Tag: World Bank

  • Global economic growth projected to slow in 2023

    Global economic growth projected to slow in 2023

    Global economic growth was projected to slow to 1.7 per cent in 2023, 1.3 percentage points below the forecast made in June last year.

    Marking its third-weakest pace in nearly three decades, the World Bank Group said in its latest Global Economic Prospects release.

    Given such adverse shocks as high inflation, rising interest rates, sluggish investment and the Ukraine crisis, global growth has slowed “to the extent that the global economy is perilously close to falling into recession.’’

    The downgrade reflected synchronous policy tightening aimed at containing very high inflation, as well as deteriorating financial conditions, declining confidence and energy supply disruptions, it said.

    Noting that the adjusted global growth forecast is overshadowed only by the 2009 and 2020 global recessions, the report said in 2024.

    The global economy was on track to grow by 2.7 per cent.

    More specifically, the report said that growth for advanced economies was projected to slow to 0.5 per cent in 2023, 1.7 percentage points below the June forecast.

    U.S. economic growth forecast for this year has been downgraded by 1.9 percentage points to 0.5 per cent.

    The weakest performance outside of recessions since 1970.

    The Eurozone economy was projected to grow at 0 per cent, down 1.9 percentage points from the previous forecast.

    Meanwhile, the report said that growth for emerging and developing economies is projected to slow to 3.4 per cent in 2023, 0.8 percentage points below the June forecast.

    It added that global trade volume will grow 1.6 per cent this year, down 2.7 percentage points from the previous forecast.

  • The President we all need (1) – By Sonnie Ekwowusi

    The President we all need (1) – By Sonnie Ekwowusi

    We can no longer leave the fate of our country and our lives in the hands of political misfits who don’t have the foggiest idea that political leadership basically entails improving the welfare of the people. Almost everyone you meet these days in Nigeria says it, and, I dare join today in saying it: now is our chance to recover our stolen common wealth from the thieving imbeciles. To this effect, many Nigerian voters across the different divides (the Nigerian young inclusive) have, unlike in the past, irrevocably resolved to vote for a presidential candidate of their choice who will build a new Nigeria, all things being equal, on February 25 2023.

    The current Buhari government is a waterless a cloud, carried along by the winds; a fruitless tree in late autumn, depraved, dead and uprooted; a wild wave of the sea casting up the form of its suffocating smell; a wandering and wicked crescent for whom the nether gloom of darkness has been reserved for ever. For nearly 8 years the Buhari government has brought an unspeakable monumental ruin to Nigeria and Nigerian families. For instance, the incapacity of President Buhari to defend and maintain Nigeria’s territorial sovereignty as well as secure the borders of Nigeria from internal and external violation in consonant with sections 1 (2) and 2(1) of the 1999 Constitution. Mohammadu Buhari, no doubt, has gone down the anal of Nigerian political history, if not the Guinness Book of Record) as the worst political leader in Nigeria. His inability, pursuant to section 14 (2) (b) of the 1999 Constitution, to protect lives and property of the citizenry and to suppress internal insurrection, banditry, secession threats, murder, anarchy, tension, fear, suspicion and disorderliness has enthroned the reign of anarchy. Nobody seems to be in charge of Nigeria at the moment. The Hobbesian bellum omnium contra omnes (war of all against all) characterized by barbaric bloodletting, communal bloody feuds, kidnaps, banditries, gun-running and so forth now reigns supreme in different parts of Nigeria. Uncertainty, confusion, fear and apprehension rule the lives of many in Nigeria. We now live in a free-for-all country where nobody seems to be in charge of anything or anybody. We go to bed and wake up itching to hear the sad news of another bloodletting abduction or kidnapping. In 2017, Nigeria was ranked as the third most-terrorized country in the world. In the same 2017 Nigeria Police was ranked as the worst Police in the world. In the same 2017 Nigeria was ranked by the World Health Organization (WHO) as a country with the 3rd highest infant mortality rate in the world. In the same 2017 Northern Nigeria was ranked as the worst region in the world with the highest number of illiterates.

    On July 25 2018 the BBC reported that “Nigeria has the largest number of out-of-school children, totaling 13 million, in the world.” In the 2018 Global Rankings of “Commitment to Reducing Inequality Index” of the OXFAM and Development Finance International (DFI), Nigeria was ranked 157 out of 157 countries. In the same 2018, Nigeria overtook India as the country with the highest number of under-5 deaths in the world. In the same 2018 Nigeria was ranked as one of the most dangerous places in the world to give birth to and the 4th country in the world with the worst maternal mortality death rate. In the same 2018 Nigeria was ranked among the worst malaria hit countries in the world. In the same year, 2018, Nigeria was ranked by the World Bank among the seven worst countries on the World Bank Human Capital Index. In the 2018 Global Hunger Index (GHI), Nigeria was ranked as the 103rd hungriest country in the world out of 119 qualifying countries. In the same 2018, Nigeria was ranked among the worst malaria hit countries in the world. In the same 2018 Nigerian was ranked by the World Bank among the seven worst countries on the World Bank Human Capital Index.

    In 2018, the African Development Bank (AfDB) revealed that the World Poverty Clock named Nigeria as the poverty capital of the world. According to Mr. Constant Tchona, a representative of OXFAM in Nigeria: “The number of people that live below extreme poverty as at April 2018 was 91,501,377 thus reaffirming that Nigeria is the poverty capital of the world. As if that was not bad enough, six months later, the number jumped to 94, 470, 533 people meaning that 2,969, 158 Nigerians have been added into Nigeria’s extreme poverty rate. The latest is that the National Bureau Statistics (NBS) has revealed that no fewer than 133 Nigerians, representing 63 per cent of the Nigerian population, are currently living in multi-dimensional abject poverty. At the moment the Naira currency is having its worst free fall. For the first time in our political history we have now become a suicidal country. In 2018 Nigeria was ranked as a suicide-prone country. Today Nigeria is ranked the fifth in the world among countries whose citizens are most prone to commit suicide. A bag of rice now sells for N36,000, the salary of many Nigerians.

    What is most nauseating is that, amid these calamities, President Buhari keeps gallivanting from pillar to post beating his chest in the euphoria of triumph and telling those who care to listen to him: “I am not a failure. I am a good man. I will not leave office a failure”. Is this not laughable?. A President who had already failed is giving himself a pass mark and saying that he is not a failure. Anyway, two things, in my view, are deductible from Buhari’s gloating. First: Buhari forgets the time-test aphorism credited to Sheikh Uthman Dan Fodio that conscience is an open wound and only truth can heal it. Pricked by the pangs of his conscience, Buhari has been placating his conscience and telling all who care to listen that he is not a failure. He forgets that only truth and justice can heal his wound: Second: Mr. President is not in touch with reality otherwise he cannot be giving himself a pass mark when in actual fact he is a failure. Enslaved by his gratified lusts and sheer fatuity President Buhari has refused to read the mene, mene, tekel, upharsin emblazoned on the walls of Aso Villa Presidential Building, Abuja. He can’t understand that his 8-year stewardship has come to a pathetic and ruinous end. He seems not to understand that about 99% of Nigerians had already judged him a failure and that there is nothing he can do to reverse their judgment against him.

    Consequently, the February 25 presidential election is a golden opportunity to break away from our iniquitous past. To those regretting and sorrowing for committing a mortal sin in 2015 or 2019 by voting for Buhari, I say, February 25 2023 is the day of salvation. It is the acceptable time. Therefore, they should make amends and atone for the sin which they committed in 2015 or 2019 by voting for candour, content, charism, competence and character in 2023. From the outset I knew that Buhari would make a disaster President. So, I did not vote for him in 2015. Neither did I vote for him in 2019. Anyway, old things have passed away. Let us make amendments today that grace may abound. We are the children of the light, not of darkness. Light has nothing in common with darkness. There is no doubt that Buhari has endorsed a stooge to succeed him in 2023 so that the stooge would protect the Fulani oligarchical structures which he (Buhari) had laboured to build in the last seven and half years. Therefore let us resolve to make a complete break with Buharism. Good riddance to Buharism. So, do not vote for a Buhari stooge on February 25 2023. We should be aiming to breathe fresh air in 2023. Don’t tell me it is impossible to break away from our iniquitous past. All things are possible to those who believe. We can break away from the ruinous status quo. The Kenyans did it this year by electing William Ruto, 55, who ran for President for the first time. In fact Ruto fell out with political godfather Uhuru Kenyatta. As a result, Kenyatta backed Mr. Raila Amolo Odinga to succeed him in office. But Ruto came from behind and won the election.

  • N206bn insertion in 2023 budget: Resign now – Reps tell Humanitarian Minister

    N206bn insertion in 2023 budget: Resign now – Reps tell Humanitarian Minister

    The House of Representatives on Tuesday asked the Minister of Humanitarian Affairs and Disaster Management, Hajiya Sadiya Farouk to quit as minister if she was not ready for the job.

    This followed her incessant failure to appear before various Committees of the House to defend the ministry’s 2023 budget proposal.

    Rep. Muktar Betara, Chairman, House Committee on Appropriation said this during an investigative hearing on alleged budget insertion of N206 billion in the 2023 budget of the ministry in Abuja.

    The N206,242,395,000 billion in question is for the National Social Safety Nets Project, which is domiciled in the ministry, to be funded by World Bank.

    A visibly angry chairman of the committee had queried why the Minister was not present to defend the insertion, adding that if she was not ready for the job she should quit.

    “Most times the committee calls the minister, she refuses to come. If she is not ready for the job, she should quit,” Betara said.

    Explaining the error in the ministry budget, the Minister of Finance, Hajiya Zainab Ahmed said the item was wrongly coded by the Budget office.

    She added that the minister of Humanitarian Affairs and Disaster Management should have called the attention of the budget office to the anomaly like her counterparts in other ministries.

    She said the Ministry of Defence, Federal Ministry of Power among others also committed the same error.

    She called for collaboration among Ministries Department and Agencies of Government (MDAs) in a bid to forestall such oversight.

    The minister said, “the project was correctly described in the submission in the 2023 budget, but unfortunately the Budget Office used the wrong code.

    She said this resulted in it being captured as “Purchase of Security Equipment” in the budget preparation system.

    She added that the budget preparation had a limited range of encoded programme and project descriptions.

    The Minister of Humanitarian Affairs and Disaster Management, represented by the Permanent Secretary of the ministry, Dr Nasir Gwarzo said the minister directed him to represent her

    “The minister said she did not understand the budget code, it was the media that reported the error as padding.

    “We did not go to the media refuting the work the committee or the Ministry of Finance have done, but we wrote for clarification which was given.

    The amount of money in question was a counterpart funding that was given by the world bank, if it was done without appropriation, Nigerian would not have known what was borrowed,” he said.

    In their response the members of the Committee, Rep. Igariwey Enwo (PDP-Ebonyi) and the Deputy Chairman, Appropriation said the budget should not be subjected to controversy.

    “We are talking about money we borrowed, we should also know how we spend the money.

    “Raising unnecessary controversy about the budget will not augur well. There should be inter agency coordination.

    Rep Benjamin Kalu (APC-Abia) said, ” my concern is that the image of our country should be protected in respect of the budget.

    ”I reached out to the minister of finance on the issue but nothing was done and I could not go ahead to give the media the information its needed at the point in time.”

  • “Nigeria’s food, energy crisis worsened by Naira depreciation”- W’Bank

    “Nigeria’s food, energy crisis worsened by Naira depreciation”- W’Bank

    The World Bank has warned that the shrinking value of the Nigerian naira and the currencies of most developing economies are driving up food and fuel prices in ways that could deepen the food and energy crises that many of them already face.

    According to the World Bank’s latest Commodity Markets Outlook report, in US dollar terms, the prices of most commodities have declined from their recent peaks amid concerns of an impending global recession.

    It further noted that from the Russian invasion of Ukraine in February 2022 through the end of last month, the price of Brent crude oil in US dollars fell nearly six percent. Yet, because of currency depreciations, almost 60 percent of oil-importing emerging markets and developing economies saw an increase in domestic-currency oil prices during this period.

    According to the Washington-based bank, nearly 90 percent of these economies also saw a larger increase in wheat prices in local-currency terms compared to the rise in U.S. dollars.

    It said elevated prices of energy commodities that served as inputs to agricultural production have been driving up food prices.

    During the first three quarters of 2022, studies by the World Bank Group showed that food-price inflation in South Asia averaged more than 20 percent. Food price inflation in other regions, including Latin America and the Caribbean, the Middle East and North Africa, Sub-Saharan Africa, and Eastern Europe and Central Asia, averaged between 12 and 15 percent.

    "Nigeria's food, energy crisis worsened by Naira depreciation"- W’Bank

    TheNewsGuru.com (TNG) reports that the World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects.

    The World Bank is the collective name for the International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA), two of five international organizations owned by the World Bank Group.

    It was established along with the International Monetary Fund at the 1944 Bretton Woods Conference. After a slow start, its first loan was to France in 1947.

    In the 1970s, it focused on loans to developing world countries, shifting away from that mission in the 1980s. For the last 30 years, it has included NGOs and environmental groups in its loan portfolio. Its loan strategy is influenced by the Millennium Development Goals as well as environmental and social safeguards.

    As of 2022, The World Bank is run by a president and 25 executive directors, as well as 29 various vice presidents. IBRD and IDA have 189 and 174 member countries, respectively. The U.S., Japan, China, Germany and the U.K. have the most voting power.

    The bank aims loans at developing countries to help reduce poverty. The bank is engaged in several global partnerships and initiatives, and takes a role in working toward addressing climate change. The World Bank operates a number of training wings and it works with the Clean Air Initiative and the UN Development Business. It works within the Open Data Initiative and hosts an Open Knowledge Repository.

    The World Bank has been criticized as promoting inflation and harming economic development, causing protests in 1988 and 2000.

  • Flood, passivity, and a ruined future – By Dakuku Peterside

    Flood, passivity, and a ruined future – By Dakuku Peterside

    This year, 2022, the floods seem to have united different parts of the globe. The World Bank report estimates that 1.18 billion people or 23% of the world population, face significant flood risks.

    The floods have hit 27 of Nigeria’s 36 states and impacted around 1.4 million people, according to the Ministry of Humanitarian Affairs and Disaster Management. It has been reported that more than 500 people have been killed and 90,000 homes submerged, apart from supply chain disruptions.

    In the North Central in particular, Koton-karfe , Kogi State and surrounding communities have been seriously impacted, while the Orashi area of Rivers State has not been spared. Apart from unusual rains, the recent release of water from the Lagdo Dam in neighbouring Cameroon has also been blamed for the devastating floods.

    Beyond these statistics is the individual human tragedy of colossal proportions that beats the imagination. People have lost their livelihoods. The elderly and sick are displaced, food and necessities are scarce, and life has become drudgery and misery. All these are on top of the stifling economic crisis that every Nigerian contends with.

    It is convenient for political leaders and those charged with the responsibility of planning and acting on our behalf to make excuses that flood and flooding are common global threats. It’s even easier to blame climate change. Climate change and its impacts are more of a worldwide conversation than a local one. And we hope the 27th UN Conference of Parties (COP 27) holding in Egypt this November will make a meaningful impact on the conversation, although tremendous pessimism exists, given the poor results of previous conferences.

    The impact of the flooding in Nigeria is exacerbated by a lack of respect for science and leadership problems. Our lack of respect for science and preference for superstition is at the root of the flood disaster we have at hand. Since we do not respect science, therefore we seem not to have any place for strategic planning based on scientific evidence. The flooding problem is symbolic of a country whose leadership at all levels does not value planning, working with data and proactiveness.

    All the agencies in the environment sector, both local and international, had predicted the current flood ravaging our country on the basis of scientific evidence, but nobody showed authentic leadership in providing solutions that could forestall the disaster we have now harvested. Our leaders did not even seem to make any effort to benefit from past experiences and the availability of mitigation expertise. These floods did not start this year, and Nigeria had been affected in 2010 and 2012.

    We have had enough time to learn lessons from years of recurring flood disasters, but it is evident that we learnt none from this most recent development. What lessons must we take from this presistent problem of flooding, and how can we prevent or mitigate the impact of flooding in Nigeria?

    First, we must take the science of environment and climatic changes serious. It is noteworthy that in the recent instances of flooding disasters, it is not the lack of data and scientific knowledge that has been the problem, but the lack of effective and efficient use of data analysis to plan and put measures in place to either prevent flooding or reduce its impact. Our leaders act as if all environmental emergencies are Acts of God and, therefore, inevitable. This is baseless ignorance.

    Too much rain alone or overflowing rivers do not create much havoc when structural and procedural anti-flooding arrangements are in place. In countries where they take scientific evidence relating to flooding seriously, there are early warning signs to evacuate people and valuables, and people activate measures to protect their homes and valuables. The government provides channels for the easy flow of water to designated areas and sets other scientific and environmental standards that reduce the impact of flooding.

    There should be enlightenment campaigns for Nigerians and their leaders to counter superstitious beliefs and attitudes towards flooding and elevate the supremacy of scientific facts in this regard. This knowledge will help leaders plan better for and respond to flooding in more practical ways than the current blame-shifting or complete nonchalant attitude we see among them today.

    Second, the first line of defence against flooding is in arming Nigerians living in flood-prone areas with adequate science-based information on the risks involved in their environments, how to mitigate these and when to seek safety elsewhere. The institutions saddled with this responsibility must be alive to it and be held accountable when they fail in utilising scientific data to inform the people about their risk levels and create robust early warning systems.

    Yet, I must note that in the case of the Lokoja flooding, some institutions actually provided scientific information and early warning signals about the impending floods, but nothing much was done about this by the leadership or even those who ought to constitute the first line of defence against flood – the people themselves. Nigerians should demand a fit-for-purpose crisis management regime against natural disasters. The National Emergency Management Agency must be well funded and properly managed to react to disasters and work in synergy with local people to plan and manage crises such as flooding.

    Third, being reactive to issues for which we have prior information is symptomatic of the lack of proactiveness and accountability. Worse still, the leadership needed to ameliorate the impact of flooding cuts across all strata of government. The Federal Government should protect the lives and property of people in affected areas by declaring a state of emergency and designating human and material resources to reduce the impacts of flooding.

    The Federal Government can use its security apparatus to support and enforce evacuations, maintain dredging and waste management, and invest in flood mitigation efforts and infrastructure. In flood-prone areas, it should work on enhancing food resilience and security. In times of disaster, food and medicine are essential to limit the casualties of the disaster.

    State governments must desist from allocating land for building in designated flood plains and flood-prone areas, thereby encouraging the construction of structures that block the routes of natural flowing water. Importantly, they need to engage in building sturdy drainage system to control flooding. States must develop physical flood prevention and mitigation infrastructure and work collaboratively with the Federal Government to manage critical water infrastructure such as dams, waterways, and water-based resources.

    The national emergency response regime must be prioritised and adequately funded to help prevent disasters (particularly flooding) rather than being merely reactive to catastrophes. National and sub-national legislature need to create robust and adequate legal frameworks for dealing with flooding emergencies to ease the prevention and management of such natural or artificial disasters.

    Fourth, the world is facing a climate change crisis. It is not time to question the science behind it, but time to embrace and champion it in Africa. Globally, engagement with climate change is a burning issue. Political leaders in both developed and developing countries are obsessing with the matter and adopting definite science-based measures to counter it. However, Nigerian political leaders don’t seem interested. Neither the Federal Government nor any of the 36 state governments seems to take definitive action to implement climate change policies and frameworks .The implication is that we are not placing ourselves in position to be part of all international efforts to understand and deal with climate change. Meanwhile, there is a clear opportunity for Nigerian leaders to lead the Global South in demanding accountability from the global community regarding their climate commitments, especially the Global North.

    The proverbial saying must apply here, “the dog should not eat faeces and the goat’s teeth decay”. Climate change results from more activities in developed countries than in developing countries. China and USA have the highest carbon footprint in the world, representing the two biggest industrialised nations. China is the world’s largest emitter of carbon dioxide gas, with 10,668 million metric tons emitted in 2020, followed by the US, with 4,713 million metric tons of total carbon dioxide emissions by 2020. Nigeria’s contribution to carbon dioxide emission is literarily and comparatively insignificant. The biggest carbon emitters must compensate those affected in lands with less emission but face devastating climate change-induced natural disasters.

    All these factors mentioned above will help improve situations of natural disasters such as flooding. However, effective and efficient leadership is at the core. Until our leaders eschew superstition, embrace scientific facts about natural disasters and strategically plan to prevent or reduce their impacts, we will remain at the mercy of natural elements.

    Lokoja just showed us the tip of the iceberg on the possibilities and devastation of natural disasters. Predictably, this would not be the last of the flooding incidents. Now is the time to evolve or go extinct.

  • DEBT: Nigerian govt in talks with IMF, World Bank

    DEBT: Nigerian govt in talks with IMF, World Bank

    In a bid to restructure the country’s debts, the Nigerian government has been in talks with the International Monetary Fund (IMF) and the World Bank.

    This was revealed by the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, who noted that the country was considering tapping from the IMF’s newly created Food Shock Window, that allows member-countries to access emergency financing instruments.

    TheNewsGuru.com reports that new window would be available for a year to provide additional access to emergency financing for countries facing urgent balance-of-payment need related to the global food crisis.

    Speaking on the sidelines of the ongoing IMF/ World Bank annual meetings in Washington D.C, Ahmed said: “It is a fact that Nigeria’s debt has increased over the last three to four years and this increase in debt was occasioned by the different kind of exogenous shocks that the country faced which is not unique to Nigeria.

    “The situation we have by our 2023 projection is that we will be needing to use about 65 per cent of our revenue to service debt. Unfortunately, the cost of debt service is rising because of the rising interest rate globally which is resulting also in higher debt service costs.

    “But our projection from the debt sustainability analysis is that Nigeria is able to cope with its debt service in 2022 as well as in 2023. We have been engaging financial institutions to look at the opportunity to restructure our debt to further stretch the debt service period to give us more fiscal relief. Those are some of the things we want to achieve in this meeting.”

    Furthermore, she said the country was considering borrowing from the recent window created by the IMF for countries facing urgent balance-of-payment need related to the global food crisis.

    She explained: “The last drawing we had from the IMF was the second round of Special Drawing Right (SDR) that was provided for all the member countries of the IMF.

    “The IMF recently offered a food security package that countries can draw and it is equivalent to about 50 per cent of their SDRs. We have not taken a decision to draw on that, we have to examine what are the requirements to see if it will be safe for us to draw because we don’t want to be drawn into an IMF program and as it is, we are studying the terms and conditions.

    “If they work for us, we will now decide to take it because the funds can certainly be useful in terms of adding to our reserves and also in terms of helping us to cope with the challenges that the country is facing especially as the floods that have been happening right now in the country is going to cause more stress on our food system.

    “We realise that the floods that are happening are currently destroying crops and therefore the harvest that is expected will be much less and it will mean that more of our people will struggle to be able to afford food.”

    Commenting on the 2023 Appropriation Bill that was presented by the president last week, the minister said the plan in the Medium Term Economic Framework (MTEF) for 2023 to 2025 and the 2023 budget scaled down on the subsidy that the government has to carry.

    According to her, the projection was that, “we should be able to exit subsidy by the middle of next year and at the same time we have to be able to provide more support to the poor and the vulnerable in our society especially as vulnerability is increasing and will increase as a result of the climate change that we are beginning to see in the country.”

    She added: “We took all of these into account in designing the MTEF and the budget. We have been very pessimistic in our projections. For example, the oil price that we fixed was at $70 and everybody is asking why we are we staying at $70 when the prices are averaging $90?

    “So those are some of the safeguards that we have put in because we do have production problems, but we are beginning to see some uptick in the production numbers and we hope that by the end of the year, we would be able to circle back to the production benchmark as provided for in the budget.”

    She also said the country was targeting a 3.7 per cent growth for 2023.

    “On the borrowing side, it means that we are having to use more of our naira to pay debts that are dollar-denominated and as the dollar strengthens and the interest rate goes up globally, it affects us so we ended up having to use more of our revenues to pay the debt,” she added.

    Meanwhile, the IMF yesterday restated the need for Nigeria’s policymakers and leaders to save some of the country’s oil earnings in these times of high energy prices as well as increase its domestic revenue drive in order to reduce external borrowings.

    The Fund also disclosed that 19 out of 35 African countries are presently in debt distress or at risk of debt distress and stressed the need for more responsible fiscal measures to be taken by countries in the continent.

    The Divisional Chief, Fiscal Affairs Department IMF, Paulo Medas, who said this during a media briefing said: “Nigeria has benefited from higher oil revenues. We haven’t seen an improvement in the deficits as we hoped because of the large energy subsidies, but also other issues with the production of oil and other pressures on the budget.

    “So, our recommendation is to try to save some of these oil revenues but also address these emergency needs. Another aspect I would say is that Nigeria is one case where tax revenues are really low and this really undermines the capacity of the government to mark these types of shocks and to provide key services.”

    On his part, Director of Fiscal Affairs Department, IMF Vitor Gaspar, pointed out that African countries were experiencing high inflation, debt crisis and an impending food crisis as well as other socioeconomic concerns.

    “What we are seeing now, according to estimates by the World Bank is that 11 million more people would enter extreme poverty now than what should have been expected under present trends.

    “The food crisis is another devastating effect and some estimates indicated more than 120 million people in Africa alone are suffering from food insecurity. They don’t have enough to eat and this is a very serious situation,” he added.

  • This is the face of poverty in Nigeria – By Owei Lakemfa

    This is the face of poverty in Nigeria – By Owei Lakemfa

    Poverty is often presented as statistics. But what the Yusufu Bala Usman Institute did on September 21, 2022 was to produce a book, The Face of Poverty in Nigeria, which focused on the faces behind the statistics.

    As one of the reviewers, I summarised the Nigerian situation thus: If you are poor in thinking, you are poor. If others think for you, you are poor. If you follow other people’s culture, you are poor. If foreigners decide your beliefs, you are poor. If others decide your economic policies and programmes, you cannot but be dirt poor.

    My argument is that poverty, which is the severe deprivation of a person resulting in his inability to meet the basic needs of life, manifests in various ways, situations and circumstances.

    In unveiling the actual faces of the victims, the publication reminds us that Nigeria is nesting on top of a volcano. If, like the research reveals: “Over 90 million people in Nigeria, (or) nearly 50 per cent of its population, are living in poverty”, then the volcano on which we sit, cannot but be an active one. That figure of over 90 million Nigerians in poverty, is the combined population of over 15 European countries, including Switzerland, Bulgaria, Norway, Denmark, Finland, Slovakia and Ireland.

    The poverty statistics is far grimmer if we realise that the book adopts as poor, anyone earning less than N377 per day rather than the World Bank’s $2.15 per day.

    Employment in a capitalist society, in many cases, determines whether a person lives in poverty or not. The Report states that 13.1 million are unemployed, while 11.3 million are underemployed. In a sense, this 24 million Nigerians are already sentenced to purgatory. More so when there is no unemployment benefit in the country.

    But even this class, has sub-classes and a gender dimension. The book states that while only 20 million of the total employed population of 46 million are women, less than a million women are in formal employment, while 95 per cent are engaged in the vagaries of the informal sector.

    It identifies one of the sub-classes as the dispossessed citizens who have weak access to good-quality public goods (infrastructure) and services, and limited voice in public policy making.

    If I may add, in most cases, the dispossessed have no hope in the future and some of them have an uncommon sense  of duty. Let me give an example. In the suburbs of Abuja, some of them dig up portions of the tarred road, purport to be engaged in community service by partially filling the resultant potholes with sand and then ask motorists who are forced to slow down at such places to give them alms to ‘appreciate’ their efforts at road repair.

    Yet, the rural poor tend to be in a worse condition. The publication indicates that 52.1 per cent of rural dwellers are poor compared to 18.04 per cent of urban dwellers.

    My conclusion is that there is worse poverty in the rural areas because the ruling elites concentrate infrastructure like health centres, schools and roads in the urban centres and the minimum living level, is lower in the rural areas.

    There is also a regional dimension. The book states that nine of the 10 poorest states in the country are in the North. Some of the reasons it advanced for this situation include terrorism, banditry, kidnapping, and pastoralists and herders’ violence. But I think to this should be added the issue of Western education; the pattern is: the less educated a place is, the greater the level of poverty.

    The region is also negatively impacted by desertification as 50-75 per cent of 10 of the 19 Northern states may be experiencing desertification.

    Employment is central in combating poverty. However, I must point out that employment is not an automatic gate pass out of poverty. First, wages can be very low, which is a main reason why lecturers have shut down the public universities in the country for over seven months. The second is non-payment of salaries.

    Mass retrenchment is identified as one of the worst things that can happen to workers because it translates to automatic stoppage of wages and drop in living standards. This is exacerbated by the privatisation of public-owned companies.

    The book also highlights the challenges faced by the pensioner as going on pension is like being sentenced to economic death. Given this reality, it is not uncommon for workers to doctor their ages in order to remain in employment for as long as possible or until death do them part.

    The research concluded that those in wage employment experience severe shock when their income is suddenly cut off, whether“by retirement, illness, or retrenchment. Its findings are that there is so much poverty in the country mainly due to the neo-liberal economic policies which includes reduction in social spending on programmes like healthcare, education, privatisation and mass retrenchment.

    These, it reports, results in lack of mass access to basic needs like electricity to which only 22 per cent of the poorest households have access; education with 10.5 million children out of school, healthcare with a 1.95 to 1,000 ratio of nurses, midwives and doctors, to patients. There are also issues of population control.

    The book concludes that the poverty-inducing policies of the Western internal financial institutions are a major cause of mass poverty in Nigeria.

    There are, of course, the added challenges of currency devaluation, primitive accumulation, and the very logic of the capitalist system which is based on exploitation.

    A very important contribution of the book is how irrigation can be a primary way to increase the incomes of farmers and pastoralists, and additionally, reduce their clashes.

    In some instances, the 189-page book leaves gaps which may give room for some conclusions as to motives. For instance, in many cases of land grab, while the herders were extensively interviewed, the farmers living in the same locality, were not interviewed. I think the researchers need to interview both, or all sides of an issue, and not accept a given narrative as nothing but the truth.

    The book, including its suggestions on alternative economic policies, checking land grabbing, adopting irrigation and placing humans in the centre of statistics, is a very important addition to the study of poverty in Nigeria. I would also suggest some background research on poverty in pre-colonial and colonial times. For example, was homelessness possible or rampant before colonialism? Except for such challenges as climate and ecological challenges, was food self-sufficiency an issue before the imposition of cash crops?

    The book, supported by the Rosa Luxemburg Foundation, is structured and written in simple language that can be understood by the average newspaper reader. So, I submit that in terms of communication, it succeeds.

  • Nigeria’s World Bank debt rises to $21.15b from $12.72b

    Nigeria’s World Bank debt rises to $21.15b from $12.72b

    Nigeria’s debt to the World Bank has increased from $12.72bn to $21.15b as a result of undisbursed loans.

    The World Bank, while explaining the reason for the yet-to-be disbursed loans, particularly the signed loan commitments, said the “loans are not effective and disbursements do not start until the borrowers and/or guarantors take certain actions and furnish documents.”

    Audited financial statements of the World Bank for the fiscal year 2022 showed that the bank was yet to disburse about $8.12bn to Nigeria as of June 30, 2022.

    A breakdown further showed that the undisbursed loans included $7.60bn from the International Development Association, (IDA), and $514m from the International Bank for Reconstruction and Development, (IBRD).

    This shows that the yet-to-be disbursed loans can increase Nigeria’s debt to the lending institution by 66.27 per cent.

    These undisbursed loans encompass loans approved but not signed as well as the signed loan commitments.

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    11-yr-old Kano girl food hawker, maths genius bags World Bank scholarship

    The IBRD and the IDA, which make up the World Bank, have, over the years, advanced loans to Nigeria.

    The IBRD lends to governments of middle-income and creditworthy low-income countries, while the IDA provides concessionary loans – called credits – and grants to governments of the poorest countries.

    The Debt Management Office had disclosed that Nigeria’s debt to the Washington-based bank was $12.72bn as of March 31, 2022.

    A breakdown showed that Nigeria borrowed $12.23bn from the IDA and $486.10m from the IBRD.

    It had earlier been disclosed that Nigeria owed the World Bank $13.04bn as of June 30, 2022.

    According to the report, the total debt owed to the World Bank by Nigeria rose by $660m in the first six months of 2022.

    Nigeria’s debt to the IDA and IBRD stood at $12.55bn and $486m respectively as of June 30, 2022, compared to $11.97bn and $410.60m in December 32, 2021.

    The rising debt pushed Nigeria up the World Bank’s top 10 IDA borrowers’ list.

    The World Bank Fiscal Year 2021 audited financial statements for IDA showed that Nigeria was rated fifth on the list with $11.7bn IDA debt stock as of June 30, 2021.

    However, the newly released World Bank Fiscal Year 2022 audited financial statements for IDA showed that Nigeria had moved to the fourth position on the list, with $13bn IDA debt stock as of June 30, 2022.

    This shows that Nigeria accumulated about $1.3bn IDA debt within a fiscal year, with the country taking over the fourth top debtor position from Vietnam.

    This debt differs from the outstanding loan of $486m from the World Bank’s IBRD.

    The top five countries on the list slightly reduced their IDA debt stock, except Nigeria.

    A former Deputy Governor of the Central Bank of Nigeria and former presidential candidate, Kingsley Moghalu, in a recent PUNCH report, criticised the increasing borrowing tendency of the government, urging the officials to re-consider other ways of generating revenue for the country.

    Nigeria has the highest IDA debt in Africa, as the top three IDA borrowers (India, Bangladesh and Pakistan) are from Asia.

    The World Bank disclosed recently that Nigeria’s debt, which might be considered sustainable for now, was vulnerable and costly.

    The bank said, “Nigeria’s debt remains sustainable, albeit vulnerable and costly, especially due to large and growing financing from the Central Bank of Nigeria.”

    However, the Washington-based global financial institution added that the country’s debt was also at risk of becoming unsustainable in the event of macro-fiscal shocks.

    The bank further expressed concerns over the nation’s cost of debt servicing, which according to it, disrupted public investments and critical service delivery spending.

  • 11-yr-old Kano girl food hawker, maths genius bags World Bank scholarship

    11-yr-old Kano girl food hawker, maths genius bags World Bank scholarship

    11- year-old girl, genius who solves maths questions without the aid of a calculator or known formulae has bagged a World Bank scholarship.

    She narrated how she dropped out of school at Primary 4 due to bullying.

    The Adolescent Girls Initiative for Learning and Empowerment (AGILE), a World Bank-supported project, has offered a scholarship to Saratu Garba, an 11-year-old education mathematics whizkid from Kano.

    The Project Communication Officer, Aliyu Yusuf, said Wednesday, that (AGILE) is ready to enrol Saratu in school.

    Miss Garba became a social media sensation after a video of her solving mathematical problems went viral.

    Miss Garba captivated many with her ability to solve mathematical problems without the aid of a calculator or known formulae.

    Mr Yusuf, who is also the Deputy Director, Information, Kano State Ministry of Education, said that the project’s National Office had directed its Kano office to identify the girl and enrol her in school.

    “Coincidentally, the Kano AGILE Project team advocacy was on a visit to the five emirate councils in the state, with a view to soliciting their support, being critical stakeholders in the promotion of adolescent girls’ education.

    “During the team’s visit to Gaya Emirate Council, the girl and her parents were invited to the emir’s palace.

    “Representative of the state ministry of education and the AGILE team briefed the Emir, Alhaji Ali Ibrahim-Abdulkadir, on the intention of the project to shoulder the educational responsibilities of the young girl,” he said.

    He said the representative of the ministry, Malam Haruna Muhammad-Panidau, presented a school uniform, a bag and other learning materials to the young talented girl.

    Mr Yusuf said that the Kano Project Coordinator, Ado Tafida-Zango, also presented N20,000 to the girl to support her education

    Miss Garba who is from Gwadahi village in Gaya, dropped out of school in Primary Four and started hawking on the street.

    “I am good in mathematics, whether addition, subtraction, division or multiplication. I can calculate numbers in millions ‘up head’, without writing or using a calculator.

    “I left school because of bullying. My peers used to call me names which I detested.

    “I will not go back to that school. I’ll be happy to continue my studies in another school, away from them,” she said.

  • World Bank to support Nigeria with $8.5 billion to tackle Education, Agriculture

    World Bank to support Nigeria with $8.5 billion to tackle Education, Agriculture

    The World Bank has shown commitment and promise to support Nigeria with $8.5 billion in order to fund critical areas ranging from agriculture, economy and education and to tackle other pressing needs of the country.

    Shubham Chaudhuri, the World Bank Country Director to Nigeria made this known during a summit organized by its Emergency Coordination Center in Abuja.

    Chaudhur noted that such commitment was the largest ever given to any country in the world.

    Although, he emphasized that it was still infinitesimal compared to the needs of Nigeria, he, however, added that around $2.5 billion to $3 billion of the fund had been channelled towards education.

    “Half of the population of Nigeria itself is less than 17 years old. This means there is a need to invest in human capital development,” he said.

    He added that the future of Nigeria depended on the ability of the young people to go to school, stressing that it was important to make schools safe to ensure that fewer children were out of school.

    He further said it was Nigeria’s call to determine how it would mobilize its financial resources to enable young Nigerians to go to school or whether its scarce resources would be used to subsidize petrol with over N6.5 trillion.

    Nigeria is mobilizing N6.7 trillion for petrol subsidies at the expense of education and health. About 10.1 million children are out of school, according to the education ministry, but a report suggests it is up to 18.5 million.

    Analysts have described Nigeria’s insistence on subsidies as financial indiscipline, noting that it would have adverse consequences on the Nigerian economy.

    For Professor Jonathan Aremu, a former CBN Assistant Director and Senior Lecturer at Covenant University, subsidy distorted the market, making it difficult for products to find their real value.

    “In economics, the subsidy is always bad. Yes, quite a lot of people depend on fuel, which is why they have continued to subsidize petrol, but we don’t know how much is spent on subsidy.”

    He explained that the next government should not just remove subsidies, but also provide incentives that would alleviate the sufferings of Nigerians.

    Professor of Energy Economics at Nnamdi Azikiwe University, Uche Nwogwugwu, said the removal of subsidies would be a step in the right direction.

    However, he said removing the petrol subsidy at the moment would cause untold hardship and social unrest for Nigerians, suggesting an alternative route Nigeria could take.

    “It’s completely true that the burden is weighing and will continue to weigh on the economy. Some discrete facts are here to help save the country.

    “The PIA has made NNPC a limited liability company that can seek profit. This is a good base for solving the subsidy. It is acknowledged that the nation has been subsidizing consumption and now she wants to channel to production. Expanding the market locus to include neighboring countries of Cameroon, Ghana, Niger, Mali, and Sudan where it is sold for about N300- N400 equivalent per liter will recoup all monies and also bring profit.

    “It will also completely eradicate the activities of smugglers. Under Africa’s free trade charter, NNPC can sell to neighboring countries while giving the nation a breathing gap to solve the domestic disequilibria,” he suggested, noting that this could enable the country to fix the subsidy imbroglio.