Banking - NEWS AGENCY OF NIGERIA

Afonne Emmanuel
Jul, Sun, 2023

Naira redesign: Group demands N2trn compensation from CBN

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By Aderogba George

A Civil Society Organisation, Save Nigeria Movement (SNM), said the Central Bank of Nigeria (CBN) should compensate Nigerians with two trillion Naira for losses during the naira redesign by the suspended Governor, Godwin Emefiele.

The group said this in a letter to the CBN dated July 6 through its legal representative, Sorkaa & Associates.

The group said the amount represents one trillion naira compensation for Nigerians with bank accounts and another one trillion naira for those without bank accounts.

The group warned that it would take legal action if the apex bank failed to act within 30 days of their notice.

“We have been briefed by Save Nigeria Movement (SNM), a Non-Governmental Organisation (hereinafter referred to as ‘our client’), and our legal services retained.

“The brief of our client reveals that the CBN Naira Redesign Policy introduced in December 2022 to expire in February 2023 brought enormous hardship to Nigerians as attested by the former Senate President, Ahmad Lawan.

“President Bola Tinubu faulted the suspended Governor of CBN for harshly implementing the Naira redesign policy, stating that there are many Nigerians that suffered within the implementation of the policy.

“The brief of our client further reveals that the Governor’s court case against the CBN at the Supreme Court, which they won, ordered that the new and old naira notes remain legal tender until Dec. 31, 2023.

“This confirmed the illegality of the CBN’s entire policy.

“We hereby demand on behalf of our client the immediate payment of one trillion naira only as compensation to every Nigerian with a bank account who suffered from the economic terrorism of the suspended CBN Governor.

“We hereby also demand on behalf of our client the immediate payment of one trillion naira only as compensation to every Nigerian without a bank account who suffered from the economic terrorism of the suspended CBN Governor.

“Take note that should you fail or refuse to meet the demands of our legal correspondence upon receipt within the next seven days, that is counting from July 6 when we sent the letter, we will not hesitate to take legal steps forthwith without recourse to you.

“Remember, a stitch in time saves nine; please act wisely and pay compensation to Nigerians who had bank accounts and those who did not have bank accounts,” the group said. (NAN)(www.nannews.ng)

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Edited by Chinyere Joel-Nwokeoma

Afonne Emmanuel
Jul, Thu, 2023

Summit: Afreximbank offers $3bn credit limit to Africans willing to invest in Russia

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By Ikenna Uwadileke

The African Export–Import Bank (Afreximbank) on Thursday in St Petersburg, Russia, announced a credit limit of 3 billion dollars to support African investors willing to exploit the opportunities in Russia.

The President and Chairman Board of Directors of Afreximbank, Dr Benedict Oramah said this at the opening session of the 2nd Russia-Africa Economic and Humanitarian Forum.

The News Agency of Nigeria (NAN) is one of the media partners of the Russia-Africa Summit 2023 and its Managing Director, Mr Buki Ponle, is also attending the event.

Oramah said that the scheme under the African Trade Exchange would promote easy flow of trade between Russia and Africa.

“The African Trade Exchange is a platform which we use to pool African demand for grains and fertilisers against which Afreximbank has placed an aggregate credit limit amounting to three billion dollars to support the trade.

“The three billion dollars represents what is available and can be used on a revolving basis to support the significant demand for food and fertilisers on the continent of Africa,” he said.

Oramah also said that through partnership with the Russia Export Center, Afreximbank will be able to support African investors who are willing to exploit the opportunities in Russia.

While appreciating investments from Russia into Africa, he expressed optimism that African investors would also invest in Russia.

According to him, it is where we have two way investments that we can accelerate trade flows and economic integration.

“We projected moving two way trade to closer to 40 billion dollars by 2026, in the four years to 2021 the trade flows reached almost 20 billion dollars from about 10 billion dollars five years earlier.

“These are despite the COVID-19 pandemic and all the significant global difficulties.

`With the strong partnership between Afreximbank and Russia Export Center, we expect a doubling of the trade flows in the next four years.

“Some progress is being made and we believe that this is achievable,” Oramah said.

The Afreximbank President further said that the global food security challenges brought to the fore the critical role trade with Russia plays in guaranteeing Africa’s food security.

He said that a significant proportion of African economies depend on Russia for the supply of fertilisers and 30 per cent of African cereal imports from Russia.

According to him, ensuring that these trade flows continue remains the priority of Afreximbank and its African member states.

“That is why in the context of unprecedented global uncertainties, Afreximbank has been working with the African Union Commission, the United Nations System and our Russian partners to use the e-commerce African Trade Exchange.

“This will facilitate seamless flow of goods and payments in any currencies the sellers and buyers choose and in a transparent manner,” he said.

Oramah expressed Afreximbank’s readiness to offer trade services, easy confirmation facilities and payment services under the African Trade Exchange platform.

“We look forward to continuing this effort with our Russian partners and using this platform to ease access to grains and fertilisers,” he said.

Oramah who said that 300 million Africans go hungry daily emphasised the need for effort towards ensuring food security.

“It is important that we all do our best to make sure that until we begin to achieve food sovereignty that we ensure that food security is attained.

“Beyond the immediate food security priorities, Afreximbank and the Russia Export Center are collaborating to promote trade and investments in other critical sectors.

“This is with emphasis placed on those activities that will help integrate the African economy and advance the implementation of the African Continental Free Trade Agreement (AfCFTA),” he said.

Oramah expressed the bank’s readiness to offer array of products to support investments in agriculture, industrial sector, parks, health and other critical infrastructure.

“By the end of the summit, I hope that Russia and Africa will have strengthened their solidarity, laid the foundation for rebuilding the supply chains for grains and fertilizers trade which is today a bit broken.

“This is important so the billions of dollars in the trade can continue,” he said. (NAN)(www.nannews.ng)

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Edited by Sadiya Hamza

CBN raises interest rate from 18.5 % to 18.75%MPR

Rabi'u Sani Ali
Jul, Wed, 2023

Banking

CBN raises interest rate from 18.5 % to 18.75%MPR

157 total views today

By Kadiri Abdulrahman

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN), on Monday raised the country’s Monetary Policy Rate (MPR) from 18.5 per cent to 18.75 per cent.

The Acting Governor of the CBN, Mr Folashodun Shonubi made this known on Tuesday, while presenting the communique from the MPC meeting.

The News Agency of Nigeria (NAN) reports that the MPR is the baseline interest rate upon which other interest rates are built.

Shonubi announced that the committee also adjusted the asymmetric corridor from from +100/-700 to to +100/-300 basis points around the MPR, retained the Cash Reserve Ratio (CRR) at 32.5 per cent; and retained the Liquidity Ratio at 30 per cent.

According to Shonubi, the committee is confronted with only two policy options, to hold or marginally hike the policy rate to offset the moderate increase in headline inflation.

“Considering the option to a hold, the committee reviewed the impact of the continued rise in inflation on various macroeconomic variables, noting the potential dampening effect on output growth.

“Members agreed unanimously that the previous series of rate hikes had indeed greatly moderated the pace of price development and was gradually but steadily yielding the expected outcome.

“The option to continue to hike the policy rate, albeit moderately, also presents a strong aliternative,” he said.

He said that this was premised on the expected liquidiiy injections into the economy, from the recent policy developments and the likely impact on inflation.

“The committee remained cautious in arriving at a policy decision as members noted the need to continue to support investment which will ultimately lead to the recovery of output growth.

“The balance of these arguments thus, leaned in favour of a moderate rate hike, to sustain efforts at anchoring inflation expectation, narrow the negative real interest rate gap, and improve investor confidence.

“The MPC, thus, resolved by a majority vote to raise the Monetary Policy Rate (MPR) by 25 basis points. Six members voted to raise MPR by 25 basis points while five memnbers voted to hold the MPR Constant.

“All members, however, voted to narrow the asymmetric corridor from +100/-700 to +100/-300 around the MPR,” he said. (NAN) (www.nannews.ng)

Edited by Ese E. Eniola Williams

Experts preach caution as CBN holds first MPC meeting under Tinubu

Afonne Emmanuel
Jul, Mon, 2023

Banking , Economy/Business

Experts preach caution as CBN holds first MPC meeting under Tinubu

167 total views today

By Kadiri Abdulrahman

As the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) prepares for its July meeting, some financial experts have called for moderation in its policy decisions.

The News Agency of Nigeria (NAN) reports that the CBN has announced that the 292nd meeting of the MPC will hold on Monday and Tuesday, to be chaired by Mr Folashodun Shonubi, the Acting Governor of the CBN.

This will be the fourth MPC meeting of 2023, and the first in about nine years to be chaired by someone other than the suspended CBN Governor, Godwin Emefiele.

At the last MPC meeting in May, Emefiele had announced the committee’s decision to raise the Monetary Policy Rate (MPR) for a seventh consecutive time, from 18 per cent to 18.5 per cent.

That is the highest since the MPR was established in 2006.

The CBN started its monetary policy tightening in May 2022, when the MPR, which is the benchmark interest rate, was increased from 11.5 per cent to 13 per cent.

A financial expert, Prof Uche Uwaleke, told NAN that the decision of the MPC in the July meeting will be influenced by the rising inflation expectations due largely to the sudden removal of fuel subsidy.

Uwaleke, a Professor of Capital Market at the Nasarawa State University, Keffi, said that pressure on the naira and exchange rate volatility occasioned by the recent Naira float would also influence the MPC decision.

According to him, those considerations tend to recommend a further rates hike aimed at taming the stubborn inflation.

“The acting CBN governor, who will be chairing the meeting, has been part and parcel of the hawkish MPC stance for months now, and so another rates hike will not come as a surprise.

“Be that as it may, the MPC should equally recognise that the removal of fuel subsidy has slowed down economic activities considerably with attendant drop in productivity.

“So, economic growth and jobs are already negatively impacted such that a further monetary policy tightening would only worsen the situation.

“Cost of capital will further increase and access to credit by small businesses will become more difficult,” he said.

He said that a further increase in the MPR was also likely to endanger the asset quality of banks through an increase in non-performing loans as Deposit Money Banks (DMBs) repriced their loans.

“In this regard, the balance of risks dictates that the MPC should pause the policy rate hikes, which has been on since May last year by maintaining a hold position on all policy parameters.

“The MPC should recognise that much as its primary mandate is to maintain price stability, it equally has a responsibility to support output growth.

“This is against the backdrop of the fact that many of the factors driving inflation in Nigeria, such as insecurity affecting food output and high energy costs, are outside the control of the CBN,” he said.

Uwaleke urged the MPC to seize the opportunity of its forthcoming meeting to signal readiness to support output growth.

“This can be done through policies geared towards fostering a low interest rates environment while keeping an eye on inflation, using a mix of hererodox measures,” he said.

According to Mr Okechukwu Unegbu, a past President of the Chattered Institute of Bankers of Nigeria (CIBN), the MPC should lower the MPR to allow easy access to credit for the productive sector of the economy.

Unegbu said that since lending rate in banks is dependent on the MPR, lowering it would be more beneficial for economic growth by allowing easier access to funds for the manufacturing sector and for small businesses.

He, however, said that the idea of DMBs using the MPR to decide their lending rates should also apply to interest rates on savings.

“The banks use the MPR to increase their lending rates, but savings interest rates are always very low.

“Interest rates on savings should guide the banks on their lending rates. They are supposed to look at average interest rate on savings to consider their own lending rates.

“I expect the MPC to reduce the rates this time so that banks can reduce their lending rates in order to encourage lending to the productive sector of the economy,” he said.

Mr Yemi Kale, partner and Chief Economist at KPMG Nigeria, said that the MPC was facing a dicey meeting since the suspension of Emefiele.

According to Kale, economic growth is slow and fragile, and in need of liquidity.

“At the same, inflation rates are high and rising, and with the recent subsidy and FX reforms, inflation is almost definitely going to rise higher and all happening at a time confidence in its ability to control inflation is weak,” he said.

He said the inability of the CBN to control inflation had been largely due to the main drivers of inflation being structural and supply-based, which could not be controlled effectively with the money supply tools available to it.

He added that the recent growth in money supply following the various reforms would likely worsen inflation.

“Excess liquidity may also find its way into the FX market and put pressure on Naira, both at official and parallel markets.

“The MPC will therefore have a difficult decision on how to pull inflation down without hurting economic growth further, which further tightening might cause.

“However, I expect that the CBN will be more concerned about inflation being its core responsibility and will tighten the MPR further but release the Cash Reserve Ratio (CRR) to support the economy,” he said. (NAN)(www.nannews.ng)

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Edited by Idris Abdulrahman

CBN, Egypt’s apex bank partner on joint fintech bridge

Afonne Emmanuel
Jul, Wed, 2023

Banking , Economy/Business

CBN, Egypt’s apex bank partner on joint fintech bridge

194 total views today

By Kadiri Abdulrahman

The Central Bank of Nigeria (CBN), and the Central Bank of Egypt (CBE) have signed a Memorandum of Understanding (MoU) to establish a Nigeria – Egypt Fintech Bridge.

According to a statement obtained from the website of the CBN, the MoU was signed on Tuesday at the Seamless North Africa Conference 2023 in the Egyptian capital, Cairo.

It came after a series of engagements on issues around payment system, financial technology, and financial inclusion in Africa.

The apex bank said that the MoU represented a partnership of the central banks of the largest economies in Africa.

According to the CBN, the MoU encompasses a broad range of collaborative initiatives, joint registration, innovative projects, coordinated licensing and supervisory framework, and information sharing.

The News Agency of Nigeria (NAN) reports that fintech bridges represent agreement outlining collaboration between two governments; cooperation between regulatory bodies and connectivity between two markets and ecosystems.

Speaking at the event, Deputy Governor, Financial System Stability, Aisha Ahmad, who signed on behalf of the CBN, said that the Nigerian apex bank was excited by the partnership with the CBE.

According to Ahmad, the partnership was actualised after several months of engagements on payments, fintech and financial inclusion.

“We look forward to cultivating an innovative space for fintech startups and entrepreneurs in Egypt and Nigeria, to accelerate financial inclusion, deepen our payment systems and drive economic growth across Africa,” she said.

Also speaking, the Deputy Governor of the CBE, Rami Aboulnaga, expressed delight at the partnership, adding that it would meet the desired expectations.

NAN reports that the conference was hosted by the CBE and had policy makers, payment service providers, financial institutions and technology startups from Egypt, Nigeria and across Africa in attendance. (NAN)(www.nannews.ng)

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Edited by Olawunmi Ashafa

Uncertainty: Firstbank tasks SMEs on staying strong

Vivian Ihechu
Jul, Wed, 2023

Banking , Business

Uncertainty: Firstbank tasks SMEs on staying strong

174 total views today

By Lydia Ngwakwe

Mrs Oludolapo Adigun, Group Head, Retail Banking, South, FirstBank, has advised Small and Medium-sized Enterprises (SMEs) to see opportunity in adversity and make good use of it to stay strong in business.

Adigun gave the advice at a SMEConnect webinar, organised by the FirstBank for individuals and business owners in Nigeria, on Tuesday in Lagos.

The News Agency of Nigeria (NAN) reports that the webinar had the theme: “The Power of Resilience: Building a Strong Business in Times of Uncertainty’’.

SMEConnect webinar is one of the ways through which FirstBank delivers its capacity-building pillar of its value propositions to SMEs.

The initiative focuses on impacting SMEs in areas that affect their business growth and development.

Adigun said: “Nigeria is a blessed land. We have the potential, we have over 200 million people, we are said to be the most populous and in population, we have the market and it’s a growing large consumer base.

“So, there is immense opportunity for SMEs; and with the growing middle class and increasing opportunity, we need to tap into it as an SME.’’

Adigun named some of the challenges SMEs faced to include infrastructure, regulatory environment, informal economy like those that are not exposed to education, rising inflation, petrol subsidy removal, currency devaluation, Foreign exchange rate, among others.

She said these challenges, like uncertainties, would always happen in business as they are norms in the business world and in everyday life.

According to her, how ready SME operators are to handle them are essential.

She said: “So, the strategies for businesses to adapt to economic condition and seize market opportunities, they need to navigate through regulatory framework to address infrastructural challenges and harness the entrepreneurial skill.’’

Adigun urged businesses to plan and maintain a long term loan, financial management, prioritise strategic partnership, strengthen customer relationship, adjust business model and enhance operational efficiency, among others.

She also said that most of the challenges and uncertainties that businesses in Nigeria go through, Firstbank had gone through it and yet still standing.

She said that the bank had carried out a dynamic adjustment of its operations, structure and system, adding that it was still reviewing its process.

She said, “FirstBank is SME’s focused bank with over 1,000 MSMEs in its book.

“And what do we do with them? We know your challenges and what you are going through and because of that we know your pain point.

“We have products that have been suited for you; we have assets, products, liability products, and others, all about you and for your sustenance and growth and we also have the seven pillars,’’ Adigun said.

She urged individuals who aspire to own a business and business owners to register on the SMEconnect@firstbanknigeria.com as there were a lot in there for them to gain.

She also introduced to the participants the firstbank business diagnostic tool which the bank uses to analyse businesses and give advice on areas of strength and improvement.

Earlier, Mr Damilola Aransiola, Chief Growth Officer, WhoGohost, urged the participants to find unique ways to solve the challenges that the hard times had thrown on their businesses.

According to him, this is what WhoGohost did to stay resilient in business.

“Resilience is the capacity to withstand or to recover quickly from difficulties and toughness.

“For us (WhoGohost) to be stable, we built a product that will allow us to earn in dollars and that was what we did with Muzu.co, a website builder, that allows people to create websites quickly for themselves,’’ he said.

He, therefore, urged business owners to build resilience by innovating and pivoting.

He advised that if a particular business strategy was not working, they could look for other ways to create products that would allow them to earn quick money as revenue was the lifeline of every business.

He said, “ revenue is the lifeline of your business, you don’t want to lose that, so you have to think of creative ways to make money.

“And don’t have the mindset that Nigerians don’t have money, though there are some people that might not be able to afford your product but don’t have that mentality that you cannot earn money

He also urged them to creatively partner with others and use that to grow. (NAN)(www.nannews.ng)

Edited by Olawunmi Ashafa

UBA introduces Braille Account Opening Form for visually impaired

Afonne Emmanuel
Jun, Wed, 2023

Banking

UBA introduces Braille Account Opening Form for visually impaired

135 total views today

By Lydia Ngwakwe

United Bank for Africa (UBA) has unveiled the UBA Braille Account Opening Form, designed specifically to cater for the financial needs of the visually impaired.

The News Agency of Nigeria (NAN) reports that the new UBA Braille Account Opening Form was launched at the bank’s head office on Tuesday in Lagos.

The event which had in attendance key executive members of the bank and guests including Multi-Award Winner, Nigerian Musician, Producer, and Songwriter, Cobhams Asuquo, is the first of its kind initiative in the Nigerian and African market,

The General Manager, Lagos State Office for Disability Affairs (LASODA), Dare Dairo; Former Senior Special Assistant to the Lagos State Governor on Persons Living with Disability, Adenike Oyetunde-Lawal, as well as students from the Pacelli School of the Blind also attended the programme.

Mr Ugo Nwaghodoh, the Executive Director, Finance and Risk Management, UBA, said that the bank would continue to look for ways to make the physically challenged and others to be comfortable in their life-long relationship with the financial industry.

He said, “in our quest to drive all-encompassing financial inclusion, we decided to support the visually impaired by developing a Braille Account Opening Form and these special customers now have the same opportunities available to our customers.

“The ultimate benefit is to ensure that everybody has the right to select and choose the kind of account they want to operate, and this account opening form will go a long way to ensure this.”

He said that the UBA Braille Account Opening Form was produced with the support of Anglo-Nigerian Welfare Association for the blind and the first of its kind in the industry.

According to him, it is designed specifically to cater to the needs of visually impaired individuals.

With this innovative solution, he said, UBA had empowered blind customers to independently initiate and complete the account opening process, ensuring their seamless integration into the financial system.

“Until now, this unique and special section of the society has been disadvantaged, but with this ground-breaking initiative, UBA has fully demonstrated its unwavering commitment toward providing an excellent user experience for all its customers, regardless of their individual abilities or disabilities,” he added.

Endorsing the laudable initiative, Asuquo, described the braille account as an innovative initiative that would presents UBA as a bank with a heart that pays keen attention to the needs of the blind and disabled.

Asuquo said, “before now, we have always been at the mercy of the reader when we want to do things like open accounts for ourselves, but this account opening form has come to solve the problem of access which has previously been a huge limiting factor for people like me who are blind.

“With this initiative, UBA has promoted our ideal of inclusivity and has helped to put back freedom in our hands while opening us up to the variety of opportunities and options available to us.

“UBA has blazed the trail, I am beyond elated, as this new initiative will send a strong note to others to replicate the same feat and make people realise that banking services can and should be done with humanity in mind,” Asuquo said.

He thanked the bank for amplifying this much needed cause.

“I endorse this 100 per cent and I believe it is a much needed first-step that will lead to so many others,” he said.

Dairo, General Manager, Lagos State Office for Disability Affairs; LASODA, commended the entire team for conceiving the idea.

He said, “I am so elated at this initiative, and I am happy to hear that this is also going to be replicated in the 19 African countries where UBA is present.

“I say thank you to this bank for this beautiful project. It is true that government cannot do it all, and we are glad when we see institutions charting the course for others.”

UBA is one of the largest employers in the financial sector on the African continent, with 35,000 employees group wide and serving over 35 million customers globally. (NAN)(www.nannews.ng)

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Edited by Chinyere Joel-Nwokeoma

How COVID-19 pandemic, Ukraine crisis exposed Africa’s vulnerability – Afreximbank President

Afonne Emmanuel
Jun, Mon, 2023

Banking , Health

How COVID-19 pandemic, Ukraine crisis exposed Africa’s vulnerability – Afreximbank President

173 total views today

By Vivian Ihechu

Prof. Benedict Oramah, President and Chairman of the Board of Directors of African Export-Import Bank (Afreximbank) says the COVID-19 pandemic and Ukraine crisis exposed the vulnerability of Africa in many ways.

According to him, these events dramatise Africa’s over-dependence on others for our basic needs of food and healthcare.

Oramah spoke on Monday at the 30th Anniversary Celebration and 30th Annual Meetings of Afreximbank holding in Accra, Ghana.

However, he said the bank had brought a new kind of hope to Africa, especially with the capacity to confront global challenges without going “abegging”.

“The COVID-19 pandemic and Ukraine crisis exposed the vulnerability of Africa in many ways.

“It also exposed our inadequacies in financing these dependencies in times of emergency.

“It is to the credit of those who founded Afreximbank that the catastrophe that loomed was averted.’’

He said that from the break of the pandemic in 2020 to the Ukraine crisis in 2022, the bank had disbursed over 45 billion US dollars into the continent.

This, he said, enabled many governments, central and commercial banks, corporates, Small and Medium Enterprises to weather the combined effects of these crises by helping countries to honour maturing trade debt payment obligations.

“To pay for critical imports and to pursue strategic investments.

“The support of Afreximbank was, by far, one of the most significant investments by a single entity in the last three years.

“In an era where international banks are exiting the continent, from where will Africa have gotten 45 billion US dollars to fight a global crisis if not from within?

“We are fully aware that the dream of continental integration and self-reliance can only be built on a robust and dynamic domestic economy that produces what it consumes.

“We don’t produce the goods that can be traded within the continent, others will [do so] and export the jobs, wealth, and the continent’s prosperity,” he said.

Oramah urged Africans to be united and resilient in building the “Africa that we want’’ in the next 30 years.

“I want to remind us that although we celebrate 30 years today, the journey to the next 30 years will require that we win the battle against those who are doing everything to weaken African multilateral institutions.

“ We may say no to them and ensure we do not will tools in destroying what Africa’s pioneer leaders toiled to build,” he said. (NAN)(www.nannews.ng)

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Edited by Chioma Ugboma

Afonne Emmanuel
Jun, Fri, 2023

Banking , Economy/Business

Tinubu suspends Emefiele

189 total views today

By Okon Okon

President Bola Tinubu has suspended the Central Bank Governor (CBN), Mr Godwin Emefiele from office with immediate effect.

The Secretary to the Government of the Federation (SGF), Sen. George Akume, made this known in a statement on Friday in Abuja.

According to Akume, this is sequel to the ongoing investigation of the CBN boss office and the planned reforms in the financial sector of the economy.

“Mr Emefiele has been directed to immediately hand over the affairs of his office to the Deputy Governor (Operations Directorate), who will act as the CBN Governor, pending the conclusion of investigation and the reforms,” he said. (NAN)(www.nannews.ng)

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Edited by Isaac Aregbesola

World Environment Day: How Nigeria can combat plastic waste pollution – AfDB

Afonne Emmanuel
Jun, Thu, 2023

Banking , Environment

World Environment Day: How Nigeria can combat plastic waste pollution – AfDB

286 total views today

By Lucy Ogalue

The African Development Bank (AfDB), says addressing plastic pollution requires effective multi-stakeholder partnerships among the government, private sector, youth groups and Civil Society Organisations (CSOs).

The Director-General, Nigeria Country Department of AfDB, Lamin Barrow, in a statement, was quoted to have spoken at a Webinar to commemorate the World Environment Day.

Barrow said that collaborative efforts would help to mitigate the challenges posed by plastic pollution and create a sustainable future for the continent.

”Nigeria and other African countries must explore new strategies to control, if not entirely eliminate, single use plastic.

”Among the crucial steps in combating plastic pollution is raising public awareness and educating citizens on environmental and health impacts of plastic waste pollution.

”Through comprehensive campaigns, leveraging various communications platforms, workshops and educational programmes, individuals can be sensitised to adopt environmentally friendly and sustainable practices to reduce, reuse and recycle plastic waste.

Barrow said by highlighting the negative consequences of plastic pollution and providing viable alternatives, awareness campaigns could inspire behavioural changes and promote responsible plastic consumption.

He said it was also important to mention some of the opportunities that plastics offered through repurposing and reuse.

According to him, the theme for this year’s World Environment Day is well-aligned with the AfDB’s priorities.

”Specifically, the 2023 edition of the African Economic Outlook inaugurated recently at the Bank Group’s Annual Meetings in Sharm El Sheikh, Egypt, underscores the need for increased private sector participation.

”In financing environmental and climate actions in Africa, with specific focus on the role of natural capital and application of circular economy approaches for the efficient utilisation of our environmental assets.

”Finding lasting solutions to plastics waste pollution in Nigeria requires a combination of hard and soft interventions along the plastics value chain.

”To this end, we commend the Federal Government for supporting the Nigeria Plastics Action Plan (NPAP),” the said.

According to the director-general, the plan provides a framework for stakeholder collaboration to tackle the problem of plastic waste pollution in the country, and promote circular economy practices.

Barrow restated the need for Nigeria to invest in infrastructure for waste collection, sorting and recycling.

”By establishing recycling facilities and encouraging waste segregation at source, the country can significantly reduce plastic wastes that end up choking landfills and the natural habitats.

”Strengthening partnerships with private sector actors, youth groups, Non-Governmental Organisations (NGOs) and local communities will help accelerate actions to implement sustainable waste management practices and create job opportunities in waste recycling.

”Another viable solution is the use of biodegradable alternatives to conventional plastic.

”Fiscal incentives and regulations can be deployed to stimulate adoption of biodegradable packaging by businesses, reducing demand for traditional plastics, thereby lessening plastic pollution.”

Barrow further said that implementing strict regulations and bans on single-use plastics was an effective measure to combat plastic pollution.

He urged government to take a queue from countries like Rwanda, which had successfully implemented such policies and regulations.

He said that Cote D’Ivoire, since 2014 had banned the production and use of plastic bags in the country.

”Nigeria can encourage industries to adopt sustainable practices and develop innovative solutions to reduce plastic waste throughout the supply chains.

”Promoting corporate social responsibility, supporting research and development of eco-friendly packaging, and establishing partnerships with organisations focused on sustainable development can further facilitate a more integrated approach to tackling plastic pollution,” he said.

The director-general reiterated some programmes the bank and its key partners had rolled out to address plastic pollution in Africa through the circular economy approach.

He named some of the programmes to include; host of the Secretariat of the Africa Circular Economy Alliance to spur Africa’s transition to a Circular Economy.

”The Bank also has established the Africa Circular Economy Facility as a multi-donor trust fund to provide grants to support the mainstreaming of the circular economy approaches.

”As an inclusive green growth strategy, this facility/Trust Fund will help African countries meet the goals of the Paris Climate Agreement, the Sustainable Development Goals (SDGs) and the African Union’s Agenda 2063.

”Nigeria can tap into this facility to support some of its work on the circular economy, including managing plastic pollution.

”More specifically for Nigeria, the AfDB and partners established the Nigeria Circular Economy Working Group in 2019.

”To provide a platform for key stakeholders including State Governments, Development Partners, the private sector and NGOs to share ideas, experience and coordinate actions to support the development of circular economy policies and bankable projects in Nigeria, among other projects.”

Barrow said with concerted efforts, sustainable solutions could be found to tackle the problem of plastic pollution, which poses a major threat to the environment, ecosystems and public health.

He said by raising public awareness, strengthening waste management systems, promoting biodegradable alternatives, implementing regulations, and fostering greater collaborative partnerships with industry and other Non-State actors, Nigeria could effectively address plastic pollution.

He, therefore, urged government, businesses, youth groups and communities to develop innovative partnerships to create a cleaner and healthier future.

The director-general urged the preservation of Nigeria’s natural beauty for the present and future generations, saying “We must say NO to single use plastics.”

Barrow assured the Bank’s strong commitment to supporting the endeavours to turn the challenges posed by plastic and other wastes into opportunities toward building a greener and circular economy.

Plastic pollution poses a significant environmental challenge worldwide.

It is estimated that seven billion tons of plastics are produced each year globally and about 21 million tons finds their way to the rivers, the seas, and the oceans where they can remain for a thousand years.

Only about 10 per cent of the plastics are recycled globally. The rest are dumped arbitrarily in open spaces, creating public health problems, damaging our ecosystem and defacing the aesthetics of our cities.

The story of Nigeria, Africa’s most populous nation, is not different.

Indeed, plastic pollution ranks among the topmost environmental challenges in the country, evidenced by the huge tons of plastic waste generated on a daily basis, particularly in our teeming cities and urban areas. (NAN) (www.nannews.ng)

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Edited by Remi Koleoso/Ese E. Eniola Williams