Headline

Nigeria’s Economy Sliding Downwards- World Bank

Published

6 years ago

April 9, 2019

Editor

The World Bank has said that the Nigerian economy has been slipping since 1995 and this continued till 2018.

The bank, in its latest report on the regional economy titled, ‘Africa’s Pulse’, released the taxonomy of growth performance in sub-Saharan Africa, which focused on the macroeconomic and financial features that led to growth resilience on the continent.

According to the bank, the taxonomy is used to help identify the factors that are correlated with success or failure in economic growth performance in sub-Saharan Africa, with emphasis on macroeconomic and financial variables.

The analysis, it said, involved a series of macroeconomic variables for 44 sub-Saharan African countries from 1995 to 2018.

The key elements that determined the positions of each of the 44 sub-Saharan economies in the taxonomy, the World Bank said, included the level of income per capita of the countries; structural transformation, as captured by sectoral value-added share and sectoral employment share; and capital flows.

Others are level and composition of public sector indebtedness, as captured by the general government gross debt and its currency composition, and the outstanding external public debt.

The last of the indicators has to do with governance vis-a-vis government effectiveness, regulatory quality, control of corruption, voice and accountability, political stability, and absence of violence and rule of law.

According to the World Bank, the taxonomy compares the average annual GDP growth rates during 1995–2008 and 2015–2018 against predetermined thresholds.

It also categorised growth performance into five groups: falling behind, slipping, stuck in the middle, improved, and established. The five groups were further reclassified into three groups: Top tercile, middle tercile and bottom tercile.

The Bretton Wood institution said, “If a country’s economic performance declined from 1995–2008 to 2015–18, the country is categorised in the bottom tercile, which includes ‘falling behind’ and ‘slipping.’ If a country’s growth rate remained invariant over time, between 3.5 and 5.4 per cent in both periods, it is categorised in the middle tercile (or stuck in the middle). If a country’s economic performance improved from 1995–2008 to 2015–18, with the growth of more than 5.4 per cent per year, the country is categorised in the top tercile, which includes the ‘improved’ and ‘established’ groups.”

Based on the above classification, the Nigerian economy was categorised alongside 18 other sub-Saharan African economies as slipping having recorded declined economic performance between 1995 and 2018.

The World Bank said, “The bottom tercile consists of 19 countries: Angola, Burundi, Botswana, the Republic of Congo, the Comoros , Gabon, Equatorial Guinea, Liberia, Lesotho, Mauritania, Malawi, Namibia, Nigeria, Sierra Leone, Eswatini, Chad, South Africa, Zambia, and Zimbabwe. These countries did not show any progress in their economic performance from 1995–2008 to 2015–18. For instance, their median economic growth rate decelerated, from 5.4 per cent per year in 1995–2008 to 1.2 per cent per year in 2015–18.”

The bottom performing economies, according to the World Bank, produce almost 60 per cent of the region’s total GDP, emphasising that the three largest countries in the region—Nigeria, South Africa, and Angola—and many commodity exporters are in this group.

Burkina Faso, Côte d’Ivoire, Ethiopia, Ghana, Guinea, Guinea-Bissau, Kenya, Mali, Rwanda, Senegal, and Tanzania made the top tercile.

The middle tercile countries are Benin, the Central African Republic, Cameroon, the

Democratic Republic of Congo, Cabo Verde, The Gambia, Madagascar, Mozambique, Mauritius, Niger, Sudan, São Tomé and Príncipe, Togo, and Uganda.

The World Bank also cut its growth forecast for sub-Saharan Africa this year to 2.8 per cent from an initial 3.3 per cent.

The commodity price slump of 2015 cut short a decade of rapid growth for the region, and the bank said growth would take longer to recover as a decline in industrial production and a trade dispute between China and the United States take their toll.

The bank’s 2019 forecast means economic growth will lag population growth for the fourth year in a row and it will remain stuck below three per cent, which it slipped to in 2015.

“The slower-than-expected overall growth reflects ongoing global uncertainty, but increasingly comes from domestic macroeconomic instability including poorly managed debt, inflation and deficits,” the bank said.

The Bretton Wood institution equally cut Nigeria’s growth forecast by 0.1 per cent.

It said, “Growth in Nigeria is projected to rise from 1.9 per cent in 2018 to 2.1 per cent in 2019 (0.1 percentage point lower than last October’s forecast).

“This modest expansion reflects stagnant oil production, as regulatory uncertainty limits investment in the oil sector, while non-oil economic activity is held back by high inflation, policy distortions, and infrastructure constraints.

“Growth is projected to rise slightly to 2.2 per cent in 2020 and reach 2.4 per cent in 2021, as improving financing conditions help boost investment.

“In Nigeria, although the manufacturing and non-manufacturing PMIs remained above the neutral 50-point mark—which denotes expansion—they fell further in February, due to weaker rises in output and new sales orders across firms.

“Household consumption in Nigeria has remained subdued, while multiple exchange rates, foreign exchange restrictions, low private sector credit growth, and infrastructure constraints have continued to weigh on private investment.”

The Chief Economist for Africa at the bank, Albert Zeufack, said the region could boost annual growth by about nearly two percentage points if it harnessed Information Technology more effectively.

“This is a game-changer for Africa,” he added.

However, the spokesperson for the Central Bank of Nigeria, Mr Isaac Okorafor, said the CBN under the current governor, Mr Godwin Emefiele, had shown so much ingenuity in managing the economy.

“You know the crisis that we have faced in the past three years. The bank has shown ingenuity in managing the situation and ensuring that everything is stable

Headline

Why FCT Was Removed from Treasury Single Account – Tinubu

Published

2 days ago

March 30, 2025

Eric

President Bola Ahmed Tinubu explained on Sunday in Abuja that his administration removed the Federal Capital Territory (FCT) from the Treasury Single Account (TSA) to expedite development and enhance resident participation in governance.
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The President, who received FCT residents at the Presidential Villa for Sallah homage, said the bureaucracy associated with the TSA was hampering infrastructure growth in the capital city and had to be reviewed for impact and progress.

The FCT Minister, Nyesom Wike, led the residents during the homage.

President Tinubu highlighted that freeing the FCT from TSA restrictions has swiftly catalysed infrastructure improvements, enhanced healthcare services, and increased security measures.

“I remember the day that the FCT Minister came to meet me, and he said, please take us out of the problem of the TSA so that I can do more work and achieve more. I said show me what you are about to do, and he presented his thinking and belief.

“And everything started changing rapidly. I started seeing the opening up of the rural areas by the FCT, the resuscitation of abandoned projects, and the completion of the Vice President’s official residence that was abandoned for years. The FCT rehabilitated health care centres, upgraded facilities for school children, and provided furniture.

President Tinubu thanked the FCT Minister for proving that liberation from the bureaucracy was necessary and for restructuring the FCT public service so that civil servants could aspire to higher positions and provide leadership.

“We wouldn’t have been able to open our mouths to celebrate if not because of the progressive ideas you brought to FCT. We can now celebrate the innovative ideas brought to the FCT,” President Tinubu said.

President Tinubu encouraged FCT residents and other Nigerians to look beyond ethnic and religious colourations in their leadership choices and focus more on results.

“Today, we live in peace, and security is improving. Hunger is coming down. Food prices are lowering. We can go to the market and do business. And our diversity and belief in ourselves are becoming stronger.

“We are not looking for magic. We are looking for results. We are looking for comfort. We are praying for good health. We are looking for someone who cares,” the President noted.

“The job is not just about Wike or me, but everyone. Nyesom Wike is proving the diversity of Nigeria. He strengthened that diversity to develop prosperity, showing us that we are all members of one family, living together in the same house, in different rooms, and under one roof,” the President said.

President Tinubu urged more tolerance, broadmindedness and patriotism.
“All I appeal for is tolerance, which has brought us this far. We have learnt some lessons from Ramadan. May the lessons continue to be with us,” he said.

The FCT minister thanked the President for hosting the residents in the State House.

“This visit marks a historic moment as it is the first time the FCT residents can extend our greetings and best wishes to you in person during this blessed period. We are genuinely delighted to be here”.

Wike pledged his loyalty to the President and committed himself to developing the capital city, assuring that the FCT would soon complete many projects.

“Despite our varied backgrounds, we are united in our unwavering support for your administration and the Renewed Hope Agenda,” he added.

The Vice President, Sen. Kashim Shettima, National Security Adviser, Nuhu Ribadu and Minister of Information and National Orientation, Mohammed Idris, attended the ceremony.

The FCT delegation included members of the National Assembly, judiciary, religious and traditional leaders, security chiefs and women and youth groups.

Source: State House Press Release

Headline

Eid-El-Fitr Celebration: Tinubu, Shettima Join Nigerian Muslims in Prayers

Published

2 days ago

March 30, 2025

Eric

President Bola Tinubu and Vice President Kashim Shettima, on Sunday, joined others for prayers at the National Eid ground in Abuja, as Nigerian Muslims mark the Eid-El-Fitr celebrations together with millions of others around the world.

Deputy President of the Senate, Barau Jibrin, the National Security Adviser, Nuhu Ribadu and some ministers also observed the prayer at the same venue.

Eid-El-Fitr, meaning the festival of breaking the fast, is a time of gratitude, charity and communal harmony.

It began with special prayers known as Eid prayers held in Mosques and open spaces. Following the prayers, families share festive meals, exchange gifts and extend warm greetings.

Eid is a time to remember those less fortunate and to strengthen the bond of brotherhood and sisterhood. A key component of Eid is Zakat al Fitr, a mandatory charitable donation intended to ensure everyone irrespective of their financial situation can participate in the joy of the celebration.

This act of giving embodies the spirit of compassion and solidarity that Ramdan emphasizes. From the elaborate feast of South Asia to the festive clothing of Nigeria and the African continent and the warm gatherings of the Middle East, Eid celebrations vary across cultures, showcasing the rich diversity of the Muslim world.

However, the underlining message of unity, gratitude and compassion remains universal.

Saudi Arabia and some other Gulf Arab states are celebrating the Eid al-Fitr holiday from today, but other Middle Eastern countries will not do so until Monday.

“The Supreme Court has decided that tomorrow, Sunday, March 30, 2025, is the first day of Eid al-Fitr,” the Saudi Royal Court said in a statement carried by official media.

The timing of the holiday, which marks the end of the fasting month of Ramadan, is determined by the sighting of the crescent moon, in accordance with the Muslim lunar calendar.

The United Arab Emirates and Qatar also announced Sunday would be the first day of the holiday.

But neighbouring Oman and Jordan, as well as Shiite-majority Iran, said that Eid al-Fitr would not begin until Monday because the crescent moon had yet to be sighted. Egypt and other North African countries followed suit.

Headline

First Lady, Buhari, Adeleke, Mba Celebrate President Tinubu at 73

Published

2 days ago

March 30, 2025

Eric

By Eric Elezuo

March 29 marked another circle for Nigeria’s President, Asiwaju Bola Tinubu, as he celebrated his 73rd birthday anniversary.

Across the nation, especially in Lagos and Abuja, supporters rolled out the drums to the hail the 5th president since the return of democracy in Nigeria, in 1999.

But much more than physical gathering, notable individuals explored the social media as well as private statements to honour the president, who took the helm of affairs of the nation since May 29, 2023, with goodwill messagewith goodwill messages.

The president, according to The Punch reports, received numerous well-wishes from governors and other prominent figures.

First Lady Oluremi Tinubu described her husband as her “light in shining armor” in a heartfelt message stating, “I rejoice and thank God Almighty for His faithfulness in your life over the years. I celebrate your courage, strength, and resilience that have all contributed to who we both are today. May you live long in divine health, joy, peace, and prosperity.”

Osun State Governor Ademola Adeleke commended President Tinubu for his significant contributions to the nation’s economic and democratic development, recalling his transformative tenure as Lagos State governor and ongoing reforms at the national level. “Our dear Asiwaju and Commander-in-Chief of this federation, as you celebrate your 73rd birthday, I pray that God grants you more blessings and grace to continue succeeding in your presidential mandate while living many more years in good health and prosperity. Happy blessed birthday, Mr. President,” he stated.

Enugu State Governor Peter Mbah also extended his best wishes, saying, “On behalf of the Government and the good people of Enugu State, we wish you a happy 73rd birthday. We hope for many more years of good health and joy. We pray that God orders your steps and grants you His uncommon grace as you guide our nation through these challenging times toward a prosperous future.”

Former President Muhammadu Buhari, also sent his regards through a statement by Garba Shehu.

“When we pray for our leaders, we are praying for ourselves and the nation. We owe this to ourselves and the nation,” the statement said, adding that he and his family remain indebted to President Tinubu and other party leaders for their invaluable contributions to the formation of the All Progressives Congress.

Tinubu, who declared that his aspirations for the nation, are rooted in peace amd stability, saying “My prayer is for stability, peace, and the safeguarding of our people. We work hard and pray harder. We thank God,” also kept faith with the spirit of gratitude, and attended a special prayer session at the National Mosque, where he was joined by dignitaries, including Vice President Kashim Shettima. Following the prayers, the president took time to greet several monarchs and imams present at the mosque.

Tinubu has received more knocks than kudos since his ascension of office in 2023 owing to his policies, which have impoverished Nigerians, as well as what most Nigerians term as the muffling of other arms of government to dance to the tune of the executive, with special mention of the judiciary and the legislature.

We join other Nigerians to wish Mr. President a happy birthday.