Thursday, December 14, 2023

World Bank says Nigeria needs to curb inflation, stabilize forex to boost growth

Nigeria still needs to control inflation and stabilise its foreign exchange market to boost growth in Africa's largest economy following currency reforms and the removal of a petrol subsidy, the World Bank said on Wednesday.

Nigerian President Bola Tinubu has embarked on the country's biggest reforms in decades, unifying the country's multiple exchange rates and scrapping a popular but expensive petrol subsidy, which the World Bank and International Monetary Fund had for years called on Nigeria to do.

The impact has been record inflation, which has risen for 10 straight months, reaching 27.33% in October, the highest in almost two decades.

World Bank lead economist for Nigeria Alex Sienaert said during a presentation in the capital Abuja that "several complementary reforms are needed to support Nigeria's structural agenda and overall gain in competitiveness and economic diversification".

He said that, with the reforms, Nigeria's economy was expected to grow at an average annual rate of 3.5% in 2023-2026, or 0.5% points higher than without the reforms.

The government still needed to remove remaining import restrictions, despite lifting a forex ban on 43 items, improve infrastructure and pursue clear, consistent trade policies, Siernaert said.

Nigeria's central bank should tighten monetary policy, build market confidence around free foreign exchange pricing, phase out "ways and means" advances to the government and discontinue its development finance initiatives, part of a series of unorthodox policies used by former central bank Governor Godwin Emefiele.

New central bank Governor Olawale Cardoso has already begun rolling back Emefiele's policies.

He adopted an inflation-targeting policy, ended all direct interventionist programmes, which he said blurred the lines with monetary policy, and begun clearing foreign exchange backlogs, estimated at $7 billion, that were owed to banks.

"We will be using inflation-targeting and we will ensure that the use of monetary policy actually cascades down and has an impact," Cardoso said in response to Siernaet's call.

The central bank, under Cardoso, has also restarted its Open Market Operations (OMO) to rein in money supply.

Despite unifying its multiple exchange rates, Nigeria has struggled with low oil revenue and foreign exchange shortages, which has dampened investor sentiment and hindered growth.

Finance Minister Wale Edun said the government would scrutinize revenue from oil, its main export and source of foreign currency earnings, and aim to boost output of the commodity ahead of plans "to spend even more".

"What is spent as a proportion of GDP is much lower than in some African countries where government spending as a portion of GDP goes as far as 50% to 60%," Edun said. "If you are willing to do that, you need revenues and the first source of revenue is oil revenue."

By Camillus Eboh, Reuters

Christian mother on bail after 19 months prision time in Nigeria for “blasphemy”

A judge in Bauchi State, Nigeria, has granted bail to Rhoda Jatau. Jatau, a Christian and mother of five, had been imprisoned since May 2022 for allegedly sharing a video on WhatsApp condemning the lynching of Deborah Emmanuel Yakubu, a Nigerian university student who was murdered and set on fire by a mob of her classmates in May 2022 for sharing her Christian faith. ADF International is supporting Jatau’s defence.


Prior to being granted bail, from the time of her arrest over 19 months ago, Jatau was repeatedly denied bail and detained incommunicado, only having intermittent access to legal counsel and family members during court appearances.

“We are glad to see that Rhoda Jatau finally has been granted bail after being denied it for so long,” said Sean Nelson, legal counsel for ADF International. “No person should be punished for peaceful expression, and international religious freedom advocates must continue to speak up on Rhoda’s behalf. We will continue to seek justice for Rhoda, and we are hopeful that the unjust charges against her will be dropped completely.”

The Nigerian ADF International allied lawyer, serving as lead counsel on Jatau’s case, responded: “After 19 long months in prison, we are happy that Rhoda finally has been released on bail. We thank all who have been praying for Rhoda, and we ask for your continued prayers as her case continues.”

Before granting bail, a judge in Bauchi State, Nigeria, refused to dismiss prosecutors’ case in their trial against Jatau. The decision to continue with the prosecution followed a “no case submission” filed by Jatau’s lawyers after the prosecution had rested based on serious evidentiary issues. Jatau’s lawyers raised significant legal failures in the prosecution’s case, and argued that they had not established the basic elements of their case against Jatau.

The grant of bail followed international outcry over Jatau’s imprisonment. Highlighting both Jatau and Yakubu’s cases, and in response to appeals from ADF International and other religious freedom advocacy organizations, United Nations experts sent a joint allegation letter to the Nigerian government earlier this year. The letter emphasized the danger of blasphemy laws as a violation of international human rights and called attention to Jatau’s unjust imprisonment.

Jatau’s trial is currently scheduled to resume on 19 December, but holiday schedules may push her next court date into 2024. Jatau is being charged under sections 114 (public disturbance) and 210 (religious insult) of the Bauchi State Penal Code and faces up to 5 years imprisonment if convicted of the charges against her.

Nigeria’s Persecution of Christians

The cases of Rhoda Jatau and Deborah Emmanuel Yakubu are but two examples of the widespread violence against religious minorities, including Christians in Northern Nigeria, prevalent in Nigeria today.  

Together with other religious minorities in Nigeria, the persecution of Christians in Nigeria is especially severe. Worldwide, over 5,500 Christians were killed for their faith last year. Of those, 90% were Nigerian.   

The criminalisation of blasphemy in Nigeria carries with it dangerous implications for the country as a whole. In a country of more than 200 million, split nearly evenly between Christians and Muslims, blasphemy laws are a significant driver of societal tensions. These laws punish the innocent for expressing their beliefs, silence people from sharing their faith, and perpetuate societal violence. Blasphemy laws throughout Nigeria encourage brutal mob violence and inflict severe harm on minority Muslims, Christian converts, and others. 

ADF International also is supporting the legal defence of Nigerian musician Yahaya Sharif-Aminu, a Sufi Muslim who was sentenced to death by hanging for sharing song lyrics that were deemed “blasphemous” on WhatsApp. With the support of ADF International, Yahaya is appealing his case to the Supreme Court of Nigeria in the hopes of overturning the death penalty blasphemy laws in Nigeria. Yahaya remains in prison awaiting his appeal. Yahaya has been imprisoned for over three and a half years.  

ADF International

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Women in Nigeria lead drive to upcycle plastics

 For years, Maryam Lawani was really pained when it rained. She lived in the Oshodi Isolo area of Lagos, Nigeria’s commercial capital, where canals often overflow messily into the streets during downpours.

Additionally, she was always struck by the huge amount of plastic waste on the streets after the rains receded and how this in turn affected mobility or even made the roads deteriorate. After even a little rain in Lagos, the streets get muddy and potholes brimming by the side with broken plastics, gin sachets, pure water nylons, used diapers and other items.

“I felt a strong need to prevent climate crises as a response to a personal pain point,” she told Al Jazeera. So she began to research the recurring problem and then discovered that plastic pollution was a global issue.

According to the United Nations, on average, the world produces 430 million tonnes of plastic every year; wrappers for chocolate bars, packets and plastic utensils. And there are consequences; every day, the equivalent of over 2,000 garbage trucks full of plastic are dumped into water bodies. As a result, plastic pollution is set to triple by 2060 if no action is taken.

UN reports also say that Nigeria generates about 2.5 million metric tonnes of plastic waste annually. Of that, over 130,000 tonnes of plastic make their way into water bodies, putting the country among the top 20 contributors to marine debris globally.

And while Nigeria has several dumping sites for waste, those in the environmental sector like Olumide Idowu, executive director for International Climate Change Initiative, say there is no exact data on their number or capacity to handle large volumes of waste sufficiently.

So waste has visibly caused blocked drainages and pollution, even as climate shocks like floods hit parts of sub-Saharan Africa. This is most obvious in Lagos, the country’s most populated city, with an estimated 24 million people.
 

Challenges

Compared to other developing countries like Kenya, Rwanda, Uganda and Tanzania, which have banned single-use plastics or are gradually eliminating them, Nigeria hasn’t done much to combat plastic pollution, experts say.

In 2020, the Ministry of Environment launched the Nigeria Circular Economy Policy to help transition the country to a circular economy and promote sustainable waste management. But Idowu says proper waste collection and recycling facilities are still needed for Nigeria to tackle plastic pollution effectively.

“Nigeria may also need to strengthen existing regulations or introduce new ones to address plastic pollution,” he says, adding that the country’s large population could also be a challenge in enforcing them. ”[But] economic constraints and lack of alternative packaging options may hinder the transition away from single-use plastics.”

“As more individuals, businesses, and the government recognize the value of upcycling, it is likely that the sector will grow and contribute to a more sustainable and circular economy in Nigeria,” Idowu says.

Climate Lead’s Oladosu says there is a need to involve as many people as possible in the movement for a cleaner, greener Nigeria.

“We need to make people understand that climate change is real, and it will affect everyone regardless of where they live, Ajegunle or Lekki,” she said. “We can all feel the heat of the sun, the impact of flooding, etc. There are different angles to mitigating climate change and recycling is just one. Another is responsible consumption. There is a need for everyone to be climate and environmentally conscious.”
 

The recycling mission

During her research, Lawani discovered she could recycle plastics to help clean up the neighbourhood mess. So in 2015, she founded Greenhill Recycling which now recovers an average of 100-200 tonnes of waste monthly, she says.

Her business also provides a means of supplemental income for people around her, by paying them around 100-150 naira ($0.1265) for every kilogramme of trash collected.

“We encourage and sensitise people not to thrash waste but to bag them neatly in their homes,” she told Al Jazeera. “We pick up from their doorstep, their homes and not in dump sites.”

“Waste is a currency to address other issues around poverty, unemployment and the environment. People are able to exchange waste for profitable things like school fees, clothes and even food,” Lawani added.

Like Lawani’s Greenhill Recycling, several other women-led upcycling and recycling companies have sprung up in Africa’s largest economy, in addition to the well-known Wecyclers social enterprise.

In coastal Lagos, RESWAYE (Recycling Scheme for Women and Youth Empowerment) works in communities with women and young girls who are trained to go into schools and estates to retrieve plastics. Their collections go to a sorting hub and from there to upscalers.

Doyinsola Ogunye, founder of RESWAYE told Al Jazeera that it has reached 4000 women in 41 coastal communities in Lagos, while also giving personal hygiene kits to them and providing scholarships for children.

There is also the nonprofit Foundation for A Better Nigeria (FABE) founded by Temitope Okunnu in 2006 to create awareness about climate change in schools. It operates across three states.

“We visit primary, secondary schools and universities to sensitise young children about climate issues,” she said. “Behavioural change is still a big issue in this part of the country which is why we are focused on young children.”

Through an initiative called EcoSchoolsNg, it teaches students skills such as sustainable waste management – by recycling, upcycling or composting – and sustainable gardening.

FABE says it promotes plastic upscaling because according to Okunnu, “plastic is money but only a few people know this”, she told Al Jazeera.

The increasing awareness about recycling plastic into usable products can also be great for keeping youth engaged, says Adenike Titilope Oladosu, founder of ILead Climate, a climate justice advocacy.
 

The need for more work

Despite the work of these women and numerous non-profits to educate Nigerians on the adverse effects of climate change, ignorance is still widespread.

Passengers in moving vehicles still casually fling sachets and bottles onto the streets just like others sweep household waste into canals.

For Lawani and Okunnu, this is more evidence of the need to ingrain awareness of the environment and related consequences in their fellow Nigerians at all income cadres, from a young age.

“Exposed and enlightened young children are well aware but less privileged children whose concern is how to get the next meal may not be concerned about this so we need to direct our attention to them, sensitise people, help people find a link,” Lawani said. “People can easily relate to blocked drainages so teach people at their level. Help them see these links and connections and how it affects them too.”

Al Jazeera

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COP28 'Transition Away' From Fossil Fuels deal brings Mixed Reaction in Nigeria

A deal struck at the COP28 climate summit in Dubai, United Arab Emirates, to “transition away” from fossil fuels received a less-than-hearty welcome Wednesday in Nigeria, which depends on crude oil sales for most of its budget.

Nigerian leaders said that their nation needs funding if the world wants it to move away from the production and use of fossil fuels.

The United Nations’ COP28 summit closed Wednesday with the signing of a deal to transition away from oil, gas and coal in what the text called a "just, orderly and equitable manner" in hopes of reducing carbon emissions and ease global warming.

It is the first such agreement to move away from fossil fuels since the annual conferences began nearly three decades ago.

The deal also seeks to triple renewable energy capacity globally by 2030 and promote carbon capture technologies that can clean up hard-to-decarbonize industries.

The president of the COP28, the UAE’s Sultan al-Jaber, praised the deal but said its success would be measured by how well it is implemented.

Peter Tarfa, former climate change director at Nigeria's Federal Ministry of Environment, agreed, saying, “This is not the first time that decisions have been taken in climate change discussions ... that they have not been fully implemented. It is actually in the best interest of the climate that all hands should be on deck."

Others are not so pleased with the deal. Members of the OPEC oil-producing countries, including Nigeria, initially resisted calls by more than 100 nations for stronger measures, such as a complete “phase out” of fossil fuels.

Salisu Dahiru, director of Nigeria's National Council on Climate Change, attended a plenary session in Dubai on Wednesday.

"There's no fairness, justice, equity” in asking developing countries to “start ditching fossil fuels,” Dahiru said.

“These fossil fuels are necessary for developing countries to taste the goodness of development,” he said. “What we've always stood for is decarbonizing the oil and gas so that we get cleaner fuels.”

Critics argue that decarbonizing technology is expensive and a diversionary tactic by countries so that they can continue to produce fossil fuels.

Oil accounts for 95% of Nigeria's foreign exchange earnings. Tarfa said authorities must begin to look elsewhere to grow Nigeria's economy.

"There's a lot of investment now going on toward the green economy pathway,” he said. “For Nigeria, we cannot act in isolation. … The phaseout or phase down of fuel consumption will definitely impact the economy, but now the time has come for the government to start diversifying to other sources."

Nigerian President Bola Tinubu, writing a column for CNN published Wednesday, said that Nigeria had initiated programs to transition from fossil fuels but that the country needs $10 billion every year until 2060 to achieve its transition plan.

Tinubu also criticized developed nations for failing to honor a pledge to give $100 billion to poorer countries to mitigate the effects of climate change.

By Timothy Obiezu, VOA

Related stories: Environment minister says Nigeria needs to 'be ready' for oil decline

President Tinubu says Nigeria needs quick US funding for energy transition

Wednesday, December 13, 2023

Video - Dangote Oil Refinery set to commence fuel production in Nigeria



The refinery recently received its first shipment of crude oil and several more are on the way. The first batch of processed oil products from the refinery is projected to roll out sometime in January 2024.

CGTN

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