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Unequal Access To Vaccine Slowing Down Global Economic Recovery- Okonjo-Iweala

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Financial Inclusion

African countries are lagging behind in their vaccination programme as only 20 million or 1.5 percent of the population have been fully vaccinated compared with 42 percent of people in the developed countries, according to the head of global trade watchdog.

According to the Director-General of the World Trade Organisation (WTO), Ngozi Okonjo-Iweala, across Asia, Africa, and Latin America, where vaccination rates are low, COVID-19 deaths are reaching new highs.

Okonjo-Iweala, who spoke at a High-Level Dialogue on “Expanding COVID-19 vaccine manufacture to promote equitable access,” denounced the unequal access to Covid-19 vaccine as unacceptable, “for moral, practical, and economic reasons.”

She said, “Unequal access to vaccines is a major reason for the global economy’s K-shaped recovery, in which advanced economies and a few others are surging ahead, while the rest lag behind amid rising poverty, hunger and unemployment.”

The WTO chief said that 1.1 billion doses were administered worldwide in June, 45 percent more than in May, and more than double the total for April.

However, she regretted that of those 1.1 billion doses in June, only 1.4 percent went to Africans, who account for 17 percent of the global population.

“Only 0.24 percent went to people in low-income countries. And both shares declined even further in the first half of July.

“In developed countries, 94 doses have been administered for every 100 residents. In Africa, the figure is 4.5. In low-income countries, it’s 1.6,” Okonjo-Iweala said.

The WTO chief said production of covid-19 vaccines could reach 11 billion does this year, “provided new vaccines, such as Novavax and several others, secure regulatory approval.

“If production does reach 11 billion, it could help take care of global demand – in the absence of booster shot requirements.”

At the High-Level Dialogue on “Expanding COVID-19 vaccine manufacture to promote equitable access,” participants include senior policymakers, heads of multilateral agencies, vaccine manufacturers, development finance institutions, global health initiatives and public health activists.

The event, which was held under the Chatham House Rule, aimed to identify obstacles and propose solutions for increasing vaccine production and closing the wide gap in vaccination rates between rich and poor countries.

Participants described current and projected production volumes as well as plans for new investments in production capacity. They shared experiences about specific supply chain bottlenecks they were encountering, from export restrictions and raw material shortages to onerous regulatory processes, and exchanged ideas on how these might be addressed.

They discussed issues around the transfer of know-how and technology as well as factors influencing their decisions on licensing intellectual property.

While there was broad agreement on the importance of keeping supply chains open and predictable, different perspectives were expressed on the proposed waiver of the WTO’s Trade-Related Intellectual Property Rights Agreement provisions pertaining to vaccines and other products needed to combat COVID-19.

The discussions also touched upon a wide range of issues where greater international cooperation would be beneficial. For instance, multiple participants noted that uncoordinated national recognition of WHO-approved vaccines could leave many vaccinated people unable to travel to places where their vaccines are not recognised. In this regard, they urged countries to accept all WHO-approved vaccines.

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Economy

Nigeria’s Plan to Review Oil Companies’ Gas Flaring Strategies

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Oil

Nigeria is ramping up its efforts to address environmental concerns in the oil and gas sector with a comprehensive plan to review gas flaring strategies of international and indigenous oil companies.

The Minister of State for Environment, Dr. Iziaq Salako, announced this initiative during a national stakeholders engagement meeting on methane mitigation and reduction held in Abuja, Investors King reports.

Gas flaring, a common practice in the oil industry, releases methane—a potent greenhouse gas—into the atmosphere, contributing to climate change and posing health risks to communities near oil facilities.

Nigeria aims to end routine gas flaring by 2030, aligning with global climate goals and commitments.

Dr. Salako explained the importance of reducing methane emissions and highlighted the detrimental effects on public health, food security, and economic development.

He outlined practical steps being taken to tackle methane emissions, including the development of methane guidelines and the engagement of government institutions.

The ministry, through the National Oil Spill Detection and Response Agency, will conduct periodic reviews of oil companies’ plans to ensure compliance with the gas flaring deadline.

Deloitte management consultants will assist in conducting comprehensive forensic audits to scrutinize the legitimacy of forward-contracted transactions.

President Bola Tinubu’s commitment to environmental sustainability underscores the government’s dedication to addressing climate change and fulfilling its multilateral environmental agreements.

The engagement event served as a platform for stakeholders to discuss methane mitigation strategies, existing policies, and implementation challenges.

Collaboration and dialogue among diverse sectors are crucial in charting a unified course towards sustainable methane reduction in Nigeria’s oil and gas industry.

As the country navigates its environmental agenda, ensuring accountability and transparency in gas flaring practices remains paramount for achieving a greener and healthier future.

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Economy

Interest Rate Jumps to 24.75% as CBN Takes Aggressive Stance Against Inflation

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Dr. Olayemi Michael Cardoso

The Central Bank of Nigeria (CBN) has announced a significant increase in the monetary policy rate, known as the interest rate, to 24.75%.

This move disclosed by CBN Governor Olayemi Cardoso during the 294th Meeting of the Monetary Policy Committee press briefing in Abuja, represents a bold step by the apex bank to address the mounting inflationary pressures faced by the country.

With inflation soaring to 31.70% in February, the CBN aims to moderate this upward trend by tightening its monetary policy stance.

This decision follows the previous hike in the interest rate to 22.75% in February, showcasing the CBN’s commitment to combatting inflationary forces.

While the bank opted to maintain the Cash Reserve Ratio at 45%, the significant increase in the interest rate underscores the urgency of the situation and the need for decisive action.

Governor Cardoso emphasized that these measures are essential to stabilize the economy and safeguard the purchasing power of the Nigerian currency.

The 294th MPC marks the second meeting under Governor Cardoso’s leadership, indicating a proactive approach to addressing economic challenges.

The next MPC meeting is scheduled for May 20th and 21st, 2024, highlighting the ongoing commitment of the CBN to navigate Nigeria’s economic landscape amidst inflationary pressures.

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Economy

Nigeria Braces for 10th Consecutive Interest Rate Hike by Central Bank

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Central Bank of Nigeria (CBN)

As Nigeria grapples with persistently high inflation, the Central Bank of Nigeria (CBN) is gearing up to implement its tenth consecutive interest rate hike in a bid to curb the soaring prices and attract investment.

Analysts surveyed by Bloomberg are anticipating a substantial 125 basis-point increase in the key rate to 24%, marking one of the most significant adjustments in the current tightening cycle.

The decision, expected to be announced by Governor Olayemi Cardoso on Tuesday at 2 p.m. in Abuja, comes on the heels of inflation accelerating to 31.7% in February, far surpassing the central bank’s target range of 9%.

This surge has been primarily attributed to the sharp depreciation of the naira, prompting authorities to devalue the currency twice since June to narrow the gap with the unofficial market rate and encourage investor confidence.

While these measures have seen the naira strengthen in recent days and bolstered investment inflows, including a fourfold increase in overseas remittances and significant foreign investor portfolio asset purchases, there remains a palpable need for more decisive action.

Giulia Pellegrini, a senior portfolio manager at Allianz Global Investors, emphasized the necessity for the CBN to intensify its tightening efforts to regain foreign investors’ confidence in the local bond market.

While acknowledging the positive strides made by the central bank, Pellegrini stressed the importance of a more assertive approach to prevent the diversion of investor attention to other frontier markets.

As the Nigerian economy navigates through these challenging times, the impending interest rate hike signals the CBN’s determination to address inflation head-on and foster a more stable economic environment.

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