Economies
WHO seeks G7 support to meet vaccination targets
The Director-General, World Health Organisation (WHO), Dr Tedros Ghebreyesus has solicited the support of G7 health ministers to meet vaccination targets by the end of the year. In his remarks at the G7 Health Ministers’ meeting in Oxford, Ghebreyesus appealed to the ministers to provide leadership for strengthening WHO on sustainable financing. “First, we seek your support for reaching our vaccination targets for September and the end of the year; sharing doses with COVAX now is essential for achieving those targets. “We need 250 million doses by September and we need 100 million doses just in June and July. “As G7 nations, you are in a unique position to pool doses and make this happen; second, we seek your leadership for strengthening WHO, including through sustainable and predictable f...
IMF, World Bank urge G7 to release surplus vaccines
The heads of the International Monetary Fund and World Bank on Thursday urged the Group of Seven advanced economies to release any excess COVID-19 vaccines to developing countries as soon as possible, and called on manufacturers to ramp up production. In a joint statement to the G7, IMF Managing Director Kristalina Georgieva and World Bank President David Malpass also called on governments, pharmaceutical companies and groups involved in vaccine procurement to boost transparency about contracting, financing and deliveries. “Distributing vaccines more widely is both an urgent economic necessity and a moral imperative,” they said. “The coronavirus pandemic will not end until everyone has access to vaccines, including people in developing countries.” Malpass and Georgieva will meet in person ...
France, African leaders push to redirect $100 billion in IMF SDR reserves by October
French President Emmanuel Macron said on Tuesday a summit in Paris on Africa financing had agreed to work towards persuading rich nations by October to reallocate $100 billion in IMF special drawing rights monetary reserves to African states. Impoverished African economies must not be left behind in the post-pandemic economic recovery and a substantial financial package is needed to provide much-needed economic stimulus, African and European leaders concluded at a summit in Paris. In the immediate term, that meant accelerating the COVID-19 vaccine rollout and creating the fiscal breathing room for African nations, which will face a spending shortfall of some $285 billion over the next two years, the summit communique showed. The communique set out a two-pronged response based on addressing...
Sustaining economic empowerment through financial inclusion, energy access
Financial inclusion and provision of sustainable energy is at a turning point in Africa’s largest economy, Nigeria. With a population of over 200 million, about 50 per cent of the total population live in rural areas, and only 39 per cent of those living in rural communities have access to electricity. This is in addition to over 40 per cent of the entire population who are financially excluded or underserved. However, the proliferation of digital financial services in Nigeria – powered largely by growth in fin-tech companies – has catalysed an unparalleled increase in the current number of people with access to formal financial services, while further opening up opportunities to address power supply challenges across rural communities; a major feat instrumental towards achieving the broad...
World Bank: Nigeria responsible for over 40 percent diaspora remittances in Sub Saharan Africa
The World Bank says Nigeria is responsible for over 40 percent of diaspora remittances in Sub Saharan Africa (SSA). In a statement on Wednesday, the Washington-based financial institution said remittances to SSA declined by an estimated 12.5 percent in 2020 to $42 billion. The decline was almost entirely due to a 27.7 percent decline in remittance flows to Nigeria, “Remittances to Sub-Saharan Africa declined by an estimated 12.5 percent in 2020 to $42 billion,” the statement read. “The decline was almost entirely due to a 27.7 percent decline in remittance flows to Nigeria, which alone accounted for over 40 percent of remittance flows to the region. “Excluding Nigeria, remittance flows to Sub-Saharan African increased by 2.3 percent. “Remittance growth was reported in Zambia (37 percent), ...
Minister: Nigerian government worried about rising unemployment rate
Minister of Interior, Ogbeni Rauf Aregbesola, has said the federal government is worried over the rising unemployment rate in the country. Speaking at the 2nd Shakeholders’ Meeting on Expatriate Quota Administration organized by the Citizenship and Business Department of the Ministry of Interior, the Minister said: “Anyone that is not worried about the unemployment rate in the country is not a patriot.” He lamented that the unemployment rate of 33 per cent released by the National Bureau of Statistics was indeed worrisome and a wake up call that something urgently needed to be done to keep Nigerians employed and drastically reduce the unemployment rate. The Minister, who called on all stakeholders at the meeting to ensure quality inputs were brought to the table that will lead to the produ...
Analysts: Printing currency could hurt economy
Analysts have expressed concerns over a recent claim that the federal government resorted to printing money to augment the monthly allocation to the three tiers of government, warning that it could heighten inflationary pressure with dire consequences for the country’s exchange rate and economy. The analysts, in separate interviews with newsmen, warned that a sustained policy of printing the currency, if not well managed, would hurt the economy. The concern came on the heels of recent revelation by Governor of Edo State, Mr. Godwin Obaseki, that due to the dwindling revenue in the face of declining oil revenue arising from the growing sources of alternative sustainable energy, the federal government had to print money to augment the amount available for sharing by the federal, state and lo...
IMF, World Bank advocate flexible fiscal support, debt relief
Against the backdrop of a pandemic impacted global and national economies, the International Monetary Fund (IMF) and World Bank have urged fiscal authorities to execute flexible and supportive fiscal policies to support economic recovery and cushion the long-term impact of the pandemic. In a paper that was titled: ‘Tailoring Government Support’, IMF staff said until the pandemic is brought under control, fiscal policy will have to remain flexible and supportive. It advised governments to prioritize certain policy measures that include targeted support to vulnerable households, investment in health system and more focused support to viable firms, warning that if the pandemic persists, widespread corporate insolvencies could result, destroying millions of jobs, particularly in contact-intens...
Nigeria to benefit as G-20 approves extension of debt relief
Finance ministers of G-20 countries have approved an extension of debt relief for the world’s poorest nations till December 2021. David Malpass, World Bank president, made the announcement at the virtual spring meeting, on Wednesday. TheCable had earlier reported that the G-20 countries will meet this week to consider an extension of the debt freeze. The G-20, is a group of finance ministers and central bank governors from 19 of the world’s largest economies, including those of many developing nations, along with the European Union. G-20 countries had established a debt service suspension initiative (DSSI) which took effect in May 2020. Nigeria had benefited from the initiative which delivered about $5 billion in relief to more than 40 eligible countries. The suspension period which was or...
AstraZeneca: ‘No evidence’ of higher blood clots risk from coronavirus vaccine
UK-based pharmaceutical company AstraZeneca insisted on Friday its coronavirus vaccine was safe after some countries suspended its use in response to concerns about a potential link to blood clots. “An analysis of our safety data of more than 10 million records has shown no evidence of an increased risk of pulmonary embolism or deep vein thrombosis in any defined age group, gender, batch or in any particular country” from the jab, a company spokesperson said. “In fact, the observed number of these types of events are significantly lower in those vaccinated than would be expected among the general population.” The AstraZeneca jab, developed with Oxford University, forms the mainstay of Britain’s vaccination programme, and of many developing economies. It is relatively cheap and easier to st...
Ex-President Jonathan enlists colleagues to mitigate electoral crises in West Africa
Former President Goodluck Jonathan has enlisted the support of other ex-presidents and Prime Ministers in West Africa to mitigate elections-related conflicts to promote peace in the region. Mrs Ann Iyonu, Executive Director, Goodluck Jonathan Foundation (GJF) announced this at a news conference in Yenagoa on Friday. Iyonu said that the former leaders’ group christened West African Elders Forum (WAEF) was inaugurated by Jonathan at a virtual meeting held on Thursday. She said that WAEF was an initiative of the GJF aimed at harnessing the goodwill, expertise and experiences of former leaders to promote peaceful elections and deepen democracy in West Africa. According to her, the forum comprises three former leaders of Nigeria, Ex-President Jonathan, Chief Olusegun Obasanjo and Retired Gen. A...
Understanding the strength of small businesses
The number of small businesses keeps growing in the formal and informal sectors of the Nigerian economy, due to the role of small businesses as the live-wire of any economy and the backbone of major developed economies the world over. Though Nigeria rely majorly on oil and revenues derived from it, from context observation the economy is largely supported by small businesses covering almost all spheres of activities within the country, ranging from Nano, kiosk, and Micro businesses most importantly. A visible reference usually includes the vulcanizers, corner shop owners, single retail marketers, repairers, painters, business center operators, restaurants, market women, and men in the various open markets, among others. and the formal operations such as the law firms, accounting firms, con...