Thursday, June 22, 2017
Video - Nigerians frustrated by current state of the country
Nigerians are becoming increasingly frustrated with the state of the economy. And although the government says it's doing all it can to lift the country out of recession, many are concerned that it may be a while before things change for the better.
Nigeria introduces $2 billion social-welfare plan
Nigeria is rolling out its first national social-welfare program modeled partly on Brazil’s Bolsa Familia in a bid to boost a weak economy and curb poverty by giving cash to its poorest citizens and ensuring their children go to school.
The government of Africa’s most-populous nation is investing 500 billion naira ($1.5 billion) in the initiative this year and is talking to the World Bank about a $500 million loan, Minister of State for Budget and National Planning Zainab Ahmed said in an interview in the capital, Abuja. Launched in December, the program is initially targeting about 1 million households starting in eight of Nigeria’s 36 states. The government expects that reducing poverty will have a knock-on effect for the rest of the economy, she said.
“It increases money in the hands of people,” Ahmed said. “It means they are contributing towards consumption and an increase in consumption is desirable because it now encourages producers to produce more and as producers produce more it means they are able to employ more people.”
As in Brazil, Nigeria’s plan requires cash-transfer beneficiaries to fulfill two conditions: keep their children in school and immunize them. It also includes providing school meals, short-term job training for graduates, loans at below-market rates to 1.6 million potential entrepreneurs, grants for science and technology students and low-cost housing.
The state will use biometric systems to register beneficiaries, and will make transfers into bank accounts that are opened for families’ caregivers, Ahmed said.
President Muhammad Buhari’s administration seems committed to make it a success, said Esili Eigbe, the head of Nigerian equities at Exotix Capital.
“Other administrations tried to do this before, but not with the kind of determination of Buhari’s administration,” Eigbe said by phone from the commercial capital, Lagos. “The enormous political will and a strong partner in the World Bank shows their determination to do it.”
The government of Africa’s most-populous nation is investing 500 billion naira ($1.5 billion) in the initiative this year and is talking to the World Bank about a $500 million loan, Minister of State for Budget and National Planning Zainab Ahmed said in an interview in the capital, Abuja. Launched in December, the program is initially targeting about 1 million households starting in eight of Nigeria’s 36 states. The government expects that reducing poverty will have a knock-on effect for the rest of the economy, she said.
“It increases money in the hands of people,” Ahmed said. “It means they are contributing towards consumption and an increase in consumption is desirable because it now encourages producers to produce more and as producers produce more it means they are able to employ more people.”
As in Brazil, Nigeria’s plan requires cash-transfer beneficiaries to fulfill two conditions: keep their children in school and immunize them. It also includes providing school meals, short-term job training for graduates, loans at below-market rates to 1.6 million potential entrepreneurs, grants for science and technology students and low-cost housing.
The state will use biometric systems to register beneficiaries, and will make transfers into bank accounts that are opened for families’ caregivers, Ahmed said.
President Muhammad Buhari’s administration seems committed to make it a success, said Esili Eigbe, the head of Nigerian equities at Exotix Capital.
“Other administrations tried to do this before, but not with the kind of determination of Buhari’s administration,” Eigbe said by phone from the commercial capital, Lagos. “The enormous political will and a strong partner in the World Bank shows their determination to do it.”
Economic Strain
The program is still in its infancy compared to similar projects in countries such as Brazil, which started Bolsa Familia in 2003 and will probably increase its social-security budget to 83.3 billion reais ($25 billion) this year, according to the Planning and Budget Ministry. South Africa, with a population about a third of Nigeria’s 180 million people, plans to spend about 180 billion rand ($13.8 billion) on social assistance.
Nigeria’s drive to set up a social-welfare program comes at a time of economic strain, and analysts such as Magnus Kpakol, director at Abuja-based consultancy Economic and Business Strategies, doubt whether the country can afford it now.
The program is still in its infancy compared to similar projects in countries such as Brazil, which started Bolsa Familia in 2003 and will probably increase its social-security budget to 83.3 billion reais ($25 billion) this year, according to the Planning and Budget Ministry. South Africa, with a population about a third of Nigeria’s 180 million people, plans to spend about 180 billion rand ($13.8 billion) on social assistance.
Nigeria’s drive to set up a social-welfare program comes at a time of economic strain, and analysts such as Magnus Kpakol, director at Abuja-based consultancy Economic and Business Strategies, doubt whether the country can afford it now.
Tight Money
“I am afraid that a day will come, they will strand these people,” said Kpakol, who a decade ago led a welfare pilot program featuring the nation’s first conditional cash transfers. “They will just raise their hands and surrender and say we don’t have the money.”
The decline in production and price of oil, Nigeria’s biggest export, crippled West Africa’s largest economy, which shrank 1.6 percent in 2016, the first full-year contraction since 1991. Dollar shortages pushed the inflation rate to the highest in more than a decade in January.
The need for such a program is clearly stark. More than 65 percent of Nigerians live on less than $2 a day and as many as 12 million children are malnourished, according to the Budget and Planning Ministry.
The World Bank, which supports 30 sub-Saharan African countries that disburse money to fight extreme poverty, estimated in a May 2016 report that giving Nigeria’s poor households 60,000 naira annually would reduce poverty to 27.6 percent from 33 percent within a year, if 80 percent of the money was spent on consumption.
Nigeria’s target is to reach 5 million cash-transfer beneficiary households in five years from the 27,000 currently receiving 5,000 naira a month. The World Bank credits Brazil’s Bolsa Familia with lifting more than 28 million people out of poverty in a decade, increasing school enrollment and improving children’s health.
“The cash transfers are similar to Brazil’s in conditions and objectives, but it’s still early to tell how the results will compare,” Eigbe said. “The most important thing is making a whole lot of people employable by ensuring children get some education and are healthy.”
“I am afraid that a day will come, they will strand these people,” said Kpakol, who a decade ago led a welfare pilot program featuring the nation’s first conditional cash transfers. “They will just raise their hands and surrender and say we don’t have the money.”
The decline in production and price of oil, Nigeria’s biggest export, crippled West Africa’s largest economy, which shrank 1.6 percent in 2016, the first full-year contraction since 1991. Dollar shortages pushed the inflation rate to the highest in more than a decade in January.
The need for such a program is clearly stark. More than 65 percent of Nigerians live on less than $2 a day and as many as 12 million children are malnourished, according to the Budget and Planning Ministry.
The World Bank, which supports 30 sub-Saharan African countries that disburse money to fight extreme poverty, estimated in a May 2016 report that giving Nigeria’s poor households 60,000 naira annually would reduce poverty to 27.6 percent from 33 percent within a year, if 80 percent of the money was spent on consumption.
Nigeria’s target is to reach 5 million cash-transfer beneficiary households in five years from the 27,000 currently receiving 5,000 naira a month. The World Bank credits Brazil’s Bolsa Familia with lifting more than 28 million people out of poverty in a decade, increasing school enrollment and improving children’s health.
“The cash transfers are similar to Brazil’s in conditions and objectives, but it’s still early to tell how the results will compare,” Eigbe said. “The most important thing is making a whole lot of people employable by ensuring children get some education and are healthy.”
Nigeria set to become 3rd most populated country in the world by 2050
Nigeria is projected to be the world’s third most populous country by the year 2050, according to a report released by the UN Department of Economic and Social Affairs.
The report, titled ‘World Population Prospects: The 2017 Revision’, said with such development, Nigeria would overtake the United States in terms of population just as world population would reach 9.8 billion people.
The report said “by 2050, the third most populous country will be Nigeria, which currently ranks seventh, and which is poised to replace the United States.
“Among the 10 largest countries of the world, one is in Africa (Nigeria). “Amongst these, Nigeria’s population, currently the seventh largest in the world, is growing the most rapidly. “Consequently, the population of Nigeria is projected to surpass that of the United States shortly before 2050, at which point it would become the third largest country in the world.
The report, titled ‘World Population Prospects: The 2017 Revision’, said with such development, Nigeria would overtake the United States in terms of population just as world population would reach 9.8 billion people.
The report said “by 2050, the third most populous country will be Nigeria, which currently ranks seventh, and which is poised to replace the United States.
“Among the 10 largest countries of the world, one is in Africa (Nigeria). “Amongst these, Nigeria’s population, currently the seventh largest in the world, is growing the most rapidly. “Consequently, the population of Nigeria is projected to surpass that of the United States shortly before 2050, at which point it would become the third largest country in the world.
“In 2050, the populations in six of the 10 largest countries are expected to exceed 300 million: China, India, Indonesia, Nigeria, Pakistan, and United States of America (in alphabetical order). “Africa, which has the youngest age distribution of any region, is projected to experience a rapid ageing of its population, the report noted. “Although the African population will remain relatively young for several more decades, the percentage of its population aged 60 or over is expected to rise from five per cent in 2017 to around nine per cent in 2050, and then to nearly 20 per cent by the end of the century.”
In addition, the birth rates in African countries are likely to “at least double” by 2050, according to the report. That trend came in spite of lower fertility rates in nearly all regions of the world, including in Africa, where rates fell from 5.1 births per woman up to 2005 to 4.7 births in the five years following.
In terms of other population trends depicted in the report, the population of India, which currently ranks as the second most populous country with 1.3 billion inhabitants, will surpass China’s 1.4 billion citizens, by 2024. The report noted that the world population, now at least 7.6 billion, was up from 7.4 billion in 2016, adding the concentration of global population growth is in the poorest countries.
The report said in spite of an overall drop in the number of children people have around the globe, the population was spurred by the relatively high levels of fertility in developing countries. “With roughly 83 million people being added to the world’s population every year, the upward trend in population size is expected to continue, even assuming that fertility levels will continue to decline. “At this rate, the world population is expected to reach 8.6 billion in 2030, 9.8 billion in 2050 and surpass 11.2 billion in 2100,” the report further revealed.
The growth is expected to come, in part, from the 47 least developed countries, where the fertility rate is around 4.3 births per woman, and whose population is expected to reach 1.9 billion people in 2050 from the current estimate of one billion. In contrast, the birth rates in Europe are up to 1.6 births per woman, up from 1.4 births in 2000 to 2005. “During 2010 to 2015, fertility was below the replacement level in 83 countries comprising 46 per cent of the world’s population,” according to the report.
The lower fertility rates are resulting in an ageing population, with the number of people aged 60 or over expected to more than double by 2050 and triple by 2100, from the current 962 million to 3.1 billion. The UN Department said the population growth presented a challenge as the international community sought to implement the 2030 Sustainable Development Agenda seeking to end poverty and preserve the planet.
The report also noted the impacts of migrants and refugees between countries, in particular noting the impact of the Syrian refugee crisis and the estimated outflow of 4.2 million people. In terms of migration, “although international migration at or around current levels will be insufficient to compensate fully for the expected loss of population tied to low levels of fertility, especially in the European region, the movement of people between countries can help attenuate some of the adverse consequences of population ageing”.
Wednesday, June 21, 2017
Video - Telecoms firm Etisalat Nigeria ordered to transfer 45% stake to loan trustee
Etisalat has been instructed to transfer its 45% stake in Etisalat Nigeria to a loan trustee after debt restructuring talks with lenders failed. Etisalat Nigeria had been in talks to restructure a $1.2 billion loan after missing repayments. The company took the loan to refinance an existing commercial medium-term debt of $650 million and continue its network rollout across the country. On June 15th, a consortium of lenders -- led by Access Bank and other local and foreign banks -- took over the management of Etisalat Nigeria. The takeover followed the collapse of the effort by Emerging Markets Telecommunications Services to reach agreement with the banks on debt restructuring plan.
Tuesday, June 20, 2017
America pledges commitment to unity of Nigeria
The U.S. Ambassador to Nigeria, Stuart Symington, has said that his country will continue to work towards the promotion of Nigeria’s unity.
Mr. Symington, who said this in Ibadan, Oyo State on Monday, noted that in Nigeria’s unity lies the strength of the world’s most populous black nation.
The envoy, who led top officials of the embassy on a working visit to the office of the Governor of Oyo State, Abiola Ajimobi, in Ibadan, said that the U.S. recognised the strategic importance of Nigeria in Africa.
A statement by Yomi Layinka, Mr. Ajimobi’s media aide, quoted the envoy as saying that the visit was in the furtherance of his country’s vision and mission to explore new frontiers of partnership for development with African countries, which, he said, informed his decision to tour every part of the country.
Mr. Symington called on the state government to work with the U.S. towards setting a new pace in socio-economic development, adding that Nigeria was loved all over the world, especially in the U.S. because of its unity.
“This visit is not just a courtesy call; it is in continuation of America’s vision and mission. We are looking forward to working with your state to set up a new pace in development,” the envoy said.
“We are happy to be here and I’m telling you that Nigeria as a country is loved by all Americans and even in the world for the sake of the unity the country upholds.”
“The U.S. recognises the strategic importance of Nigeria in Africa. We will continue to work towards the promotion of the unity of Nigeria, because that is where the strength of the country lies. The U.S. loves Nigeria because of its unity.”
Mr. Ajimobi had earlier sought the assistance of the U.S. government in his administration’s efforts at promoting human capital development and technical education in the state.
The governor also identified technical education as the missing link in the Nigeria’s curriculum, which, he said, was necessary for the country’s accelerated development.
The governor said that the state had potential that if put to good use, and with needed support from a developed economy like that of the U.S., could revamp the state’s economy.
“We want more foreign partners to support our industrialisation drive as we have established an industrial park as well as free trade zone, which would be the hub of commerce and source of employment generation for our teeming youth,” the governor said.
Mr. Symington, who said this in Ibadan, Oyo State on Monday, noted that in Nigeria’s unity lies the strength of the world’s most populous black nation.
The envoy, who led top officials of the embassy on a working visit to the office of the Governor of Oyo State, Abiola Ajimobi, in Ibadan, said that the U.S. recognised the strategic importance of Nigeria in Africa.
A statement by Yomi Layinka, Mr. Ajimobi’s media aide, quoted the envoy as saying that the visit was in the furtherance of his country’s vision and mission to explore new frontiers of partnership for development with African countries, which, he said, informed his decision to tour every part of the country.
Mr. Symington called on the state government to work with the U.S. towards setting a new pace in socio-economic development, adding that Nigeria was loved all over the world, especially in the U.S. because of its unity.
“This visit is not just a courtesy call; it is in continuation of America’s vision and mission. We are looking forward to working with your state to set up a new pace in development,” the envoy said.
“We are happy to be here and I’m telling you that Nigeria as a country is loved by all Americans and even in the world for the sake of the unity the country upholds.”
“The U.S. recognises the strategic importance of Nigeria in Africa. We will continue to work towards the promotion of the unity of Nigeria, because that is where the strength of the country lies. The U.S. loves Nigeria because of its unity.”
Mr. Ajimobi had earlier sought the assistance of the U.S. government in his administration’s efforts at promoting human capital development and technical education in the state.
The governor also identified technical education as the missing link in the Nigeria’s curriculum, which, he said, was necessary for the country’s accelerated development.
The governor said that the state had potential that if put to good use, and with needed support from a developed economy like that of the U.S., could revamp the state’s economy.
“We want more foreign partners to support our industrialisation drive as we have established an industrial park as well as free trade zone, which would be the hub of commerce and source of employment generation for our teeming youth,” the governor said.
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