The Nation Newspaper

Tag: world bank

  • World Bank: 600m Africans face blackout by 2030

    World Bank: 600m Africans face blackout by 2030

    The World Bank has warned that without significant action, close to 600 million Africans will still be without electricity by 2030.

    World Bank Managing Director of Operations, Anna Bjerde, addressing West and Central African Ministers of Finance in Abuja yesterday emphasized the importance of universal electricity access and expressed the World Bank’s commitment to supporting countries in achieving this goal.

    One example of this commitment is in Nigeria, where 45 million people still lack access to electricity.

    The government, in partnership with the World Bank, has pledged to expand access to over 70 million rural Nigerians through renewable energy solutions.

    Regional integration efforts, such as the West African Power Pool, established 25 years ago, will also contribute to extending clean and affordable energy across the continent.

    To achieve universal electricity access, Bjerde estimated that the World Bank Group would require about $30 billion in support from the International Development Association (IDA) by 2030  that is about $5 billion annually.

    This funding she said would help provide electricity access to 300 million people in Africa, including 100 million in West and Central Africa. Bjerde highlighted the importance of mobilizing public resources, private sector involvement, and domestic resources to achieve this turning point.

    In addition to addressing electricity access, Bjerde discussed the progress made in increasing broadband penetration in Africa. Through country-specific reforms and regional projects, broadband penetration was tripled within the Digital Economy for Africa Initiative, surpassing the initial goal of doubling it within a five-year period.

    Bjerde also acknowledged the lessons learned from the COVID-19 pandemic, emphasizing the importance of a strong delivery system to support vulnerable populations.

    Read Also: Nigeria, World Bank to strengthen bilateral ties – Edun

    The World Bank she noted utilized established cash transfer systems to reach over 50 million people and provided support to farmers and pastoralists. The investments made in robust delivery and targeting systems now enable greater assistance to the most vulnerable communities.

    Bjerde expressed the World Bank’s commitment to supporting Africa’s long-term prosperity through financing and partnerships. The World Bank’s financing to Sub-Saharan Africa has significantly increased over the years, with an estimated $44 billion allocated to country adaptations during the current IDA23 cycle. In fragile and conflict-affected countries, the World Bank contributes over 40 percent of overseas development assistance.

    Looking ahead, Bjerde encouraged continued dialogue among the finance ministers and emphasized the significance of their advocacy and leadership in supporting ambitious financing and policy packages. She also called for their support in raising funds for the International Development Association, highlighting its importance as the largest source of concessional resources for low-income countries and a major provider of climate finance.

    Nigeria’s Minister of Finance, Wale Edun, echoed Bjerde’s message, by stating that the meeting with the World Bank team would focus on discussing the upcoming financing round with the World Bank’s International Development Association.

    The meeting he said is aimed at addressing vital issues such as electricity access, social safety nets, and digitization, highlighting the World Bank’s role as a trusted development partner.

  • World Bank spends $15b on 30 projects in Nigeria

    World Bank spends $15b on 30 projects in Nigeria

    The World Bank has committed over $15 billion to support 30 development programmes across Nigeria.

    In a statement, the World Bank said the programmes are at the federal and state levels. They tackle various issues – from improving lives to growing the economy.

    To this end, the World Bank is throwing its weight behind Nigeria’s development with a big financial boost and expert advice.

    The Managing Director Operations of the World Bank, Anna Bjerde, has arrived in Abuja for a two-day visit to discuss key areas like the economy, energy, and creating jobs.

    The statement noted that beyond financial commitments, the World Bank also offers expert advice and support on various fronts. They help analyse complex situations, suggest effective policies, strengthen institutions, and even help with implementing projects on the ground.

    The World Bank’s sister organisation, the International Finance Corporation (IFC), is also heavily investing in Nigeria, with $2 billion dedicated to supporting businesses. Their focus is on helping small and medium-sized companies get access to loans, promoting sustainable practices, and creating jobs in agriculture and manufacturing.

    According to the statement, “the World Bank provides large-scale concessional financing for the development programmes of both the federal and state governments; as of January 2024, 30 of such programmes are under implementation financed by over US$15 billion in commitments. The World Bank also provides support through analytics, upstream policy advisory, institutional strengthening, and implementation support initiatives.

    “The International Finance Corporation (IFC) investment portfolio in Nigeria is the second largest in Africa and stands at US$2 billion. IFC’s strategic objectives in Nigeria are aimed at supporting diversified growth, enhancing inclusion, and promoting sustainability and job creation.

    “IFC’s work in Nigeria boosts universal energy access and green energy adoption, fosters increased access to finance for micro, small, and medium-sized enterprises (MSMEs) through financial intermediaries, supports agribusiness and manufacturing to enhance food security, meet domestic needs, and grow exports.’’

    During her visit, Ms. Bjerde will discuss crucial topics with Nigerian officials, including how to manage the economy, expand access to electricity, build better digital infrastructure, and equip people with the skills they need for future jobs.

    Ms. Bjerde will also join a meeting with finance ministers from West and Central Africa. They will discuss how to work together to achieve sustainable growth and create more opportunities for everyone in the region.

    To get a well-rounded perspective, Ms. Bjerde will also meet with leaders from Nigeria’s private sector, particularly those involved in energy and technology. Their insights the statement said will help shape the World Bank’s future support for Nigeria.

    This visit highlights the World Bank’s strong commitment to Nigeria’s development. By combining financial resources, expert advice, and collaboration with both government and private sector, they aim to help Nigeria build a brighter future for all its citizens.

    “Ms. Bjerde will use the visit —her first to Nigeria as Managing Director of Operations— to further the World Bank’s engagement with Nigeria on critical aspects of the country’s development agenda, including macroeconomic and fiscal policy, energy access, digital infrastructure, and skills. She will participate in a meeting of Western and Central Africa Ministers of Finance co-hosted by the Government of Nigeria and the World Bank.

    “At the meeting, Ms. Bjerde will discuss the ambitious regional development priorities and how additional International Development Association (IDA) resources can further support countries to “leap forward” and attain sustainable growth, jobs, and development.

    Read Also: Reps probe delay in release of National ID cards from 2012

    “While in Nigeria, Ms. Bjerde will hold bilateral meetings with the Minister of Finance, Mr. Olawale Edun, the Minister of Budget and Economic Planning, Mr. Abubakar Atiku Bagudu, and the Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso. She will host a roundtable discussion with private sector leaders in the energy and digital sectors” the statement read.

    Nigerian officials said they were happy to receive support from the World Bank and expressed their desire for more cooperation in the future.

    The Finance Minister, Wale Edun, praised Ms. Bjerde’s visit as a positive continuation of their relationship with the World Bank. He asked for more support and mentioned Nigeria’s ongoing reforms.

    Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, was grateful for the World Bank’s support in various areas, including finance and knowledge. He highlighted the importance of the World Bank’s expertise in the knowledge economy.

    The Budget Minister, Senator Atilu Bagudu, emphasized the government’s efforts in reform, including reducing the budget deficit for the first time in a while. He also requested more support from the World Bank.

  • World Bank: global food prices continue to rise

    World Bank: global food prices continue to rise

    • Groups seek intervention

    The World Bank reports that there is still significant global food price inflation.

    In its most recent Food Security Update report, released yesterday, the World Bank said high inflation was observed in low, middle, and high-income countries based on the data available on food prices.

    It said, with a 1.3 percentage point increase from the previous food update on January 17, 2023, that the rate of inflation was more than five percent in 63.2 percent of low-income countries.

    The report indicated that 73.9 per cent of lower-middle-income countries and 48 percent of upper-middle-income countries, with no percentage change from the previous update, had inflation rates higher than five percent.

    Also, two groups, Consumers International and Consumer Advocacy and Empowerment Foundation (CADEF), yesterday urged the Federal Government to step in to halt what they described as unfair food pricing in the market.

    They urged the Federal Government to address the threat of unfair food prices, including strengthening competition, sanctioning anti-competitive practices, tackling monopolies, addressing multiple taxations, and supporting subsidies for farmers.

    Read Also: NAFDAC seals three factories, seizes banned N6m products in Jos

    The group’s research indicated a continued acceleration of retail prices compared to wholesale prices, particularly for beans, yam, rice, chicken, and maize, thus necessitating the call for a thorough investigation by the Federal Government.

    Executive Director at CADEF, Prof. Chiso Okafor, stressed the need for regulatory intervention to ensure fair pricing in food markets. Okafor said: “The findings underscore the urgent need for authorities to investigate and address any unfair practices that may be contributing to the burden on consumers and farmers.”

    They said the recent research they conducted showed very disturbing trends in Nigeria’s food pricing landscape. The research spans six geo-political zones and focused on fluctuations in food prices, especially staple items such as yam, garri, rice, beans, chicken, and groundnut oil between the months of November and December last year.

    The groups’ earlier research in August showed a substantial rise in retail/consumer prices compared to wholesale/market prices for essential food items which suggested that consumers are disproportionately burdened with increased costs, raising questions about fairness in the market.

    Consumers International, representing consumers worldwide, developed a tool called the Fair Food Price Monitor. This tool tracks the relationship between food prices at different supply chain stages, utilizing data from reputable sources such as the National Bureau of Statistics (NBS) and FEWS NET.

    Specialist in Fair Food Prices in Africa at Consumers International, Davine Minayo, stressed the importance of data-driven decision-making to address market imbalances.

    Minayo said: “Our collaborative efforts aim to shed light on the issues affecting consumers and farmers in Nigeria.”

    According to the groups, detailed analysis of farm gate, wholesale, and retail prices for commodities such as maize, rice, beans, yam, palm oil, and chicken over the past three weeks revealed notable price fluctuations.

    “November and December brought forth noteworthy shifts in the percentage changes across the value chain for key commodities—beans, chicken, maize, and yam. These fluctuations serve as a lens through which we can examine the intricate interplay of market forces, presenting opportunities and challenges alike.

    “At the farmgate level compared to the retail level, in November, beans, chicken, and maize took the spotlight with substantial percentage changes of 127.29per cent, 176.16per cent, and 134.07 per cent, respectively. The stage altered in December, witnessing a recalibration of these figures. Beans retained prominence, albeit with a reduced percentage change of 97.84per cent, while chicken and maize experienced shifts to 41.10 per cent and 111.45 per cent, respectively. Intriguingly, yam emerged as a contender in December, securing a notable percentage change of 87.34per cent,” they said, adding that understanding the factors driving these fluctuations is crucial for market analysis and decision-making.

    “These fluctuations underscore the volatility within the retail sector, where even slight changes can have palpable impacts on consumer accessibility and affordability. Stakeholders are advised to closely monitor these trends, engage in ongoing analysis, and remain adaptable to the evolving dynamics of the commodity market.  The overarching concerns emanate from price variations at each level of the value chain. The potential impacts on farmers’ income, supply chain stability, and consumer affordability necessitate collective attention, the groups said.

    According to them, in response to the identified challenges, stakeholders are encouraged to commit to a call to action.  Collaborate with farmers and distributors (market associations, farmers associations, security agencies, etc.,) to address farmgate and retail concerns. Enhance market transparency and information sharing for pricing stability. Engage in discussions to address systemic issues within the food supply chain. This nuanced analysis serves as a call to action for all stakeholders to navigate the complexities of the food supply chain collectively.

    According to the World Bank, in high-income nations, food inflation was also above five percent in 44.4 percent of the countries, a decrease of 1.9 percentage points from the previous food update.

    Based on the report, in seventy-one percent of the 165 countries where data was available, the inflation of food prices exceeded the inflation of overall prices in real terms.

    “According to the International Food Policy Research Institute (IFPRI), the recent attacks by Houthi rebels on ships in the Red Sea have triggered a 40 percent decrease in trade volumes in the Suez Canal, which is decreasing global food security,”

    The report highlighted the critical issue of food insecurity within the framework of multiple challenges, according to the World Bank’s Global Economics Prospects 2024 report.

    “In 2023, food prices, a significant component of the agricultural price index, declined by nine percent because supplies of major crops were ample, except for rice, which declined by 27 percent.

    “Food prices are expected to decline further in 2024 and 2025, although potential risks such as energy cost increases, adverse weather events, trade restrictions, and geopolitical uncertainty could affect them.”

    Citing a blog post from the World Bank Agriculture and Food Global Practice, the report said the pressing need for circular food systems to solve environmental issues was being addressed.

    “Circular food systems, which emphasise reduce-reuse-recycle-remove approaches, are proposed as a way to build profitable, sustainable, low-emission food systems.”

    The World Bank Group announced that it has stepped up its response to food and nutrition security in response to the global food security crisis.

    It declared it is now making $45 billion available through a combination of $22 billion in new lending and $23 billion from its existing portfolio.

    “Our food and nutrition security portfolio now spans across 90 countries.

    “It includes both short-term interventions such as expanding social protection, also longer-term resilience such as boosting productivity and climate-smart agriculture.

    “Our intervention is expected to benefit 335 million people, equivalent to 44 percent of the number of undernourished people.

    “Around 53 percent of the beneficiaries are women who are disproportionately more affected by the crisis.

    “Some examples include the 766 million dollars West Africa Food Systems Resilience Programme, aimed to increase preparedness against food insecurity and improve the resilience of food systems in West Africa.”

    The World Bank noted plans were underway to commit an additional 345 million dollars to Togo, Senegal, and Sierra Leone.

  • World Bank predicts weakest 5-year output in decades 

    World Bank predicts weakest 5-year output in decades 

    The World Bank has predicted the weakest five-year growth for global economies in three decades.

    As the world nears the midpoint of what was intended to be a transformative decade for development, the global economy is set to rack up a sorry record by the end of the year—the slowest half-decade of Gross Domestic Product growth in 30 years, the bank said.

    The bank said by one measure, the global economy is in a better place than it was a year ago: the risk of a global recession has receded, largely because of the strength of the United States economy. But mounting geopolitical tensions could create fresh near-term hazards for the world economy. 

    The bank explained that the medium-term outlook has darkened for many developing economies amid slowing growth in most major economies, sluggish global trade, and the tightest financial conditions in decades. 

    Global trade growth in 2024 is expected to be only half the average in the decade before the pandemic. Meanwhile, borrowing costs for developing economies—especially those with poor credit ratings—are likely to remain steep with global interest rates stuck at four-decade highs in inflation-adjusted terms. 

    Global growth is projected to slow for the third year in a row—from 2.6 per cent last year to 2.4 per cent in 2024, almost three-quarters of a percentage point below the average of the 2010s. Developing economies are projected to grow just 3.9 per cent, more than one percentage point below the average of the previous decade. 

    After a disappointing performance last year, low-income countries should grow 5.5 per cent, weaker than previously expected. By the end of 2024, people in about one out of every four developing countries and about 40% of low-income countries will still be poorer than they were on the eve of the COVID pandemic in 2019. In advanced economies, meanwhile, growth is set to slow to 1.2% this year from 1.5 per cent in 2023.  

    “Without a major course correction, the 2020s will go down as a decade of wasted opportunity,” said Indermit Gill, the World Bank Group’s Chief Economist and Senior Vice President. 

    ”Near-term growth will remain weak, leaving many developing countries—especially the poorest—stuck in a trap: with paralysing levels of debt and tenuous access to food for nearly one out of every three people. That would obstruct progress on many global priorities. Opportunities still exist to turn the tide,’’ he added.

    Read Also: Minister seeks restructuring of World Bank’s scale up project

    This report offers a clear way forward: it spells out the transformation that can be achieved if governments act now to accelerate investment and strengthen fiscal policy frameworks.” 

    “Investment booms have the potential to transform developing economies and help them speed up the energy transition and achieve a wide variety of development objectives,” said Ayhan Kose, the World Bank’s Deputy Chief Economist and Director of the Prospects Group. ”To spark such booms, developing economies need to implement comprehensive policy packages to improve fiscal and monetary frameworks, expand cross-border trade and financial flows, improve the investment climate, and strengthen the quality of institutions. That is hard work, but many developing economies have been able to do it before. Doing it again will help mitigate the projected slowdown in potential growth in the rest of this decade.” 

    The bank also identified what two-thirds of developing countries—commodity exporters specifically—can do to avoid boom-and-bust cycles. The report finds that governments in these countries often adopt fiscal policies that intensify booms and busts. When increases in commodity prices boost growth by 1 percentage point, for example, governments increase spending in ways that boost growth by an additional 0.2 percentage point. In general, in good times, fiscal policy tends to overheat the economy. In bad times it deepens the slump. This “procyclicality” is 30 percent stronger in commodity-exporting developing economies than it is in other developing economies. Fiscal policies also tend to be 40 percent more volatile in these economies than in other developing economies. 

    The instability associated with higher pro-cyclicality and volatility of fiscal policy produces a chronic drag on the growth prospects of commodity-exporting developing economies. The drag can be reduced—by putting in place a fiscal framework that helps discipline government spending, by adopting flexible exchange-rate regimes, and by avoiding restrictions on the movement of international capital. On average, these policy measures could help commodity exporters in developing economies boost their per capita GDP growth by as much as 1 percentage point every four or five years. Countries can also benefit by building sovereign-wealth funds and other rainy-day funds that can be deployed quickly in an emergency.  

  • Fed Govt eyes $1.5b World Bank loan to save naira

    Fed Govt eyes $1.5b World Bank loan to save naira

    • Edun: Govt’s reforms should be rewarded with loan

    The Federal Government has approached the World Bank for a $1.5 billion budgetary support loan to boost dollar liquidity and support naira’s recovery.

     Minister of Finance and Coordinating Minister for the Economy, Olawale Edun, said although the loan request is currently at the discussion level, he expressed confidence that the loan request will be approved.

    The fund is also expected to help the country ease a severe dollar shortage that has contributed to the naira’s steep decline. The naira yesterday fell to a record low of N1,320 to dollar at the parallel market.

    The naira decline was attributed to strong demand on the parallel market, also known as the black market.

    This represents 3.03 per cent or N40.00 weaker than the N1,280 recorded at the close of trading on Tuesday. This depreciation marks the lowest the Naira has gone since October 26, 2023, when it reached N1,300 against the dollar on the parallel market.

    At the Investors and Exporters window- the official market- the local currency traded N931 to a dollar, creating N389 to dollar premium between the official and parallel markets. 

     “We’re hoping to get $1 billion or $1.5 billion from the World Bank” for budgetary support, Edun said Wednesday in a Bloomberg Television interview. “It is a matter of discussion at the moment, but we think we will get the support because we are continuing with our reforms.”

    Since taking office in May, President Bola Tinubu has carried out very tough reforms, including the scrapping of costly fuel subsidies and relaxed its exchange-rate policy.

    The reforms have been welcomed by international investors, but caused a surge in the cost of living, with inflation hitting a 27-year high of 28.9 per cent last month and the naira slumping about 50 per cent in value against the dollar.

    “What we’ve done with fuel subsidies, what we have done in terms of the foreign-exchange market reform, deserve support,” he said. “We’ve done enough and we deserve to be rewarded imminently.”

    Also, Nigeria is confident of having access to the Eurobond market and may look to tap it later this year, its rates more sufficiently lower.

    “The major issuers and the book runners have told us that there should be a window for Nigeria in the eurobond market,” he said.

    Read Also: Minister seeks restructuring of World Bank’s scale up project

    Nigeria operates an official exchange rate and provides dollars via the central bank to customers at that level.

    But a lack of dollars in the domestic market means there’s a backlog of demand from companies that want to convert naira into the US currency to repatriate profits and pay bills. That has pushed activity into the unofficial market, where the naira changes hands at much weaker levels against the dollar.

    Edun said the Central Bank puts the current backlog at about $5 billion, following efforts to pay it down, and he voiced confidence that it could be cleared easily if steps to lift oil revenue and mobilize dollars already in the economy succeed.

    “There is actually liquidity within the banking system and there should be a way of getting the banks to actually help with that backlog, either on a spot, or a forward-rate basis,” he said. “We believe that if we coral the dollars that are available, we can pay down that backlog almost in one fell swoop.”

    The government expects oil production to ramp up to 1.78 million barrels per day, from about 1.49 million barrels last month, which should help fire up the economy and bolster its coffers.

    Domestic refining of crude is meanwhile expected to resume this year at the state-owned refinery in Port Harcourt, and from the Dangote Refinery in Lagos, which will reduce gasoline imports and help ease the currency squeeze.

    “The priority is to stabilize the naira, that means getting in the additional liquidity – number one from oil revenue,” Edun said. “We’re also looking to make sure we tap Nigerian savings, in particular domestic dollar savings both inside and outside the formal market. There’s a lot of cash in the Nigerian economy.”

  • Minister seeks restructuring of World Bank’s scale up project

    Minister seeks restructuring of World Bank’s scale up project

    Minister of Women Affairs, Uju Kennedy-Ohanenye has started pushing for the restructuring of the World Bank’ Nigeria for Women Program Scale Up (NFWP-SU).

    The $500 million five-year, World Bank program which began last year is aimed at supporting the government of Nigeria to invest in improving the livelihoods of women.

    The NFWP-SU is expected to help ensure better economic opportunities for women which is essential for addressing gender inequality; guaranteeing better education, health, and nutrition outcomes for families; and building women’s and communities’ resilience to climate change.

    She said the push for restructuring does not condemn the work being done by the World Bank but is aimed at ensuring that women in communities have access to what they truly need through the project.

    The minister spoke yesterday in Abuja at a stakeholder meeting on restructuring of the NFWP-SU project with the World Bank, United Nations Children Education Fund (UNICEF) and other government ministries and institutions.

    She said the government of President Bola Tinubu, through the Renewed Hope Agenda want what is best for Nigerian women in communities and want to ensure that the right things are channeled to the people in rural communities as they truly need.

    “The project has been on for five years; it’s called Nigeria for Women Project where the World Bank lends the money to the federal and state governments.

    “Coming in as the Minister of Women Affairs, I felt our women deserve better than what they were getting, it’s not like I am condemning what they were getting before but I just want them to get the best out if it by enhancing it.

    “The President through his Renewed Hope Agenda intends to show a lot of love directly to Nigerians in communities to bring them out of poverty. So for that reason, we want to change the method by which the loan is being utilised. To curtail the expenses that we feel should be better channeled to things we feel the people in rural communities truly need.

    Read Also: Abba Yusuf, Muftwang, Sanwo-Olu others whose fate will be decided by S’Court today

    “The new structure that we want put in place is what we came here to discuss. The World Bank has asked me to draw up a letter, I already did a letter to the President and he has approved the memo for the new restructuring and we have discussed what we want; we have equally gone to the National Assembly and they have approved the loan based on the new structure, so all we need now is to do the needful because the new structure would get them more profit and the women in such rural communities would benefit more and suffer less,” she said.

    Responding, representative of the Country Director of the World Bank Nigeria and Director Operations of the bank, Taimur Samad said the bank simply responds to the needs of the people.

    He said the structure of the project was drawn up and agreed upon by the government of Nigeria which signed to the details.

    Samad informed the minister that this administration in December last year co-signed and approved the details of the project.

    He added that the project structure and disbursement is under the purview of the Ministry of Finance.

    He advised the minister to stick to the structure of the project as previously agreed but added that if the government decides to make changes to the program, a letter would have to be written to the World bank informing them of the new structure through the Ministry of Finance and all the details of the new structure would be spelt out better.

  • Why Nigeria, S’Africa, Angola face low growth, by World Bank

    Why Nigeria, S’Africa, Angola face low growth, by World Bank

    The World Bank Group has explained why three leading economies in Africa- Nigeria, South Africa and Angola will face slow growth in 2024.

    In a report released yesterday, the bank said there are expectations that while growth in  Nigeria, South Africa and Angola — will drag on the rest of the region, economies that are not rich in resources will grow above the expected regional average of 3.8 per cent.

    Indeed, sub Saharan Africa is expected to grow at five per cent this year when Nigeria, South Africa and Angola are excluded from the analysis.

    These three will experience modest improvements on the meager growth recorded last year. They posted a combined 1.8  per cent growth in 2023, a decline from the previous year which the World Bank attributes to disruptive monetary policy moves like Nigeria’s currency redesign, revenue shortfalls from low oil production as in Angola, and infrastructure problems notable in South Africa’s energy and transportation sectors.

    Read Also; Iwuanyanwu: Tinubu should prioritise restructuring Nigeria

    Growth in sub-Saharan Africa slowed to 2.9 per cent in 2023 from 3.7 per cent and 4.4 per cent in the two years before. The continent’s three largest economies greatly influenced the decline, but performance in other countries slowed to 3.9 per cent due to conflict, weak external demand, and various domestic policy measures to tame rising inflation, the World Bank said.

    Two African economies will experience negative growth this year: Equatorial Guinea (-6.1 per cent), and Sudan (0.6 per cent). Overall, the region is still in the throes of a cost of living challenge that has “worsened the economic hardship of the poor and increased food insecurity across the region,” the report said.

    It warns about the potential for shocks elsewhere, particularly conflict in the Middle East, to worsen the food problem: “A conflict-induced sustained oil price spike would not only raise food prices by increasing production and transportation costs but could also disrupt supply chains.”

    Niger, Senegal, and Rwanda will be among the world’s highest growth economies in 2024, the World Bank said in its report on global economic prospects released this week.

    Niger is forecast to grow at 12.5 per cent this year driven by its oil sector which has made up for low uranium production.Its growth rate will only be surpassed by Guyana’s 38.2 per cent, the South American country is also benefiting from an expanding oil sector. Three other African countries expected to be in the top 10 of highest growth economies are the Democratic Republic of Congo, Cote d’Ivoire and Ethiopia.

  • Global economy set for weakest performance, says World Bank

    Global economy set for weakest performance, says World Bank

    The World Bank has said the global economy is set to rack up a sorry record by the end of 2024.

    According to the World Bank’s latest Global Economic Prospects report released yesterday, this is the slowest half-decade of gross domestic product (GDP) growth in 30 years.

    The report shows that the global economy is in a better place than it was a year ago largely because of the strength of the U.S. economy.

    “But mounting geopolitical tensions could create fresh near-term hazards for the world economy,” the bank said in a statement.

     The World Bank Group’s Chief Economist and Senior Vice President, Indermit Gill, said: “Without a major course correction, the 2020s will go down as a decade of wasted opportunity. Near-term growth will remain weak, leaving many developing countries—especially the poorest—stuck in a trap: with paralyzing levels of debt and tenuous access to food for nearly one out of every three people. That would obstruct progress on many global priorities. Opportunities still exist to turn the tide. This report offers a clear way forward: it spells out the transformation that can be achieved if governments act now to accelerate investment and strengthen fiscal policy frameworks.”

    Read Also: Kwara boosts primary healthcare with World Bank IMPACT project funds

    For Ayhan Kose, the World Bank’s Deputy Chief Economist and Director of the Prospects Group, investment booms have the potential to transform developing economies and help them speed up the energy transition and achieve a wide variety of development objectives.

    Kose said:  “To spark such booms, developing economies need to implement comprehensive policy packages to improve fiscal and monetary frameworks, expand cross-border trade and financial flows, improve the investment climate, and strengthen the quality of institutions.

    That is hard work, but many developing economies have been able to do it before. Doing it again will help mitigate the projected slowdown in potential growth in the rest of this decade.”

    The report also identifies what two-thirds of developing countries can do to avoid boom-and-bust cycles.

    “The report finds that governments in these countries often adopt fiscal policies that intensify booms and busts. When increases in commodity prices boost growth by 1 percentage point, for example, governments increase spending in ways that boost growth by an additional 0.2 percentage point,” said the bank.

  • Kwara boosts primary healthcare with World Bank IMPACT project funds

    Kwara boosts primary healthcare with World Bank IMPACT project funds

    Kwara State Primary Health Care Development Agency (KWSPHCDA) has given an update on the funds utilisation of the World Bank Immunisation Plus and Malaria Progress by Accelerating Coverage and Transforming Services (IMPACTS) Project. 

    This followed the disbursement of funds after the development of investment plans by each benefitting Primary Health Care (PHC) Center across the state, based on needs assessment carried out before commencement of the project.

    Each benefitting PHC in the State received N4.6m in the World Bank-assisted project to upgrade their facilities and purchase equipment that will strengthen basic healthcare services at the grassroots. 

    “We are excited to report that our PHCs have commenced the execution of the IMPACTS project with facility upgrades, purchase of equipment, and other items as spelt out in their various investment plan and needs assessment. Some of the items already purchased include: laboratory equipment in 193 PHCs; 30 ultrasound scan machines; 73 outreach tricycles; 186 outreach motorcycles; 186 desktop computers; and also 72 boreholes have been sunk” according to a press statement by the KWSPHCDA.

    Read Also: Yoruba traders seek intervention over proposed ban, eviction from Kwara council

    “Based on their investment plans approved by the World Bank, these PHCs would also begin some minor renovation to improve the PHCs to further meet basic minimum standards. The funds were sent directly to the accounts of each PHC. What the PHCs do with their funds vary and are based on their needs as captured in their investment plans,” the agency stated. 

    The State qualified for the World Bank IMPACTS programme on account of its investments in the basic healthcare sector, meeting some minimum criteria as well as payment of a state counterpart funds. 

    Kwara State, which had also recently won the National award as the best in primary healthcare in the entire central Nigeria, continues to improve peoples’ confidence in the health system. This is evidenced by the total number of deliveries that doubled in 2023 compared to 2020, just as 422,631 women attended antenatal in our hospitals compared to 94,276 in the year 2020 based on the information from the DHIS2 platform.

    The World Bank IMPACTS project would continue to be implemented alongside several State interventions as well as other projects like the Basic Health Care Provision Funds (BHCPF) to reduce infant, maternal mortality, and improve PHC services in the State.

  • LCCI backs World Bank on underperformance of NNPCL, others

    LCCI backs World Bank on underperformance of NNPCL, others

    The Lagos Chamber of Commerce & Industry (LCCI) has said it share similar views with the World Bank on the opacity and underperformance of the Nigerian National Petroleum Corporation Limited (NNPCL) and other Governmen-Owned Enterprises (GOEs). 

    LCCI   said the improvement of government revenue could only be achieved by reforms and commitment on the part of the government to improve transparency and a comprehensive strategy that will improve the performance of the enterprises, including privatisation options.

     LCCI Director- General, Dr Chinyere Almona, in a statement, said it would not support the immediate increase in Value-Added Tax (VAT) due to its cost impact on consumers in the immediate term.

    On the partial return of subsidy, she said the Chamber supports the views of the World Bank and the need to adjust petrol prices to reflect market conditions.

    According to her, over the years, the Chamber has consistently advocated the full deregulation of petroleum products.  She said: “We are, however, worried about the monopoly in the importation and supply of the products by NNPCl and the lack of transparency in the pricing of the products.

    Read Also: Renewing the hope of Nigerians

    “In relation to the unstable FX market, the Chamber recommends that the government, in the short term, should address the supply gap in the market and improve its forex earnings by declaring an emergency in oil & gas production.’’

    “In the medium term, the government must strategically pursue and incentivize the local production of basic household needs that are being heavily imported in order to reduce the huge demand of Forex.

    The LCCI boss insisted on the need to build market confidence around free FX pricing and implement policies to channel FX supply into the market.

    In continuation of their response to the World Bank’s Nigeria Development Update (NDU) themed “Turning the Corner, From Reforms and Renewed Hope to Results”, the LCCI boss said they share the global bank’s concerns about the Nation’s economy despite the reforms carried out so far including fuel subsidy removal, liberalization of the foreign exchange market, removal of 43 items from FX restrictions and tightening of monetary policy.

    According to her a detailed review of the report revealed that the key concerns in the Nigerian economy are high inflation, revenue leakages, unstable FX market due to liquidity challenges, increased poverty due to the high cost of living, partial return of subsidy, and sub-optimal GDP growth.

    The LCCI notes with concern, as highlighted by the World Bank, the continued uptick in inflation and its severe impact on businesses, consumers’ income, spending & saving as well as manufacturing productivity in the country. We urge the CBN to intensify its efforts to address the challenge by adopting the right policy mix and ensuring synergy with fiscal authorities she stated.

    In her recommendation she said the Chambers in the short run is urging on the need for government to focus on the critical needs of the poor and ensure regenerative investments in priority sectors of the economy. According to her this includes agriculture, transport, health, youth development and human capital, infrastructure and housing.