News

IMF revises Nigeria’s economic growth forecast for 2022

Published

1 year ago

April 19, 2022

The International Monetary Fund (IMF) has increased its growth forecast for Nigeria’s economy in 2022 from 2.7 percent to 3.4 percent, up from 2.7 percent in January.

The IMF announced the new projection in its World Economic Outlook update released on Tuesday.

It also projected the country’s economy to grow by 3.1 per cent by 2023 from the 2.7 per cent it earlier projected.

It, however, reduced the global growth projection to 3.6 per cent for 2022 and 2023, given the Russia/Ukraine War.

“Global economic prospects have worsened significantly since our last World Economic Outlook forecast in January. At the time, we had projected the global recovery to strengthen from the second quarter of this year after a short-lived impact of the Omicron variant. Since then, the outlook has deteriorated, largely because of Russia’s invasion of Ukraine—causing a tragic

the humanitarian crisis in Eastern Europe—and the sanctions aimed at pressuring Russia to end hostilities,” IMF said.

The lender projected Russia’s economy to shrink by 8.5 per cent in 2022 while Ukraine’s economy is projected to decline by 35 per cent.

The Fund has raised concerns about how the pandemic might have caused the interdependence between banks and governments which can eventually lead to a “doom loop” for emerging economies.

A doom loop is a phenomenon by which weak banks can destabilise governments that support them and over-indebted governments can push banks that hold their bonds over the edge.

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“Governments around the world have spent aggressively to help households and employers weather the economic impact of the pandemic. Public debt has mounted as governments have issued bonds to cover their budget deficits. The average ratio of public debt to the gross domestic product—a key measure of a country’s fiscal health—rose to a record 67 percent last year in emerging market countries, according to Chapter 2 of the IMF’s April 2022 Global Financial Stability Report,” the report said.

“Emerging-market banks have provided most of that credit, driving holdings of government debt as a percentage of their assets to a record 17 percent in 2021. In some economies, government debt amounts to a quarter of bank assets. The result: emerging-market governments rely heavily on their banks for credit, and these banks rely heavily on government bonds as an investment that they can use as collateral for securing funding from the central bank.”

It said emerging-market economies are now at greater risk than advanced economies for two reasons.

“For one, their growth prospects are weaker relative to the pre-pandemic trend compared with advanced economies, and governments have less fiscal firepower to support the economy.
“For another, external financing costs have generally risen, so governments will have to pay more to borrow,” the fund said.

It advised that policymakers should develop resolution frameworks for sovereign domestic debt to facilitate orderly deleveraging and restructuring in case they are needed.

Related Topics:IMF Russia/Ukraine War World Economic Outlook

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Ghana is looking to supply Nigeria with its electricity needs following power grid shutdown

Published

2 days ago

September 23, 2023

Seun Okerayi

LAGOS- With the goal of achieving “100% universal energy access” and maybe exporting electricity to its neighbor, Nigeria, Ghana has steadily been developing its power sector.

During his presentation in Lagos on the second day of the Nigeria Energy Leadership Summit, Mr. Hanson Monney, the Head of the Generation and Transmission Unit at the Ghanaian Ministry of Energy, made this point, emphasizing that via effective policy development and implementation, Ghana has already attained an impressive 80% to 85% universal energy access inside its boundaries.

“So, we are working on all these things to make sure that the power system of Ghana continues to be as good as it is or even better, and then, maybe, we can be exporting more to our big brothers in Nigeria when the grid is finally settled,” Mr. Hanson Monney said

This declaration follows the second national power grid breakdown in Africa’s most populous country and the continent’s top oil producer, Nigeria which resulted in a total blackout of homes and businesses.

In contrast, Ghana is aggressively pursuing a variety of energy sources, including grid electricity, mini-grids, and solar-dominated renewable energy, to attain “Universal access to energy by 2024” as instructed by the country’s President.

Monney agreed that the geographic limitations make it difficult to provide everyone in Ghana with access to electricity, particularly on isolated islands, riverbanks, or lakeside villages. In response to this, he stated,

“So, now, we are trying to scale our renewable energy access, and that is how we have planned in 2022 to scale up our renewable energy program,” he said.

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Financial sustainability is one of the biggest problems facing Ghana’s power sector, as the country struggles with growing debts and the purchase of surplus capacity.

“There is so much debt that the government has to shore up to make sure that the system is afloat because we have procured a lot of excess capacity, which comes with attendant costs. So, these financial challenges require some policy actions to eliminate legacy debts,” Mooney stated.

Monney stressed the significance of lowering electricity prices, particularly for enterprises, since high electricity bills are a major issue in Ghana. “We saw that in Ghana historically. These industries have been subsidizing the residential sector, and it should be the other way around. Industries should remain viable so that businesses can thrive,” Mooney stated.

Crime

EFCC declares Delta brothers wanted over alleged N330m fraud

Published

3 days ago

September 22, 2023

Seun Okerayi

The Economic and Financial Crimes Commission has declared two siblings from Delta State wanted for alleged fraud of N330 million.

This was contained in a statement issued by the EFCC spokesperson, Wilson Uwujaren, copies of which were made available to journalists in Warri, Delta State on Friday.

The anti-graft agency named 55-year-old Faith Onoja and 44-year-old Emmanuel Onoja, both from Ughelli South Local Government Area of Delta State, as being declared wanted by the EFCC.

According to the commission, Faith’s last known address is “Close to Celestial Church, Ekrovie new layout, old Egini road, Orhuehorun, Delta State” while Emmanuel’s last known address is “No 6. Jasmison Street, NPDC/ND Western Estate, Warri, Delta State”.

The statement urged that “anybody with useful information as to their whereabouts should contact the commission” in its offices nationwide.

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Education

Gov. Kefas Grants 50% Tuition Cut for Final Year Nursing Students

Published

4 days ago

September 21, 2023

Seun Okerayi

In a move that underscores the commitment of the Taraba State Government to prioritize education and make it more accessible, the Taraba state Governor, Dr. Agbu Kefas has approved a significant reduction in tuition fees for final year students at the College of Nursing and Midwifery Jalingo.

Effective immediately, all final year students pursuing their nursing and midwifery diplomas will benefit from a 50% reduction in tuition fees. This decision aims at alleviating the financial burden on students and their families, ensuring that quality education remains affordable and accessible to all.

Dr.Agbu Kefas stated, “Education is the bedrock of our society, and we are dedicated to providing opportunities for our students to excel without the undue burden of high tuition costs. We believe that this reduction will not only support our students but also contribute to the development of the healthcare sector in our state.”

The Taraba State Government remains committed to enhancing the quality of education and healthcare services in the state. This reduction in tuition fees is a significant step towards achieving these goals.