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  • Nigeria, 18 other African countries to benefit from World Bank’s $22.5m electricity grant

    Nigeria, 18 other African countries to benefit from World Bank’s $22.5m electricity grant

    Nigeria and 18 other African countries would benefit from World Bank’s 22.5 million dollars additional financing for the Regional Off-Grid Electricity Access Project (ROGEAP) in Western and Central Africa.

    The World Bank announced this in a statement issued on Friday in Washington D.C., adding that its board of Executive Directors had approved the additional financing.

    It said the additional financing was in the form of grants from the International Development Association (IDA) and the Clean Technology Fund (CTF).

    According to the statement, the project’s geographic scope would cover Nigeria and 18 other countries in Western and Central Africa, 15 of which were members of the Economic Community of West African States (ECOWAS).

    The countries included Benin, Burkina Faso, Cabo Verde, Côte d’Ivoire, Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, and Togo.
    Others are Cameroon, Central African Republic, Chad and Mauritania.

    According to the statement, the project is to support the development of the market for stand-alone solar products in Western and Central Africa, including a dedicated effort for the Sahel countries.

    It noted that it complemented the 150 million dollars of IDA and 67.2 million dollars CTF approved by the board in April 2019 for the project.

    ”The project will support activities to accelerate the deployment of stand-alone solar products, in a sub-region where 50 per cent of the population does not have access to electricity and where less than 3 per cent of the population uses such innovative technologies.

    ”It seeks to harmonise policies and standards and business procedures to develop a regional market of stand-alone solar products, support entrepreneurs in business acceleration activities and provide credits and grants for the deployment of stand-alone solar home systems,” it said.

    The statement further said the project was expected to contribute to human capital development by electrifying public health centers and schools, which were needed to improve health and education outcomes.

    It also said the project would support job creation.

    ”For instance, it will apply in farming communities which can use solar water pumps for irrigation, solar milling equipment for product transformation and solar refrigerators to bring products to market.

    ”The project will support the small and innovative business enterprises through solar home systems and will make an impact in economic recovery, following the coronavirus pandemic,” it stated.

    The statement noted that through the additional funding and restructuring, the ECOWAS had been appointed as a new implementing agency of the project, which would work on developing a regional market and supporting activities for entrepreneurs.

    It added that the ECOWAS would coordinate the project activities with the West African Development Bank (BOAD), the other implementing agency of the project, which would support the provision of a line of credit with commercial banks operating in the sub-region.

    Meanwhile Ms Deborah Wetzel, World Bank Director of Regional Integration for Sub-Saharan Africa, the Middle East, and Northern Africa, noted that the stand-alone solar systems had a large market potential in Western and Central Africa including the Sahel.

    She, however, said that investments in off-grid solutions had lagged behind in the sub-region.

    ”The new financing will help address the important growth in demand for reliable electricity and will help create jobs for the millions of people currently living without an electricity connection or with unreliable supply.

    ”It will also help businesses and public institutions that will use modern stand-alone solar systems to improve their living standards and economic activities,” she said.

     

  • SERAP asks World Bank to publish documents on funded electricity projects in Nigeria from 1999

    SERAP asks World Bank to publish documents on funded electricity projects in Nigeria from 1999

    Socio-Economic Rights and Accountability Project (SERAP) has urged the World Bank President Mr David Malpass “to exercise the Bank’s prerogative to release archival records and documents relating to spending on all approved funds to improve access to electricity in Nigeria between 1999 and 2020, the Bank’s role in the implementation of any funded electricity projects, and to identify and name any executed projects, and Nigerian officials, ministries, departments and agencies involved in the execution of such projects.”

    The World Bank Board of Directors had last week approved $500m “to help boost access to electricity in Nigeria and improve the performance of the electricity distribution companies in the country.”

    But in the application dated 6 February 2021, and signed by SERAP deputy director Kolawole Oluwadare, the organization urged the Bank to “explain the rationale for the approval of $500m to implement electricity projects in the country, despite reports of widespread and systemic corruption in the sector, and the failure of the authorities to enforce a court judgment ordering the release of details of payments to allegedly corrupt electricity contractors who failed to execute any projects.”

    SERAP said: “This application is brought pursuant to the World Bank’s Access to Information Policy, which aims to maximize access to information and promote the public good. There is public interest in Nigerians knowing about the Bank’s supervisory role and specifically its involvement in the implementation of electricity projects, which it has so far funded.”

    According to SERAP, “The $500m is part of the over one billion dollars available to Nigeria under the project titled: Nigeria Distribution Sector Recovery Program. We would be grateful for details of any transparency and accountability mechanisms under the agreement for the release of funds, including whether there is any provision that would allow Nigerians and civil society to monitor the spending of the money by the government, its agencies, and electricity distribution companies.”

    SERAP also said: “Should the Bank fail and/or refuse to release the information and documents as requested, SERAP would file an appeal to the Secretariat of the Bank’s Access to Information Committee to challenge any such decision, and if it becomes necessary, to the Access to Information Appeals Board. SERAP may also consider other legal options outside the Bank’s Access to Information framework.”

    The letter copied to Shubham Chaudhuri, World Bank Country Director for Nigeria, read in part: “SERAP believes that releasing the information and documents would enable Nigerians and civil society to meaningfully engage in the implementation of electricity projects funded by the Bank, contribute to the greater public good, and enhance the Bank’s oft-stated commitment to transparency and accountability.”

    “The World Bank has been and continues to be involved in overseeing the transfer, disbursement, spending of funds on electricity projects in Nigeria. The Bank also reportedly approved a $750 million loan for Nigeria’s electricity sector in June 2020 to cut tariff shortfalls, protect the poor from price adjustments, and increase power supply to the grid. As such, the World Bank is not a neutral party in this matter.”

    “SERAP is seriously concerned that the funds approved by the Bank are vulnerable to corruption and mismanagement. The World Bank has a responsibility to ensure that the Nigerian authorities and their agencies are transparent and accountable to Nigerians in how they spend the approved funds for electricity projects in the country, and to reduce vulnerability to corruption and mismanagement.”

    “SERAP also believes that the release of the requested information and documents is of paramount important to the public interest in preserving the legitimacy, credibility and relevance of the Bank as a leading international development institution. The Bank ought to lead by example in issues such as transparency and public disclosure raised in this request.”

    “It would also demonstrate that the Bank is willing to put people first in the implementation of its development and governance policies and mandates, as well as remove any suspicion of the Bank’s complicity in the alleged mismanagement of electricity projects-related funds.”

    “The information is also being sought to improve the ongoing fight against corruption in the country and the provision of regular and uninterrupted electricity supply to Nigerians as a fundamental human right.”

    “The information requested is not affected by the “deliberative” “corporate administrative matters” or “security and safety” exceptions under the Policy. The information requested is crucially required for Nigerians to know how the funds released to the authorities to improve electricity supply in the country have been spent, and monitor how the funds are being used.”

    “SERAP’s report, titled: From darkness to darkness: How Nigerians are paying the price for corruption in the electricity sector documents widespread and systemic corruption in the electricity sector, and reveals how about N11 trillion electricity fund was squandered by successive administrations in Nigeria since the return of democracy in 1999.”

    “This report raises specific questions of public interest, and the World Bank ought to be concerned about how Nigerian authorities are addressing reports of widespread and systemic corruption in the electricity sector, and to seek some answers from the authorities on the problems.”

    “However, as the report shows, the Bank’s funding of the electricity sector has not resulted in corresponding access of Nigerians to regular and uninterrupted electricity supply. Successive governments have failed to provide access to regular and reliable electricity supply to millions of the citizens despite budgeting trillions of naira for the power sector.”

    “Millions of Nigerians still lack access to free pre-paid meters. Authorities continue to use patently illegal and inordinate estimated billing across the country, increasing consumer costs, and marginalizing Nigerians living in extreme poverty, disproportionately affecting women, children and the elderly.”

  • Cross River gets $20.4m World Bank SFTAS’ grant

    Cross River gets $20.4m World Bank SFTAS’ grant

    The Cross River State government has achieved a total of $20.4m in grants from the World Bank funded SFTAS programme of the Federal Government of Nigeria.

    The state Commissioner for Finance, Asuquo Ekpenyong Jnr revealed this at a press briefing, Friday morning in his office, stating that Cross River state met the eligibility criteria for the 2019 programme and was accordingly pre-qualified for the detailed annual performance assessment of all qualified Nigerian states under the States Fiscal Transparency, Accountability and Sustainability (SFTAS) programme.

    The assessment exercise which was conducted in September 2020 by the Independent Verification Assessors (IVA) from the office of the Auditor General of the Federation and JFR Consulting, showed that Cross River state achieved 6 Disbursement Linked Indicators (DLRs), out of 9 applicable DLRs for 2019, and 3 DLRs out of 3DLRs, i.e 100% for the 2020 additional financing.

    The Commissioner said that the report noted that Cross River state has strengthened its Internally Generated Revenue (IGR) collection, implemented biometric verification to reduce Payroll fraud, improved its procurement practices for increased transparency, strengthened its public debt management and fiscal responsibility framework, improved debt sustainability and instituted a more transparent budgeting process over the course of the fiscal year.

    The Commissioner used the opportunity to commend the members of the SFTAS state Steering Committee for their untiring efforts in bringing the state machinery up to speed towards achieving resounding success in the programme. The Steering Committee comprises of the Ministry of Finance, Internal Revenue Service, Office of Accountant General, Bureau of Due Process, Debt Management Department, and Auditor General’s Office.

    He further stated that, “the independent verification success is a confirmation of the Ayade led administration’s commitment to transparency and fiscal performance”.

    The SFTAS programme is a product of mutual agreement between the Federal Government of Nigeria and the World Bank, designed to strengthen the fiscal transparency, accountability and sustainability in Nigerian states as a way of improving their revenue base, increasing fiscal efficiency in public expenditure and reducing debt overhang.

    It’s a four year programme that runs from 2018 to 2022, with a budget size of $750million.

     

  • World Bank predicts economic growth for Nigeria in 2021

    World Bank predicts economic growth for Nigeria in 2021

    The World Bank says global economy is expected to grow by 4 per cent in 2021, assuming an initial COVID-19 vaccine rollout becomes widespread throughout the year.

    It said this in a statement issued in Washington D.C. on Tuesday at the presentation of the January 2021 Global Economic Prospects.

    It added that the said recovery would likely be subdued unless policy makers moved decisively to tame the pandemic and implement investment-enhancing reforms.

    The bank also said that growth in Sub-Saharan Africa was forecast to rebound moderately to 2.7 per cent in 2021, while Nigeria’s growth was expected to resume at 1.1 per cent.

    For the region, it said that while the recovery in private consumption and investment was forecast to be slower than previously envisioned, export growth was expected to accelerate gradually, in line with the rebound in activity among major trading partners.

    “Expectations of a sluggish recovery in Sub-Saharan Africa reflect persistent COVID-19 outbreaks in several economies that have inhibited the resumption of economic activity.

    “The pandemic is projected to cause per capita incomes to decline by 0.2 per cent this year, setting Sustainable Development Goals (SDGs) further out of reach in many countries in the region.

    “This reversal is expected to push tens of millions more people into extreme poverty over last year and this year,” it stated.

    For Nigeria, it said activity was anticipated to be dampened by low oil prices, Organisation of Petroleum Exporting Countries (OPEC) quotas, falling public investment due to weak government revenues, constrained private investment due to firm failures and subdued foreign investor confidence.

    It, however, said that the rebound in Africa was expected to be slightly stronger, although below historical averages among agricultural commodity exporters, adding that higher international prices for agricultural commodities were expected to sustain activity.

    Projecting risks for the region, it said that they were tilted to the downside as growth in major trading partners could fall short of expectations.

    It said that wide scale distribution of a COVID-19 vaccine in the region would likely face many hurdles, including poor transport infrastructure and weak health systems capacity.

    “Such constraints, compounded by natural disasters such as recent devastating floods and rising insecurity, particularly in the Sahel, can delay recovery.

    “Government debt in the region has increased sharply to an estimated 70 per cent of Gross Domestic Product (GDP) in 2020, elevating concerns about debt sustainability in some economies.

    “Banks may face sharp increases in non-performing loans as companies struggle to service their debt due to falling revenues.

    “Lasting damage of the pandemic can depress growth over long term through the chilling effects of high debt on investment, the impact of lockdowns on schooling and human capital development, and weaker health outcomes,” it said.

    On the global scene, it said that to support economic recovery, authorities also needed to facilitate a re-investment cycle aimed at sustainable growth that was less dependent on government debt.

    It however, said that the collapse in global economic activity in 2020 was estimated to have been slightly less severe than previously projected, mainly due to shallower contractions in advanced economies and a more robust recovery in China.

    “In contrast, disruptions to activity in the majority of other emerging markets and developing economies were more acute than expected,” it said.

    David Malpass, the bank’s President said that while the global economy appeared to have entered a subdued recovery, policymakers faced formidable challenges as they tried to ensure that this still fragile global recovery gained traction and sets a foundation for robust growth.

    “To overcome the impacts of the pandemic and counter the investment headwind, there needs to be a major push to improve business environments, increase labor and product market flexibility and strengthen transparency and governance,” it said.

    The report said that the near-term outlook remained highly uncertain and different growth outcomes were still possible, adding that a downside scenario in which infections continued to rise and the rollout of a vaccine delayed, could limit the global expansion to 1.6 per cent in 2021.

    Meanwhile, it said that in an upside scenario with successful pandemic control and a faster vaccination process, global growth could accelerate to nearly five per cent.

    Examining the amplified risks of the pandemic, it said that as severe crises did in the past, the pandemic was expected to leave long lasting adverse effects on global activity.

    “It is likely to worsen the slowdown in global growth projected over the next decade due to underinvestment, underemployment and labor force declines in many advanced economies.

    “If history is any guide, the global economy is heading for a decade of growth disappointments unless policy makers, put in place comprehensive reforms to improve the fundamental drivers of equitable and sustainable economic growth.

    “Policymakers need to continue to sustain the recovery, gradually shifting from income support to growth-enhancing policies,” it further said.

    It added that in the longer run, in emerging markets and developing economies, policies to improve health and education services, digital infrastructure, climate resilience, and business and governance practices would help mitigate the economic damage caused by the pandemic, reduce poverty and advance shared prosperity.

    The bank said that in the context of weak fiscal positions and elevated debt, institutional reforms to spur organic growth were particularly important.

  • BREAKING: World Bank finally approves $1.5billion loan to help Nigeria reduce poverty

    BREAKING: World Bank finally approves $1.5billion loan to help Nigeria reduce poverty

    The World Bank has finally approved Nigeria’s request for a $1.5 billion loan.

    This was announced in a statement by World Bank on Tuesday noting that the facility is a five-year Country Partnership Framework (CPF) that will last from 2021 to 2024.

    “This Country Partnership Framework will guide our engagement for the next 5 years in supporting the Government of Nigeria’s strategic priorities by taking a phased and adaptive approach,” World Bank Country Director for Nigeria, Shubham Chaudhuri said.

    World Bank Board of Directors approved the $1.5 billion for two projects, which include: Nigeria Covid-19 Action Recovery and Economic Stimulus – Program for Results (Nigeria CARES) and the State Fiscal Transparency, Accountability and Sustainability Program for Results (SFTAS).

    READ ALSO: UN Calls For Immediate, Unconditional Release Of Abducted Katsina Pupils

    The CPF will focus on four areas of engagement which include investing in human capital by increasing access to basic education, quality water, and sanitation services; improving primary healthcare; and increasing the coverage and effectiveness of social assistance programs.

    Promoting jobs and economic transformation and diversification by supporting measures to unlock private investment and job creation and increasing access to reliable and sustainable power for households and firms.

    The CPF will also focus on boosting digital infrastructure, and developing economic corridors and smart cities, to provide Nigerians with improved livelihoods.

    Strengthening the foundations of the public sector by improving public financial management and strengthening the social contract between citizens and government through improved fiscal and debt management.

    World Bank in the statement added that Nigeria is at a critical juncture, hence the approval of the loan.

    “With the sharp fall in oil prices as a result of COVID-19, the economy is projected to contract by over 4% in 2020, plunging the country into its deepest recession since the 1980s. Government revenues could fall by more than 15 billion dollars this year, and the crisis will push an additional 5million Nigerians into poverty in 2020,” the statement read in part.

    The World Bank noted that the facility was prepared jointly with the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA).

    This CPF proposes a collaborative approach of how resources across the entire Bank Group can best support the Government’s effort to achieve its goal to lift 100 million citizens out of poverty.

    “The Country Partnership Framework leverages the World Bank Group to enable business growth that is inclusive and sustainable,” IFC Director for Southern Africa and Nigeria, Kevin Njiraini also said.

    -Condition for loan approval-
    World Bank country director for Nigeria, Shubham Chaudhuri had earlier said Nigeria needs more monetary reform in order to access $1.5 billion loan.

    The loan was then delayed with Chaudhuri saying Nigeria needs to carry out more currency reform and make plans for sustainability in later years.

    “What is sustainability in 2021 and beyond? And that is why we are thinking about the overall prospects going forward, in terms of the macro adequacy and the flexibility and exchange rate management,” he said.

    Last week, in the World Bank Nigeria update report, the Country Director said the approval of the loan was in the works and the board will meet to decide their position on December 14th.

    He added that Nigeria needs to do more to meet up with the loans particularly more reforms in forex liquidity.

  • Nigeria’s $1.5bn World Bank budget support loan request hits fresh road block

    Nigeria’s $1.5bn World Bank budget support loan request hits fresh road block

    Nigeria’s 1.5 billion dollar budget support loan request is “still in the works”, says Shubham Chaudhuri, World Bank Country Director for Nigeria.

    Chaudhuri said this on Thursday in Abuja, at a media conference on the presentation of the World Bank Nigeria Development Update (NDU) for December.

    The report titled “Rising to the Challenge: Nigeria’s COVID response” took stock of recently implemented reforms and proposes policy options to mitigate the impact of COVID-19 and foster a resilient, sustainable and inclusive recovery.

    Chaudhuri said that the loan request was taking so long because, irrespective of the bold actions taken by the government in the form of reforms to cushion the effects of the pandemic, the bank still had its reservations.

    “I think the way that our board and our shareholders have approached this budget support, is really to say has the country that is requesting the support done all it can to help itself?

    “Think of it this way, when you have say a 10 or 15 billion dollar hole, 1.5 billion dollars is just a little bit of that, the question is how is the rest of that hole being made up?

    “What is the sustainability in 2021 and beyond? And that is why we are thinking about the overall prospects going forward, in terms of the macro adequacy and the flexibility and exchange rate management.

    “That is why our shareholders and our management are still saying we recognise how much Nigeria has done, but for this 1.5 billion dollars to really be a part of the larger effort to put Nigeria on a sound macro-fiscal footing going forward, there needs to be a little bit more.”

    Chaudhuri, however, said that the 1.5 billion dollars slated for presentation to the Bank’s board for approval on Dec. 14 was not the 1.5 billion dollars for budget support, but two separate 750 million dollar credit to support state government efforts.

    He added that one of them was for the state’s fiscal resources, but under a performance based mechanism.

    “So, one is additional financing for the State’s Fiscal Transparency Accountability and Sustainability (SFTAS) programme for results.

    “The other is the Nigeria COVID-19 Action Recovery and Economic Stimulus (CARES) Programme, which is meant to support the states towards protecting livelihoods, enhancing food security and supporting local economic activity.

    “So those are the two operations that are being considered by our board on Monday.”

    As for the bank’s portfolio investment in Nigeria, he said after the 1.5 billion dollars states support credit, it would amount to 11.5 billion dollars.

    Giving a breakdown, he said there were three different ways of measuring the size of the bank’s portfolio, first was how much concessional financing was being provided.

    “Yes, we are providing credits and not grants to support the government’s budget, but it is highly concessional, usually 20-30 years maturities, 10 years grace period and at highly concessional rates of about 1 to 2 per cent.

    “So if you look at how much of that the board has approved, in terms of this financing, the board has as of July 2018 approved seven billion and in the last two years up to now, it has approved another three billion in financing so that brings us to 10 billion dollars and then the 1.5 billion dollars that is being considered in December that will bring us to 11.5 billion dollars the board has approved.”

    The World Bank chief said that in active disbursements, the bank had disbursed seven billion dollars as at July 2018.

    He added the bank’s board, in July, also approved 500 million dollars for the Adult and Girls Initiative for Learning and Empowerment (AGILE) programme, under the Global Financing Facility.

  • Additional 20 million Nigerians to become poor by 2022 – World Bank

    Additional 20 million Nigerians to become poor by 2022 – World Bank

    The World Bank dropped a bombshell on Thursday, reporting that an additional 20 million Nigerians are likely to join the ranks of the poor in 2022, with the absence of measures to mitigate the twin impacts of the COVID-19 pandemic and the drop in crude oil prices.

    The global bank added that the pandemic is disproportionately affecting the poor and most vulnerable, particularly women, and called for pragmatic measures to stem the tide.

    The World Bank in its Nigeria Development Update (NDU) noted that food insecurity has increased substantially, adding that economic precariousness was on the rise because unemployed workers have migrated to the low-productivity agricultural sector.

    According to the bank, an average Nigerian will in the next three years see a reversal of decades of economic growth and the country could enter its deepest recession since the 1980s.

    The Report argues that this path could be avoided if progress in the current reforms is sustained and the right mix of policy measures quickly implemented

    While acknowledging measures taken by the government since April, including the efforts to harmonise exchange rates, introduce a market-based pricing mechanism for gasoline, adjust electricity tariffs to more cost-reflective levels, and reduce non-essential expenditures and redirect resources towards the COVID-19 response, it said there is need for a greater policy response to the economic crisis.

    It also highlights the greater transparency in the oil and gas sector and public debt as essential steps for a resilient recovery.

    The World Bank’s Lead Economist for Nigeria and co-author of the report, Marco Hernandez said: ‘Nigeria can build on its reform momentum to contain the spread of COVID-19, stimulate the economy, and enable the private sector to be the engine of growth and job creation.

    ‘It can also redirect public spending from subsidies that benefit the rich towards investments in Nigeria’s people and youth in particular, and lay foundations for a strong recovery to help make progress towards lifting 100 million people out of poverty.’

    The report titled “Rising to the Challenge: Nigeria’s COVID response” takes stock on the recently implemented reforms and proposes policy options to mitigate the impact of COVID-19 and foster a resilient, sustainable, and inclusive recovery.

    The World Bank Country Director for Nigeria, Shubham Chaudhuri, while speaking on the Report said Nigeria is at a critical historical juncture, with a choice to make.

    He added that ‘Nigeria can choose to break decisively from business-as-usual, and rise to its considerable potential by sustaining the bold reforms that have been taken thus far and going even further and with an even greater sense of urgency to promote faster and more inclusive economic growth.’

    The latest World Bank NDU projects that the economy could shrink up to four per cent in 2020 following the twin shocks of COVID-19 and low oil prices.

    It said the pace of recovery in 2021 and beyond remains highly uncertain and subject to the pace of reforms.

    Looking ahead, the Bank in the Report discusses policy options in five areas that would help mitigate the effects of the crisis and support Nigeria’s recovery.

    The areas are managing the domestic spread of COVID-19 until a vaccine is available for distribution; enhancing macroeconomic management to boost investor confidence; safeguarding and mobilizing revenues; reprioritizing public spending to protect critical development expenditures, and supporting economic activity and access to basic services and providing relief for poor and vulnerable communities.

  • Nigeria has largest poor population in sub-Saharan Africa – World bank

    Nigeria has largest poor population in sub-Saharan Africa – World bank

    Nigeria has the largest poor population in sub-Saharan Africa, with 79 million extremely poor in 2018, the World Bank said in a new report on Wednesday.

    The country accounts for 20 per cent of the total poor in the region, according to the bank’s biennial ‘Poverty and Shared Prosperity Report’.

    The report said the COVID-19 pandemic would push up to 40 million into extreme poverty in sub-Saharan Africa.

    It said, “Almost half of poor people in sub-Saharan Africa live in just five economies: Nigeria (79 million), the Democratic Republic of Congo (60 million), Tanzania (28 million), Ethiopia (26 million), and Madagascar (20 million).

    “In Nigeria, administrative areas in the north and northeast have poverty rates higher than the national average, but poverty rates are lower in areas closer to the coast.”

    According to the report, many of the global poor live in middle-income countries, such as India and Nigeria, where the income requirement for being non-poor is higher than the international poverty line.

    The World Bank described sub-Saharan Africa as the region with the largest concentration of the extreme poor, with many economies having poverty rates well above the world average.

    It said, “Of the 44 economies with available poverty estimates in the region, 38 have a rate of extreme poverty higher than 10 per cent. Half of the economies have poverty rates higher than 35 per cent.

    “Of the 20 economies with the largest poverty rates (based on PovacalNet estimates), 18 are in sub-Saharan Africa, and two are in the Middle East and North Africa (Syria and the Republic of Yemen).”

    The World Bank estimated that the COVID-19 pandemic would push an additional 88 to 115 million people into extreme poverty this year, with the total rising to as many as 150 million by 2021, depending on the severity of the economic contraction.

    Extreme poverty, defined as living on less than $1.90 a day, is likely to affect between 9.1 per cent and 9.4 per cent of the world’s population in 2020, according to the report.

    The report said although the economic decline in sub-Saharan Africa was projected to be more modest than in advanced economies, the pandemic “will likely spur one of the largest increases in extreme poverty: some 27 million to 40 million new poor, reflecting the large number of people who were living on the edge of poverty.”

    The report said many of the new poor would be in countries that already have high poverty rates.

  • COVID-19: Nigeria receives $114.28m from World Bank

    COVID-19: Nigeria receives $114.28m from World Bank

    The World Bank has approved $114.28 million financing to help Nigeria prevent, detect and respond to the threat posed by COVID-19 with a specific focus on state-level responses.

    According to a statement from the bank on Friday, the amount includes $100 million credit from the International Development Association (IDA) and $14.28 million grant from the Pandemic Emergency Financing Facility.

    It stated that the Federal Government would provide grants to thirty-six states and the Federal Capital Territory (FCT) through the COVID-19 Preparedness and Response Project (CoPREP).

    It added that the project would serve as immediate support to break the chain of COVID-19 local transmission and limit the spread of coronavirus through containment and mitigation strategies.

    Mr Shubham Chaudhuri, World Bank Country Director for Nigeria said: “Nigeria has ramped up its efforts to contain the COVID -19 outbreak, but more needs to be done at the state level, which is at the frontline of the response.

    “The project will provide the states with much needed direct technical and fiscal support to strengthen their position in combating the pandemic.”

    Chaudhuri added that the project would finance federal procurements of medical equipment, laboratory tests and medicines to be distributed to the states based on their needs.

    He also said that the project complemented the Second Regional Disease Surveillance Systems Enhancement Project (REDISSE II) which was already providing short-term emergency support to implement national and state Incident Action Plans.

    Furthermore, he said that all 36 states had incident action plans cleared by the Nigeria Center for Disease Control (NCDC) and funds had been disbursed to 23 states.

    According to the World Bank, CoPREP would finance further support to all states and the FCT through the NCDC to implement their COVID-19 Incident Action Plans.

    “Specifically, this includes: the operationalisation of 37 Emergency Operations Centers; training of 30,000 healthcare workers in infection prevention and control; support for emergency prioritised water sanitation and hygiene activities; and strengthening of risk assessment and community and event-based surveillance.”

    Others are: “provision of on-time data to inform the response and mitigation activities; additional support to laboratories for early detection and confirmation; equipping and renovating isolation and treatment centers including community support centers; and improving in patient transfer systems through financing of ambulances and training as needed.”

    It further stated that grants to states would be conditional on states adopting COVID-19 response strategies in line with the Federal Government guidelines and strategies.

    “CoPREP will enhance the institutional and operational capacity for disease detection through provision of technical expertise, coordination support, detection, diagnosis and case management efforts in all states and the FCT as per the WHO guidelines in the Strategic Response Plan.

    “It will also help the government mobilise surge response capacity through trained and well-equipped frontline healthcare workers and strengthen the public health care network for future health emergencies.”

  • W’Bank approves $500m for girls’ education in 7 states

    W’Bank approves $500m for girls’ education in 7 states

    The World Bank has approved a $500 million credit for the Adolescent Girls Initiative for Learning and Empowerment (AGILE) towards improving secondary education opportunities among girls in seven states in the country.

    The credit was approved from its International Development Association (IDA) which provides grants to developing countries. The grants are with low to zero-interest loans for projects and programmes that contribute to economic growth and improve the livelihood of the populace in such nations.

    The World Bank, in a statement issued in Abuja yesterday, noted that the project would support access to secondary education and empowerment for adolescent girls in seven states namely Kano, Kebbi, Kaduna, Katsina, Borno, Plateau and Ekiti.

    The AGILE project is expected to use secondary education as a platform to empower girls through education, life skills, health education, gender-based violence awareness and prevention, negotiation skills, self-agency and digital literacy skills. According to the bank, a minimum of six million girls and boys are expected to benefit from the project, and many more students are expected to continue benefiting after the project ends. Speaking on the development, World Bank Country Director for Nigeria, Mr. Shubham Chaudhuri, said: “There is no better investment to accelerate Nigeria’s human capital development than to significantly boost girls’ education. “The AGILE project will enable Nigeria to make progress in improving access and quality of education for girls, especially in northern Nigeria.

    “Addressing the key structural impediments in a comprehensive way will create the enabling environment to help Nigeria ensure better outcomes for girls, which will translate into their ability to contribute to productivity and better economic outcomes for themselves and the country.”

    The bank added that the project would benefit about 6.7 million adolescents and 15.5 million direct project beneficiaries would include families and communities in participating states. It also said that the project had been adapted to respond to COVID-19 and would support a blended learning approach using technology and media (TV and radio) to implement remote and distant learning programmes. “The AGILE project will expand existing primary and Junior Secondary Schools (JSSs) to include both JSSs and Senior Secondary Schools to make schools functional, safe and inclusive to teaching and learning. “This entails building more than 5,500 JSSs and 3,300 classrooms for SSS, as well as improving 2,786 Junior Secondary and 1,914 Senior Secondary schools with safe, accessible, and inclusive infrastructure.

    Furthermore, it stated that about 340,000 girls would receive life skills training which would incorporate health information and key information on climate change, safety and gender-based violence awareness. It also said that 300,000 girls would receive digital literacy training to help them thrive in the digital economy, adding that the project would offer half a million girls from the “poorest households” with financial incentives. “The incentives will be in the form of scholarships to further support their retention and completion of secondary school. “It will also support raising awareness to address social norms and promote positive behaviours for a supportive and enabling environment for girls’ education using communication and high-level advocacy.”