Connect with us

Economy

Buhari Calls For Global Support Of Niger Basin Development

Published

on

President Muhammadu Buhari - Investors King

President Muhammadu Buhari has called for more global support for the development of the Niger Basin area and its resources.

President Buhari made the call on Thursday while declaring the 12th virtual Summit of Heads of State and Government of the Niger Basin Authority (NBA) open in Abuja.

According to a statement issued by his Special Adviser on Media and Publicity, Mr. Femi Adesina, the President observed that River Niger, commonly called Djoliba in Guinea and Mali, offers enormous development opportunities in the fields of agriculture, animal husbandry, fishing, fish farming, hydro-power, hydraulics and navigation.

According to him, the river, which provides a source of sustenance to more than 160 million Africans, deserves to continually be showcased to the world so that it could attract the sort of attention and resources, which would, in turn, improve the lives and livelihood of the people who depend on it.

“It is, therefore, necessary to continue to promote its enormous potential for the benefit of our people and to improve the socio-economic development of the region,” he said.

The Nigerian leader expressed appreciation to technical and financial partners, including the African Development Bank (AfDB), the Global Environment Fund (GEF), the German Financial Cooperation (KFW), for identifying with the vision and projects of the authority.

He urged them to continue to support efforts at developing the Niger Basin in the fight against pollution and the degradation of ecosystems, in order to manage its resources in a sustainable and equitable manner.

Buhari, who is the outgoing Chairman of the NBA Leaders’ Summit, also used the occasion to give an account of his five-year stewardship, piloting the affairs of the institution.

“Excellencies, it has been a privilege to lead this Summit of Heads of State and Government for the past five years, since you all unanimously endorsed me as the Chairman at the 11th Summit held in Cotonou, Benin Republic on 8th January 2016 to lead our common Institution.

“Of the several decisions taken at the Summit, only the decision on funding of the NBA 2016-2024 Operational Plan is yet to be fully implemented.

“It is pertinent to note that there are some ongoing programmes like support to Ground Water Management in Niger Basin (AGES), project II to strengthen NBA and its Member Countries’ technical capacity and human resources for improving transboundary groundwater resource management in the Niger Basin,” he said.

The President also listed other ongoing programmes to include the Integrated Development and Adaptation to Climate Change in Niger Basin financed by the AfDB, GEF, KFW and NBA member countries to improve the resilience of the Niger River ecosystems and populations through sustainable management of natural resources.

The Nigerian leader explained that the climate change programme will cover the nine NBA members-countries- Benin, Burkina Faso, Cameroon, Côte d’Ivoire, Guinea, Mali, Niger, Nigeria and Chad.

“Distinguished delegates, it should be noted, to our collective delight that these achievements were only possible with your active support.

“It is also my pleasure to tell this meeting that there is an improvement in our organization’s financial status as member countries are striving hard to pay their annual contributions in a timely manner,” he said.

The President also commended all member countries for their unflinching efforts towards contributing to the construction of a befitting Headquarters for the NBA, noting with appreciation the commitments made so far.

On behalf of member countries, President Buhari while thanking the outgoing Executive Secretary, Mr. Abderahim Bireme Hamid, for serving the Authority, noted that the 12th Summit is expected to appoint a new Executive Secretary and a Chairman.

“At this Summit, my tenure as the Chairman Summit of Heads of State and Government of our common institution comes to an end as I will hand over to a new Chairman.

“I urge you to extend maximum cooperation to the new Chairman for the continued smooth running of our Institution”, he said.

Meanwhile, Buhari has congratulated President Roch Kaboré of Burkina Faso on his appointment as the new Chairman of the Summit of Heads of State and Government of the Niger Basin Authority (NBA).

In his closing address at the virtual 12th summit of the Heads of State and Government of NBA, President Buhari, who is the outgoing Chair, said the Institution had ‘‘the utmost confidence’’ in President Kabore’s ability to steer the affairs of the Niger Basin Authority for the next two years.

‘‘Let me, on behalf of all Heads of State and Government of NBA, wish His Excellency President of the Republic of Burkina Faso, a very successful tenure, the President said.

The Nigerian leader also congratulated member states of the NBA for a job well done, calling on them to continue to muster the needed political will and courage to implement the far-reaching decisions agreed at the Summit.

The President also expressed deep appreciation and gratitude to leaders and member-countries who attended the Summit as well as their ‘‘unwavering support and cooperation during my five-year tenure as Chairman of Summit of Heads of State and Government of the Authority.”

Continue Reading
Comments

Economy

Nigeria’s Growth Forecast Lowered to 3% for 2025, Higher than Most Emerging Markets

Published

on

IMF global - Investors King

The International Monetary Fund (IMF) has projected a 3% growth rate for Nigeria in 2025, slightly down from the 3.1% forecasted for 2024.

Despite this slight decline, Nigeria’s projected growth remains higher than that of many emerging markets as detailed in the IMF’s latest World Economic Outlook released on Tuesday.

In comparison, South Africa’s economy is expected to grow by 1.2% in 2025, up from 0.9% this year. Brazil’s growth is projected at 2.4% from 2.1% in 2024, and Mexico’s growth forecast stands at 1.6% for 2025, down from 2.2% in 2024.

However, India is anticipated to see a robust growth of 6.5% in 2025, although this is slightly lower than the 7% forecast for 2024.

The IMF’s projections come as Nigeria undertakes significant monetary reforms. The Central Bank of Nigeria has been working on clearing the foreign exchange backlog, and the federal government recently removed petrol subsidies.

These reforms aim to stabilize the economy, but the country continues to grapple with high inflation and increasing poverty levels, which pose challenges to sustained economic growth.

Sub-Saharan Africa as a whole is expected to see an improvement in growth, with projections of 4.1% in 2025, up from 3.7% in 2024. This regional outlook indicates a modest recovery as economies adjust to global economic conditions.

The IMF report underscores the need for cautious monetary policy. It recommends that central banks in emerging markets avoid easing their monetary stances too early to manage inflation risks and sustain economic growth.

In cases where inflation risks have materialized, central banks are advised to remain open to further tightening of monetary policy.

“Central banks should refrain from easing too early and should be prepared for further tightening if necessary,” the report stated. “Where inflation data encouragingly signal a durable return to price stability, monetary policy easing should proceed gradually to allow for necessary fiscal consolidation.”

The IMF also highlighted the importance of avoiding fiscal slippages, noting that fiscal policies may need to be significantly tighter than previously anticipated in some countries to ensure economic stability.

Continue Reading

Economy

Nigeria’s Inflation Rises to 34.19% in June Amid Rising Costs

Published

on

Food Inflation - Investors King

Nigeria’s headline inflation rate surged to 34.19% in June 2024, a significant increase from the 33.95% recorded in May.

This rise highlights the continuing pressures on the nation’s economy as the cost of living continues to climb.

On a year-on-year basis, the June 2024 inflation rate was 11.40 percentage points higher than the 22.79% recorded in June 2023.

This substantial increase shows the persistent challenges faced by consumers and businesses alike in coping with escalating prices.

The month-on-month inflation rate for June 2024 was 2.31%, slightly up from 2.14% in May 2024. This indicates that the pace at which prices are rising continues to accelerate, compounding the economic strain on households and enterprises.

A closer examination of the divisional contributions to the inflation index reveals that food and non-alcoholic beverages were the primary drivers, contributing 17.71% to the year-on-year increase.

Housing, water, electricity, gas, and other fuels followed, adding 5.72% to the inflationary pressures.

Other significant contributors included clothing and footwear (2.62%), transport (2.23%), and furnishings, household equipment, and maintenance (1.72%).

Sectors such as education, health, and miscellaneous goods and services also played notable roles, contributing 1.35%, 1.03%, and 0.57% respectively.

The rural and urban inflation rates also exhibited marked increases. Urban inflation reached 36.55% in June 2024, a rise of 12.23 percentage points from the 24.33% recorded in June 2023.

On a month-on-month basis, urban inflation was 2.46% in June, slightly higher than the 2.35% in May 2024. The twelve-month average for urban inflation stood at 32.08%, up 9.70 percentage points from June 2023’s 22.38%.

Rural inflation was similarly impacted, with a year-on-year rate of 32.09% in June 2024, an increase of 10.71 percentage points from June 2023’s 21.37%.

The month-on-month rural inflation rate rose to 2.17% in June, up from 1.94% in May 2024. The twelve-month average for rural inflation reached 28.15%, compared to 20.76% in June 2023.

The rising inflation rates pose significant challenges for the Central Bank of Nigeria (CBN) as it grapples with balancing monetary policy to rein in inflation while supporting economic growth.

The ongoing pressures from high food prices and energy costs necessitate urgent policy interventions to stabilize the economy and protect the purchasing power of Nigerians.

Continue Reading

Economy

Inflation to Climb Again in June, but at a Reduced Pace, Predicts Meristem

Published

on

Nigeria's Inflation Rate - Investors King

As Nigeria awaits the release of the National Bureau of Statistics’ report on June 2024 inflation, economic analysts project that while inflation will continue its upward trajectory, the pace of increase will moderate.

This comes after inflation rose to a 28-year high of 33.95% in May, up from 33.69% in April.

Meristem, a leading financial services company, has forecasted that June’s headline inflation will rise to 34.01%, a slight increase from May’s figure.

The firm attributes this persistent inflationary pressure to ongoing structural challenges in agriculture, high transportation costs, and the continuous depreciation of the naira.

Experts have highlighted several factors contributing to the inflationary trend. Insecurity in food-producing regions and high transportation costs have disrupted supply chains, while the depreciation of the naira has increased importation costs.

In May, food inflation grew at a slower pace, reaching 40.66%, but challenges in the agricultural sector, such as the infestation of tomato leaves, have led to higher prices for staples like tomatoes and yams.

Meristem predicts that food inflation will persist in June, driven by these lingering challenges. Increased demand during the Eid-el-Kabir celebration and rising importation costs are also expected to keep food prices elevated.

Core inflation, which excludes volatile items like food and energy, was at 27.04% in May. Meristem projects it to rise to 27.30% in June.

The firm notes that higher transportation costs and the depreciation of the naira will continue to push core inflation up.

However, they also anticipate a month-on-month moderation in the core index due to a relatively stable naira exchange rate during June, compared to a more significant depreciation in May.

Cowry Assets Management Limited has projected an even higher headline inflation figure of 34.25% for June, citing similar concerns.

The firm notes that over the past year, food prices in Nigeria have soared due to supply chain disruptions, currency depreciation, and climate change impacts on agriculture.

This has made basic staples increasingly unaffordable for many Nigerians, stretching household budgets.

As inflation continues to rise, analysts believe the Central Bank of Nigeria (CBN) will likely hike the benchmark lending rate again.

The CBN’s Monetary Policy Committee (MPC) has raised the Monetary Policy Rate (MPR) by 650 basis points this year, bringing it to 26.25% as of May 2024.

At a recent BusinessDay CEO Forum, CBN Governor Dr. Olayemi Cardoso emphasized the MPC’s commitment to tackling inflation, stating that while the country needs growth, controlling inflation is paramount.

“The MPC is not oblivious to the fact that the country does need growth. If these hikes hadn’t been done at the time, the naira would have almost tipped over, so it helped to stabilize the naira. Interest rates are not set by the CBN governor but by the MPC committee composed of independent-minded people. These are people not given to emotion but to data. The MPC clarified that the major issue is taming inflation, and they would do what is necessary to tame it,” Cardoso said.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending