Economy

‘Settle your problem at home, don’t bring it to African Union’ – Obasanjo tells Nigeria

Published

7 years ago

May 27, 2019

Eric

Former president of Nigeria, Chief Olusegun Obasanjo, on Monday said the African Continental Free Trade Agreement (AfCFTA) Agreement will not be hindered by Nigeria’s reluctance to sign up to the process.

Obasanjo made the remark in Addis Ababa, Ethiopia, during the opening session of the Stakeholders’ Dialogue on Continental Trade and Strengthening the Implementation of the AfCFTA.

The dialogue was organised by the African Union Commission (AUC) and the Coalition for Dialogue on Africa (CoDA).

The former President was reacting to concerns raised by one of the discussants at the event, on the need for stakeholders to look into the implications of AfCFTA without Nigeria, the continent’s biggest economy.

The News Agency of Nigeria reports that Nigeria, Benin and Eritrea are the only countries yet to sign the AfCFTA agreement.

Obasanjo, who recalled that Nigeria took over the processes leading to the AfCFTA agreement from Egypt, wondered why it suddenly halted signing and was not even participating at the session.

He also recalled that Nigeria led the way at ministerial level, with the government ready to be in Kigali, Rwanda, to sign up to the agreement, before the sudden turnabout.

According to him, Nigeria should resolve its domestic intrigues and not bring such to the African Union table.

“It is nobody’s fault if your country cannot resolve its domestic problem.

“If you (Nigeria) is not signing the agreement, it is unfortunate. AfCFTA will go on without Nigeria.

“You will recall that this is the first time, since 1976, that Nigeria is not at the table of a major continental process.

“Nigeria should settle its problem at home and not bring it to the AU,’’ Obasanjo said.

The former President said Nigeria is known to always be on the driver’s seat of continental discussions and agreements, including the AU, ECOWAS and all their agencies.

Obasanjo, who is the chair of the CoDA Board of Directors, said feelers from the AfCFTA remain positive, while teething problems would be addressed in the course of time.

He said the meetings would be extended to other stakeholders, including Africa’s Central Banks, Customs and security agencies.

Obasanjo added that removal of trade barriers does not mean removal of other statutory agencies at various national border posts.

He, however, commended the issuance of visas at the point of entry by some African countries, saying the gesture was a positive step in the right direction toward movement of people across the continent.

The African Continental Free Trade Agreement (AfCFTA) is a trade agreement between 49 African Union member states, with the goal of creating a single market followed by free movement and a single-currency union.

The AfCFTA was signed in Kigali, Rwanda on 21 March 2018. Ratification by 22 countries is required for the agreement to enter into force and the African Continental Free Trade Area to become effective. The agreement will function as an umbrella to which protocols and annexes will be added.

Negotiations continued in 2018 with Phase II, including Competition Policy, Investment and Intellectual Property Rights. A draft shall be submitted for the January 2020 AU Assembly.

Kenya and Ghana were the first countries to deposit the ratification instruments on 10 May 2018 after ratification through their parliaments.

With ratification by the Gambia on 2 April 2019, the threshold of 22 ratifying states for the free trade area to formally exist was reached, though as of 30 April 2019 all the ratifying states submitted their ratification documents to the African Union.

Nigeria has yet to sign the agreement. At over 173 million people, Nigeria is Africa’s most populous country and dwarfs the second most-populous country, Ethiopia, with 100 million people. With a nominal GDP of $376 billion, or around 17% of Africa’s GDP, it is just ahead of South Africa, which makes up the next 16% of Africa’s economy.

Because Nigeria is such a significant country in Africa in terms of its population and its economy, its absence since the initial signing of the agreement until now is particularly conspicuous.

South African President Cyril Ramaphosa underscored this in comments on 12 July 2018, saying “The continent is waiting for Nigeria and South Africa. By trading among ourselves, we are able to retain more resources in the continent’’(South Africa has since signed the agreement).

Some 44 countries initially signed the agreement in 21 March 2018. Nigeria was one of 11 African Union nations to avoid initially signing. At the time, Nigerian President Muhammadu Buhari said that Nigeria couldn’t do anything that would undermine local manufacturers and entrepreneurs.

The Manufacturers’ Association of Nigeria, which represents 3000 Nigerian manufacturers, praised the decision to back out of the agreement. The Nigerian foreign minister tweeted that more domestic consultation that was needed before Nigeria could sign the agreement.
Former president Olusegun Obasanjo said Nigeria’s delay was regrettable. The Nigeria Labour Congress called the agreement a “renewed, extremely dangerous and radioactive neo-liberal policy initiative’’, suggesting increased economic pressure would pressure workers into migration under difficult and unsafe conditions.

Economy

World Bank Okays $1.25bn Loan for Nigeria, Unveils 6-Year Growth Strategy

Published

3 weeks ago

July 1, 2026

Eric

The World Bank has approved a $1.25 billion Development Policy Financing (DPF) loan for Nigeria as part of a new six-year partnership framework to accelerate private sector-led growth, create jobs, and support key economic reforms.

The approval, announced on Wednesday, falls under the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) programme and is part of the World Bank’s Country Partnership Framework (CPF) for Nigeria, covering 2026 to 2032.

According to the bank, the financing will support reforms to improve competitiveness, deepen capital markets, modernise regulations for the digital economy, strengthen power sector reforms, expand agricultural productivity and enhance domestic revenue mobilisation. The programme also seeks to reduce trade barriers in line with Nigeria’s commitments under ECOWAS and the African Continental Free Trade Area.

The approval follows public debate over Nigeria’s rising debt profile, with some Nigerians questioning the country’s continued reliance on external borrowing and calling for greater transparency in the use of previous World Bank loans.

Beyond the financing, the World Bank said the new partnership framework aims to expand electricity access to 32 million Nigerians, provide broadband connectivity to 58 million people, improve health and nutrition services for 40 million citizens and support 9.5 million farmers through higher agricultural productivity.

World Bank Country Director for Nigeria, Mathew Verghis, said recent macroeconomic reforms had helped stabilise the economy but stressed that sustained improvements in living standards would depend on addressing structural constraints to private investment and job creation.

The World Bank Group added that its private sector arms, the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), will support the strategy by mobilising private capital, expanding infrastructure investment and providing guarantees to reduce investment risks.

The new framework reflects the World Bank’s continued focus on supporting Nigeria’s economic reforms while encouraging greater private sector participation to drive long-term growth and reduce poverty.

Economy

Dangote Refinery Files Lawsuit Against FG, NNPC, Marketers over Petrol Import Licences

Published

2 months ago

May 18, 2026

Eric

Dangote Petroleum Refinery has filed a fresh lawsuit against the Nigerian National Petroleum Company Limited (NNPC) and several fuel marketers, seeking to overturn fuel import licences issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

According to court documents filed at the Federal High Court in Lagos and cited by Reuters, the refinery is asking the court to nullify import permits recently granted or renewed by the regulator, arguing that the approvals violate an earlier directive ordering all parties to maintain the status quo pending the determination of the case.

The legal action comes at a time when Nigeria is recording a sharp decline in petrol imports due to rising domestic refining capacity, largely driven by output from the Dangote Refinery.

In its filing, Dangote Refinery argued that Nigerian law permits fuel importation only when local production is unable to meet national demand. The company maintained that continued issuance of import licences undermines its operations as it ramps up production from its multi-billion-dollar refinery located on the outskirts of Lagos.

Fuel marketers, however, have consistently defended importation, insisting that imports remain necessary to guarantee a stable supply and prevent shortages across the country.

This is not the first dispute between Dangote Refinery and fuel importers. In 2025, the company filed a similar suit against NNPC Ltd and several marketers, including AYM Shafa Ltd, A.A. Rano Ltd, T. Time Petroleum Ltd, 2015 Petroleum Ltd and Matrix Petroleum Services Ltd, while also seeking ₦100 billion in damages. The suit was later withdrawn without explanation.

Recent industry data showed petrol imports dropped to 965.52 million litres in Q1 2026 from 2.43 billion litres in the same period of 2025. Meanwhile, supply from local refineries rose to 3.18 billion litres, accounting for about 76.7 percent of Nigeria’s petrol supply during the quarter.

Economy

World Bank Flags ‘Hidden Spending System’ Diverting N34.53trn of Nigeria’s Revenue

Published

3 months ago

April 19, 2026

Eric

The World Bank has raised concerns over Nigeria’s fiscal framework, revealing that more than N34.53 trillion was diverted from federation revenue over the past three years through pre-distribution deductions.

In its latest Nigeria Development Update obtained from its website, the global lender disclosed that although total federation revenue rose sharply to about N84 trillion between 2023 and 2025, about 41 per cent of the earnings did not reach the Federation Account for distribution to the federal, state and local governments.

According to the report, gross revenue increased from N17.08 trillion in 2023 to an estimated N37.44 trillion in 2025. However, deductions classified as “first-line charges” also rose significantly, from N6.22 trillion to nearly N15 trillion within the same period, reducing the pool of funds available for distribution.

The World Bank noted that the development has created a paradox in which rising revenues have not translated into improved public spending capacity, as a substantial portion is automatically retained by certain agencies before allocation.

It explained that reforms such as the removal of petrol subsidy and foreign exchange adjustments boosted nominal revenues, but much of the gains were offset by the structure of deductions tied to cost of collection and statutory transfers.

Agencies such as the Nigeria Customs Service, Nigerian National Petroleum Company Limited, and the Federal Inland Revenue Service account for a significant portion of these deductions. The report stated that their funding is based on fixed percentages of gross revenue, leading to higher allocations as revenues increase.

Describing the model as “pro-cyclical”, the Bretton Woods institution said it operates outside the conventional budgetary framework and weakens legislative oversight. In some cases, allocations to individual agencies exceed the revenues of several states and even the budgets of key federal ministries.

The report also highlighted the impact on public finances, noting a decline in capital expenditure from N5.5 trillion in 2024 to N4.5 trillion in 2025, with only about 25 per cent of the approved capital budget implemented. Meanwhile, the federal fiscal deficit remained elevated at N16.9 trillion, driven by debt servicing and recurrent expenditure.

The World Bank warned that the current arrangement undermines fiscal transparency and accountability, as significant portions of public revenue are spent outside the standard appropriation process.

Source: tribuneonline