Business
IMF Approves New Extended Credit Facility Arrangement for Mali and US$9.2 Million Disbursement
BAMAKO – The Executive Board of the International Monetary Fund (IMF) today approved a new arrangement under the Extended Credit Facility (ECF) for Mali for an amount equivalent to SDR 30 million (about US$ 46.2 million or 32 percent of quota). The approval enables the immediate disbursement of an amount equivalent to SDR 6 million (about US$9.2 million).
The authorities’ program is designed to reduce balance-of-payments vulnerabilities and lay foundations for stronger, more inclusive growth. Reform efforts are focused on tax policy and revenue administration, public financial management and improving the business environment.
The new Fund-supported program builds on the success of the authorities’ policies supported by disbursements under the Rapid Credit Facility in 2013
Following the Executive Board’s discussion, Mr. Min Zhu, Deputy Managing Director and Acting Chair issued the following statement:
“Mali’s authorities have succeeded in maintaining macroeconomic stability in very difficult circumstances. The economy is recovering and the outlook is improving with the resumption of donor support and a gradual return of investor confidence. However, significant challenges remain. Against this background, a new Fund-supported arrangement under the Extended Credit Facility will help support the authorities’ economic program to sustain growth, maintain fiscal sustainability, and reduce poverty.
“Higher domestic revenue mobilization and increased efficiency of public spending will create fiscal space for needed development spending. Limited government recourse to domestic bank borrowing will safeguard credit to the private sector. Improved public financial management will ensure that donor funding is put to effective use, and improved internal expenditure controls will help prevent the accumulation of domestic arrears. More broadly, a prudent debt management centered on concessional borrowing will be needed in the period ahead.
“Far-reaching reforms will help improve the business environment, promote economic diversification, and boost Mali’s growth prospects. Priority areas include increasing financial development, combating corruption, streamlining tax procedures, improving infrastructure, and increasing labor productivity through improved education and health spending. Well communicated reforms in the production and pricing of energy are also important for fostering durable growth and reducing poverty.”
Annex
Recent economic developments
Mali is emerging from the most serious security and political crisis in its recent history.
The recent arrival of a UN security force (MINUSMA) is helping the government restore law and order in the north. Political normalization is well under way with the successful presidential and parliamentary elections. International financial support has been successfully mobilized: in May 2013, at the international donor conference in Brussels, donors pledged €3.25 billion ($4.4 billion) in financial assistance.
In the meantime, the economy is recovering and inflationary pressures have abated. After a 0.4 percent GDP decline in 2012, the improvement in the security situation and the resumption of donor assistance has helped revive business confidence. Activity is picking up in the service sectors hardest hit by the crisis (commerce, hotels, and restaurants). Favorable rainfall has boosted agricultural production. Average inflation declined from 5.3 percent in 2012 to negative 0.1 percent by October 2013 as food prices declined following the good harvest.
Prospects for the remainder of 2013 and for 2014 are generally favorable. The nascent recovery should gather strength as donor support builds up and credit to economy picks up. Real GDP is projected to increase by 5.1 percent in 2013 and 6.6 percent in 2014 supported by the rebound in agricultural output, the establishment of a third mobile phone operator, recovery in the service sector, and restart of construction projects. After 2014, growth is projected to settle in the 5–6 percent range. Average inflation is projected to remain close to zero in 2013 and reach 2 percent in 2014, below the 3 percent West African Economic and Monetary Union’s (WAEMU) ceiling.
The positive outlook is subject to several risks. Agricultural output is vulnerable to adverse weather conditions. Because of strong export concentration on gold (70 percent of the total) and cotton (15 percent of the total), export revenues depend to a large extent on volatile international gold and cotton prices. The security situation remains fragile despite recent improvements. Any setbacks in peace consolidation could weaken consumer, investor, and donor confidence and derail the incipient recovery. On the other hand, Mali is not significantly exposed to negative risks in the euro area because its exports are inelastic toward traditional trade partners’ growth. The banking sector is mostly financed by local deposits and is not directly exposed to the ongoing deleveraging of European banks.
Program Summary
The authorities’ programs aims at promoting policies that: (i) maintain macroeconomic stability, while allocating sufficient resources to poverty-reducing and other priority spending, including in the North; (ii) mobilize more government revenue;
(iii) strengthen public financial management; and (iv) improve the business environment, including by implementing anti-corruption measures.
Public spending will support national reconciliation, growth and poverty reduction. Budgetary allocations will be in line with the Growth and Poverty Reduction Strategy (G-PRSP) and the Plan for Sustainable Recovery (PRED). To that end, the authorities are committed to giving priority social spending—health, education and social development.
To increase tax revenue and lighten the administrative burden on the taxpayer, the Government will implement ambitious tax policy and administration reforms. Transparency will be used to build political support for a reduction of tax exemptions. In that context, the authorities intend to reform fuel pricing. Starting in 2013, the budget law has begun presenting estimates of the cost to the budget of the failure to adjust fuel prices to international oil price movements. To stem, and ultimately reverse, the erosion of tax revenue from petroleum products, the authorities will abandon the practice of setting the administrative value (used for tax calculation) below the market value. In order to improve the business climate, the government will take steps to address the most problematic factors for doing business. Investors consider access to financing, corruption, poor infrastructure (including electricity), tax regulation are key ingredients. The state electricity company will be reformed with the view of putting it on a sound financial footing.
The authorities have also stated their deep commitment to combating corruption. They will put in place concrete actions, one of which is a systematic follow up of all recommendations of varying control agencies, with regular reports on judicial or administrative actions taken. Another is the publication of judicial decisions.
Given the early stage of Mali’s recovery from the recent political and security crisis, reforms will be implemented progressively. The initial phase—through mid–2014—focuses on strengthening institutional capacity and developing strategies to address the most pressing issues. The following phases of the program will involve rolling out policy actions in these areas. These actions will be specified at the time of the first and subsequent reviews of the arrangement.
The Nigerian National Petroleum Company Limited (NNPC Ltd) claimed that it saved $3.4 billion through contract restructuring and optimisation between April 2025 and July 2026.
Group Chief Executive Officer, Bayo Ojulari, made the assertion in Abuja at the opening of the 25th Nigeria Oil & Gas (NOG) Energy Week, while highlighting the impact of ongoing reforms aimed at improving operational efficiency, reducing costs, strengthening partnerships, and enhancing value delivery to the federation.
Ojulari also stated that the national oil company had maintained full compliance with its joint venture cash call obligations.
ALSO READ: Oil, Gas Deals Push Nigeria’s FDI to $4 Billion
According to the scorecard presented by the NNPC Ltd, the $3.4 billion cost savings were realised through contract restructuring and optimisation initiatives across the company’s operations.
The reforms also contributed to an increase in government revenue, with the NNPC Ltd reporting a government take of N19.5 trillion, representing a 21.8 per cent year-on-year increase.
Besides, a major highlight of the report was NNPC’s 100 percent compliance with its joint venture cash call obligations across all its joint ventures from Financial Year 2025 to June 2026.
However, the company’s partners recorded a blended compliance rate of just 61 percent.
Of the 27 joint venture partners, only six were fully current with their obligations, while 13 recorded partial compliance with an average payment rate of 72 percent, and eight remained in significant default, paying an average of only 14 percent, prompting Joint Operating Agreement remedies.
The NNPC Ltd said it remained committed to sustaining its cash call obligations to support Nigeria’s target of achieving two million barrels of oil production per day.
Operationally, the company reported a six percent increase in crude oil production year-on-year and an 8.1 percent rise in gas production over the same period, reflecting improvements in upstream operations.
Ojulari also highlighted several strategic partnerships concluded since the last Nigeria Oil and Gas Conference, including a long term gas supply agreement with Nigeria LNG, progress on deepwater investments valued at over $20 billion, refinery related partnerships, industrial gas projects, and new gas supply arrangements.
Looking ahead, the company identified seven priority projects expected to drive production and gas infrastructure growth through 2027.
These, it said, included the UTM Floating LNG project, the OB3 East West Connector, the AKK gas pipeline, refinery technical enhancement projects, the Zabazaba deepwater development, the Owowo field, and the BSWAP project.
The state oil major added that the combination of cost optimisation, stronger operational performance, improved infrastructure reliability, and strategic partnerships would reinforce Nigeria’s energy security, boost government revenues, and support sustainable growth in oil and gas production.
Ojulari said the national oil company achieved 98 percent recovery across five crude export terminals between April 2025 and May 2026, up from one per cent at Bonny in June 2022.
He put current output at 1.71mbpd, the highest in five years, with the NNPC Exploration and Production Limited (NEPL) hitting a record 365,000 bpd.
Gas production, he said, reached 7.5 billion standard cubic feet per day (bscf/d) following the River Niger crossing on the Ajaokuta-Kaduna-Kano (AKK) Pipeline and inauguration of the ANOH Gas Plant.
Ojulari added that the NNPC Ltd had “zero tolerance for partners who are not able to fund their Cash-call” and had begun invoking default clauses.
He stressed collaboration over control, saying, “We have rid ourselves of any pseudo-regulation. We are not the super-regulator. Let them regulate. We want to work.”
Energia Limited and its Joint Venture partner, Oando Plc, have inaugurated the board of trustees of the Ndokwa West-1 Host Community Development Trust (HCDT).
The inauguration marked a significant milestone in strengthening sustainable development, transparency and community participation across their host communities in Delta State.
The inauguration, held in Asaba, also featured the signing of a Memorandum of Understanding (MoU) between the Energia-Oando Joint Venture and the seven host communities, in line with the provisions of the Petroleum Industry Act (PIA), 2021.
The event brought together representatives of Delta State Government, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), traditional rulers, community leaders, members of the newly inaugurated board of trustees, and other key stakeholders from the oil and gas industry.
ALSO READ: Oil, Gas Deals Push Nigeria’s FDI to $4 Billion
Representing the Governor of Deputy Governor, Delta State, Sir Monday Onyeme, Deputy Chief of Staff, Hon. Christopher Osaskwe commended Energia Limited and the host communities for successfully establishing the Trust and signing the Memorandum of Understanding.
He described the initiative as a demonstration of mutual commitment to partnership and sustainable development, while urging the newly inaugurated board to discharge its responsibilities with transparency, accountability and fairness.
He also encouraged host communities to continue protecting oil and gas infrastructure and embrace dialogue as the preferred approach to resolving disputes.
Managing Director, Energia Limited, Oladimeji Bashorun, described the inauguration as the beginning of a new chapter in the relationship between Energia and its host communities.
According to him, the company remains focused on building partnership, shared responsibility and sustainable development rather than dependency.
He noted that while the PIA provides a structured framework for host community development, Energia’s commitment to its host communities predates the legislation and has remained a core part of the Company’s operating philosophy since it achieved First Oil in 2009.
“Communities that host our operations should also share meaningfully in the opportunities created by those operations. Our success has always been closely connected to the success of our host communities,” Bashorun said.
He also disclosed that Energia has invested over N15.94 billion in community development initiatives since inception, supporting roads, drainage systems, healthcare facilities, educational programmes, scholarships, youth empowerment, solar-powered street lighting, community welfare initiatives and other social investments across its operational communities. He added that the Company dedicates 3% of its gross revenue annually to support sustainable development initiatives for its host communities.
Also speaking at the event, the Asset Manager of Oando, Seyi Fawora, reaffirmed the Joint Venture’s commitment to implementing the HCDT, noting that the partnership remains focused on building stronger, mutually beneficial relationships with host communities.
The representative of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Dennis Eyitemi, described the inauguration as a significant milestone in strengthening host community participation in development. He urged members of the Board of Trustees to remain accountable, transparent and committed to promoting the long-term welfare of the communities they represent.
Providing an overview of the HCDT framework, the Delta State Solicitor-General and Permanent Secretary, Ministry of Justice, Omamuzo Irebe, SAN, commended Energia for contributing beyond the statutory requirement prescribed under the Petroleum Industry Act and encouraged members of the Board to place community interests above personal interests while ensuring prudent management of the Trust’s resources.
The ceremony concluded with the swearing-in of the members of the Ndokwa West-1 Host Community Development Trust Board of Trustees. In his acceptance remarks, the Chairman of the Board, Chief Godwin Edeme, pledged the Board’s commitment to working with Energia Limited, Oando Petroleum Development Company and all stakeholders to ensure the effective implementation of the Trust for the benefit of present and future generations.
The establishment of the Ndokwa West-1 Host Community Development Trust represents another milestone in Energia’s long-standing commitment to responsible operations, stakeholder engagement and creating shared value for its host communities through sustainable, transparent and inclusive development. About Energia Limited
Energia Limited is a leading indigenous Nigerian exploration and production company with a proven track record of responsible hydrocarbon development and sustainable value creation. Since achieving First Oil in 2009, Energia has remained committed to operational excellence, environmental stewardship, and meaningful partnerships with its host communities, delivering lasting social and economic impact alongside its business growth.
Foreign direct investment (FDI) flow into Nigeria climbed to roughly $4 billion last year, according to UNCTAD’s World Investment Report 2026.
The report stated that “Inflows to Nigeria rose to about $4 billion, supported mainly by oil and gas–related IPF deals, including a major project valued at about $2 billion.”
The report indicated that Nigeria’s inflows were $1.6 billion in 2024, before increasing to roughly $4 billion (precisely $4.005 billion) in 2025 — reversing a downward trend that had seen inflows dip as low as $895 million in 2022. The figures place Nigeria among a cluster of West and East African economies that bucked a broader continental slowdown
According to the report, Nigeria’s outward investment also rose, from $408 million in 2024 to $1.19 billion in 2025, while its inward FDI stock reached nearly $93 billion by year-end.
“In Nigeria, deals included the sale of Shell’s onshore oil assets to the Nigerian consortium Renaissance Africa Energy and the acquisition of Lafarge Africa by Huaxin Cement of China, signaling both a wave of asset localization in the oil sector and continued Asian appetite for Nigerian industrial assets.
ALSO READ: Global Demand for Nigerian Crude Higher Outstrips Supply – FG
On the Greenfield side, conglomerate Dangote Group emerged as an outward investor in its own right, backing a $3 billion chemicals project in neighboring Ethiopia — one of the 10 largest Greenfield projects announced across the continent in 2025.
Policy shifts also featured prominently in the report’s account of the investment climate. It noted that the government introduced sweeping fiscal reforms during the year, including a new minimum tax regime aligned with international standards.
“Nigeria, for instance, introduced a minimum effective tax rate of 15 per cent for multinational enterprises with revenues exceeding €750 million,” the report noted.
Alongside this, the report observed that Nigeria, together with Cameroon, moved to tighten incentive structures more broadly, as the two countries “replaced broad tax exemptions with tiered tax credits and strict eligibility requirements, such as job creation, local value addition and priority sectors.” Separately, the government rolled out targeted relief for the petroleum sector, introducing “performance-based tax credits for companies in the upstream petroleum industry, linking fiscal benefits to cost efficiency.”
The report also credited Nigeria with using regulatory innovation to court investors beyond the extractive sector.
It pointed to the Federal Government ‘s technology-focused reforms, noting that Nigeria “has used regulatory frameworks to reduce uncertainty for innovative firms,” citing the Startup Act and accompanying central bank rules that let sandboxes allow start-ups to test products with real users before facing the full weight of regulation.
On trade infrastructure, the report named Nigeria as one of five countries — alongside Côte d’Ivoire, Benin, Ghana and Togo — that committed under a regional agreement to harmonising customs and border procedures along the Abidjan–Lagos corridor, part of a wider West African push to cut transit times and integrate cross-border trade.
Africa as a whole, according to the report, saw FDI inflows fall sharply from an exceptional 2024, but the report noted that in West Africa, investment “rose in several West African economies, supported mainly by investment in natural resources and energy.”
Courtesy – The Punch
US-Iran War Boosts Dangote Refinery’s Fortunes – Report
BREAKING: Kidnapped Oyo Pupils, Teachers Finally Regain Freedom
How British Airways Records Foiled Alleged $2m Blackmail Plot Against Me — Wike
Shell’s Landmark Achievements Earn Recognition at NOG Energy Awards
Eight Escape Death as Zambian Vice President’s Campaign Helicopter Crashes
Mixed Reactions as Florida Renames Palm Beach Airport After Trump
Trump’s Family Unveils New Cryptocurrency Platform
Senate Denies Receiving Petitions Against Tinubu’s Ambassadorial Nominees
Dangote Cement Lights Up Benue Host Communities With CSR Initiatives
Reps Recommend 3-year Jail Term For Aviation minister
Tems Sets New Record On Billboard Hot 100 Chart
