Business
World Bank raises Nigeria’s GDP growth projection to 1.8%
The World Bank has increased Nigeria’s Gross Domestic Product growth forecast for 2021 to 1.8 per cent, which is higher by 0.7 per cent than its initial projection earlier this year.
The bank, in its June 2021 Global Economic Prospect just released, also forecast the GDP growth to hit 2.1 per cent for the country in 2022, compared with the 1.8 per cent it had predicted for Nigeria in the earlier report released in January.
Nigeria recorded a GDP growth rate of 0.51 per cent (year-on-year) in the first quarter of 2021, (Q1 2021) compared with the 0.11 per cent recorded in the fourth quarter (Q4) 2020, according to figures the National Bureau of Statistics released last month.
But the World Bank said its positive prediction for Nigeria was based on the expectation that crude oil prices would remain high as well as the government effecting structural reforms and flexible exchange rate management.
It said, “Growth in Nigeria is expected to resume at 1.8 per cent in 2021 and edge up to 2.1 per cent next year, assuming higher oil prices, structural oil sector reforms, and market-based flexible exchange rate management.”
The report stated that output in sub-Saharan Africa shrank at an estimated 2.4 per cent in 2020 as a result of the COVID-19 pandemic, a milder-than-expected recession.
It added that growth in the region has gradually resumed this year, which it stated was a reflection of positive spillover from strengthening global economic activity, including higher oil and metal prices, and some progress in containing COVID-19, especially in Western and Central Africa.
“The pandemic has contributed to wider budget deficits and a spike in government debt, heightening the risk of debt distress in some countries. Activity in the three largest economies—Angola, Nigeria, and South Africa— has partially recovered.
“Many industrial and agricultural commodity exporting countries experienced deep contractions last year. In tourism reliant countries, international arrivals have been at a near-halt, and tourism is likely to remain slow until wider vaccination permits safe reopening to international travel.
“Despite improvement, COVID-19 has continued to have adverse impacts on health, schooling, investment, and economic growth,” it stated.
According to the report, in some countries such as Angola and Nigeria, accommodative monetary and fiscal policies, currency depreciations, and rising food and energy prices “have stoked inflation.”
“Elsewhere (Kenya, South Africa), subdued demand has kept inflation in check,” it added.
The report noted that foreign direct investments in the region had been resilient, recouping about nine-tenths of their pre-pandemic levels, and workers’ remittances to the region have held up better than expected.
“Growth is forecast to resume to 2.8 per cent this year and firm to 3.3 per cent in 2022, underpinned by stronger external demand, mainly from China and the United States, higher commodity prices, and containment of COVID-19.
“Procurement and logistical challenges are expected to continue hobble the pace of vaccination despite the provision of vaccines by COVAX. Policy uncertainty and the lingering effects of the pandemic are expected to delay major investments in infrastructure and extractives and to weigh on the recovery (Central African Republic, Equatorial Guinea, Niger, Kenya).
“Per capita income levels in 2022 are expected to be four per cent lower on average than in 2019. Conditions in the region’s fragile and conflict-affected countries are expected to be particularly challenging; their average output level in 2022 is forecast to be 5.3 per cent below its size in 2019,” it said.
World Bank Group President, Mr David Malpass, said, “While there are welcome signs of global recovery, the pandemic continues to inflict poverty and inequality on people in developing countries around the world.”
Business
PH refinery: 200 trucks will load petroleum products daily, says Presidency
PH refinery: 200 trucks will load petroleum products daily, says Presidency
No fewer than 200 trucks are set to load petroleum products at the government-owned Port Harcourt Refinery, the presidency has said.
A presidential spokesperson, Sunday Dare, made this known in a statement through his official X handle on Tuesday.
Newstrends had reported that the Nigerian National Petroleum Company on Tuesday announced that Port Harcourt Refinery has resumed operations and crude oil processing after years of inactivity.
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Reacting, Dare said, “200 trucks are expected to load products daily from the refinery, Renewing the Hopes of Nigeria.”
He added that “the Port Harcourt refinery has two wings.
“The Old Refinery comes on stream today with an installed production capacity of 60, 000 barrels per day of crude oil.”
PH refinery: 200 trucks will load petroleum products daily, says Presidency
Business
Breaking: CBN increases interest rate to 27.50%
Breaking: CBN increases interest rate to 27.50%
The Central Bank of Nigeria (CBN) has raised the lending interest to 27.50 per cent from 27.25 per cent.
This latest increase in the Monetary Policy Rate came after a meeting of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) on Monday and concluded Tuesday.
The Monetary Policy Rate measures the benchmark interest rate.
The CBN Governor, Yemi Cardoso, announced this in Abuja on Tuesday after the MPC meeting, last for the year, held at the apex bank’s headquarters.
He said the MPC voted unanimously to raise the MPR by 25 basis points from 27.25% to 27.50%; and retain the Cash Reserve Ratio (CRR) at 50% for Deposit Money Banks and 16% for Merchant Banks.
The CBN governor also said the MPC retained the Liquidity Ratio (LR) at 30% and Asymmetric Corridor at +500/-100 basis points around the MPR.
Business
Nigeria’s unemployment rate dropped to 4.3% in Q2 – NBS
Nigeria’s unemployment rate dropped to 4.3% in Q2 – NBS
Nigeria’s unemployment rate stood at 4.3 per cent in the second quarter of 2024, the National Bureau of Statistics (NBS) has said in its latest report.
The report released on Monday said the unemployment rate decreased compared to the 5.3 per cent recorded in the Q1 of 2024.
The NBS defined the unemployment rate as the share of the labour force (the combination of unemployed and employed people) who are not employed but actively searching and are available for work.
“The unemployment rate for Q2 2024 was 4.3%, showing an increase of 0.1 percentage point compared to the same period last year,” the report stated.
“The unemployment rate among males was 3.4% and 5.1% among females.
“By place of residence, the unemployment rate was 5.2% in urban areas and 2.8% in rural areas. Youth unemployment rate was 6.5% in Q2 2024, showing a decrease from 8.4% in Q1 2024.”
Report also said the unemployment rate among persons with post-secondary education was 4.8 per cent; 8.5 per cent among those with upper secondary education, 5.8 per cent for those with lower secondary education, and 2.8 per cent among those with primary education in Q2 2024.
Employment rate – 76%
The report showed that the employment-to-population ratio, which measures the number of employed workers against the total working-age population, increased to 76.1 per cent in Q2 2024.
“In Q2 2024, 76.1% of Nigeria’s working-age population was employed, up from 73.1% in Q1 2024,” the report stated.
Self-employment – 85.6%
The report further showed that Nigeria’s labour market saw a notable shift as the proportion of self-employed individuals increased in Q2 2024.
It stated, “The proportion of persons in self-employment in Q2 2024 was 85.6%.”
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