APA – Lagos (Nigeria)
The report that cash scarcity caused by the naira redesign policy of the Central Bank of Nigeria has pushed Nigeria’s Gross Domestic Product growth below global projections of the World Bank, International Monetary Fund and the African Development Bank is one of the trending stories in Nigerian newspapers on Thursday.
The Punch reports that the cash scarcity caused by the naira redesign policy of the Central Bank of Nigeria has pushed Nigeria’s Gross Domestic Product growth below global projections of the World Bank, International Monetary Fund and the African Development Bank.
The World Bank said that the Nigerian economy would grow by 2.8 per cent in 2023, down from 3.3 per cent in 2022, in its Africa Pulse Report April 2023 edition titled ‘Leveraging resource wealth during the low carbon transition.’
In its World Economic Outlook for April 2023 titled ‘A Rocky Recovery’, the International Monetary Fund retained its growth forecast of 3.2 per cent for Nigeria’s economy in 2023.
The African Development Bank in January projected that Nigeria’s GDP, which indicates the economic growth rate, would inch up to 3.1 per cent in 2023, adding that uncertainty about policy continuity after the election and rising insecurity will weaken the nation’s growth prospect during the year.
However, Nigeria’s GDP growth fell to 2.31 per cent in the first quarter of 2023 from 3.52 per cent in the fourth quarter of 2022, according to the National Bureau of Statistics.
The NBS attributed the decline to the adverse effects of the cash crunch experienced during the quarter.
The newspaper says that the Society of Technology and Energy Professionals, has urged Nigeria’s President-elect, Bola Tinubu, to create a Ministry of Energy and appoint an expert to pilot its affairs,
The professionals said the energy ministry would assist Nigeria to solve its energy problems and improve energy investments, funding, storage and infrastructure.
The President of STEP, Chimeremeze Enwere, gave this advice in a congratulatory message to Tinubu, after the first inaugural meeting of the Council for Registration of Technology and Energy Professionals in Port Harcourt.
In a statement on the congratulatory message on Wednesday, he said, “”Please accept our warm congratulations on your victory during the Nigerian concluded presidential election.
“Your victory was as a result of your love for our country, hardwork, commitments and ambitious goals to serve and renew the hope of Nigerians.
“This quest to lead Nigerians to the promised land where there will be no insecurity and corruption but rather a country that creates jobs for unemployed youths, quality education, good roads, quality healthcare, stable electricity and a great economy was backed up with unmatched determination and a strategic political ethics”
He added, “As you embark your new responsibilities, please remember that our nation is facing serious energy challenges which has made it expedient for our sincere appeal for the establishment of energy minister and ministry by your administration.
“These offices will enable Nigeria solve its energy problems through the exploration of other sources of energy, implementation of energy policies, climate actions, strengthen our energy commission and other energy agencies, local content acceleration, improve energy investments, funding, storage and infrastructure that will bring a lasting solution to our energy and electricity problems while we continue to optimise our oil and gas sector.
Enwere assured the president-elect that STEP would be willing to work with his administration if called upon.
The Guardian reports that the Nigerian Communications Commission (NCC) has deplored increasing electronic fraud.
It noted that attackers have begun targetting telecommunications networks to disrupt service delivery and infiltrate data banks, SIM swaps and Unstructured Supplementary Service Data (USSD).
NCC Executive Vice Chairman, Prof. Umar Danbatta, who made the disclosure, yesterday, at the Telecom Consumers Sensitisation Programme, themed: “Shine Your Eye – No Fall Mugu” in Keffi, observed that fraudsters execute SIM swaps and USSD-based transactions, which cost victims huge losses.
Represented by Head of Consumer Protection and Advocacy, Clement Omeife, the EVC noted that the menace had cost the nations huge sums of money.
He said: “The Central Bank of Nigeria (CBN) rates electronic fraud as biggest risk in the sector, which has widely incorporated electronic payment solutions such as Automated Teller Machines (ATMs), Nigeria Inter-Bank Settlement System (NIBBS) Instant Payment and mobile banking.”
The telecommunications sector is not also spared in the raging storm, stoked by cyber fraudsters across the country.”
The newspaper says that the Economies of African countries, including Nigeria, have shown resilience despite multiple shocks, with average growth projected to stabilise at 4.1 per cent in 2023 and 2024.
The new projection, as contained in a new African Economic Outlook (AEO) 2023, launched yesterday in Egypt, is higher than the estimated 3.8 per cent of 2022 Africa’s growth in real Gross Domestic Product (GDP), down from 4.8 per cent in 2021, but above the global average of 3.4 per cent.
The African Development Bank (AfDB) attributed the growth slowdown to the tightening of global financial conditions and supply chain disruptions exacerbated by Russia’s invasion of Ukraine, which subdued global growth. Growth was also impaired by the residual effects of the COVID-19 pandemic and the growing impact of climate change and extreme weather events.
AfDB Vice President for Economic Governance and Knowledge, Prof. Kelvin Urama, said the deceleration was broad-based, with 31 of the 54 African countries posting weaker growth rates in 2022 relative to 2021.
Urama said the continent, however, performed better than most world regions in 2022, with the continent’s resilience projected to put five of the six pre-pandemic top-performing economies—Benin, Côte d’Ivoire, Ethiopia, Rwanda, and Tanzania—back in the league of the world’s 10 fastest-growing economies in 2023–24.
“Growth is projected to rebound to four per cent in 2023, and consolidate at 4.3 per cent in 2024, underpinning Africa’s continued resilience to shocks,” he said.
Despite this, he added, climate change, elevated global inflation, and persistent fragilities in supply chains would remain on the watchlist as potential factors for possible slowdowns of growth in the continent.
According to the report, although most African currencies weakened, others appreciated or remained stable. Countries with appreciating currencies included Angola (27.1 per cent), Seychelles (15.6 per cent), and Zambia (15.3 per cent).
Depreciation rates could ease in 2023 and 2024, but continued strengthening of the U.S. dollar will keep African currencies under pressure.
Currency weaknesses in some of Africa’s more globally integrated economies (Kenya, Nigeria, and South Africa) are expected to persist in 2023, largely due to potential capital outflows as investors search for safe assets in advanced economies.
GIK/APA