TheNewsGuru

Tag: World Bank

  • Forex crisis: World Bank blames CBN’s fixed exchange regime

    Forex crisis: World Bank blames CBN’s fixed exchange regime

    The World Bank has blamed Nigeria’s continued foreign exchange instability on the fixed exchange regime in the official forex market.

    In a publication on African economies titled: ‘Africa’s Pulse,’ the World Bank singled out Nigeria and Angola as two countries that had yet to experience stability in the forex market despite rebound in the prices of commodities being exported.

    The report stated, “The rebound in commodity prices and improved growth prospects in some countries have helped stabilise commodity exporters’ currencies.

    “However, with the Nigerian naira and Angolan kwanza remaining fixed against the US dollar, the imbalance in the foreign exchange market remains substantial in both countries.”

    The report also mentioned Nigeria as one of the countries in the region where there were substantial risks in the banking sector due to a number of factors, including non-performing loans and policy uncertainties.

    The World Bank said, “Banking sector vulnerabilities remain elevated in the region, including in Angola, CEMAC countries, the Democratic Republic of Congo and Nigeria. Foreign exchange restrictions, policy uncertainty and weak growth have affected the soundness of the banking sector.

    “Non-performing loans have increased, and profitability and capital buffers have decreased. Several proactive measures have been introduced to contain risks to financial stability, including through increased provisioning and by intensifying monitoring and supervision of banks.”

    On inflation, the report stated that although inflation remained very high in the region, it had started to ease but singled out Nigeria and Angola as two countries where inflation was rising as a result of depreciation of currencies in the parallel exchange market.

    The report added, “Inflation in the region is gradually decelerating from its high level in 2016 but remains elevated. Although a process of disinflation has started in Angola and Nigeria, inflation in both countries remains high, driven by a highly depreciated parallel market rate.

    “Inflation eased in metals exporters, because of greater currency stability and lower food prices due to improved weather conditions.”

    The National Bureau of Statistics, however, reported that inflation in the country had continued to increase until it reached a peak in January.

    According to the NBS, the inflation rate reduced from 18.72 per cent in January to 17.78 per cent in February. By March, it further went down to 17.26 per cent. The inflationary figure for April has yet to be released by the bureau.

  • We’ll do our bit to ensure famine, poverty is kicked out of Nigeria – World Bank, IMF

    We’ll do our bit to ensure famine, poverty is kicked out of Nigeria – World Bank, IMF

    The World Bank and International Monetary Fund, IMF on Thursday said it will do everything possible to ensure famine and poverty is kicked out of Nigeria especially the Boko Haram crisis riddled North-East region.

    The President of World Bank, Jim Yong Kim said this in his opening remarks at the ongoing World Bank/International Monetary Fund (IMF) spring meetings in Washington DC.

    He assured that the World Bank was deploying tools and financial support required to respond to the famine plaguing the region and some other countries across the globe.

    TheNewsGuru.com reports that the devastation by Boko Haram has left nearly five million people in the North-East region desperately hungry and risk starving to death, according to figures from the United Nations.

    UN also describes the current wave of famine as the worst in 70 years.

    The World Bank chief lamented that “the world was caught unprepared” by the situation in Nigeria and some other countries.

    In his words: “Too often, we forget about crises as soon as they abate – leading to a cycle of panic and neglect. We’re already working with the affected countries and partners to respond to the famine – and we will use every tool we have, financial and advisory, to prevent famine in the future.

    “This won’t be easy. It will require agreement across the entire international development finance system – multilaterals and bilaterals – to move the global development architecture in this direction,” Kim said.

    He continued: “We are encouraged to see stronger economic prospects after years of disappointing global growth. There are still many downside risks, however, and countries that have the fiscal space need to continue with structural reforms. This is vital to accelerating the sustainable and inclusive economic growth needed to end extreme poverty by 2030.

    “We’re meeting at a time when we face several overlapping crises, both natural and man-made, all of which add urgency to our mission. We have to find new and innovative ways to reach the poor, and make the world more secure and stable. Last week at the London School of Economics, I outlined how we’re working to change our approach.

    “We have to start by asking whether the private sector can finance a project. If the conditions aren’t right, we will work with our partners to de-risk that project or, if needed, de-risk entire countries or sectors. Here’s the good news: There’s never been a better time to find those win-win solutions.

    “There are trillions of dollars sitting on the sidelines, earning little interest, and investors are looking for better returns. That capital should be mobilised to help us meet the exploding aspirations of people all over the world. And with the crises we face, our task is much more urgent than we ever thought.”

    Kim said one of the things that the Bank found was that foreign direct investment often had much higher impact, much stronger impact on improving institutions and government than aid to low income and under-developed countries.

    “This is why we’re trying to bring together the financing we provide to governments and also the financing that comes from the private sector to create better institutions, more investment, more jobs, more economic growth in a much more synergistic way”, he said.

    In her address, Managing Director of the IMF, Christine Lagarde urged Nigeria and other low income countries to step up research and development, innovation, revisit housing policies in their countries in order to drive sustainable growth.

    “Stronger cooperation across counties would help reduce external imbalances, clamp down on excessive tax evasion and avoidance and would help deliver the Sustainable Development Goals so that the low income countries can also reap the benefits of improved productivity,” Lagarde added.

    TheNewsGuru.com reports that the Minister of Finance, Mrs. Kemi Adeosun is also attending the World Bank/International Monetary Fund (IMF) spring meetings in Washington DC.

  • Ogun to partner World Bank, ADB on 500km road projects

    Ogun to partner World Bank, ADB on 500km road projects

    The Ogun State Government, in collaboration with the World Bank and the Africa Development Bank (ADB), have concluded arrangements to construct 500 kilometres of rural roads to enhance social -economic activities in the state.

    Governor Ibikunle Amosun disclosed this on Thursday at a stakeholders’ meeting held at the Oba’s complex, Oke Mosan, Abeokuta.

    According to the governor, the construction will be carried out under the third phase of the Ogun Rural Access and Mobility Project (RAMP).

    Amosun explained that the roads would cut across all the 20 local government councils and the newly created 37 Local Council Development Areas (LCDAs) of the state.

    He noted that the project would enhance agricultural development by easing movement of agricultural produce across the state.

    Amosun stated that the project would be handled by local contractors in the affected areas so as to empower artisans and other sub-contractors in the state.

    The World Bank consultant for RAMP, Dr Emmanuel Adeyemo, said the roads involved were carefully selected based on certain “universal criteria” set by the donor agencies.

    “The criteria for selecting the roads include linkage to either a local market, hospital or school or the combination of the three.

    “In addition, such roads must link a state or a federal road,” he said.

    Adeyemo, who commended the state government for its cooperation, said the project would be executed in phases and in tune with international standard.

    In his remarks, the Special Adviser to the Governor on Rural Development, Mr Wale Ogunyomade, said effective monitoring mechanism had been put in place to ensure quality job by contractors.

    He further said that the government would ensure effective maintenance of the roads through collaboration with stakeholders in the affected communities.

    The meeting was attended by traditional rulers, local chiefs, leaders of community development associations, local government officials and representatives of various Non Governmental Organisations.

     

     

    NAN

  • World Bank approves N756m for 81 beneficiaries of Buhari’s youth empowerment scheme

    World Bank approves N756m for 81 beneficiaries of Buhari’s youth empowerment scheme

    The World Bank, under its Growth and Employment (GEM) project, has approved N756.3 million for disbursement to 81 young Nigerian innovators who participated in the 2016 Aso Villa Demo Day (AVDD).

    The AVDD is one of the economic empowerment initiatives of the present administration.

    A document obtained from the World Bank-funded GEM project on Monday in Abuja, showed that the money would be disbursed to the beneficiaries in two tranches after a grant signing ceremony earlier scheduled for end of March.

    The AVDD, in collaboration with GEM project, invited business plan submissions from candidates that participated in its regional pitch screening events that took place in Lagos, Port-Harcourt and Abuja from which the 81 beneficiaries emerged.

    According to the document, “the GEM project requested for submission of business proposals from eligible applicants of the AVDD 2016 programme of which 289 applicants were screened before the final 81 were eventually picked after a rigorous process of vetting’’.

    The GEM document showed that all 81 submitted applications passed the 50 per cent cut off point and environmental and social compliance check.

    Other details contained in the document showed that the beneficiaries were drawn from Akwa Ibom, Anambra, Bauchi, Cross River, Delta, FCT, Kaduna, Kwara, Lagos, Nasarawa, Osun, Oyo, Plateau and Rivers states, while 20 others were yet to be registered on the portal.

    A breakdown of the grant disbursement process shows that submission of company registration documents for validation is ongoing.

    The document showed that “a total of 36 of the 81 applicants have submitted the required company registration and legal documents to date.

    “The registration of applicants on the Business Innovation Growth (BIG) portal is ongoing with 61 of the 81 applicants fully registered on the portal’’.

    The World Bank indicated in the document that verification of implementation and milestone achievement would be conducted as condition for the second disbursement while subsequent surveys would be conducted on the firms for impact evaluation.

    The World Bank said that a mechanism to ensure full implementation of objectives contained in the selected proposals was already in place while a comprehensive monitoring and evaluation work plan had been designed.

    The idea behind the GEM programme, the World Bank noted, “is to further support the presidency’s drive to celebrate and empower the most promising and highly scalable indigenous technology start-ups who are providing innovative solutions to local challenges in Nigeria’’.

    The Aso Villa Demo Day is an initiative of the Buhari presidency that targets young Nigerian entrepreneurs with innovative business models that could contribute to the growth of the economy.

    The winners of the 2016 AVDD emerged from a national technological innovation competition held in Lagos, Port Harcourt and Abuja.

    The Federal Government initially gave grants to the best three of the 30 innovators that emerged from the regional competition who were invited to participate in the grand finale of the AVDD 2016 held at the Presidential Villa, Abuja.

     

    NAN

     

  • World Bank: Nigeria’ll rebound from RECESSION, grow at a 1.0 percent pace

    A new World Bank (WB) report has forecast Nigeria will rebound from recession and grown at a 1.0 percent pace in 2017.

    The World Bank report said sub-Saharan Africa economy is expected to pick up modestly to 2.9 percent in 2017 as the region continues to adjust to lower commodity prices.

    However, growth in South Africa and oil exporters is anticipated to be weaker, according to the WB’s January Global Economic Prospects report released on Wednesday. Growth in economies that are not natural-resource intensive should remain robust.

    “On a per capita basis, regional GDP contracted by an estimated 1.1 percent. South Africa and oil exporters, which contribute two-thirds of regional output, accounted for most of the slowdown, while activity in non-resource intensive economies generally remained robust,” the lender said.

    The report says growth in South Africa is expected to edge up to a 1.1 percent pace this year and output will be held back by tight fiscal policy and high unemployment that is weighing on consumer spending.

    According to the WB, Nigeria is forecast to rebound from recession and grow at a 1.0 percent pace, as an anticipated modest improvement in oil prices, coupled with an increase in oil production, boost domestic revenues.

    Angola is projected to expand at a moderate 1.2 percent pace as high inflation and tight policy continue to weigh on consumption and investment.

    The WB said growth in the Sub-Saharan Africa region is estimated to have slowed to a 1.5 percent rate in 2016, the weakest pace in over two decades, as commodity exporting economies adjusted to low prices.

    The region’s two largest oil exporters — Angola, where growth slowed to a 0.4 percent rate, and Nigeria, which contracted by 1.7 percent — faced severe economic and financial strains.

    “Other oil exporters were also hit hard by low oil prices, with Chad contracting by 3.5 percent and Equatorial Guinea shrinking by 5.7 percent,” it said.

    According to the report, metals exporters struggled with low prices as well. Growth slowed to 2.7 percent in the Democratic Republic of Congo and to 3.6 percent in Mozambique, where a surge in government debt weighed on investor sentiment.

    The post-Ebola recovery in Guinea accelerated to 5.2 percent. Liberia picked up to 2.5 percent, and Sierra Leone, which expanded by 3.9 percent, was hampered by low prices for iron ore.

    Many agricultural exporters, such as Cote d’Ivoire, which expanded by 7.8 percent, and Ethiopia, which grew by 8.4 percent, registered strong output on the back of infrastructure investment.

    In other mineral and energy exporters, the outlook is generally favorable as Ghana is forecast to surge to 7.5 percent growth pace as improving fiscal and external positions help boost investor confidence.

    “Progress in developing Mozambique’s energy sector will help spur investment in that country’s natural gas production and contribute to an accelerated 5.2 percent growth rate. The post-Ebola recovery is anticipated to help Guinea grow by 4.6 percent, Liberia by 5.8 percent, and Sierra Leone by 6.9 percent,” the report says.

    It says large infrastructure investment programs will continue to support robust growth among agricultural exporters, with Cote d’Ivoire and Ethiopia growing at or above 8 percent.

    However, the report warns that political fragility will exert a drag on growth in countries such as Burundi and The Gambia.

    Among commodity importers, Cabo Verde is expected to grow at a 3.3 percent rate, Mauritius to rise moderately to 3.5 percent, and Seychelles to slow to a 3.5 percent clip as uncertainty in Europe weighs on tourism, investment, and trade flows.

    Lesotho, which is forecast to grow at a 3.7 percent pace, and Swaziland, which should exit recession and resume growing at a 1.9 percent rate, are anticipated to benefit from regional trade and infrastructure investment.

    The Bank warns that heightened policy uncertainty in the United States and Europe could lead to financial market volatility and higher borrowing costs or cut off capital flows to emerging and frontier markets.

    “A reversal of flows to the region would hit heavily traded currencies, like the South African rand, hard. A sharper-than-expected slowdown in China could weigh on demand for export commodities and undermine prices,” the report says.

  • Nigeria’s economy will rebound this year – World Bank

     

    Amidst the current economic challenges facing the country, the world bank has offered some hope as it predicted a better economy for the year.

    The bank noted that the nation will grow its Gross Domestic Product, GDP by one percent and move past the recession timeline.

    This was revealed in a statement by the bank on Wednesday.

    The statement reads in part: “Sub-Saharan African growth is expected to pick up modestly to 2.9 per cent in 2017 as the region continues to adjust to lower commodity prices.

    “Growth in South Africa and oil exporters is expected to be weaker, while growth in economies that are not natural-resource intensive should remain robust.

    “Growth in South Africa is expected to edge up to a 1.1 per cent pace this year. Nigeria is forecast to rebound from recession and grow at a 1 per cent pace. Angola is projected to expand at a 1.2 per cent pace.”

    The World Bank’s January 2017 Global Economic Prospects report also projected that growth in the advanced economies would edge up to 1.8 per cent in the current year.

    It stated that fiscal stimulus in major economies, particularly in the United States, could generate faster domestic and global growth than projected, although rising trade protection could have adverse effects.

    The statement also categorically stated that growth in emerging market and developing economies as a whole should pick up to 4.2 per cent this year from 3.4 per cent in the year just ended amid modestly rising commodity prices.

    Moving forward, the bank said emerging market and developing economy commodity exporters are expected to expand by 2.3 per cent in 2017 after an almost negligible 0.3 per cent pace in 2016 as commodity prices gradually recover and as Russia and Brazil resume growing after recessions.

    It, however, added that the outlook was clouded by uncertainty about policy direction in major economies.

    Commenting on the report, the President, World Bank Group, Jim Yong Kim, stated that “After years of disappointing global growth, we are encouraged to see stronger economic prospects on the horizon.

    “Now is the time to take advantage of this momentum and increase investments in infrastructure and people. This is vital to accelerating the sustainable and inclusive economic growth required to end extreme poverty.”

    The bank’s chief economist Paul Romer, also said “We can help governments offer the private sector more opportunities to invest with confidence that the new capital it produces can plug into the infrastructure of global connectivity.

    “Without new streets, the private sector has no incentive to invest in the physical capital of new buildings. Without new work space connected to new living space, the billions of people who want to join the modern economy will lose the chance to invest in the human capital that comes from learning on the job.”

     

  • Nigeria’ll get out of recession this year, says World Bank

    The World Bank has predicted that Nigeria will get out of recession and grow its Gross Domestic Product by one per cent this year after plunging into its worst recession in over two decades.

    The bank said in a statement on Wednesday, “Sub-Saharan African growth is expected to pick up modestly to 2.9 per cent in 2017 as the region continues to adjust to lower commodity prices.

    “Growth in South Africa and oil exporters is expected to be weaker, while growth in economies that are not natural-resource intensive should remain robust.

    “Growth in South Africa is expected to edge up to a 1.1 per cent pace this year. Nigeria is forecast to rebound from recession and grow at a 1 per cent pace. Angola is projected to expand at a 1.2 per cent pace.”

    The World Bank’s January 2017 Global Economic Prospects report also projected that growth in the advanced economies would edge up to 1.8 per cent in the current year.

    It stated that fiscal stimulus in major economies, particularly in the United States, could generate faster domestic and global growth than projected, although rising trade protection could have adverse effects.

    Growth in emerging market and developing economies as a whole should pick up to 4.2 per cent this year from 3.4 per cent in the year just ended amid modestly rising commodity prices, the bank stated.

    Emerging market and developing economy commodity exporters are expected to expand by 2.3 per cent in 2017 after an almost negligible 0.3 per cent pace in 2016 as commodity prices gradually recover and as Russia and Brazil resume growing after recessions.

    It, however, added that the outlook was clouded by uncertainty about policy direction in major economies.

    Commenting on the report, the President, World Bank Group, Jim Yong Kim, stated, “After years of disappointing global growth, we are encouraged to see stronger economic prospects on the horizon.

    “Now is the time to take advantage of this momentum and increase investments in infrastructure and people. This is vital to accelerating the sustainable and inclusive economic growth required to end extreme poverty.”

    The report noted the worrisome recent weakening of investment growth in the emerging markets and developing economies, which account for one-third of the global GDP and about three quarter of the world’s population and the poor.

    The World Bank’s Chief Economist, Paul Romer, said “We can help governments offer the private sector more opportunities to invest with confidence that the new capital it produces can plug into the infrastructure of global connectivity.

    “Without new streets, the private sector has no incentive to invest in the physical capital of new buildings. Without new work space connected to new living space, the billions of people who want to join the modern economy will lose the chance to invest in the human capital that comes from learning on the job.”

  • NPA to collaborate with govt. agencies to improve World Bank ranking

    NPA to collaborate with govt. agencies to improve World Bank ranking

    The Nigerian Ports Authority (NPA) has called for continuous collaboration between government agencies and other stakeholders to achieve collective success and move up their ranking position by the World Bank.

    The Managing Director of NPA, Ms Hadiza Usman, made this known in an interview with newsmen in Lagos.

    Usman said that it was important to appreciate that some other agencies and stakeholders usually challenged the efficiency of NPA.

    “I call on these agencies which had deliberated on the ease of doing business.

    “We have highlighted everybody’s roles and provided a timeline for everyone to turn around his own company as well as other government agencies, ‘’ Usman said.

    She said that if government agencies and stakeholders in the maritime sector worked in isolation, it would be challenging for the industry to increase its ranking and operations.

    Usman said that there was need for government agencies to work together toward national interest because the success of any agency was the success of the Federal Government.

    The NPA boss said that if all agencies collaborate to achieve success, it would facilitate the development of the Nigerian maritime industry.