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.”
Communications minister, Pantami hails ICT’s contribution to GDP
The Honourable Minister of Communications, Dr Isa Ali Ibrahim Pantami, has hailed ICT’s contribution GDP in the second quarter. In the report released by National Bureau of Statistics (NBS), the contribution of the Information and Communication Technology (ICT) to Nigeria’s Gross Domestic Product (GDP) surpassed that of Oil and Gas in the second quarter of 2019.
The report, released on Tuesday 2nd September, 2019, observed that the country’s GDP grew by 1.94% (year-on-year) in real terms in the second quarter of 2019 compared to the second quarter of 2018, which recorded a growth of 1.50%. Furthermore, the non-oil sector contributed 91.18% to the nation’s GDP in the second quarter of 2019 as opposed to the 8.82% contributed to total real GP by the oil sector. Particularly, the ICT sector contributed 13.85% to total nominal GDP in the second quarter of 2019 which is much higher than the 11.22% contributed in the same period in 2018.
The Honourable Minister observed that the significant contribution of the ICT sector to the GDP is as a result of the concerted efforts of the administration of President Muhammadu Buhari, GCFR, especially the manner in which the implementation of the administration’s Economic Recovery and Growth Plan (ERGP) is being pursued. These efforts, he said, led to a sustained focus on growing the non-oil sector of the economy, especially ICT and the results witnessed are testimonies of impact of these efforts.
The Honourable Minister reiterated the Communications Ministry’s commitment to the economic diversification efforts of the present administration and called on all stakeholders to support Mr President’s laudable initiatives aimed at taking Nigeria to the next level.
FMBN to provide affordable homes for Nigerian workers
The managing director and chief executive officer of the Federal Mortgage Bank of Nigeria (FMBN), Arc. Ahmed Musa Dangiwa said the Bank is committed to providing affordable mortgages to drive home ownership among Nigerian workers.
Dangiwa was speaking when the Director-General of the Industrial Training Fund (ITF) Sir Joseph N. Ari and his team paid him a courtesy call in the bank’s headquarters in Abuja.
In a statement, Dangiwa said providing affordable mortgages to Nigerian workers is done through the National Housing Fund(NHF) Scheme into which Nigerian workers both in public and private sectors contribute 2.5% of their monthly income.
“Through the scheme, the bank has continued to provide affordable mortgage to Nigerian workers and construction finance for housing development. Our National Housing Fund (NHF) individual mortgage loan, granted at 6%, is the most affordable in the country” Dangiwa said.
In his response, the Director-General of the Industrial Training Fund (ITF) Sir Joseph N Ari, commended FMBN on the giant strides in reforming the bank under the present management.
Ari said the purpose of the visit was to provide a platform that the two organisations will work together for their mutual benefits.
He called on FMBN to arrange for a sensitisation workshop for the staff of ITF.
NURTW members protest Oluomo’s emergence as caretaker committee chair
Some members of the National Union of Road Transport Workers (NURTW) in Lagos State on Wednesday marched on the premises of the Lagos State House of Assembly in Alausa, Ikeja.
They protested the emergence of Musiliu Akinsanya aka MC Oluomo as the chairman of the caretaker committee of the union.
The protesters carried placards with inscriptions such as: ‘We say yes to union constitution, we want the government to save our soul in Lagos’, ‘We say no to Lagos NURTW, we say no to imposition’, ‘We say no to self-imposition as NURTW Lagos State chairman’, ‘We say no to thuggery in Lagos NURTW’, and others.
NURTW National President Alhaji Tajudeen Ibikunle Baruwa appointed MC Oluomo as the caretaker chairman, Lagos State chapter of the union.
It was gathered that Baruwa issued a statement on Tuesday dissolving the executive committee of the state chapter hitherto headed by Comrade Tajudeen Agbede, who is now Baruwa’s deputy, and replaced it with an 18- member caretaker committee led by MC Oluomo.
MC Oluomo, the chairman of Oshodi branch, Lagos chapter of the union, is one of those contesting for the Lagos State NURTW chairmanship.
Speaking during the protest, one of the leaders, the Chairman of Ojuwoye NURTW branch, Ademola Olanrewaju, alleged that MC Oluomo’s emergence would cause chaos.
“A meeting was held yesterday and after the meeting, it was decided that MC Oluomo should emerge as the chairman of the caretaker committee.
“Directly or indirectly, they are trying to impose him on us because there was fracas in Abuja and both parties were supposed to be dealt with, but MC Oluomo’s group was exonerated.
“What we are agitating for is that we don’t want MC’s government in Lagos State.
“Lagos State has given us the little it can in terms of empowerment, by giving us what to eat.”
At press time, no government official had addressed the protesters.
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