Business
World Bank Urges Nigeria to Improve Public Spending to Increase Economic Growth
The World Bank, based in Washington, has highlighted that inefficient public spending is draining a significant portion of investments in Nigeria and other developing nations.
This revelation comes from the bank’s latest report, titled “How Can Developing Countries Power Up Public Investment?”
The report is a critical issue: over one-third of public investment in emerging markets and developing economies is wasted due to inefficiencies.
This not only stunts economic growth but also hampers overall development potential.
In some extreme cases, it results in costly “white elephant” projects, which yield minimal economic benefits despite their high costs.
These projects further jeopardize a country’s sovereign risk and debt sustainability.
According to the World Bank, improving government spending efficiency is key to fully reaping the rewards of public investments.
It is estimated that the inefficiency of public spending in emerging markets and developing economies (EMDEs) is much higher compared to advanced economies.
Factors such as regulatory obstacles, corruption, and institutional shortcomings often contribute to the creation of lower-quality projects that fail to generate the intended benefits.
To address these challenges, the World Bank recommends that developing countries strengthen public spending practices by embracing transparency in procurement processes and ensuring robust monitoring of projects.
Such measures could significantly improve the impact of public investments.
In Nigeria, the urgency of improving investments is palpable.
Wale Edun, the country’s finance minister, recently emphasized that Nigeria requires an annual investment of $20 billion to achieve its ambitious target of reaching a $1 trillion economy by 2030.
Aliko Dangote is stepping down as Chairman of Dangote Sugar Refinery Plc after two decades of steering the company’s growth and transformation. His retirement will officially take effect on June 16, 2025.
The announcement was made in a statement signed by the company’s secretary, Temitope Hassan, who praised Dangote’s contributions since he took over leadership in 2005. Over the years, he has played a major role in shaping Dangote Sugar into a top player in Nigeria’s sugar industry, overseeing its expansion and pushing key reforms in governance and operations.
During his time at the helm, the company rolled out several major projects focused on backward integration, setting up large-scale sugar production facilities in Adamawa, Taraba, and Nasarawa. These projects were designed to boost local output and cut down on the country’s reliance on imported sugar.
As part of a planned succession process, the board has named Arnold Ekpe as the incoming Chairman. Ekpe, who is currently an Independent Non-Executive Director on the board, will take over on the same day Dangote retires.
Ekpe brings decades of leadership experience, having served as Group CEO of Ecobank and held top positions across different industries. The board expressed confidence in his ability to lead the company into its next phase while also thanking Dangote for his outstanding service and dedication throughout the years.
Ecobank Group is reportedly set to raise up to $250 million through an Additional Tier 1 (AT1) capital offering in order to strengthen the bank’s capital base.
This was revealed during the company’s annual general meeting held in Togo on the 29th of May, 2025. According to the meeting, the bank stated that the conversion price for the shares will be based on the higher of the prevailing exchange rate and the floor price of $0.02 per ordinary share.
The speaker stated “As we cast our eyes into the future and reimagine all possibilities—rising competition from banks, fintechs, and non-bank financial institutions, as well as factors such as geopolitics, regulations, and capital markets—we cannot afford complacency.”
The Central Bank of Nigeria (CBN) recently assured stakeholders about the state of the banking sector in Nigeria, stating that the banking sector can still be trusted and is secure.
The assurance was shared in a statement signed by Hakama Sidi Ali, Acting Director of Corporate Communications at the CBN. In the statement, it was emphasized that stakeholders should disregard any negative news concerning the banking sector, as such reports are misleading.
The CBN also highlighted the security of the deposits entrusted to it, stating, “There is no reason for the public to worry about the security of their deposits.” The extent of the measures and security in place was also emphasized by the director in the statement.
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