News Analysis by Okeoghene Akubuike, News Agency of Nigeria (NAN)

The World Bank Group (WBG) and the International Monetary Fund (IMF) between April 10 and April 16 converged on Washington DC for their Annual Spring meetings.

The meetings brought together central banks, international financial institutions, ministers of finance and development, private sector executives, representatives from civil society organisations, and academics to discuss global economy issues.

It held amidst international efforts to stimulate global economy dampened by post-COVID-19 crisis, the Russia-Ukraine conflict, food shortages and climate-related challenges.

The meeting focused on agriculture and food insecurity, economic recovery, increasing fragility, conflict, and violence, climate change and debt, empowering women entrepreneurs, and the importance of private capital in sustainable development, among others.

The IMF’s latest World Economic Outlook Update Report for April 2023: “A Rocky Recovery”, released at the meetings shows global growth is projected to bottom out at 2.8 per cent in 2023 before rising modestly to 3.0 per cent in 2024.

The report showed that advanced economies were expected to see a growth slowdown from 2.7 per cent in 2022 to 1.3 per cent in 2023.

While the outlook growth in Sub-Saharan Africa (SSA) is expected to slow to 3.6 per cent in 2023 as a “big funding squeeze”, tied to the drying up of aid and access to private finance, hits the region.

The report said the slowdown and subsequent rebound to 4.2 per cent in 2024 in SSA was in line with global recovery, subsiding inflation, and a winding down in monetary policy tightening.

According to the report, this will be the second consecutive year that SSA will record a lower rate of growth than the previous year.

Abebe Selassie, Director, African Department, IMF, while speaking at the new conference on the SSA Regional Economic Outlook during the meetings, said some countries, particularly those in the East African Community bloc, or non-oil resource-intensive countries, were expected to fare better.

He said Nigeria’s economy, a major oil exporter in Africa, was expected to grow by 3.2 per cent in 2023, down from 3.6 per cent in 2022, and projected growth to slow to 3.0 in 2024.

“The rapid tightening of global monetary policy has raised borrowing costs for SSA countries both on domestic and international markets.

“All Sub-Saharan African frontier markets have been cut off from market access since Spring 2022″, he said.

Selassie said the US dollar effective exchange rate reached a 20-year high last year, increasing the burden of dollar-denominated debt service payments.

He also said if measures were not taken, the” funding squeeze” will hamper Sub-Saharan’s efforts to build a skilled and educated population and to be the driving force of the global economy in years to come.

“First, it is important to consolidate public finances and strengthen public financial management amid difficult funding conditions.

“Second is containing inflation. Monetary policy should be steered cautiously until inflation is firmly on a downward trajectory and projected to return to the central bank’s target range.

“Third is allowing the exchange rate to adjust, while mitigating the adverse effects on the economy, including the rise in inflation and debt due to currency depreciations”, he said.

World Economic Outlook April 2023. Source: International Monetary Fund.

Mr David Malpass, World Bank Group President, said the diversion of natural gas to Europe presented grave obstacles to developing countries’ production of electricity, fertilizer, and food.

“These problems are severely constraining future growth and deepening inequality and fragility for developing countries.

“I travelled to West Africa in March, where we are working to provide support in the face of these problems”, he said.

Malpsss, during a news conference in the course of the meetings called on the incoming government in Nigeria to tackle trade protection that blocks importation; address dual exchange rates; and diversify the economy to achieve shared prosperity and sustainable growth.

The Bank’s President said in the Group’s forecast, Nigeria’s growth was 3.3 per cent in 2022 and 2.8 per cent in 2023.

Malpass went on to advise policymakers in Nigeria and other SSA countries to focus on policies that would enhance inclusive growth.

Ms Kristalina Georgieva, Managing Director, IMF, and Mr Olavo Correia, Cape Verde’s Finance Minister and Chair of the African Caucus in a joint statement after the meetings, said strengthening social protection is key to Africa’s development.

They also said leveraging digital infrastructure, such as mobile phone platforms, could help to increase efficiency and ensure social support was well targeted to the most vulnerable.

The group said in shock-prone environments such as Africa building resilience, including to climate change, remained fundamental.

“Mobilising additional external financing to support the recovery remains critical”, they said.

Georgieva said IMF was aware of the implications of external debt on the economy of African nations particularly the SSA countries would continue to provide technical assistance to them to mitigate the impact.

“The IMF continues to explore ways to make debt resolution more efficient. To this end, the IMF, together with the World Bank and the India G20 Presidency, have launched a Global Sovereign Debt Roundtable.

“The IMF remains steadfastly committed to the region and continues to work towards ensuring that its concessional lending toolkit for low-income countries is flexible, effective, and well-resourced.

“The Resilience and Sustainability Trust is now operational, providing longer-term affordable financing to address longer-term challenges, including climate change and pandemic preparedness.

“Rwanda is one of the first beneficiaries, with several other countries in the pipeline”, she said.

Nadia Calviño, the Chair of the International Monetary and Financial Committee said the meetings resolved enhanced commitment by members to ” coordinate our economic policies and to reinforce our global financial safety net.

“The meetings also resolved to work together in a constructive manner to deliver on our shared roadmap as we start the road to the Annual Meetings in Marrakesh.

The meetings have outlined and suggested pragmatic policies for the SSA region to cushion the effects of the global crisis as well as build external resilience and ensure sustainable growth.

Experts say the onus is on the governments and policymakers in the region to tailor these policies based on their peculiar challenges to steer the continent on the right economic trajectory.

They say it is also important for Bretton Woods Institutions to effectively implement resolutions at their meeting to stimulate economic growth and alleviate poverty in Sub-Saharan Africa countries. (NANFeatures)

**If used please credit the writer and News Agency of Nigeria.

News Analysis by Okeoghene Akubuike, News Agency of Nigeria (NAN)

The World Bank Group (WBG) and the International Monetary Fund (IMF) between April 10 and April 16 converged on Washington DC for their Annual Spring meetings.

The meetings brought together central banks, international financial institutions, ministers of finance and development, private sector executives, representatives from civil society organisations, and academics to discuss global economy issues.

It held amidst international efforts to stimulate global economy dampened by post-COVID-19 crisis, the Russia-Ukraine conflict, food shortages and climate-related challenges.

The meeting focused on agriculture and food insecurity, economic recovery, increasing fragility, conflict, and violence, climate change and debt, empowering women entrepreneurs, and the importance of private capital in sustainable development, among others.

The IMF’s latest World Economic Outlook Update Report for April 2023: “A Rocky Recovery”, released at the meetings shows global growth is projected to bottom out at 2.8 per cent in 2023 before rising modestly to 3.0 per cent in 2024.

The report showed that advanced economies were expected to see a growth slowdown from 2.7 per cent in 2022 to 1.3 per cent in 2023.

While the outlook growth in Sub-Saharan Africa (SSA) is expected to slow to 3.6 per cent in 2023 as a “big funding squeeze”, tied to the drying up of aid and access to private finance, hits the region.

The report said the slowdown and subsequent rebound to 4.2 per cent in 2024 in SSA was in line with global recovery, subsiding inflation, and a winding down in monetary policy tightening.

According to the report, this will be the second consecutive year that SSA will record a lower rate of growth than the previous year.

Abebe Selassie, Director, African Department, IMF, while speaking at the new conference on the SSA Regional Economic Outlook during the meetings, said some countries, particularly those in the East African Community bloc, or non-oil resource-intensive countries, were expected to fare better.

He said Nigeria’s economy, a major oil exporter in Africa, was expected to grow by 3.2 per cent in 2023, down from 3.6 per cent in 2022, and projected growth to slow to 3.0 in 2024.

“The rapid tightening of global monetary policy has raised borrowing costs for SSA countries both on domestic and international markets.

“All Sub-Saharan African frontier markets have been cut off from market access since Spring 2022″, he said.

Selassie said the US dollar effective exchange rate reached a 20-year high last year, increasing the burden of dollar-denominated debt service payments.

He also said if measures were not taken, the” funding squeeze” will hamper Sub-Saharan’s efforts to build a skilled and educated population and to be the driving force of the global economy in years to come.

“First, it is important to consolidate public finances and strengthen public financial management amid difficult funding conditions.

“Second is containing inflation. Monetary policy should be steered cautiously until inflation is firmly on a downward trajectory and projected to return to the central bank’s target range.

“Third is allowing the exchange rate to adjust, while mitigating the adverse effects on the economy, including the rise in inflation and debt due to currency depreciations”, he said.

World Economic Outlook, April 2023: A Rocky Recovery

World Economic Outlook April 2023. Source: International Monetary Fund.

Mr David Malpass, World Bank Group President, said the diversion of natural gas to Europe presented grave obstacles to developing countries’ production of electricity, fertilizer, and food.

“These problems are severely constraining future growth and deepening inequality and fragility for developing countries.

“I travelled to West Africa in March, where we are working to provide support in the face of these problems”, he said.

Malpsss, during a news conference in the course of the meetings called on the incoming government in Nigeria to tackle trade protection that blocks importation; address dual exchange rates; and diversify the economy to achieve shared prosperity and sustainable growth.

The Bank’s President said in the Group’s forecast, Nigeria’s growth was 3.3 per cent in 2022 and 2.8 per cent in 2023.

Malpass went on to advise policymakers in Nigeria and other SSA countries to focus on policies that would enhance inclusive growth.

Ms Kristalina Georgieva, Managing Director, IMF, and Mr Olavo Correia, Cape Verde’s Finance Minister and Chair of the African Caucus in a joint statement after the meetings, said strengthening social protection is key to Africa’s development.

They also said leveraging digital infrastructure, such as mobile phone platforms, could help to increase efficiency and ensure social support was well targeted to the most vulnerable.

The group said in shock-prone environments such as Africa building resilience, including to climate change, remained fundamental.

“Mobilising additional external financing to support the recovery remains critical”, they said.

Georgieva said IMF was aware of the implications of external debt on the economy of African nations particularly the SSA countries would continue to provide technical assistance to them to mitigate the impact.

“The IMF continues to explore ways to make debt resolution more efficient. To this end, the IMF, together with the World Bank and the India G20 Presidency, have launched a Global Sovereign Debt Roundtable.

“The IMF remains steadfastly committed to the region and continues to work towards ensuring that its concessional lending toolkit for low-income countries is flexible, effective, and well-resourced.

“The Resilience and Sustainability Trust is now operational, providing longer-term affordable financing to address longer-term challenges, including climate change and pandemic preparedness.

“Rwanda is one of the first beneficiaries, with several other countries in the pipeline”, she said.

Nadia Calviño, the Chair of the International Monetary and Financial Committee said the meetings resolved enhanced commitment by members to ” coordinate our economic policies and to reinforce our global financial safety net.

“The meetings also resolved to work together in a constructive manner to deliver on our shared roadmap as we start the road to the Annual Meetings in Marrakesh.

The meetings have outlined and suggested pragmatic policies for the SSA region to cushion the effects of the global crisis as well as build external resilience and ensure sustainable growth.

Experts say the onus is on the governments and policymakers in the region to tailor these policies based on their peculiar challenges to steer the continent on the right economic trajectory.

They say it is also important for Bretton Woods Institutions to effectively implement resolutions at their meeting to stimulate economic growth and alleviate poverty in Sub-Saharan Africa countries. (NANFeatures)

**If used please credit the writer and News Agency of Nigeria.

By Ruth Oketunde, News Agency of Nigeria (NAN)

Security is fundamental to virtually all human activities, electoral processes inclusive. Any nation considering development must conceive and implement robust security arrangements, experts say.

A vibrant security structure is required to not only protect but also nurture nascent democracies such as Nigeria’s

It is the duty of the state to secure its citizens and institutions. It created the Nigeria Security and Civil Defence Corps to augment the efforts of the Police.

However, government’s security agencies alone cannot do the job; somebody has to fill the gap.

During the just-concluded general election, security agencies did their best to protect politicians, INEC personnel, electoral materials, electorate, rallies and conventions.

However, the violence and skirmishes experienced in some parts of the country during the just-concluded general election underscores the need to bolster the nation’s security system

Some of the security challenges witnessed during the elections include violent demonstrations, theft of electoral supplies, targeted attacks on leaders and voters, among others.

Some observers attribute the violence to inadequate public security manpower deployed to the polling units.

Some political analyst say INEC should be held responsible for the violence in line with Section 27 (3) of Electoral Act 2022 Section 27 (3).

That section stipulates that INEC shall be responsible for requesting for the deployment of relevant security personnel necessary for elections or registrations of voters and shall assign them in a manner determined by the commission in consultation with the relevant security agencies.

They argue that the law did not set particular boundaries on the relevant security personnel except for the Nigerian Armed Forces.

The already enormous task of securing Nigeria with its vast land mass and huge population is usually compounded during election periods where special arrangements have to be  made to meet security demands.

To overcome this challenge, Mr Okereke Chinwike, Chief Executive Officer, African Law Foundation (AFRILAW) said it was important to recognise the complementary roles of the private security providers in providing security during elections.

He said that private security companies should be harnessed by the Federal Government in ensuring adequate election security during future elections.

According to him, there is need for an increased cooperation between INEC, the private security operators as well as election policy makers to ensure that their resources are utilized in the future.

“The private security guards can play a critical role in monitoring and reporting incidences; provide security for election stakeholders’ office premises, politicians, political parties’ events, INEC and other support services that public security agencies carry out.

“Though they have been carrying out some of these services unofficially, right now, we want the policymakers to make it official so that they can complement the public security agencies.

“They should also be given a capacity building training so that they can offer quality and professional services in further elections.

“Some of the roles of private security in election include provision of security in government installations, political party premises and homes of political actors.

“They also complement formal security in crowd control during rallies and other political meetings,” he said.

Mr Oyesanya Sanya, Deputy Commandant, NSCDC, agrees that private security providers should be given the opportunity to complement the services the public security agencies during elections

“Private security came into being because of the gap in what United Nations recommended as the standard ratio for policing the citizens, which is one police officer to every 450 citizen.

“Government-funded security agencies cannot do all; these are the gaps the private security guards are filling, which they have been doing in everyday security.

“Using them for election security will assist us in having a well secured election process,” he said.

Dr David Vareba, Coordinator, Access Africa for Right and Development Initiative, said deliberate efforts should be made by all critical election stakeholders to ensure adequate use of private security guards during election.

Vareba, who served as an election observer in Rivers during the 2023 general election, also said that private security guards were not adequately involved in the electoral process.

He urged adequate compensation measures for private security guards deployed to high risk and volatile areas for election-related duties.

Similarly, Vice-President, Association of Licensed Private Security Practitioners of Nigeria (ALPSPN), Clement Anala, said there is need for private security guards to be incorporated into the mainstream security architecture for better synergy among security personnel in the country be they private or public.

“We have a whole lot of private security guards within the scope of the 36 states.

“What we need is capacity building for our personnel and to increase coordination with relevant security stakeholders, including the government, civil society and media to ensure our full participation in future elections,” he said. (NANFeatures)

** If used please credit the writer and News Agency of Nigeria.

By Lucy Ogalue and Ikenna Uwadileke, News Agency of Nigeria (NAN)

Counterfeiting, the act of imitating, making illegal copies, or making something look like the original, usually goes with the intent to steal, destroy, deceive or even replace the original.

The Organisation for Economic Co-operation and Development reveals that African countries are target destinations for counterfeit goods such as pharmaceuticals, foods and beverages.

Unfortunately, the ultimate victims of counterfeiting are the consumers, who receive poor-quality goods and are exposed to health and safety dangers.

In spite of the potential economic benefits of the African Continental Free Trade Area (AfCTA), there have been concerns by some stakeholders that it could lead to an increased rate of counterfeiting and dumping of substandard products.

No doubt, counterfeit products endanger health as consumers even death when they ingest fake food, drinks or drugs, or use counterfeit cosmetics.

Apart from the health and safety risks, industries worldwide also lose a lot to counterfeiters.

Those losses, according to a report by the Organisation for Economic Co-operation and Development, not only affect the producers of genuine items but also involve social costs.

The World Customers Organisation believes that counterfeiting drains an estimated amount of 600 billion euros annually from the global economy.

To put it to proper perspective, this is equivalent to the loss of about five to seven per cent of trade in brand–name goods worldwide.

In addition, it is estimated that around 2.5 million jobs are lost due to counterfeiting across G20 economics alone.

This leads to a loss of tax revenue to governments, income loss to local manufacturers and loss of jobs in the employment that would have otherwise been generated.

It is estimated that trade in counterfeit goods is now worth more than five per cent of world trade.

Experts say that governments also incur large costs in destroying and prosecuting defaulters.

For instance, the Nigerian Copyrights Commission (NCC) says the country loses N918 trillion ($3 billion) annually to the activities of pirates.

As of April 2022, the National Agency for Food and Drug Administration and Control (NAFDAC) said that Nigeria has a 15 per cent of drug prevalence.

The Standards Organisation of Nigeria (SON) estimates that about 75 per cent of auto spare parts in the country are fake.

Experts attribute the increasing wave of counterfeiting to advanced technology, increased international trade, emerging markets and an increased share of products that are attractive to imitate.

However, they say that concerted efforts are critical in combating the distribution of counterfeit goods in Nigeria.

Dr Abdulrasheed Yerima, National President, Nigerian Association of Small and Medium Enterprises (NASME), said such efforts are necessary to protect the society, economy and environment from the threats counterfeiting poses.

A consumer, Mr Fidelis Edeh, believes that due to the damages caused by substandard products, consumers must join in the fight against counterfeit products by consciously rejecting them.

“If counterfeiters must face stiff penalties, consumers must report illicit products/dealers to SON,” Edeh said.

According to Ms Annabel Nkeruem, a public health analyst, consumers have a role to play in destroying counterfeit products and bringing their merchants to book.

As a regulatory body in charge of ensuring the maintenance of standards in local and imported products, SON said it is demonstrating capacity in combating counterfeiting, fake and substandard products.

One of the ways through which the organisation is fighting the menace is by initiating the Products Authentication Mark (PAM).

According to Mr Tersoo Orgudwem, Director Product Certification, SON, the organisation introduced the SON Conformity Assessment Programme (SONCAP) to ensure that all imported products are of acceptable quality.

Orgudwem said for the international community not to assume Nigeria is creating a trade barrier; SON also introduced MANCAP for the locally manufactured goods in Nigeria.

“The world has become a global village, and Nigeria is part of that village, and we cannot run away from it, so we have introduced measures, particularly for imported goods.

“This ensures that Nigeria does not become a dumping ground for any other country. So, if they want to trade with us, they should give us what they can use in their country.

According to Orgudwem, the consumer is fully involved in enforcing quality by scanning the PAM or sending a short message (SMS) to verify the product’s status before purchasing a product.

According to him, PAM is designed such that the product has a stamp on it and consumers have the QR code either on their smartphones or there is a number on the stamp on the product.

“If you don’t have an Android phone or an IOS phone, you can send the number of the product on the stamp to a toll-free code 281.

“And within five seconds, they will return a message telling you that the product is certified by SON and is good for use”, he said.

According to Orgudwem, Nigeria makes up about 20 per cent of Africa’s population, estimated at 220 million, making it a target market for both genuine and fake products.

Addressing the challenge posed by counterfeit products is a difficult task and an economist, Margaret Attah, says all relevant bodies should partner to ensure that the battle is won.

According to Attah, tackling counterfeit products successfully will massive benefit the economy because it will stimulate the growth of industries, attract investment and reduce unemployment.

While some stakeholders commend SON for initiating PAM to mitigate substandard products, others urge the government to ensure the prosecution of offenders.

The Director-General of SON, Farouk Salim, said the organisation was working with the National Assembly to amend its Act to make for more successful prosecution of counterfeiters.

“We are already working with NASS to amend the existing Act to increase the penalties such as jail terms for defaulters,” he said. (NANFeatures)

**If used please credit the writers and News Agency of Nigeria.

A News Analysis by Lucy Ogalue, News Agency of Nigeria (NAN)

Poverty, the inability to satisfy basic human needs is endemic in Africa. Unfortunately, the continent is blessed with enormous human and materials resources to meet its needs and stimulate growth and prosperity.

Many factors such as illiteracy and lack of good governance have been identified as being responsible for this. Recent global developments such as COVID-19 outbreak have made the matter worse.

According to the Economic Report on Africa 2021 (ERA2021) inaugurated by the Economic Commission for Africa (ECA), the disruptions caused by the COVID-19 pandemic pushed an estimated 55 million Africans into extreme poverty in 2020.

The pandemic reversed more than two decades of progress in poverty reduction on the continent.

Reports show that in 2019, 424 million people in sub-Saharan Africa lived in severe poverty and 460 million in 2022.

Based on the Economic Development in Africa (ECA) Report 2021, Africa stands out as the most affected region in the world in terms of loss of income of poor households.

The Chief Economist of ECA, Hanan Morsy, says Africa currently accounts for more than half of the World’s poor at 54.8 per cent.

Morsy, during the 55th session of the Conference of African Ministers of Finance, Planning, and Economic Development in Addis Ababa, Ethiopia, said the continent faced a tsunami of global shocks that have exacerbated existing socio-economic operation and equity.

She said because of these shocks; the continent currently accounts for more than half of the world’s poor at 54.8 per cent.

“We have estimated 548 million Africans living in poverty in 2022 and 149 million at risk of falling into poverty in the same year.

“There is a skewed distribution across the continent in terms of concentration of these issues, with particularly East and West Africa having a higher share of poverty across regions,” she said.

Morsy said the situation was further exacerbated by existing inequalities, noting that even in times of high economic growth in Africa, the rate of inequality still rose.

“We need to pursue inclusive macroeconomic policies such as targeted and efficient spending and build resilience to future shocks at the household and community level.

“African governments need to enhance resource mobilisation. To do that, I think several measures would help, including closing tax loopholes.

“Africa loses 40 to 60 billion dollars annually in tax evasion. There’s also funding that can be raised through tackling issues of illicit financial flows,” she said.

Mr Adam Elhiraika, Director Macroeconomic Policy Division, ECA, said many African countries were struggling to meet the continent’s development goals due to the impact of severe and mutually reinforcing shocks.

According to Elhiraika, the continent has encountered severe developmental challenges due to increasing poverty, high inequality rates and a lack of decent jobs.

He reiterated that the COVID-19 pandemic, the Ukrainian war and the resultant food and energy crisis, rising inflation, debt tightening, and natural disasters were critical factors to the challenge.

He spoke at a recent at a meeting of experts to herald the 2023 Conference of African Ministers of Finance, Planning, and Economic Development in Ethiopia.

Elhiraika said the Africa’s growth dwindled from 4.6 per cent in 2021 to 3.6 per cent in 2022 and is anticipated to grow by 3.9 per cent in 2023.

“In 2022, an additional 18 million new poor emerged in Africa, with more than half the highest proportion of the world’s poor at 54.8 per cent.

“This is alarming because 546 million people were living in poverty in 2022, which is more than half of the continent’s population,” Elhiraika said.

To enable countries on the continent to advance, in spite of the challenges they encountered, the ECA pledged its unreserved commitment to support and provide shields where necessary.

Acting Secretary-General of ECA, Antonio Pedro, said Africa needs adequate financing to tackle poverty on the continent and cushion the vulnerable groups while meeting its long-term development objectives.

Pedro, at the conference, reiterated that evidence showed the effects of COVID-19, the war in Ukraine, the looming debt crisis, and climate change impacts characterised the deep and interlocking crises in Africa.

He said overcoming these challenges, occasioned by the overlapping crises, would require African countries to formulate innovative and multifaceted strategies that provide a range of policy options.

The acting secretary explained that implementing the agreement establishing the African Continental Free Trade Area (AfCTA) continued to be the blueprint for the African pro-poor economic recovery.

He said there was the need to expedite action on the agreement’s implementation, given its numerous benefits to member states, including resilience to shocks.

Similarly, the African Union Commissioner for Economic Development, Trade, Industry and Mining, Albert Muchanga, said African continental efforts alone were not sufficient to solve the problem.

He, therefore, urged the reform of the global value chain, focus on developing regional and continental value chains and the need for African countries to invest at least one per cent of their GDP in research and development.

Muchanga said the commission was designing a programme that would enable Africa to move from being a producer and exporter of raw materials to an exporter of manufactured goods, agro-processed foods, and services.

The commissioner, however, said Africa faced a climate finance challenge, which could lead to increased climate-induced poverty across the continent.

Meanwhile, highlighting some of the resolutions at the end of the conference, its Chairman/Ministerial Committee of Uganda, Henry Ariganyira, said women and youth empowerment was imperative for the continent’s development.

“Member States are called to leverage the agreement establishing the AfCTA to strengthen their resilience to future economic shocks and maintain sustainable growth.

“They should use it to create wealth and increase domestic resource mobilisation through prudent and targeted public spending, modernise the tax system and adopt home-grown fiscal and monetary reforms that attract small and medium-sized investors,” she said.

Experts say that to address its poverty challenge, African countries should look more inwards with a view to harnessing the continent’s abundant resources rather than depending on handouts and economic templates developed for the continent in foreign lands. (NANFeatures)

By Kadiri Abdulrahman, News Agency of Nigeria (NAN)

In recent times, the media has been awash with news about the huge debt burden that the incoming government would inherit from the President Muhammadu Buhari administration.

This started after Buhari signed the 2023 budget of 21.83 trillion Naira into law in December, 2022, and said the country could pay N1.8 trillion in extra interest on borrowings.

Nigeria’s external debt is considered to be the biggest in sub-Saharan Africa. It has already been rescheduled several times.

In spite of the rescheduling and refinancing by creditors who were either members of the Paris Club (governments), London Club (banks) or independent creditors, arrears of this debt kept accumulating over time.

The President, however, justified government borrowing to finance infrastructure, asserting that his government took loans in the interest of the country to solve infrastructure deficit.

“We have so many challenges with infrastructure. We just have to take loans to do roads, rail and power, so that investors will find us attractive and come here to put their money,’’ he told members of the Presidential Economic Advisory Council.

He regretted that the failure to provide the infrastructure for effective transportation deprived the country of its well-deserved status as the West African hub for air cargo transportation and trans-shipment of goods.

The Debt Management Office (DMO) recently announced that Nigeria’s total public debt stock as at Dec.31, 2022 was 103.11 billion dollars.

DMO is the federal government agency established to centrally coordinate the management of national debts.

It explained that the Debt Stock was made up of the domestic and external debt stocks of the Federal Government, the 36 state governments and the Federal Capital Territory.

A breakdown of the public debt stock showed that 37.82 per cent was external, while the balance of 62.18 per cent was domestic.

Findings by the News Agency of Nigeria (NAN) revealed that the comparative debt stock for Dec. 31, 2021 was 95.77 billion dollars.

According to the DMO, in terms of composition, total domestic debt stock stood at 61.42 billion dollars, while total external debt stock was 41.69 billion dollars.

It is noteworthy, however, that the debt figure, excludes the N22 trillion Federal Government’s indebtedness to the Central Bank of Nigeria (CBN), through Ways and Means Advances.

Finance experts say Ways and Means Advances is a loan facility used by the apex bank to finance the government during temporary budget shortfalls. It is, however, subject to limits as prescribed by the constitution.

The Ways and Means Advances are presently awaiting securitisation by the National Assembly, and can only be added to the country’s public debt after such securitisation.

According to the Director-General of DMO, Patience Oniha, the reasons for the increase in total public debt stock were new borrowings by the Federal Government and sub-national governments, primarily to finance budget deficits and execute capital projects.

“The issuance of promissory notes by the Federal Government to settle some liabilities also contributed to growth in the debt stock,” she said.

Oniha, however, assured that on-going efforts by the Federal Government to increase revenue from oil and non-oil sources through initiatives like the Finance Acts and the Strategic Revenue Mobilisation Initiative are expected to support debt sustainability.

She said the recently introduced Medium Term Debt Management Strategy (MTDS) provided a guide to the borrowing activities of government in the medium-term.

She explained that MTDS adequately reflected the current economic realities and the projected trends, adding that its preparation involved the consideration of alternative funding strategies available to the government.

“It seeks to meet its financing needs, taking into consideration the cost of borrowing and the associated risks, while ensuring debt sustainability in the medium to long-term,” she said.

Experts say in spite of the seeming high debt rate, there is no cause for alarm for the economy. The country’s debt-to-GDP ratio of 23.20 per cent remains within the 40 per cent limit self-imposed by Nigeria and the 55 per cent limit recommend by World Bank/International Monetary Fund (IMF).

It is also within the 70 per cent limit recommend by the Economic Community of West African States (ECOWAS).

According a study conducted by the World Bank, a debt to GDP ratio that exceeds 77 per cent for an extended period of time may result in an adverse impact on economic growth.

Records show that Nigeria’s external debt remained low until the middle of the 1970s. It was 1.5 billion dollars in 1970 and 2.5 billion dollars in 1975.

The situation began to get out of control around 1977 when an outstanding growth rate in the country’s debt became manifest.

The outstanding debt reached 7.5 billion dollars in 1979 and 8.9 billion dollars by 1980.

This was due to excess borrowing from international agencies and countries at non-concessional interest rate as a result of the decline in oil earnings.

It also followed the emergence of high trade arrears due to inability of the country to either produce or foot the bills of importation of needed goods and services.

By 2005, the nation’s debt had ballooned to about 30 billion dollars, mostly borrowed from the Paris Club of creditors.

Nigeria and the creditors’ club then went into series of negotiations on a mutually acceptable relief on the 30 billion dollars debt with the Paris Club.

In October 2005, Nigeria and the Paris Club announced a final agreement for debt relief worth 18 billion dollars. The creditors had cancelled 18 billion dollars and Nigeria repaid 12 billion dollars. Most of the 18 billion dollars was registered as aid.

The deal was completed in April 2006, when Nigeria made its final payment and its books were cleared of any Paris Club debt.

Some Nigerians opined at the time, that it did not make economic sense to pay such huge amounts of Foreign Exchange in one fell swoop just to enjoy debt relief.

They argued that the funds could have been channeled into improving infrastructure and creating enabling environment to attract viable foreign investments for economic growth.

The government of President Olusegun Obasanjo, however went ahead with the payment and exited the country from the huge debt burden of the Paris Club.

The relief, however, turned out to be temporary as, by June 2015, the country’s debt had again jumped to 63.8 billion dollars, representing the country’s highest debt profile since 2007.

An economist, Tope Fasua, advised the Federal Government to improve on the budgeting system to check deficit financing and make the annual budgets more impactful.

“Unfortunately, we have found ourselves in a difficult scenario due to the pandemic and falling crude oil prices and we just have to go borrowing like most other countries in the world.

“Government should ensure that our borrowings are effectively utilised for optimum economic impact,” he said.

Laoye Jaiyeola, Chief Executive Officer of the National Economic Summit Group (NESG), said that, though Nigeria’s debt-to-GDP ratio could be considered low, the revenue that went into debt servicing was still on the high side.

“We should all be worried about the rising debt profile of the country.

“Some people say that the debt-to-GDP ratio is still low. It could be low, but servicing debt is still a challenge,” he said.

He suggested a drastic cut in running cost of governance, reduction in recurrent expenditure, as well as removal of subsidies in electricity and petroleum products, as a way of reducing the debt burden.

As Nigerians look forward to the inauguration of a new government on May 29, stakeholders advise the incoming administration to take aggressive measures to improve revenue generation so as to curb dependence on domestic and external borrowings to fund its annual budgets. (NANFeatures)(www.nannews.ng)

A news analysis by Ismail Abdulaziz, News Agency of Nigeria (NAN)

By May 21, the inaugural flight of Hajj 2023 from Nigeria will commence with the first batch of intending pilgrims answering the call of God to perform the fifth and last religious rituals of Islam.

The pilgrims are referred to as guests of Allah for obeying the religious injunction and leaving the comfort of their homes, families and businesses to achieve that one aim to please Allah alone.

Jabir reported the Messenger of Allah, peace and blessings be upon him, as saying that, “The pilgrims of Hajj and Umrah are the guests of Allah. He called them and they answered Him. They ask from Him and He gives them.”

Some of the major challenges faced by pilgrims before travelling and while at the two Holy cities of Makkah and Madinah are that of accommodation, transportation and feeding.

These recur because of a number of combining factors involving the National Hajj Commission of Nigeria (NAHCON), states and FCT Muslims Pilgrims Welfare Boards, as well as licenced tour operators. These bodies are solely responsible for pilgrims welfare, and are expected to address the problems, given the fact that the pilgrims had fully paid for these services.

A number of measures have been taken after the lifting of the two years ban on the pilgrimage due to the 2020 COVID-19 pandemic across the globe. First, the number of pilgrims in 2022 was slashed from the normal two million and two and a half million yearly. It is assumed also that the number of facilities for the pilgrims were actually enough due to the approved numbers.

This year, however, the number of pilgrims expected to perform the Hajj has been brought to a record level where some officials were quoted as giving a figure of 2.5 million while others said no limit was set.

Reports have it that most places used for accommodation by Nigerian pilgrims in previous pilgrimages including the 2022 Hajj, had been demolished for renovation and therefore new ones have to be arranged.

Similarly, the case of transportation challenge is two pronged. The airlift of pilgrims from and to the Holy land do witness various infractions because of the lack of ability of states pilgrims boards to meet their allotted times for take-off. The pilgrims ultimately suffer these lapses.

Feeding also becomes a challenge for pilgrims because those charged with the responsibilities of taking care of it, encounter one problem or the other towards satisfying them.

It is gladdening to note that these are major issues being handled in the various stakeholders meetings between NAHCON, state and FCT pilgrim’s welfare boards and tour operators which started since the end of the 2022 Hajj. The meetings were held in the country and in Saudi Arabia, where the agencies undertook physical inspections of facilities for Nigerian pilgrims.

It is also gratifying that at the April 7 meeting in Abuja to announce the fares and airlines approved for the 2023 Hajj, representatives of stakeholders corroborated the NAHCON decision on a number of issues.

The Executive Chairman, Yobe Pilgrims Welfare Board, Mai Aliyu Usman, said all states were part of the decision taken by NAHCON on the 2023 hajj fares and choice of airlines.

He said that members of the various boards went to Saudi Arabia with the NAHCON officials twice, adding that all decisions and agreements were done together in the interest of the intending pilgrims.

The various fares for performing this year’s Hajj has also been announced and those blessed to perform it expects the best from stakeholders that majorly involves NAHCON and other parties at the states and FCT, as well as tour operators.

NAHCON announced eight different 2023 hajj fares regime for the Northern States and other parts of the country.

“The 2023 Hajj fare incidentally has eight different costs. Pilgrims in Maiduguri and Yola departure centres in the North East will pay the sum of N2,890,000 and this includes their 800 dollars Basic Travel Allowance (BTA).

”For the other Northern States, we have agreed that the cost is N2,919,000, we now move to South which has six different price regime, Edo State is N2,968,000 and the entire South-South and South East are in this same price regime.

”Ekiti and Ondo States N2,880,000, Osun state is N2,993,000 and Cross River State incidentally has the cheapest which is N2,943,000, while that of Lagos, Ogun and Oyo states is N2,999,000.”

The Chairman and Chief Executive Officer of NAHCON, Alhaji Zikrullah Hassan, explained that the inflation rate both in Nigeria and Saudi Arabia as well as the scarcity of aviation fuel were largely responsible for the increase when compared with that of 2022 which was N2.5 million.

”However, NAHCON and the state pilgrims boards and agencies made several efforts in order to keep the fare at the barest minimum level, while also considering the economic feasibilities and reality of the situation.’’

He revealed that NAHCON and all the 36 states and the FCT pilgrims’ boards have reviewed the 2022 hajj operation and adopted strategies for a hitch-free 2023 operation.

”We have agreed with all having reviewed the 2022 operation to do everything that will make us to get every pilgrim that registered to Saudi Arabia in good time.

”We have also agreed that there will be zero tolerance for flight delay or cancelation this year and if there is such there will be sanction on the state or pilgrim or airline that is responsible for it.

”We have also agreed that May 21, 2023, will be the day for the inaugural flight for the 2023 Hajj”, he said.

With less than 43 days to the commencement of the inaugural flight, the meetings and agreements reached by NAHCON and other stakeholders in the country and Saudi Arabia, intending pilgrims and their families look forward to a commensurate treatment of the guest of Allah at the Holyland during and after the performance of the religious ritual at the 2023 Hajj.(NAN) (www.nannews.ng)

**If used, credit the writer and the News Agency of Nigeria (NAN)

Empowering Nigeria’s tech-savvy entrepreneurs

A news analysis by Maharazu Ahmed, News Agency of Nigeria (NAN)

The growing global demand for Information Communication and Technology (ICT) services has emboldened tech-savvy entrepreneurs to grab the opportunities inherent in the multi billion dollar sector to propel the world to new heights in various areas of human endeavours.

The global demand for ICT was heightened during the COVID-19 pandemic as people relied on technology to stay connected, work remotely and access essential goods and services.

When Nigeria set up the Ministry of Communication and Digital Economy in 2019, the aim is to fully exploit the opportunities in the sector, create new businesses and jobs, enhance security and transparency and diversify the country’s economy.

The country also launched the Digital Nigeria Programme on March 19, 2020, a key initiative to empower innovators and entrepreneurs with skills required to thrive in the emerging digital economy.

This was followed by digital training for Nigerians at a time the world stayed home to combat the spread of ‪COVID-19.

The Federal Ministry of Communications and Digital Economy partnered a number of institutions to enable Nigerians acquire cutting edge digital skills within the comfort of their homes.

Within the period, the Ministry provided Nigerians with over 280+ hours of free learning and 85+ courses on key emerging technologies like Blockchain, Artificial Intelligence, Big Data, Cloud Computing.

This is in line with the Ministry’s commitment to developing the capacity of Nigerians to use technology to solve problems. Thus, the Digital Nigeria programme helped to empower Nigerians to develop skills and build innovative solutions to tackle challenges affecting communities.

This aim is being largely achieved, because as at the second quarter of 2022, ICT had contributed 18.44 per cent to Nigeria’s GDP, making it the fastest revenue generator in the Nigerian economy

Digital and high tech savvy Nigerians had grabbed the opportunity and delved into the multi billion dollar industry, setting up businesses to drive the sector. Today, out of the seven Unicorns from Africa valued at 11.45 billion dollars , four of the unicorns, valued over 1 billion dollars each, originated from Nigeria.

According to the Minister of Communication and Digital Economy, Prof. Isa Pantami, the revolution in Nigeria’s digital economy, which began under President Muhammadu Buhari, has been remarkable.

‘‘All these unicorns in Nigeria attained this position during this administration. The first was in 2019, while the second, third and fourth attained this position in 2021.

‘‘57.14 per cent of the entire African unicorns originated from Nigeria while the market value of seven of them combined as at February 2023 is $11.45 billion, with the four from Nigeria contributing $7.5 billion,’’ Pantami said.

For clarity, Unicorn companies are those that reach a valuation of $1 billion without being listed on the stock market. It is the dream of any tech startup.

To push the boundaries of inclusiveness in the tech ecosystem, the Nigeria Startup Act was signed into law by President Buhari in October 2022. It is a bold step to institutionalise funding support for tech-savvy Nigerians.

“Today in the Act, there is a provision of supporting them financially. The government will set aside a minimum of N10 billion yearly in addition to other sources of funding that have been captured in the law,” Pantami said.

The law has also made clear provisions for tax breaks for Startups, ease of doing business, intellectual property protection and participation in public procurement, among others.

Nigeria has also raised broadband penetration now to 100 per cent following the deployment of SpaceX’s Starlink satellite Internet service. This will invariably spur more investment in ICT and its generative residue in the tech ecosystem.

However, in spite of these interventions towards making Nigeria a global talent factory in the digital space, the country’s startup ecosystem still faces significant challenges, such as access to funding, appropriate support infrastructure and skilled manpower.

‘‘These remain major barriers to the growth of the ecosystem, particularly for early-stage startups,” President Buhari acknowledged when he inaugurated a council to drive the implementation of the Startup Act.

He however said ‘‘the provisions of the Nigeria Startup Act 2022 represent an important step towards addressing these challenges and promoting the growth of a more vibrant and inclusive startup ecosystem in Nigeria.

‘‘Furthermore, implementation of the Act will lead to consolidation and further development of the gains recorded by Nigeria’s digital economy in the last four years, in the areas of contribution to GDP and increased revenue generation, among others.’’

To ensure the implementation of the Act, Buhari on April 5, 2023, inaugurated a 14-member National Council for Digital Innovation and Entrepreneurship to be chaired by the President, while the Vice President will serve as the council’s vice chairman.

The Minister of Communications and Digital Economy, will however preside over the Council in the absence of the President and Vice President.

Other members of the council are Ministers of Finance, Budget and National Planning; Industry, Trade and Investment; Science, Technology and Innovation, and the Governor, Central Bank of Nigeria.

Also on the council are four representatives of the Startup Consultative Forum, one representative each of Nigeria Computer Society and the Computer Professionals, as well as Director-General, NITDA, as Secretary.

The inauguration of the council is significant to Nigeria’s determination to remain in the forefront of the remarkable growth of startups in Africa, having already raised up to over 4 billion dollars in Startups between 2019 and 2022.

Buhari said at the inauguration that Nigeria was enticed to join the race for a slice in the sector by the remarkable growth of startups worldwide, where over 400 billion dollars of venture funding was accessed in 2022.

‘‘This growth was fuelled by a surge in demand for digital services as people worldwide turned to technology to stay connected, work remotely, and access essential goods and services largely due to the COVID-19 pandemic.

‘‘In Africa, the startup ecosystem has also been growing at a remarkable pace. In 2022, African startups raised a record of 5.4 billion dollars in funding,’’ he noted.

In this respect, Nigeria’s target has been to fully harness its youth talents, lift the country’s economy to new heights, and propel its vision and commitment towards ramping the potential of its young and innovative population in the tech ecosystem.

According to the President, the Council will also serve as a critical governance structure in the implementation of the Startup Act.

It will ensure that government agencies, entrepreneurs, investors and support organisations collaborate with the startup ecosystem to achieve the goals of promoting the growth of a vibrant and sustainable startup ecosystem in the country.

‘‘I had earlier directed the Secretariat, the National Information Technology Development Agency (NITDA) to commence the execution of the implementation plan it developed.

‘‘One of the important aspects of the implementation plan is the development of the Startup Portal, which will serve as a platform that will drive the implementation of the NSA 2022 and collaboration between all stakeholders,’’ Buhari said.

No doubt, digital innovation and entrepreneurship are prerequisites to building an indigenous digital economy, as such the Council should consolidate the gains and achievements recorded in the Nigerian digital economy sector.

According to Pantami, the Buhari administration has set three unprecedented records of ICT contributions to GDP which should be surpassed.

“For example in the first quarter of 2020, ICT alone contributed 14.07 per cent to the country’s GDP. In the second quarter of 2021, ICT alone, without digital services, contributed 17.92 per cent to GDP while in the second quarter of 2022, ICT contributed 18.44 per cent.

‘‘Annually, this administration has been setting new records when it comes to ICT contributions to GDP,’’ the minister said.

Mr Gbenga Adebayo, Chairman of the Association of Licensed Telecommunication Companies in Nigeria, said the digital economy sector has done very well.

“Today we are one of the largest contributors to the GDP, we are also one of the largest in terms of employment generation. The industry has become a driver of many other sectors of the economy.

“From the number of policies formulated by the Buhari administration, we have quantum leap in the development of the sector. We have seen rapid development of the industry,” Adebayo said.

He advised that the incoming administration should maintain and sustain the achievements in the sector, while also addressing local problems such as high energy cost, to further propel the gains in the ICT and digital economy. (NAN)

**If used, credit the writer and the News Agency of Nigeria (NAN)**

Disrupting stress factors in the lives of Nigerians

A news analysis by Ismail Abdulaziz, News Agency of Nigeria (NAN)

Mr Salaudeen Mohammed, a teacher in Niger State, said what worries him the most daily is the way people behave inside commercial transport, especially when talking about the problems  of the country.

‘’You hear someone expressing an opinion about national issues with such jaundiced points that one have to intercept him as an educated person. But what do you get; the anger is transferred to you as if you caused the issue. Thank God if the speaker does not have a stereotype about one tribe or the other. That will be another wahala,’’ he said.

For Mrs Evelyn Adejo, a trader in Wuse market, it is the challenges she faces coming to the market that gives her concerns and headaches.

‘’I live in Mararaba, Nasarawa State, and come to Wuse, FCT, market every day except Sunday to sell my wares. The heavy traffic and manner of driving on the road gives me goose pimples and stress. So see driving of all kinds; wrong overtaking, speed, change of lane and sometimes government officials harassment.

A retired civil servant, Mr Audu Stephen, said he has taken all the challenges in his stride because there is always a solution to every problem in life.

‘’Due to my experience as a civil servant, I have realised that I need to do my own quota to get the change that I want to happen.

“In my community now I have taken it on myself to take care of challenges that we have with the electricity distribution company.

“Another retiree, has taken it on himself to take care of any problem of the community relating to local government in terms of tax and levies’’, he said.

Every day coming from home, reaching places of engagement as well as when returning home, a Nigerian is faced with one stress/depression or the other, mostly due to lack of action or inaction of a fellow human being.

Simply put the stress factors include commuters on commercial vehicles not behaving orderly, drivers’ recklessness and not wanting passengers to caution them, holdups along the road due to careless parking in unauthorised areas to pick passengers. The list is endless.

Unruly behaviours of medical personnel in health facilities, bank officials, unapologetic and lack of courteous attitudes of tricycle and motorcycle operators, vehicle inspection officers, FRSC, states road marshals can also be added to the list of stress faced Nigerians.

According to UNICEF, depression can happen as a reaction to something like abuse, violence and the death of someone close or family problems like domestic violence or family breakdown.

Someone might get depressed after being stressed for a long time. It can also run in the family. Sometimes we may not know why it happens.

If you’re constantly under stress, you can have physical symptoms like headaches, an upset stomach, high blood pressure, chest pain, and problems with sex and sleep. Stress can also lead to emotional problems, depression, panic attacks, or other forms of anxiety and worry.

What can be done to rectify these challenges in order to bring sanity to Nigeria and its patriotic citizens? Yes, patriotic.

All hands must be on deck to have an individual commitment to seriously consider ‘’doing unto others what you will want done unto you’’ and also making the rule of law work.

If you are among those that read or watch films, you will see deliberate efforts by citizens of developed countries to make their society liveable in all aspects.

They give information to the relevant authorities’ to handle any infractions observed and actually follow up to see that the right thing is done.

There is no society without laws and regulations well defined. It has not been enough for Nigerians to complain about things not working or acting correctly in those societies where there is order.

Take for example, in some parts of the country particular habits are not permitted and everybody that wants to live there abides by it.

So, in effect we should as citizens take it upon ourselves to see that well defined rules and regulations for our safety and wellbeing are discharged by those paid and charged with the responsibilities.

Politicians have shown the right attitude over time by taking their disagreement over election results to the law courts as demanded by the constitution and the electoral Act.

This is the way to go. The journey to greatness starts with a move in the right direction. Nigerians must move towards the right direction and one day, our dream of a better Nigeria would be realised.

Nigerians must not be deterred by one incident and hastily conclude that nothing will work in the country.

Getting what we want requires much sacrifice so as to allow the future to be much brighter. It requires knowing the law, following it and when needed changing it to suit current situations.

Experts say the functions of law in society are infinite. Law ensures survival of the society, sustains accepted standards of public morality, provides the substratum for social-economic emancipation, a desire to live, and necessity for living in society.

The law  teaches how to organise our affairs in a manner that discourages conflicts by guiding human actions.

What are the citizen roles in the community? A citizen must have a role in the community that others recognize as important.

Being a teacher, a parent, a student, an artist, a neighbour, a committee member, and/or a person in recovery are all roles that are recognized as important and valuable for society and the individual.

For example, local residents need to engage in voluntary work, organise litter-clearing campaigns, set up collectives to purchase solar panels or form local care cooperatives. They may also be involved in the decision-making about the municipal budget.

Researches show that rule of law correlates to higher economic growth, greater peace, less inequality, improved health outcomes and more education.

The rule of law is a critical factor for the advancement of democracy, rooted in equal rights and accountability.

By strengthening the rule of law, we protect the rights of all people, advance inclusiveness, and limit the arbitrary exercise of power, which are the cornerstones of modern democracy.

According to the father of rule of law, A.V. Dicey, personal liberty is “the right not to be subject to imprisonment, arrest and any other physical coercion in any manner that does not admit of legal justification.”

Nigerians fate does not only rest in the hands of a few, the majority have a lot to do in the attainment of the right atmosphere and environment for a better society that promote stability, mental health and socio-economic development of all.(NAN)

**If used, please credit the writer and the News Agency of Nigeria (NAN)