Nigeria, Others May Lose $10bn To Political Tensions – IMF
The International Monetary Fund has said Nigeria could lose an estimated $10bn of foreign direct investment and official development assistance inflows to geo-political tensions.
The IMF in its country focus on Sub-Saharan Africa, released on Monday, said the figure is about a half per cent of the nation’s annual Gross Domestic Product.
The Washington-based lender said, “The losses could be compounded if capital flows between trade blocs were cut-off because of geo-political tensions. The region could lose an estimated $10bn of foreign direct investments and official development assistance inflow is about half a percent of GDP a year based on an average 2017–19 estimate). The reduction in FDI, in the long run, could also hinder much-needed technology transfer.”
IMF further said that if geopolitical tensions were to escalate, countries could be hit by higher import prices or even lose access to key export markets.
It added that about half of Sub-Saharan Africa’s value of global trade could be impacted.
The Washington-based lender also said that Sub-Saharan Africa could stand to lose the most if the world split into two isolated trading blocs centered on China or the United States and the European Union.
The IMF added the region’s economy could experience a permanent decline of up to four percent of its gross domestic product after 10 years.
“Sub-Saharan Africa could stand to lose the most if the world were to split into two isolated trading blocs centered around China or the United States and the European Union. In this severe scenario, sub-Saharan African economies could experience a permanent decline of up to four per cent of the real Gross Domestic Product after 10 years. According to our estimates, these are losses larger than what most countries experienced during the global financial crisis.”
According to IMF, economic and trade alliances with new economic partners, predominantly China, have benefited the region.
According to the report, economic trade alliances have also made countries reliant on imports of food and energy more susceptible to global shocks, including disruptions from the surge in trade restrictions following Russia’s invasion of Ukraine.
It added, “For countries looking to restructure their debt, deepening geo-economic fragmen¬tation could also worsen coordination problems among creditors. The region would fare better if only the US/EU cut ties with Russia and sub-Saharan African countries continue to trade freely. In this scenario trade flows would be diverted towards the rest of the world, creating opportunities for new partnerships, and possibly boosting intra-regional trade.”
However, IMF said that because some African countries benefit from access to new export markets and cheaper imports, the region would not incur a GDP loss.
It added that oil exporters supplying energy to Europe could even gain. IMF called for strengthening the African Continental Free Trade Area to better manage these shocks properly.
It added, “To better manage shocks, countries need to build resilience. This can be done by strengthening the ongoing regional trade integration under the African Continental Free Trade Area, which will require reducing tariff and non-tariff trade barriers, strengthening efficiency in customs, leveraging digitalization, and closing the infrastructure gaps. Deepening domestic financial markets can also broaden sources of financing and lower the volatility associated with relying too much on foreign inflows. To take advantage of the potential shifts in trade and FDI flows, countries in the region can try to identify and nurture sectors that may benefit from trade diversion like energy. Commodity exporters in the region could potentially displace much of Russia’s energy market share in Europe.”
IMF advised countries in the region to rely on trade promotion agencies to help identify potential opportunities and build the necessary skills and capacity for exports.
“Countries can also rely on trade promotion agencies to help identify potential opportunities, build the necessary skills and capacity for exports, and eventually re-orient production to take advantage of new trade flows. Improving the business environment by lowering entry, regulatory, and tax barriers could also help. What the exact outcomes will be from fragmentation and polarization, and whether these trends will continue are uncertain. What is clear, however, are multilateral institutions will need to continue to facilitate dialogue among nations to promote economic integration and cooperation.”
We’ll Expand Socio-Economic Opportunities For All Rivers People -Fubara ……As Wike Bows Out
Rivers State Governor, Sir Siminalayi Fubara, has declared his administration’s resolve to expand the existing socio-economic opportunities in order to engender prosperity for all Rivers people.
Fubara made this declaration on Monday at the General Yakubu Gowon Stadium, Elekahia, venue of his swearing-in as the sixth democratically elected governor of Rivers State.
Chief Judge of Rivers State, Justice Simeon Amadi, administered the oath of office on the new governor and his deputy, Prof. Ngozi Odu.
Thereafter, the former governor, Chief Nyesom Wike, handed over the flag of Rivers State and handover notes to his successor.
Fubara, in his inaugural address titled “Together, Let’s Consolidate the New Rivers State”, noted the poor state of the national economy, but promised that his administration would take measures to diversify Rivers economy and insulate it so that it can grow.
He also assured of promoting the climate of ease of doing business in the State to attract direct foreign investment capable of empowering Rivers people.
“The primary responsibility of a new government is to do its best to advance the security and well-being of the State and its citizens.
“Therefore, as we undertake our responsibilities, we promise to stay the course, commit to cooperative governance and expand opportunities for everyone. The wishes of our people for a happy life are our mission in politics.
“We will prioritise the well-being of the State and citizens with a renewed focus on economic growth, people-centred projects and social services”, he said.
He said further that, “We will improve the ease of doing business and sustain a congenial fiscal regime to attract local and foreign direct investments to stimulate greater economic activities, create wealth and improve citizens’ livelihoods.
“We will adopt a re-industrialization policy master plan and partner with the private sector to revive or establish viable industries to create jobs and empower our people.
“We will also support the growth of small businesses and encourage commercial agriculture to achieve food security, industrialization and improved living standards for citizens.”
Fubara added that his administration is already building on the successes of his predecessor and will construct more projects including the Port Harcourt ring road.
According to him, there shall be healthy partnership with private investors to provide integrated inter-modular public transportation system in the State.
“We witnessed unprecedented growth in infrastructure in the last eight years, but there’s still more to do.
“We will follow our leader’s footsteps to invest in capital projects, including roads, bridges, electricity supply to our rural areas, and social housing.
“We will, therefore, partner with the private sector to develop an integrated multimodal public transportation system to advance mass mobility and access to socio-economic opportunities across the state.
“We will also construct the Port Harcourt Ring Road to enhance the mobility of goods and services across the State”.
Fubara said the challenges in the health sector like inadequate manpower and corruption would be addressed to achieve optimal performance.
In the education sector, he promised to provide smart classrooms for students to prepare for global competition, empower the youths with skills to become economically active while being connected to small and medium scale business opportunities.
He said, “We care about our youth. We know they need jobs, opportunities, empowerment and the freedom to build sound, promising futures. We will not abandon our youth to their fate. We will continue prioritizing education at all levels and empower our youth with the relevant skills and opportunities to become economically active, productive and prosperous.
“We believe in the job creation capacity of small and medium enterprises. And so, we shall facilitate targeted access to low-interest funds for youth entrepreneurs to start or improve their businesses, earn decent incomes and generate employment for themselves and others.”
The governor particularly acknowledged the achievements of his predecessor in the health sector saying, “We are also proud of the state’s achievements in the healthcare sector, particularly the construction of new primary healthcare centres, the Mother and Child Hospital, the Rivers State University Teaching Hospital, the Dr. Peter Odili Cancer and Cardiovascular Diseases Diagnostic and Treatment Centre and the contributory Healthcare Insurance Law.
“With what is on the ground, it is evident that the primary challenges with our healthcare system are more with inadequate manpower, corruption, indiscipline and ineffective management”.
Fubara gave a firm assurance by saying: “I assure you that apart from completing all ongoing healthcare infrastructure projects, we will deal with all identified challenges and ensure that the healthcare system functions optimally to deliver affordable and efficient healthcare to citizens.
“We are equally proud of the State’s unprecedented educational advancement, especially in the last four years. Our public schools at all levels, irrespective of location, are some of the lovely and best-resourced in the country.”
According to him, his administration will consolidate on the progress made so far by “introducing smart schools and classrooms across the State to empower our children with world-class learning experiences and make Rivers State a knowledge hub.”
Fubara vowed to be hard on crime and criminality in the State saying, “We will be hard on crime and criminality. We will swiftly and firmly deal with anyone, regardless of status or position, rich or poor, who breaks our laws or dares to violate our environment, peace and security”.
The governor thanked civil servants for their support and promised regular payment of salary, gratuity, more training, promotion for them and housing for low income earners.
Describing the civil servants as members of his constituency, he said, “To our civil servants, I thank all of you for your invaluable contributions to the state’s progress over the years.
“We appreciate your indispensability and promise to meet all our obligations to you, including regular payment of wages, pensions, gratuity, training and promotions. All we ask is your continued patriotism, dedication, and enthusiasm in the execution of your official duties”.
He further promised to govern Rivers people with the fear of God, cognizance of the fact that Rivers is a Christian state.
He also assured the church and spiritual leaders of his administration robust partnership to enhance the moral and spiritual wellbeing of Rivers people.
“Rivers State is a Christian State, and God is our foundation. We shall govern with the fear of God and stay strong to our Christian values of trust, faith, love, care and sacrifice.”
“We shall deepen the inseparable ties between the Church and the State government for the benefit of our people. We assure the Christian Association of Nigeria and other spiritual leaders of our sincere friendship, support and solidarity.
“We will continue to support and work with the Church to defend our faith, advance our values and enhance our people’s moral and spiritual well-being”, he assured.
At the Government House, Port Harcourt, the governor hung the official portraits of President Bola Ahmed Tinubu, his own and that of his predecessor, Wike.
… Appoints Nwaeke HoS, Ideozu Acountant General
The Rivers State Governor, Sir Siminalayi Fubara, has approved two new strategic appointments in the state Civil Service.
In the latest development, the governor has approved the appointment of the most senior civil servant and permanent secretary, Dr. George Nwaeke as Head of Service, Rivers State.
He also approved the appointment of Dr Uche Ideozu as the new Accountant General of Rivers State.
A statement signed by the Permanent Secretary, Ministry of Information and Communications in Rivers State, Ibiwari Clapton-Ogolo, Esq, said that the appointments take immediate effect.
The two fresh appointments bring to six the number of appointments already made by the governor since assuming duties on Monday, May 29.
The first set of appointments was the nomination of four former commissioners under Governor Nyesom Wike as commissioner-designates.
The names are Prof Zaccheaus Adangor, Dr Dakorima George-Kelly, Isaac Kamalu, and Prof Prince Chinedu Mmom.
While Adangor was attorney general and commissioner for justice, George-Kelly was works commissioner, Kamalu was finance commissioner, and Mmom was education commissioner.
Fuel Scarcity: Tinubu Resumes Work, Meet With Emefiele, Kyari
President Bola Tinubu yesterday officially resumed work at the Presidential Villa, Abuja where he met with the Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele and the Group Chief Executive Officer of the Nigeria National Petroleum Company Limited (NNPCL), Mr. Mele Kyari.
This was the first official assignment by the President after his inauguration as the 16th President of the country at the Eagle Square, Abuja, on Monday.
The President arrived at the forecourt of the State House at about 2:30 pm through the quarter guard gate, which is his official entrance gate and was received by the Vice President, Senator Kashim Shettima, the Permanent Secretary, State House, Tijjani Umar, Speaker of the House of Representatives, Femi Gbajabiamila and the outgoing Director of Protocol, DOP.
Others who received him were Emefiele, Kyari and a member of the House of Representatives, Hon. James Faleke, among others.
The President went straight to his office with Emefiele, Kyari, Gbajabiamila, Faleke and others.
Although the agenda of the meeting was not made public, it may not be unconnected with the removal of fuel subsidy and the attendant fuel scarcity.
It is expected that the issue of unification of foreign exchange, recent Naira redesign, among others will also be discussed.
Recall that President Tinubu had during his inaugural speech announced that the subsidy has been removed and this immediately made filling stations to shut down operations across the country.
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