Nigeria: the State “must take additional measures” for the economy – World Bank

Nigeria: the State "must take additional measures" for the economy - World Bank

Bola Tinubu, of the All Progressives Congress, meets with supporters at the Party’s campaign   –  

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Ben Curtis/Copyright 2023 The AP. All rights reserved

 

The World Bank recognises the efforts made by the government of President Bola Ahmed Tinubu to improve Nigeria’s economic situation, but insists on the need for further reforms, in a half-yearly report published on Wednesday.

It is “time to turn the corner by implementing fiscal and monetary measures in the short and medium term”, recommended Shubham Chaudhuri, the Bank’s Director in Nigeria, in a press release.

The institution is expecting “results” in the continent’s largest economy, which is also one of the countries with the highest poverty levels.

As soon as he took office in May, Nigeria’s new president, Bola Ahmed Tinubu, launched two major reforms designed to restore public finances and attract foreign investment: the end of fuel subsidies and the liberalisation of the naira, the national currency.

These measures had an immediate impact on the country’s economy, with fuel prices tripling and inflation rising to more than 27 % in October over the previous twelve months.

Since May, the naira has lost 41 % of its value against the dollar on the official currency market and 30 % on the parallel market, and food prices have risen by more than 31 %.

Poverty in Africa’s most populous country has risen from 40 % in 2018 to 46 % in 2023, according to the World Bank, affecting 104 million people in 2023 compared with 79 million five years earlier.

These reforms were “essential” and “going in the right direction”, according to the World Bank, but “additional measures need to be taken”, starting with remedying the “lack of transparency on oil revenues” and the gains made to public finances by the end of fuel subsidies.

The objective is to achieve “annual growth of 3.5  % over the period 2023-2026”, i.e. “0.5 points higher than if the reforms had not been launched”, according to the Bretton Woods institution.

When presenting his budget to parliament at the end of November, President Tinubu appealed to the population’s patience and assured them that the negative effects of his measures would be temporary. He expects inflation to fall to 21.4 % and growth to reach at least 3.76 % in 2024.

Source: AfricaNews, 14th December 2023

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Celebrations in Somalia after $4.5bn debt relief

Somalia Prime Minister Hamza Abdi Barre

Somalia’s government on Wednesday held celebrations in the capital, Mogadishu, after the IMF and the World Bank announced $4.5bn ($3.5bn) in debt relief for the country.

Prime Minister Hamza Abdi Barre says that the relief is “equivalent to relieving every Somali person of a debt of more than $300”.

“This is a testament that our country and our people are financially viable, attracting foreign investment, and we are no longer debt-ridden,” he adds.

The organisations pardoned Somalia’s debt under the Heavily Indebted Poor Countries (HIPC) programme, which was created in 1996 to help poor countries facing an unmanageable debt burden.

The $4.5bn debt relief also includes pardons by other multilateral, bilateral and commercial creditors.

“Somalia’s external debt has fallen from 64% of GDP in 2018 to less than 6 percent of GDP by end 2023,” the institutions said in a joint statement.

PM Barre says the relief is monumental as it will allow Somalia to invest in development programs, revitalise the economy and borrow money from international lending institutions.

Source: BBC, 14th December 2023

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Kenya marks 60 years of independence, and the president defends painful economic measures

People jump and wave Kenyan flags during the 60th Jamhuri Day Celebrations (Independence Day) at Uhuru gardens Stadium in Nairobi, Monday, Dec. 12, 2023. Thousands of Kenyans braved a chilly morning to attend festivities Tuesday in the capital Nairobi, to mark 60 years since the East African country gained independence from British Colonial rule. (AP Photo/Brian Inganga)

NAIROBI, Kenya (AP) — Kenya’s president on Tuesday defended the high taxes the government recently imposed, calling them a “necessary sacrifice “in helping the country deal with ballooning foreign debt which now stands at $70 billion.

Speaking at celebrations marking 60 years since Kenya’s independence from Britain, President William Ruto said East Africa’s largest economy was no longer at risk of defaulting on bond payments following economic reforms his government had undertaken since taking power last September.

“Though painful, the sacrifices we have made will not only make our freedom fighters proud,” Ruto told tens of thousands of people in the capital, Nairobi. He added: “I can now confirm without fear of any contradiction that Kenya is safely out of the danger of debt distress, and that our economy is on a stable footing.”

The economy has taken center stage in politics and daily life in Kenya as the government tackles mounting debts. A $2 billion Eurobond is due in June.

Last month, the government reached a lending agreement with the International Monetary Fund amounting to $938 million, a boost for the country struggling with dwindling foreign exchange reserves.

Recent attempts at reforms include a mandatory housing levy which courts struck down last month for being “discriminatory, irrational, arbitrary and against the constitution.”

The president also removed subsidies on fuel and maize flour — a staple in Kenya.

Ruto vowed that “all taxes collected by the government shall be put to their intended use and that no single shilling — not one shilling — shall be lost through embezzlement, theft or corruption.” Kenyans have long complained of widespread official graft.

Source:  AP , 12th December 2023

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Afcon 2023: ‘Divine’ two-year delay helps Afcon hosts Ivory Coast

By Piers EdwardsFootball writer
Last updated on .
A general view of the Alassane Ouattara Olympic Stadium, one of the six stadiums for the 2023 Africa Cup of Nations
The Alassane Ouattara Olympic Stadium in Abidjan will host the opening game and final of the 2023 Africa Cup of Nations

Ivory Coast international Ghislain Konan says it is an “enormous pride” for his country to host the 2023 Africa Cup of Nations and believes that visitors will receive the warmest of welcomes next month.

The tournament kicks off on 13 January, with the opening game and the final on 11 February taking place in the country’s financial hub Abidjan.

“I can tell you that it will go very well,” Konan, who plays his club football in Saudi Arabia, told BBC Sport Africa.

“We are a country of hospitality and one that welcomes others. As we like to say back home, we like foreigners more than we like ourselves.

“We will truly welcome the visitors who’ll come to our home and also show them that we are a great country.”

Konan, who was born in Abidjan, was speaking a few days after the Ivorian government said it will be using some of its 20,000 volunteers to help fill stadiums during Nations Cup matches.

The tournament, which was moved from June-July of this year to January 2024 to avoid Ivory Coast’s rainy season, will be staged in five different cities.

Abidjan is the only city that will use two stadiums – with the newly-built Alassane Ouattara Olympic Stadium hosting the opening match and final – while Bouake, San Pedro, Korhogo and the capital Yamoussoukro will also host games.

The stadiums in the latter three cities all have a capacity of 20,000, with Abidjan’s Felix Houphouet-Boigny Stadium and the Bouake arena able to accommodate 40,000 and the Alassane Ouattara 60,000.

Yet the 23 teams trying to ensure the trophy leaves Ivory Coast, including defending champions Senegal, may find more support from the locals than they expected.

“Among the 20,000 volunteers we have, it is expected that a portion will support non-Ivorian teams – which is a first,” Toure Nimba, a sports ministry official, claimed on Friday.

“Every time a non-Ivorian team plays in the competition, you will have Ivorians supporting those teams. The organising committee is also arranging that school children will move en masse to stadiums during matches.

“We have local committees reaching out to the smallest hamlets, and it is the combination of all these efforts that will allow us to have full stadiums.”

In the past, poor attendances have been a feature of many Nations Cup matches which do not feature the host country.

However, Cameroon, which hosted the 2021 edition, bucked that trend and organisers hope Ivory Coast can do similarly.

Delay ‘served Ivory Coast well’

A general view of the Felix Houphouet-Boigny Stadium in Abidjan

The Felix Houphouet-Boigny Stadium in Abidjan will host group matches involving Egypt, Ghana and Nigeria along with two last 16 ties and a quarter-final.

Ivory Coast was originally going to host the Nations Cup in 2021, only for the Confederation of African Football (Caf) to reallocate the staging of that tournament to Cameroon, which had been set to host the 2019 finals.

Despite filing a protest with sport’s highest legal body, the Court of Arbitration for Sport, about the change in December 2018, the Ivorian government agreed to the enforced switch just a month later after a meeting between President Ouattara and then Caf president Ahmad.

With the six stadiums and 24 training grounds ready, not to mention corresponding works on upgrading Ivory Coast’s transport, hotel and medical facilities, organisers feel the delay may have ultimately worked in their favour.

“Today, I can see we profited a little bit from the delay, even though I think we would have been ready for 2021 if we had had to be,” said Nimba.

“But I still take it as divine grace that we are here today, with infrastructure which has been finished far better thanks to all the tests we have done.

“We had time to test them technically, and in terms of both crowd control and security, so that we are ready.”

With the then Ivorian sports minister having declared the country “99%” ready as far back as July, Ivory Coast has had the rare luxury of plenty of preparation time to stress-test facilities.

Stadiums already in use

Idriss Diallo, president of the Ivorian football federation, speaks in the stands of the Alassane Ouattara Olympic Stadium

Idriss Diallo, president of the Ivorian football federation, visited the Alassane Outtara Stadium for a tour last week.

The various stadiums have all hosted several matches, with Korhogo and San Pedro even staging this year’s Women’s African Champions League last month.

One of the biggest setbacks Ivory Coast suffered in its preparations came in September when the national side’s friendly against Mali at the Alassane Ouattara Olympic Stadium, now Ivory Coast’s biggest arena, had to be abandoned after 45 minutes when heavy rain made the pitch unplayable.

This was later described by Caf as “a maintenance problem rather than a drainage one”, with the stadium hosting a 2026 World Cup qualifier (the 9-0 thumping of Seychelles) last month without problems.

Following the widespread improvements across a country which suffered debilitating civil wars between 2002 and 2011 – conflicts which led to the displacement of over one million people in addition to the destruction of infrastructure – Ivorian officials are confident the country is on track to host the “best Nations Cup ever”.

“On 13 January, Ivory Coast – before all the cameras of the world – will deliver an unforgettable spectacle,” said Francois Albert Amichia, who heads up the local organising committee.

“Then it will be up to the 24 teams to shine on the field and show that the positive development we saw at the World Cup in Qatar from Africa’s representatives was not a flash in the pan but a reality – because African football is evolving.”

Having last hosted the Nations Cup in 1984, Ivory Coast will be looking to win the title for the first time on home soil, after triumphing in Senegal in 1992 and then in Equatorial Guinea in 2015.

“We are coming to win it but it won’t be easy since there are many big nations,” said Konan, a left back who has won 31 caps since his debut for the Elephants in 2017.

“But given we are playing at home, we will try to give everything to ensure the beautiful trophy stays in the country.”

Additional reporting by Noel Ebrin Brou in Ivory Coast.

Source: BBC,  12th December 2023

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Nigeria loads 1st crude at huge new Dangote refinery

Dangote Refinery, Lagos, Nigeria - Africa's biggest oil ...

Nigeria

A mega-refinery built in Nigeria by billionaire Aliko Dangote has received its first barrels of crude oil, an “important milestone” in a project that has been plagued by delays and aims to fully meet the country’s fuel needs, the company announced on Saturday.

Since Friday, one million barrels from the Agbami offshore oil field, off the Niger Delta, have been unloaded by ship at the refinery located in the Lekki free zone, east of Lagos, the economic capital.

“This is an important milestone”, said Aliko Dangote, who founded Dangote Petroleum Refinery, in a statement released on Saturday, adding that “the next big step will be to get our products to the Nigerian market”.

Initially scheduled for “late July, early August”, oil refining should enable Nigeria to put an end to frequent fuel shortages, and also increase the quality of fuel in circulation.

Nigeria (population 215 million) is one of Africa’s biggest oil producers, but imports almost all its fuel due to the failure of its state refineries, and fuel shortages plague the daily lives of its inhabitants.

Launched in 2013, the $18.5 billion-plus industrial project (double the initial cost) is “the largest single-train refinery in the world”, according to the Dangote Group, and should, at full capacity, have the largest crude refining capacity on the African continent.

The facility is expected to refine 350,000 barrels per day initially, rising to 650,000 when fully operational, and to produce diesel, jet fuel, automotive fuel, and liquefied petroleum gas.

A further 5 million barrels are scheduled to come on stream in the coming weeks.

The industrial site has been built next to the new Lekki deep-water port, which is intended to relieve congestion at the Port of Lagos, but also to export some of Dangote’s refined oil to other African countries.

According to Mr. Dangote, eventually “at least 40% of the refinery’s capacity will be available for export, which should result in significant foreign exchange earnings for the country”.

Source:  AfricaNews 10th December 2023

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