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UK Must Suspend Aid For Congo Basin Rainforest Protection

Climate change: UK must suspend aid for Congo Basin rainforest protection until DRC drops plans to increase logging, demand NGOs

More than 40 NGOs have written to the UK and other donor governments asking them to pause funding for rainforest protection until the DRC extends its news logging ban.

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Development

At Annual Bankers Dinner, Emefiele Says Inflation A Global Trend

Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, has said the steady increase in headline inflation from 15.60 per cent in January to 20.77 per cent in September was consistent with global trends.

Emefiele said this at the 57th Annual Bankers Dinner, organised by the Chartered institute of Bankers Nigeria (CIBN), on Friday in Lagos.

The dinner had the theme, “Radical Responses to Abnormal Episodes: Time for Innovative Decision-making” wass appropriate and well timed.

He also said headline inflation soared to 20.77 per cent in September, indicating eight consecutive months of uptick, and that the upward momentum was after a successive period of decline in 2021, due to balanced monetary policy actions.

He said upside pressure on consumer inflation re-emerged during the year, as global conditions complicated existing local imbalances to undermine price stability.

“Food remains the major component of domestic consumer price basket. The annualised uptick in headline inflation mirrors the 6.21 percentage points upsurge in food inflation to 23.34 per cent in September.

“During this period, core inflation also resumed an upward movement from 13.87 per cent in January to 17.60 per cent.

“In addition to harsh global spill overs, exchange rate adjustments and imported inflation; inflation was also driven by local factors such as farmer herder clashes in parts of the food belt region,” he said.

Emefiele said during the early part of 2020, the world economy experienced the most significant downturn last witnessed since the Great Depression following the outbreak of theCOVID-19 pandemic.

He said the effect contracted global GDP by about 3.1 per cent in 2020, and commodity prices went into a state of turmoil as the price of crude oil plunged by over 70 per cent.

He said as the world struggled to recover topre-pandemic conditions, the global economy was yet again hit by another adverse occurrence with the eruption of the Russian-Ukraine war.

He said the war, along with the sanctions placed on Russia by the US and its allies, led to a spike in crude oil prices.

He said in the attempt to contain rising inflation, advanced markets such as the US, began to increase their policy rates, which led to a tightening of global financial market conditions along with a significant outflow of funds from emerging markets.

“The subsequent strengthening of the US dollar further aggravated inflationary pressures, along with a weakening of currencies, and depletion of external reserves in many emerging market countries.

“Today close to 80 per cent of countries have reported heightened inflationary pressures due to a confluence of some of the factors mentioned above,” said Emefiele.

He explained that central banks in emerging markets and developing economies, in a bid to contain rising inflation were also compelled to raise rates, which was expected to lead to a tapering of global growth over the next year.

“In fact, the short-term global growth projections by the IMF have been downgraded three times in 2022 and is likely to be below the 3.2 per cent and 2.7 per cent estimates for 2022 and 2023, respectively.

“Average growth among advanced economies is projected to plunge from 5.2 per cent in 2021 to 2.4 per cent in 2022 and 1.1 per cent in 2023.“Estimated output growth in emerging markets, is expected to slow from 6.6 per cent in 2021 to 3.7 per cent apiece in 2022 and 2023,” he said.

He said in view of the food, energy, and cost-of-living crises in many countries, there were growing restrictions on food exports from many countries.

“As at the last count, about 23 countries, mainly in advanced economies, according to the World Bank have banned the export of 33 food items. “Seven other countries have additionally implemented various measures to limit food exports,” said Emefiele.

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Development

Despite Challenges, Nigeria’s Economy Growing Under Buhari- Minister

The President Muhammadu Buhari’s administration  has recorded economic growth despite global and local shocks.

This was the view experienced by Mr Clem Agba, minister of state for budget and national planning, at a sensitisation programme on the Nigerian Labour Force Survey (NLFS), and the Nigerian Living Standards Survey (NLSS) organised by the National Bureau of Statistics (NBS) in Abuja.

He said some of the economic gains made by the regime were in education, health and the general welfare of the people.

The minister, represented by Faniran Sanjo, the director of the social development department in the ministry, urged Nigerians to focus on the successes recorded by the government.

He said the global and local shocks include COVID-19, the Russian-Ukraine crisis, security challenges and the climate change effects disaster in recent times.

Mr Agba said it was important to disregard the negative opinion that the government had thrown more people into poverty or had done nothing to mitigate the effects of the global challenges.

“My advice, therefore, is to focus more on comparative analysis of the situation in other countries, particularly in Africa and Europe, to appreciate the efforts of the government of Nigeria,” Mr Agba explained.

The minister added, “For example, in Ghana, Ethiopia and Rwanda, inflation was reported at 40.4 per cent, 31.7 per cent and 31 per cent, respectively, in October 2022. While the inflation figure recorded in the UK was at its highest rate of 11.1 per cent, the highest since October 1981.”

The minister explained that with the high rate of inflation in the above-listed countries, Nigerians could envisage the negative effect on household consumption and poverty levels.

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Development

CBN To Continue With Anchor Borrowers Program

The Central Bank of Nigeria (CBN) has restated its intention to continue with the Anchor Borrowers Programme (ABP) for farmers.

CBN Governor, Godwin Emefiele discussed this at the end of the 288th meeting of the Monetary Policy Committee (MPC) in Abuja.

The CBN has given out a total of N1.01 trillion to over 4.21 million smallholder farmers producing 21 commodities across the country through the Anchor Borrowers’ Programme (ABP).

He said rather than stop the programme, the CBN will rather take a more aggressive approach to help farmers survive the impact of the devastating floods across the country.

“We are gradually moderating our intervention in developmental finance. But that doesn’t mean we are stopping, as some people have told you,” he stated.

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