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‘Inflation’ll Push 15m Nigerians Into Poverty In Two Years’
The World Bank has said that inflation shock is projected to push about 15million more Nigerians into poverty between 2020 and 2022.
The Washington-based bank said this in its latest Nigeria Development Update report, titled, ‘The Continuing Urgency of Business Unusual’.
The report read in part, “Overall, the ‘inflation shock’ is estimated to result in about 15million more Nigerians living in poverty between 2020 and 2022.”
The lending bank stressed the need for reducing the rising rate of inflation, which is pushing millions of Nigerians into poverty.
Although the World Bank said that inflation in 2022 was projected to be 15.5per cent, Nigeria’s inflation as of May this year is 17.71per cent, which is higher than the World Bank’s projection.
The lending bank further said that Nigeria has one of the highest inflation rates in the world.
According to the bank, inflationary pressures in the country are driven by certain policy distortions.
The bank said, “Inflationary pressures were compounded by policy distortions, in particular (i) lack of flexible foreign exchange management, (ii) trade restrictions, and (iii) conflicting monetary policy goals.”
It further disclosed that global supply shocks exacerbated inflationary pressures and increased the urgency.
Aside from the policy distortions, the COVID-19 pandemic and the war in Ukraine have contributed to rising inflation.
It was also stated that the financing of the fiscal deficit and trade restrictions by the Central Bank of Nigeria (CBN) contributes to fuelling inflationary pressures, and Nigeria will have one of the highest inflation rates in Sub-Saharan Africa in 2022.
The bank also said that poverty might be becoming entrenched in certain Nigerian households, particularly in rural areas in the North.
In combating poverty, certain reforms were recommended, which include fiscal, trade, and exchange-rate policy that could help diversify the economy; invigorating structural transformation; and creating good, productive jobs, especially wage jobs.
World Bank economists, Jonathan Lain and Jakob Engel, have said that rising inflation, persistent population growth, the COVID-19 pandemic, and the war in Ukraine was threatening Nigeria’s poverty reduction aspiration.
In June last year, President MuhammaduBuhari inaugurated the National Steering Committee of the National Poverty Reduction with Growth Strategy chaired by Vice President, ProfYemiOsinbajo.
This, he said, re-echoes his commitment to lifting 100million Nigerians out of poverty in 10 years, with a well-researched framework for implementation and funding.
Despite this, the rate of poverty in the country seems to be on the rise, driven significantly by inflation.
In its ‘A Better Future for All Nigerians: 2022 Nigeria Poverty Assessment’ report, the World Bank said that poverty reduction stagnated since 2015, with more Nigerians falling below the poverty line over the years.
The Washington-based bank added that the number of poor Nigerians is projected to hit 95.1million in 2022.
The World Bank also warned that many non-poor Nigerians were only one small shock away from falling into poverty.
According to the lender, such a shock can be induced by the issues of climate or conflict which could further threaten Nigeria’s poverty reduction efforts.
Like the World Bank, the International Monetary Fund has said that the rate of inflation in Nigeria is expected to remain elevated in 2022.
Speaking on the development, an Associate-Professor of Economics at the Pan-Atlantic University, OlalekanAworinde, said the events of the last few months were apt indicators that the inflation rate would increase further.
Nobel Laureate, Professor Wole Soyinka, has called on Nigerians to reject silence in the face of extrajudicial killings and other abuses of human rights.
Soyinka stressed that accountability and civic courage remain essential to rebuilding public confidence in the nation’s institutions.
He made the call during the 28th Wole Soyinka Lecture held in Port Harcourt, last Friday as part of activities marking his 92nd birthday.
The lecture, themed “Reclaiming the Nigerian State through Accountability, Justice and Civic Courage,” drew participants from different sectors of society.
The renowned playwright and human rights advocate said the country’s greatest tragedy was not only the unlawful killings carried out by state and non-state actors, but also the silence that often follows such incidents, allowing perpetrators to evade justice.
According to him, indifference by citizens to abuses of power and violations of fundamental human rights has contributed to the persistence of extrajudicial killings and other forms of injustice across the country.
Soyinka said he dedicated this year’s lecture to victims of unlawful killings, noting that the event was intended to honour individuals who had lost their lives as a result of failures within the justice system and society’s inability to protect the sanctity of human life.
He stressed that the lecture was dedicated to what he described as the basic unit of every society – the human being, and urged Nigerians to place greater value on human dignity irrespective of ethnicity, religion or social status.
The Nobel Laureate recalled several incidents of violence, including the fatal shooting and killing of a young man in Ugheli in Delta State by a police officer, and the mob killing of Deborah Yakubu in Sokoto State sometime ago, lamenting that many of those responsible are yet to face justice.
He expressed concern that some perpetrators of violent crimes had openly admitted their actions without fear of prosecution, describing such situations as evidence of serious failures within the nation’s justice system.
Soyinka maintained that when justice is delayed or denied, public confidence in state institutions continues to erode, thereby encouraging further violations of human rights.
Responding to critics who accuse him of promoting religious or ethnic divisions whenever he spoke on such issues, Soyinka dismissed the allegations and pointed out that his advocacy has always centred on the protection of human life and the rule of law.
He urged Nigerians to remain vigilant and continue demanding justice in cases of alleged extrajudicial killings, including the recent shooting of a young man by a police officer, stressing that every life deserves equal protection under the law.
The literary icon also recalled an earlier pledge by a past incoming president to make public the files relating to unresolved assassinations and extrajudicial killings, questioning the status of the promised investigations.
He challenged citizens to continue asking questions about unresolved cases, insisting that justice, accountability and respect for human dignity are indispensable to building a peaceful, democratic and inclusive Nigerian society.
The Federal Airports Authority of Nigeria (FAAN) has clarified that there was no fire at Terminal 2 of the Murtala Muhammed International Airport, Lagos, contrary to its earlier advisory.
Earlier yesterday, FAAN had announced that a fire incident had occurred at Terminal 2 of the nation’s busiest airport, and assured that its Aerodrome Rescue and Firefighting Service had been deployed to contain the situation.
There were also reports that activities were briefly disrupted at the airport yesterday after smoke was seen inside parts of the terminal.
Videos circulating online showed passengers kept standing outside the terminal while firefighters responded to the incident.
However, in an update issued less than two hours later by the Director of Public Affairs and Consumer Protection, Henry Agbebire, and posted on FAAN’s official X handle, the authority said preliminary findings showed that the smoke seen at the terminal was caused by the discharge of the facility’s FM-200 fire suppression system.
“Further to our earlier advisory regarding the incident at Terminal 2 of the Murtala Muhammed International Airport, Lagos, the Federal Airports Authority of Nigeria (FAAN) wishes to provide the following update,” the statement read.
“Preliminary findings indicate that there was no fire at the terminal. The smoke observed within the affected area resulted from the discharge of the terminal’s FM-200 fire suppression system. The reason for the activation of the fire suppression system is currently being investigated,” FAAN stated.
The authority said normal operations had resumed at the terminal while investigations were ongoing to determine the cause of the incident.
“Normal operations have since resumed at the terminal, while detailed investigations are ongoing to determine the exact cause of the incident,” the statement added.
The authority thanked passengers, airlines, airport users and other stakeholders for their understanding and cooperation.
FAAN appreciated the understanding and cooperation of passengers, airlines, airport users and all stakeholders, and reiterated its commitment to the safety and security of all airport operations.