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More Nigerians’ll Fall Into Extreme Poverty, World Bank Predicts
The World Bank has predicted that more people in Nigeria and its Sub-Saharan neighbours are expected to fall into extreme poverty.
According to a report obtained via a World Bank newsletter, last Friday, titled, “Global Economic Prospects,” Russia’s invasion of Ukraine and its effect on the commodity market, supply chains, inflation, and financial conditions have intensified the slowdown in economic growth.
The Washington-based bank further explained that the possibility of high global inflation could eventually result in tightened monetary policy in advanced countries which might lead to financial stress on emerging markets and developing economies.
The report also quoted the World Bank President, David Malpass, as saying that the world was facing the deepest global recession since World War II.
He said, “The global economy is facing high inflation and slow growth at the same time. Even if a global recession is averted, the pain of stagflation could persist for several years- unless major supply increases are set in motion.”
The report added that growth in Sub-Saharan Africa is projected to slow to 3.7per cent this year reflecting forecast downgrades of over 60per cent of regional economies.
Price pressures, partly induced by Russia’s invasion of Ukraine, are sharply reducing food affordability and real incomes across the regions.
It read in part, “More people in SSA are expected to fall into extreme poverty, especially in countries reliant on imports of food, and fuel. Fiscal space is narrowing further as the government ramps up spending on subsidies, support to farmers, and in some countries, security. However, the impact of the war will vary across countries, as elevated commodity prices will help soften the damaging effects of high inflation in some large commodity exporters”.
Among the risks to the forecast, prolonged disruptions to food supply across the region could significantly increase poverty, hunger, and malnutrition, while persistent inflation could ignite stagflation risks and further limit policy space to support recoveries.
An elevated cost of living could increase the risk of social unrest, especially in low-income countries.
On how the global economic situation could worsen the poverty level in Nigeria, an Associate Professor of Economics at Pan Atlantic University, Dr Olalekan Aworinde, said the Russia-Ukraine war would reduce the disposable income of Nigerians, which would, in turn, affect the standard of living.
Aworinde said, “Ukraine is one of the largest producers of wheat in the world and the Russian war invasion will affect the demand and supply of wheat and once the major producers of this agricultural material cannot export the goods, that implies that demand is greater than supply and that will result in a hike in price.
“Once prices increase, knowing fully well the disposable income of the consumer is constant it means the purchasing power will fall. And if the purchasing power falls, it will affect the standard of living and once it affects the standard of living it means these individuals will go into absolute poverty.”
Aworinde added that in terms of the structure of the Nigerian economy as a “mono-cultural economy, meaning that we only produce oil and we cannot eat oil.
“So, Nigeria is mainly an import-dependent country and that means when you are bringing in the goods and it’s expensive imported inflation and the implication is that general prices of goods will increase leading to a continuous inflation.”
The Nigerian Institute of Management (NIM) has urged the Federal Government to take urgent steps to forestall economic hardship occasioned by the recent increase in pump price of petrol.
The President of NIM, Dr Christiana Atako, made the call in a statement by the institute’s registrar, Mrs Taiwo Olusesi in Lagos.
Atako said that it was important to mitigate the harsh effects of the latest increase in the price of fuel on both the economy and Nigerians.
She said that the long fuel queues that resurfaced in various cities had attendant consequences on Nigerians whose cost of living was shrinking by the day.
“The Institute supports the current efforts by the Federal Government to kick-start the nation’s weak economy and put it on a good footing.
“However, NIM is an organisation committed to promoting good governance and sound management practices.
“We believe that government should do everything within its power to give the nation’s economic policies a human face,” she said.
The NIM president urged the Federal Government to continue working with the greater interest of Nigerians at heart by taking more proactive measures to impact the welfare of the citizenry.
She called on government to, especially, address fuel scarcity, the hunger in the land, as well as tackle the myriad of economic issues facing the country.
“The Institute concedes that the decision to remove fuel subsidy has come with some pains,.
“It is, however, a necessary step towards the nation’s economic stability as it will help to curb the mismanagement of scarce resources
“It will also reduce corruption in the oil sector, and ensure that the benefits of government spending are felt by all Nigerians.
“Since the removal of subsidy is a difficult decision with significant impact on the masses, it is essential that the Federal Government implements measures to mitigate its effects,” she said.
Atako suggested measures like providing a safety tax net for those who would be most impacted by the subsidy removal, greater government intervention in agricultural produce, public transportation and youth employment programmes.
She also enjoined Nigerians to be patient with the Federal Government, and called for more understanding.
She said that the NIM believed that the nation would soon turn the bend and start reaping the benefits of the present sacrifices.
The National Drug Law Enforcement Agency (NDLEA) has destroyed over 100,000kg of cannabis spread across 51 hectares of farm land in Ekiti State.
This is contained in a statement by the Director, Media and Advocacy NDLEA, Mr Femi Babafemi yesterday, in Abuja.
Babafemi said that NDLEA operatives supported by men of the Nigerian Army on Tuesday Sept. 3 and Wednesday Sept. 4 stormed three camps inside the Ise-Ekiti forest reserve, in Ise/Orun Local Government Area of the state.
He named the affected areas to include: Aba Saalaja with 23 hectares; Aba Paanu with 12 hectares and Aba Arogunmatidi with 16 hectares, all within Ise-Ekiti forest reserve.
He also said two suspects: were arrested on the Toro-Jos road, Kaduna with 305kg cannabis (Indian hemp) concealed in false compartment of a J5 boxer bus marked YLA 682 XM.
Babafemi said that another suspect was arrested in possession of 18 kilograms of same substance at Makarfi town.
“Two other suspects others: were arrested on the Zaria- Kaduna highway in possession of 1300 tablets of Tramadol, all same day,”he said.
Also, in Jigawa state, a 30-year-old man was nabbed with 32.6kg of cannabis (Indian hemp) at Koran Shehu.
Babafemi said that operatives in Kogi intercepted 77,300 pills of Tramadol, Diazepam and Exol-5 with 1,230 bottles of Codeine in a commercial bus driven by Attai Okolo, 68, along Aloma – Ejule road, Ofu LGA, Kogi.
“Another was nabbed on the Okene-Lokoja-Abuja expressway with 42.400kg cannabis (Indian hemp) coming from Lagos enroute Kano.
“NDLEA operatives in Borno arrested a 40-year-old man at Ramat area of Maiduguri with 13,100 pills of Tramadol.
“Also, operatives in Kano nabbed a man with 25.8kg cannabis and 3,000 pills of Diazepam along Kano – Daura road,”he said.
The NDLEA spokesman said that no fewer than 87,790 pills of Tramadol were recovered from Musa Adamu, 30, when he was arrested in Zing, Taraba state.
Babafemi said that a raid on the home of a drug kingpin, Mayowa Abayomi Awe (a.k.a Bishop) in Ilesa, Osun state led to the seizure of 43grams of crack cocaine, 23grams of Methamphetamine, 17.126kg cannabis and a locally made pistol.
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