid an average of $180 in taxes and charges per departure, which was nearly three times the continental average of $68.

  • Recent Increase: The tax burden has recently been increased. Effective December 1, 2025, all international travel to and from Nigeria now includes an additional $11.5 security levy under the Advance Passenger Information System (APIS), raising the total security levy on each flight ticket to $31.50. This charge is applied at the point of sale and is remitted by airlines to the Nigerian Civil Aviation Authority (NCAA).

These statistics emphasize the aviation sector’s crucial role as a source of revenue for the Nigerian government, even as the industry struggles with issues like the cost of operation and the challenge of repatriating foreign airlines’ blocked funds.

Development Funding: Nigeria’s Projected World Bank Borrowing Hits $9.65 Billion Mark (2023-2025)

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Abuja, Nigeria – Nigeria is set to secure approximately $9.65 billion in new concessional loans and facilities from the World Bank Group between 2023 and the end of 2025.1 This massive borrowing commitment underscores the Federal Government’s reliance on multilateral financing to stabilize the economy, plug critical infrastructure gaps, and fund extensive social sector reforms.2

 

The funds, which comprise both International Development Association (IDA) and International Bank for Reconstruction and Development (IBRD) loans, are currently being channeled into a broad array of development projects across key national priority areas.3

 

Sectoral Focus of the New Commitments

The World Bank’s lending commitment reflects Nigeria’s focus on human capital development and essential infrastructure, with rising commitments earmarked for:

  • Power and Infrastructure: Significant funds are directed toward power sector recovery, renewable energy scale-up (e.g., the Distributed Access through Renewable Energy Scale-up project), and digital infrastructure (e.g., the Building Resilient Digital Infrastructure for Growth – BRIDGE project).4

     

  • Human Capital: This includes large loans for education (e.g., HOPE for Quality Basic Education for All, girls’ education initiatives), social protection (e.g., NG-CARES program expansion), and nutrition (Accelerating Nutrition Results in Nigeria 2.0).5

     

  • Health Security: Funds are being approved to strengthen primary healthcare provision and boost the country’s overall health security capabilities.6

     

  • Financial Inclusion: New pipeline projects, such as the Fostering Inclusive Finance for MSMEs in Nigeria project, aim to boost access to finance for small businesses through the Development Bank of Nigeria.7

     

Debt Sustainability: Mixed Concerns

While World Bank loans are highly concessional (favorable interest rates and long repayment periods), the sheer volume of borrowing is raising mixed concerns among Nigerian economists and financial analysts:

Perspective Economist Concerns World Bank Stance
Debt Sustainability Economists stress that debt sustainability hinges on the country’s revenue-to-GDP ratio, which remains low. They warn that borrowing without robust revenue mobilization risks a vicious cycle of borrowing to service existing debt. The World Bank’s recent Nigeria Development Update (NDU) noted that the public debt-to-GDP ratio is projected to decline from 42.9% in 2024 to 39.8% in 2025, supported by recent macroeconomic reforms.
Revenue Mobilisation The long-term ability to repay these foreign currency debts is tied to increasing non-oil revenue. Critics urge aggressive tax reforms and transparency to match the borrowing rate. The Bank commends Nigeria for taking “bold steps” like the fuel subsidy removal and exchange rate unification, which have already begun to reduce fiscal distortions and strengthen external balances.
Project Utilisation Concerns exist regarding the effectiveness and productivity of past loan-funded projects. Analysts emphasize that the loans must be tied to viable projects with medium-term revenue prospects to truly benefit the economy. Projects are structured to target fundamental issues. For example, the education funding is projected to benefit 29 million children and 500,000 teachers.

Nigeria’s Global Standing

The accumulating loans have cemented Nigeria’s position as a top global borrower from the World Bank’s concessionary arm:

  • As of September 2025, Nigeria maintains its ranking as the third-largest debtor to the World Bank’s International Development Association (IDA) globally, with total exposure hitting approximately $18.5 billion.8

     

  • The total debt owed to the World Bank Group (IDA and IBRD) stood at $19.39 billion as of June 30, 2025.9

     

The current administration’s borrowing, totaling over $7.45 billion in approvals since 2023, reflects its strategy to rely on low-cost external funding to drive its economic reform agenda.

Europe Rallies Around Kyiv: Zelensky Meets Leaders in London Amid Intense US Peace Push

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London, UK – Ukrainian President Volodymyr Zelensky is holding crucial talks with the leaders of the UK, France, and Germany in London today, Monday, December 8, 2025, in a concerted effort to forge a united European front as the Trump administration intensifies pressure on Kyiv to accept a proposed peace deal with Russia.

The high-stakes meeting at 10 Downing Street, hosted by British Prime Minister Keir Starmer, and attended by French President Emmanuel Macron and German Chancellor Friedrich Merz, comes at what Starmer described as a “critical time” for Ukraine, nearly four years into the conflict.

The Sticking Point: Trump’s Peace Proposal

The European talks are directly influenced by the three days of recent negotiations in Miami between Zelensky’s chief negotiator, Rustem Umerov, and US special envoys, including Jared Kushner. These talks focused on a US-drafted peace plan that European leaders and Kyiv officials have viewed with deep apprehension, arguing its terms are highly favorable to Moscow.

  • Territory Remains “Most Problematic”: An official in Kyiv confirmed that the surrender of territory remains “the most problematic issue,” as Russia is unwilling to enter an agreement without retaining land. The US plan is understood to involve Ukraine ceding territory not yet seized by Russia in exchange for security promises falling short of NATO membership.

  • Trump’s Public Pressure: US President Donald Trump publicly raised the pressure on Sunday, claiming Ukrainian officials “love” the US proposal but expressing “disappointment that President Zelensky hasn’t yet read the proposal,” a comment viewed by European capitals as an attempt to undermine the Ukrainian leader’s negotiating position.

European Response: Unified Support and Security

The primary objective of the London meeting is to coordinate a European strategy that ensures any negotiated settlement is both just and lasting and does not reward Russia’s aggression by force.

  • Security Guarantees: European leaders are pushing to secure more robust security guarantees for Kyiv to deter future Russian attacks, fearing that Washington’s current proposals are inadequate.

  • Frozen Assets: The leaders are also reportedly discussing how to utilize the value of frozen Russian assets to provide long-term financing for Ukraine’s defense and reconstruction.

  • Starmer’s Stance: British Prime Minister Starmer stressed that Ukraine must “determine its own future” and reaffirmed that the UK stands with Kyiv, adding that a European peacekeeping force could play a “vital role” in guaranteeing Ukraine’s security.

Following the meeting in London, President Zelensky is expected to travel to Brussels for further talks with NATO and EU leaders, as he seeks to ensure a united front that can compel Russia to make meaningful concessions at the negotiating table.