Growth prospects in Africa are being held down by poor economic development in Nigeria, South Africa and Angola, the International Monetary Fund, IMF has said.
The Breton Woods institution, which said this at the Annual General Meetings of the IMF/World Bank currently going in Bali, Indonesia, also revised downwards growth prospects for Nigeria in 2018 from 2.1 per cent to 1.9 per cent.
Speaking to journalists in Bali, the Deputy Director, Research, IMF, Gian Maria Milesi-Ferretti, said the largest economies on the continent were holding down economic development in Africa as a result of poor growth rate.
“Nigeria’s growth, 1.9 per cent this year; 2.3 next year. South Africa, only 0.8 per cent this year; Angola, contracting by 0.1 per cent this year. So, the aggregate – over three per cent this year, close to four per cent next year – is despite the largest economies in the continent doing poorly.
“The continent could do much better once these economies are on a more solid footing, particularly South Africa and Nigeria, because they are really large and affect a number of countries in their neighbourhood.”
The IMF had in its World Economic Outlook report in July projected that Nigeria’s economy would grow by 2.1 per cent in 2018 and 2.3 per cent in 2019.
Also on Tuesday, it projected that inflation in Nigeria would increase to 13.5 per cent next year.
After 18 straight months of decline, the nation’s inflation rate rose to 11.23 per cent in August from 11.14 per cent in July, the National Bureau of Statistics said last month.
The IMF, in the WEO report, said inflation pressures in sub-Saharan Africa had broadly softened, with annual inflation projected to drop to 8.6 per cent in 2018 and 8.5 per cent in 2019, from 11 per cent in 2017.
It noted that in South Africa, inflation had moderated to 4.8 per cent from 5.3 per cent in 2017, with the easing of drought conditions, “but is expected to edge back to 5.3 per cent in 2019 as temporary disinflationary effects subside.”
The Washington-based fund said in Nigeria and Angola, tighter monetary policy and moderation in food price increases contributed to tapering inflation.
“In Nigeria, inflation is projected to fall to 12.4 per cent in 2018 from 16.5 per cent in 2017, and to rise to 13.5 per cent in 2019. In Angola, inflation is projected to fall to 20.5 per cent in 2018 from 29.8 per cent in 2017, and to decline further to 15.8 per cent in 2019,” it added.
According to the WEO report, growth is on the mend for sub-Saharan Africa, with the region’s average growth projected to rise to 3.1 per cent in 2018 (from 2.7 per cent in 2017) and 3.8 per cent in 2019.
The IMF said, “The growth forecast for 2018 is 0.3 percentage point lower than the April 2018 WEO forecast. The acceleration relative to 2016–17 reflects a more supportive external environment, including stronger global growth, higher commodity prices, and improved capital market access, following efforts to improve fiscal balances in the aftermath of the commodity price slump.
“Growth performance varies, however, across countries. About half of the expected pickup in growth between 2017 and 2018 reflects the growth rebound in Nigeria. Nigeria’s growth is projected to increase from 0.8 per cent in 2017 to 1.9 per cent in 2018 and 2.3 per cent in 2019 (0.4 percentage point higher than in the April 2018 WEO for 2019), buoyed by the impact of recovering oil production and prices.
“In Angola, the region’s second largest oil exporter, real GDP is expected to shrink by 0.1 per cent in 2018, following a 2.5 per cent contraction in 2017, but is projected to increase by 3.1 per cent in 2019.”
Court acquits, discharges suspended SEC DG, Gwarzo
A Federal Capital Territory (FCT) High Court on Tuesday discharged the suspended Director-General of the Securities and Exchange Commission (SEC), Mounir Gwarzo, of the charge of fraud filed against him.
Mr Gwarzo’s co-defendant, Zakwanu Garba, who was the Executive Commissioner of the commission, was also discharged and acquitted.
The Independent Corrupt Practices and Other Related Offences Commission (ICPC) had arraigned the two officials before Justice Husseini Baba-Yusuf on a five-count charge bordering on fraud.
The former Minister of Finance, Kemi Adeosun, suspended Messrs Gwarzo and Garba from their positions in November 2017 over allegations of corruption.
The minister then set up a panel to investigate the alleged issues, after which the ICPC arraigned them in court.
Delivering judgment on the case on Tuesday, the judge, Mr Baba-Yusuf, held that the prosecution did not prove beyond a reasonable doubt that the accused persons committed the offence for which they were charged.
The judge said by its own admission, the prosecution through its witnesses and evidence confirmed that the action of the defendant was by a decision of the governing board of SEC, which is the highest decision-making body of the commission.
Ruling on the first count of a five charge of use of office for personal enrichment against Mr Gwarzo, the judge said the ICPC did not prove its allegation.
He held that while the first prosecution did not implicate the first defendant in her testimony, the remaining witnesses who are operatives of the ICPC contradicted themselves.
“Furthermore, exhibit 19, which is a memo from the governing board of SEC, has clearly demonstrated that the decisions of the board of SEC as the highest decision and policy-making body of commission is legal.
The judge also absolved Mr Gwarzo of the allegations that he used his official position to corruptly enrich himself by using the monies paid to him as car grant as the DG of SEC.
Mr Baba-Yusuf held that: “The burden of proof was on the prosecution but through its own exhibit, which includes a board resolution which approved the car benefit for an executive director who had spent more than two years in office, the charge against Mister Gwarzo has not been established,” he said.
He said the fourth witness under cross-examination agreed that the board resolution was lawful and that the car grant was non-refundable.
Mr Baba-Yusuf held that the testimony of Prosecution Witness Two clearly showed that the first defendant had no role in deciding what he was entitled to and as such could not have used his office to enrich himself.
The judge, however, concluded that the evidence as a whole cannot be used by any court or tribunal to convict him.
He, therefore, discharged and acquitted him.
The court in the fourth count also discharged Mr Garba on the grounds that the evidence that he aided the suspended director-general of SEC to use his office to corruptly enrich himself was not proved beyond a reasonable doubt.
The judge then held that no prima facie case was established against Mr Garba who acted based on a decision of the governing board of SEC, which is the highest decision-making body of SEC.
Kwara governor denies alleged attempt to tele-guide recruitment of KWASU VC
Kwara State Governor Abdulfatah Ahmed has denied an alleged attempt by him to tele-guide the selection process of a new vice chancellor for the Kwara State University (KWASU) in favour of particular candidates.
He said such recruitment is entirely the prerogative of the institution’s Governing Council, as the incumbent’s tenure expires.
Ahmed, in a statement issued by his Senior Special Assistant on Media and Communications, Dr. Muyideen Akorede, dismissed the allegation circulating on social media as an attempt to blackmail him.
He also dissociated his office or his aides from any attempt to foist anyone on the university as vice chancellor.
Ahmed said he has been briefed by the Ministry of Tertiary Education, Science and Technology, KWASU’s supervisory ministry, that the university is yet to receive any response to its recent advertisement for a new vice chancellor, not to talk of skewing the selection process in favour of any candidate.
The recruitment of a new vice chancellor for KWASU, Ahmed reiterated, would follow guidelines enshrined in the law establishing the university.
Stop blaming NASS for delayed budget passage, Dogara tells Buhari
Speaker Yakubu Dogara has chided the Executive led by President Muhammadu Buhari for constantly blaming the Legislature for delays in the passage of the country’s annual budgets.
In his opening address at the national budget hearing organised jointly by the Committees on Appropriations of the Senate and the House of Representatives, Dogara drew the attention of the Executive to late presentation its part.
He also lamented poor implementation of previous budgets and he stressed that the Parliament won’t “rubber stamp” budgets merely for the sake of early passage.
According to him, “the budget is the most important law that is passed yearly, consequently, no parliament anywhere in the world rushes it. Let me re-emphasize that this Parliament can never be a rubber stamp and neither are we prepared to surrender our constitutionally assigned rights of checks on the Executive. It is unfortunate, however, that many commentators always ignorantly accuse the National Assembly of delaying the Appropriations Bill as if we are meant to urgently rubber stamp whatever budget estimates that is submitted to us by the Executive. If we fail to scrutinize the budget proposals, it will not only amount to abdication of our constitutional responsibilities as legislators but a betrayal of the mandate of our constituents.
“Let me also add that it is very unfair for the Executive to consistently and repeatedly blame the National Assembly of delaying passage of the budget while failing to address the issue of late budget submission on its part. The Fiscal Responsibility Act, 2007, provides that the Appropriations Bill be submitted not later than September of the preceding year which will give the Parliament ample time to process the document and pass it in good time. Unfortunately, the 2019 Appropriations Bill was submitted on December 19, 2018, just 12 days to the end of the year and the earliest time an Appropriation Bill has ever been presented to the National Assembly in this dispensation was on November 7, 2017.”
Dogara however noted that in a bid to address the issue the National Assembly passed a Constitutional Amendment Bill which sought to compel the Executive to submit the Budget proposals to the National Assembly not later than 90 days to the end of the fiscal year and also to limit expenditure that can be incurred in the absence of the Appropriations Act from six (6) months to three (3) months.
Dogara added that: “In yet another effort to improve institutional capacity of the Parliament to process and pass budget expeditiously, the National Assembly Budget and Research Office (NABRO) establishment Bill was passed into law. It was closely modeled after the American Congressional Budget Office (CBO). Unfortunately, I regret to inform this gathering that these laudable efforts and initiatives were thwarted when the President withheld his assent to these two important Bills.
“Consequently, efforts to enact a Budget Process Bill which will spell out timelines for every activity concerning the budget is stalled because it would be ineffective to enact a law that will run contrary to Section 81(1) of the Constitution which allows the President to submit the Budget estimates, ‘at any time’ before the end of the financial year.”
The Speaker concluded by assuring that the National Assembly will endeavour to speedily pass the budget as he called on the heads of Ministries, Departments and Agencies (MDAs) to appear before relevant committees and urged the Executive to ‘to muster the will to honestly and diligently implement’ the budget when passed.
In his comments, the Chairman Senate Committee on Appropriation, Senator Danjuma Goje (APC, Gombe) observed that the public hearing was crucial to inclusive and active participation in the process of passage of the 2019 budget.
OPINION2 days ago
Reflections on the Nigeria data protection regulation 2019, By Dr. Isa Pantami
NEWS2 days ago
Why we re-arrested ex-judge Ofili-Ajumogobia in court premises – EFCC
ENTERTAINMENT2 days ago
Buhari’s aide tackles Omotola over ‘hellish’ comment
NEWS2 days ago
Amnesty Programme: My vision has paid off, says Dokubo
THE NATION2 days ago
Court acquits, discharges suspended SEC DG, Gwarzo
BUSINESS2 days ago
Keystone Bank, others partner Mojec to roll out prepaid meters
BUSINESS1 day ago
Q1 2019: Zenith Bank sustains market dominance with improved profitability
ENTERTAINMENT2 days ago
EFAB unveils ultra-modern, affordable duplexes in Gwarimpa