Business

Seven Nigerian companies debarred by World Bank for corruption

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The World Bank has debarred five Nigerian firms and individuals for engaging in corrupt practices and also recognized the debarment of two Nigerian companies debarred by the African Development Bank (AfDB).

The companies and individuals who will no longer participate in projects and operations financed by institutions of the World Bank Group, were listed in the international financial agency’s recent report titled ‘Sanctions System Annual Report for Fiscal Year 2022’ which was prepared by the offices of the World Bank Group’s (WBG) sanctions system, which comprises the integrity vice-presidency (INT), the office of suspension and debarment (OSD), and the sanctions board and its secretariat.

Salihu Tijani was debarred for three years and two months while Isah Kantigi was debarred for five years.

Amin Moussalli was debarred for two years and 10 months alongside a conditional non-debarment for one year and six months (Conditional non-debarment means that a firm or individual remains eligible to participate in World Bank-financed projects as long as the firm/individual complies with certain sanction conditions).

The World Bank debarred two firms; AIM Consultants Limited for two years and 10 months, and SoftTech IT Solutions and Services Ltd. for four years and two months.

The two firms blacklisted by AfDB but recognised by the World Bank were Sargittarius Nigeria Limited, and Sargittarius Henan Water Conservancy Engineering Ltd. for a period of two years and six months each.

David Malpass, World Bank Group president, who spoke on the sanctions said;

“Among them, it diverts scarce resources from achieving the projects’ objectives, robbing the benefits of development from the people who need them most; it increases costs for the most vulnerable while reducing their access to services—including health, education, and justice; and it undermines the public’s trust in institutions, thereby weakening governance and rule of law and increasing fragility,” Malpass explained.

“At a moment when every available resource must be deployed for maximum impact, these ill effects of corruption can be especially damaging.

“For this reason, it is important to recognise the role of the Bank Group’s sanction system, which plays a significant part in our institution’s efforts to maintain oversight and accountability for the financing we provide.”

Lifestyle, Politics

Nigeria’s economic growth to slow down next year – World Bank

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Nigeria’s economic growth will slow down next year, a World Bank report said.

According to the report released in Washington yesterday, October 4, and tagged Africa’s Pulse, the growth will be down from 3.3 per cent to 3.2 per cent.

World Bank blamed the development on inflationary pressures. The report reads:

“The Nigerian economy is projected to slow in 2023, down to 3.2 per cent (from 3.3 per cent) and persist at this level the following year.

“Growth will be supported mainly by the rebound in private consumption prompted mostly by accommodative monetary policy as inflationary pressures subside.

“Private consumption expenditure is forecast to decrease this year and grow next year. This performance will likely continue in 2024.

“On the production side, growth in 2023 will be supported by industry (with growth of 5.1 per cent) with the mega-refinery project.”

The report added that the South African economy will weaken further because of structural constraints.

It said global headwinds are slowing Africa’s economic growth with countries contending with rising inflation.

It added that high interest rates and debt are forcing African governments to make difficult choices to protect people’s jobs, purchasing power and development gains.

Lifestyle

Nigeria’s economy worse under Buhari —World Bank

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A report by the World Bank has noted that Nigeria’s economy under President Muhammadu Buhari was worse than what it used to be 10 years ago.

The report which was released on Thursday, said the hike in food prices in the country had amplified the negative impact of increased poverty on economic growth, noting nearly 110 million people in countries like Nigeria, the Democratic Republic of Congo, Ethiopia, and South Sudan had been in situations characterised by food crises.

The findings of the report which were contained in its flagship report for 2022, titled ‘Global Economic prospect’, said “the Coronavirus pandemic reversed at least a decade of gains in per capita income in some countries,” but in Nigeria, under the Buhari-led administration, the poverty level meant the economy had performed woefully.

The report also noted that disruptions to the supply chains or armed conflicts could contribute to surges in food prices, leaving vulnerable groups suffering the most.

“Further rise in food prices would squeeze households’ purchasing power and erode consumer confidence, causing more subdued growth and hindering poverty reduction,” the report stated.

This is not the first time the World Bank knocked the President Buhari administration over its poor management of Nigeria’s economy.

In 2021, the apex global bank had criticised Buhari’s fiscal policies, specifically noting the negative effect of Nigeria’s Central Bank exchange rate policies on investments and fuel inflation.

Lifestyle

World Bank projects 2.5% growth for Nigeria’s economy in 2022

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The World Bank on Tuesday projected a 2.5 percent growth for the Nigerian economy in 2022.

In its latest Global Economic Prospects report released in Washington, the Bretton Wood institution cited higher oil prices and accelerated growth in telecommunication and financial services as some of the factors responsible for the rebound of the country’s economy.

World Bank projected a 2.4 percent growth for the Nigerian economy in 2021.

The bank expected the global growth to decelerate markedly from 5.5 percent in 2021 to 4.1 percent in 2022, then 3.2 percent in 2023.

The report read: “In Nigeria, growth is projected to strengthen somewhat to 2.5 percent in 2022 and 2.8 percent in 2023.

“The oil sector should benefit from higher oil prices, a gradual easing of the Organization of the Petroleum Exporting Countries (OPEC) production cuts, and domestic regulatory reforms.

“Activity in service sectors is expected to firm as well, particularly in telecommunications and financial services. However, the reversal of pandemic-induced income and employment losses is expected to be slow; this, along with high food prices, restrains a faster recovery in domestic demand.

“Activity in the non-oil economy will remain curbed by high levels of violence and social unrest as well as the threat of fresh COVID-19 flare-ups with remaining mobility restrictions being lifted guardedly because of low vaccination rates — just about 2 percent of the population had been fully vaccinated by the end of 2021.”

Politics

Governors set to sign World Bank fiscal transparency subsidiary grant agreement

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The 36 State Governors under the aegis of Nigeria Governors’ Forum (NGF) unanimously resolved to sign the World Bank’s State Fiscal Transparency, Accountability and Sustainability (SFTAS) programme’s subsidiary grant agreements.

The NGF’s resolution was contained in a communiqué signed by its chairman, Governor Kayode Fayemi after the 21st teleconference meeting sequel to the adoption of the update report presented by Governor Godwin Obaseki of Edo State, on the SFTAS programme.

According to the NGF, each of the 36 state governments is expected to capture at least 50 per cent of the properties that have electricity connections in urban areas to unlock $2 million performance grant under the World Bank-funded States Fiscal Transparency, Accountability and Sustainability Program for results before June 30, 2021.

The governors during the meeting affirmed that the assessment of states’ amended budgets published at the onset of the COVID-19 pandemic has been completed while the verification exercise for the implementation of tax relief programmes in all states is underway.

To this end, the governor enjoined all state governments to immediately direct their commissioners for finance to sign the SFTAS Subsidiary Grant Agreements with the Ministry of Finance, Budget and National Planning to give effect to the principles and objectives of the programme in their states.

In the same vein, the governors during the review of various issues affecting the country, particularly on the impact of the COVID-19 pandemic and the fallouts of the EndSARS protests, unanimously resolved to: “engage with traditional, religious and civil society organizations to drive a common agenda and generate the required support for security personnel who play a vital role in ensuring the safety and well-being of all Nigerians.”

The Governor of Delta State, Dr Ifeanyi Arthur Okowa, chairman of the NGF Sub-Committee interfacing with the Presidential Task Force (PTF) on COVID-19, raised concerns about the current low testing numbers in the country, especially in the light of the resurgence of COVID-19 cases globally. State governors were enjoined to increase their testing capacity in all local governments to help prevent the start of a second wave of the pandemic in the country flowing from imported cases from abroad.

Also at the meeting, the chairman of the Northern Governors’ Forum and Governor of Plateau State, Simon Lalong gave an update on steps taken by the governors of the 19 Northern states to address the fallouts of the EndSARS protests.

While acknowledging that security situation in the country remains a priority agenda for Forum members across board, the governors resolved to: “adapt at both the state and regional levels guidelines to be developed and issued by the NEC Sub-Committee on Engagement to reduce restiveness among young people as it is clear that these agitations are attributable to social and economic inequality in the country.”

They also commended the private sector-led Coalition Against COVID-19 (CACOVID) for presenting the true situation of what transpired in the light of the unfortunate misperception that attended the distribution of palliatives at the state level resolving that the NGF chair should work with the CACOVID chairperson to address the media in addition to members speaking up in their local settings.

The NGF is also expected to educate the citizenry about the various palliatives provided by the states including cash transfers, food items, medical supplies, and tax incentives given to individual taxpayers and businesses.

They also reiterated commitment to the partnership with Nigerian Stock Exchange (NGF) to organize a virtual event on the 17th November 2020 with the support of the Nigerian Investment Promotion Council (NIPC) and other strategic partners in the country’s infrastructure financing space, noting that the event will discuss the entryway for privatization in the development and performance of State economies.

Similarly, the vice chairman of the Forum and Governor of Sokoto State, Aminu Waziri Tambuwal provided an update on the work of the National Economic Council Sub-Committee mandated to engage with youths, civil society organizations, religious, political and traditional leaders with the objective of framing a new security and stability architecture for the country.

World News

Nigeria explains reasons for opposing debt relief to World Bank

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Days after kicking against it, Nigeria has told the World Bank and the G20 that debt relief will not sustain the financing needs of Nigeria, Angola and South Africa.

Minister of Finance Budget and National Planning Mrs. Zainab Ahmed, made this disclosure while speaking virtually at the International Monetary Fund (IMF)/World Bank meeting,

Speaking on behalf of Angola and South Africa Constituency, Ahmed commended the Bretton Woods Institutions (BWIs) and the G20 Leadership for the Debt Service Suspension Initiative (DSSI) and calls for its extension.

She however lamented “the associated flows from the DSSI may not sustain the massive financing needs of countries”.

She therefore asked the global bodies to pay “more attention to debt management and domestic resource mobilisation”

Ahmed also said Nigeria welcomes the Progress Report on the 2020 IBRD and International Finance Corporation (IFC) shareholding reviews and continue to support the gradual adjustment of membership shareholding in the World Bank Group (WBG) to address the underrepresentation of members.

“However, given the need for encashments of recently approved IBRD and IFC Subscriptions, as well as the constrained fiscal environment, due to the COVID-19 pandemic, adjustment this time is not advised,” she said.

Given the huge financing gap that exists to support the recovery of African economies, “we share concerns on the capital adequacy of the WBG institutions.

“In this regard, we urge all stakeholders to work together and ensure that Development Association (DA) has enough resources to help the poorest and most resource- constrained members of the WBG.”

To mitigate impact of COVID-19 pandemic on jobs, Ahmed appealed for more investments in broadband network and vocational skills from the international community to close the unemployment gap in the country.

She called for global solidarity in upgrading the digital space in Africa so that the continent can benefit from new jobs.

Ahmed said: “Assuming a strong recovery in 2021 full year (FY21), most of the current jobs may not return, while new jobs will be created”.

World News

$1.2 trillion to aid AFRICA

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According to IMF, Africa ‘needs $1.2tn’ to recover coronavirus losses

The economic damage as well as the health costs caused by coronavirus has left Africa needing $1.2tn (£920bn) over the next three years, the International Monetary Fund has said.

IMF chief Kristalina Georgieva said the world “must do more to support Africa to [recover]… from this crisis”.

Africa has had fewer Covid infections and deaths than most other continents.

But the World Bank says 43 million more Africans are at risk of extreme poverty as a result of the pandemic.

The economic impact is reversing the trend in recent years of strong growth in Africa, as jobs have been lost and family incomes have been reduced by 12%, Ms Georgieva told a virtual IMF meeting.

To help soften the blow, many African governments have introduced mitigation policies which have cost 2.5% of GDP, she added.

The IMF has given African countries about $26bn to cushion the impact but even with the help of private lenders and other countries’ assistance there is still a huge shortfall in funding.

“Some countries are confronting high debt burdens forcing them to choose between debt service and additional social and health spending,” the IMF chief said.

As a means to help, she called for an extension of the moratorium by the G20 of debt repayments and wanted more funds to be available to lend.

There have been more than 1.5 million confirmed coronavirus cases in Africa and nearly 37,000 people have died.

Africa indeed needs aid…

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