Metro

Tinubu’s reforms in Nigeria not working— IMF

Published

6 hours ago

November 16, 2024

The International Monetary Fund (IMF) says the various reforms carried out by Nigerian President, Bola Tinubu, are not working for the country as the government is still struggling for positive impacts 18 months into ythe life of the administration.

In it latest outlook report of the sub-Sahara Africa released on Friday, the IMF indicated that the broad-based economic reforms embarked upon by the current federal government were still to create positive impacts on the Nigerian citizens.

The IMF report, which also acknowledged a few countries that had recorded little success through reforms, categorically mentioned Nigeria amongst those failing to meet desired results, predicting that the average economic growth rate in the sub-Saharan region would remain at 3.6 per cent for the full year 2024, but put Nigeria’s growth rate at 3.19 per cent, below the average.

Presenting the report at the Lagos Business School (LBS), IMF Deputy Director, Catherine Patillo, said the macroeconomic imbalances in the region have started reducing with notable improvements in some countries, but excluded Nigeria in the good news.

“More than two-thirds of countries have undertaken fiscal consolidation. With the median primary balance is expected to narrow by 0.7 percentage points alone in 2024. And these have included notable improvements in Cote d’Ivoire, Ghana, and Zambia, among others,” Patillo said.

‘‘On the imbalances side, median inflation has declined in many countries. And it’s already within or below the target band in about half the countries.

“But contrary to this position, Nigeria’s inflation which had slowed down in July and August returned to uptrend in September 2024 with further rise in October while analysts predict that November and December would sustain the uptrend.

“Also at current 33.8 percent, Nigeria’s inflation rate is largely off the 21 percent target for 2024.

‘‘Inflation is still in double digits in almost one-third of countries, including Angola, Ethiopia, and Nigeria, and above target in almost half of the region, particularly where monetary policy is not anchored by exchange rate pegs.”

Patillo went on to say that though exchange rate was improving across most countries in the region, it was not the same in Nigeria.

“Looking further at exchange rates, we do see that foreign exchange pressures have largely abated since the end of 2023.

“Nigeria has however recorded the worse exchange rate instability and local currency depreciation so far this year.

“Debt service capacity remains low by historical standards. In almost one-quarter of countries, interest payments exceed 20 percent of revenues, a threshold statistically associated with a high probability of fiscal stress. And rising debt service burdens are already having a significant impact on the resources available for development spending.

‘‘The median ratio of interest payments to revenues (excluding grants) currently stands at 12 percent. Some three-quarters have already witnessed an increase in interest payments (relative to revenue) since the early 2010s (comparing the 2010–14 average with the 2019–24 average). In Angola, Ghana, Nigeria, and Zambia, this increase in interest payments alone absorbed a massive 15 percent of total revenue,” Patillo added.

Looking into the near future, the IMF report painted a picture of mixed fortune for the region but grouped Nigeria amongst those that are still on the downside being one of the resource-intensive countries in the region. It also hinted that economic reforms and adjustments in Nigeria are faced with social and political resistance.

“Resource-intensive countries (RICs) continue to grow at about half the rate of the rest of the region, with oil exporters struggling the most.

“Second, both domestic and external financing conditions remain tight. Third, the region has recently witnessed several episodes of political fragility and social unrest. Political and social pressures are making it increasingly challenging to implement policy adjustments and reforms.

“Significant increases are anticipated in Ghana, as it continues reestablishing macroeconomic stability; Botswana and Senegal, reflecting rising resource exports (diamonds, oil, and gas); and Malawi, Zambia, and Zimbabwe, as they recover from drought. Growth is also expected to improve in South Africa, given positive post-election sentiment and a reduction in power outages.”

Related Topics:Featured IMF inflation Nigeria President Bola Tinubu Reforms

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Metro

Again, Zambian court denies bail to ex-defence minister on medical grounds

Published

2 hours ago

November 16, 2024

Isaac Dachen

A Zambian High Court has, again, denied bail to detained former Defence Minister, Geoffrey Bwalya Mwamba, who is seeking release from prison on medical grounds pending an appeal.

Mwamba, who was sentenced to five years imprisonment with hard labour for conflict of interest following charges by the Economic and Financial Crimes Division of the High Court, had requested bail to seek specialized medical treatment in South Africa following his illhealth.

However, a panel of judges comprising Justices Ann Malata-Ononuju, Ian Mabbolobbolo, and Vincent Malambo, during the bail hearing, ruled that Mwamba health condition did not warrant bail, adding that his appeal lacked prospects of success.

The court further emphasized that granting the Mwamba bail on medical grounds could set a precedent which will allow individuals with health issues to evade custodial sentences.

Zambia Monitor reports that Mwamba who is currently incarcerated at Mwembeshi Correctional Facility, was recently transferred to Maina Soko Military Hospital after his health deteriorated while an affidavit filed by his legal team cited inadequate medical resources at Mwembeshi, which is only staffed by a clinical officer.

Mwamba reportedly suffered from swelling in his lower body, a condition linked to failed medication that required specialist care unavailable locally.

His defense team have argued that his appeal raised unresolved legal questions and that no direct evidence linked him to the alleged crimes. They also pointed out that no records, such as bid bonds or meeting minutes, were presented to prove that contracts were improperly awarded to Curzon Global.

The defense also argued that Mwamba’s five-year sentence was excessive for a first-time offender, and that delays in the High Court’s appeal process might result in him serving a significant portion of his sentence before the appeal is heard.

They also maintained that Mwamba posed no flight risk and that releasing him on bail would not prejudice the State.

Mwamba’s appeal, based on eight grounds, claimed that the trial court ignored evidence showing he had declared his interest in the case, contending that the magistrate misinterpreted Section 28(2) of the Anti-Corruption Act in dismissing his declaration of interest.

Mwamba was convicted on October 10 by Magistrate Standford Ngobola on charges of conflict of interest and possession of property suspected to be proceeds of crime.

His initial bail application was also denied by the magistrate, citing insufficient grounds.

Metro

EU launches initiative to reintegrate over 417,661 out-of-school children in Nigeria

Published

1 day ago

November 15, 2024

Isaac Dachen

The European Union (EU) has launched an initiative to reintegrate over 417,661 out-of-school children in Nigeria, particularly in the northwestern parts of the country.

Mrs. Tobi Ransomed, who is the consortium lead, disclosed this during the launching of the “Accelerating Basic Education and Livelihood Opportunities for Children and Youth in North West Nigeria Program” (ABEP), held in Dutse, the capital of Jigawa State, on Thursday.

While declaring the event open, Ransomed noted that the high rate of out-of-school children in the region required a holistic approach from all relevant stakeholders to ensure these children reached their potential.

Speaking further, she said the ABEP three-year pilot program would be implemented through Save the Children International, PLAN, and Development Alternatives Incorporated (DAG) across twelve local government areas in Kano, Jigawa, and Sokoto States.

“Data from Save the Children International (SCI), has shown that 10% of the world’s out-of-school children are in Nigeria, with over 10 million primary school-age children not in school. Approximately 25% of girls and 10% of boys in the country have been victims of sexual violence,” she stated.

“The program aims to increase access to safe, quality, and inclusive alternative and accelerated education programs for 324,000 young girls and boys, as well as 32,400 persons with disabilities, supporting their transition into formal or non-formal education.

“This project plans to increase access to livelihood opportunities, vocational education, and green job opportunities for 60,000 youths and 6,000 persons with disabilities, with 20,000 beneficiaries in each participating state.

“The overall objective is to contribute to the empowerment of the poorest, underserved, and most marginalized population groups, including women, girls, and youth, by providing access to quality, inclusive, gender-sensitive, and conflict-sensitive education in northwestern Nigeria with a special focus on Kano, Jigawa, and Sokoto States,” she stated.