Connect with us

General News

2021: Time for Nigeria to Move into Higher Gear?

Published

on

Kindly share this post

by Lukman Otunuga, Senior Research Analyst at FXTM

 2020 will be remembered for its extraordinary uncertainty, explosive market volatility, unprecedented events, supply chain upheavals and a worldwide wave of monetary policy easing.

The new year 2021 may bring renewed hope and a return to normality for many developed and developing economies but what are the chances it will happen by the end of the first quarter? COVID-19 vaccination programmes rolled out in the EU, UK and US and Nigeria expect the first Pfizer/BioNTech vaccines to arrive at the end of January. Hope for better days lies ahead and the positive news has been welcomed by investors.

However, while steps are taken to secure and improve the public health circumstances, economic circumstances are still troubled by the crushing impact of the pandemic. The economic impact of the pandemic will likely set personal incomes in Nigeria back four decades, according to the World Bank. The outlook for the full-year GDP growth is 1.1 percent compared to an estimated minus 4.1 percent, said the World Bank.

Meanwhile, Nigeria registered 1,184 deaths from COVID-19 and a four-week lockdown hit the informal economy hard, meaning that the short-term outlook appears clouded by persistent pandemic headwinds.

Fiscal policy moved ahead after President Muhammadu Buhari signed the 2021 appropriation bill of N13.59 trillion into law with the 2020 Finance Bill set to run concurrently. The annual budget dubbed ‘Budget of Economic Recovery and Resilience’ is expected to reposition Nigeria’s economy back to recovery, growth and flexibility. The bill shows an expected revenue of N7.99 trillion and an aggregate estimated expenditure of N13.59 trillion, implying a budget deficit of N5.60 trillion.

The medium-to-long-term fiscal outlook is one of the significant debt burdens which will need servicing. For a developing economy in the midst of diversifying away from a reliance on the crude Oil industry, this presents enormous challenges. The historical problems in Nigeria’s economy precede the COVID-19 exposures and are mainly to do with structural weaknesses bombarded by persistent external shocks.

The Nigerian economy slipped into a recession in the third quarter of last year after GDP contracted by minus 3.62 percent. Classically, recessions in Nigeria were mostly caused by a fall in the price of crude Oil and the relatively limited fiscal and monetary buffers within a structurally weak economy.

Pandemic response

The economic recession is likely to trigger changes in the benchmark interest rates in 2021 to support a recovery. Monetary policymakers will probably be concerned about the misalignment of interest rates in the fixed income markets, further supporting the argument for one or multiple rate cuts in 2021.

In related developments, the introduction of the Central Bank of Nigeria’s Special Bill as an alternative investment vehicle may absorb a proportion of the liquidity in the system and stabilise the interest rate environment, at least in the short term.

Prolonged recession?

At this point, the best scenario for the Nigerian economy is to save the long-term outlook from a prolonged recession. The World Bank warned that in the next three years, Nigeria could enter a recession the depths of which haven’t been seen since the 1980’s. Efforts have been made to harmonise exchange rates, introduce a market-based pricing mechanism for gasoline, adjust electricity tariffs to reflect the costs and reduce non-essential expenditures.

While there may still be short-term pain ahead, there is still time to enact a series of potentially politically unpopular reforms in line with the World Bank’s recommendations. These include enabling the private sector to be the engine of growth and job creation and redirecting public spending towards development projects and investments in Nigeria’s people and youth in particular, said the World Bank.

Difficult choices lie ahead for investors, consumers, fiscal and monetary policy makers and other stakeholders in the Nigerian economy. Nonetheless, the ground covered so far is promising and with better confidence generated by the vaccination programme, Nigeria’s recovery could move into a higher gear.


Kindly share this post

Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

Continue Reading
Advertisement
Comments

General News

WHO Says Ebola Risk Now at Highest Level

Published

on

Kindly share this post

World Health Organisation (WHO), yesterday, said that Ebola outbreak is “very high” but added that the global risk remains “low”.

WHO Says Ebola Risk Now at Highest Level

So far, 82 cases and seven deaths have been confirmed in the Democratic Republic of Congo (DRC), but WHO, said, the real scale of the outbreak is likely far larger, with nearly 750 suspected cases and 177 suspected deaths reported

Tedros Adhanom Ghebreyesus, chief, WHO, said the situation was “deeply worrisome”.

He said there were now nearly 750 suspected cases in the DR Congo and 177 suspected deaths, as health workers scramble to track down contacts of everyone thought to be infected with the virus.

“The Ebola outbreak in the Democratic Republic of the Congo is spreading rapidly,” he told a press conference.

“So far, 82 cases have been confirmed in DRC, with seven confirmed deaths.

“But we know in people who travelled from DRC and one death.

Measures to address the epidemic in DRC are much larger.

There are now almost 750 suspected cases and 177 suspected deaths.”

He said the situation in Uganda was “stable”, with two cases confirmed in Uganda, including “intense contact tracing” and calling off the Martyrs’ Day commemorations, “appear to have been effective in preventing the further spread of the virus”, Tedros added.

While a US national who was working in the DRC has tested positive and been transferred to Germany for care, Tedros said another US national deemed to be a high-risk contact had been transferred to the Czech Republic.

Besides national staff already in the DRC, he said 22 international staff had been deployed to the field, “including some of our most experienced people”.

Tedros said that violence and insecurity were impeding the response to the outbreak in the DRC.

“We are now revising our risk assessment to very high at the national level, high at the regional level, and low at the global level.

“So far, 82 cases have been confirmed in DRC, with seven confirmed deaths.

“But we know the epidemic in DRC is much larger. There are now almost 750 suspected cases and 177 suspected deaths.

“The situation in Uganda is stable, with two cases confirmed in people who travelled from DRC, with one death.”

Tedros said that violence and insecurity were impeding the response to the outbreak.

 

 


Kindly share this post
Continue Reading

General News

Army Acquires New Drones to Boost Surveillance, Precision Strikes — COAS

Published

on

Kindly share this post

Nigerian Army has acquired additional drones and other advanced force multipliers to strengthen surveillance operations, improve target acquisition, and enhance precision strike and casualty evacuation capabilities.

Army Acquires New Drones to Boost Surveillance, Precision Strikes — COAS

Lt.-Gen. Waidi Shaibu, chief of Army Staff (COAS), said that the new drones will boost surveillance, precision strikes.

Shaibu, who disclosed this in a statement shared via the Nigerian Army’s official X handle, noted that the conference provided a platform for critical assessment of ongoing operations and the development of forward-looking strategies to address Nigeria’s evolving security challenges.

He said deliberations at the Nigerian Army Conference Centre, Asokoro, focused on sharpening operational responses, strengthening training frameworks and adapting to the demands of modern security warfare.

According to him, the resolutions reached are aimed at building a more agile, combat-ready, technologically driven and mission-oriented force capable of responding effectively to emerging threats.

A key highlight of the reforms is the Army’s increasing investment in modern warfare technology, including the acquisition of additional tactical drones and the reconfiguration of Army aviation assets for combat roles.

Shaibu explained that these developments have significantly enhanced intelligence gathering, precision targeting, operational mobility and casualty evacuation across various theatres of operation.

He also highlighted ongoing improvements in recruitment, advanced training, professional military education and leadership development, stressing that discipline, competence and meritocracy remain central to building a stronger institution.

Reaffirming his “soldier-first” philosophy, the COAS said troop welfare remains a top priority, stressing that “troop welfare remains non-negotiable; well-motivated soldiers operating in conducive environments are critical to mission success.”

He urged senior officers to ensure that resolutions from the conference are fully implemented in field operations, stressing that the true value of the gathering lies in measurable impact on the battlefield.

Describing the ongoing reforms, Shaibu said: “We are not just reforming the Army; we are building a lethal, technology-driven fighting force where only discipline, merit, and mission success matter.”

The Army Chief expressed appreciation to President Bola Ahmed Tinubu for his support, as well as the Minister of Defence, Minister of State for Defence, Chief of Defence Staff, service chiefs and intelligence agencies for their continued collaboration.

The conference ended with the presentation of commendation plaques to senior officers recognized for outstanding contributions to operational effectiveness.

 


Kindly share this post
Continue Reading

General News

UK Special Envoy for Freedom of Religion or Belief Concludes Visit to Nigeria

Published

on

Kindly share this post

The UK Special Envoy for Freedom of Religion or Belief (FoRB), David Smith MP, concluded a three-day visit to Abuja this week, marking Nigeria as the first focus country he has visited under the UK’s FoRB strategy.

During the visit, David Smith MP held a wide range of meetings with senior Nigerian government officials, religious leaders, civil society organisations, and local communities – reflecting the UK’s commitment to sustained, practical engagement and partnership on freedom of religion or belief in Nigeria.

Meetings included discussions with the National Security Adviser, Mallam Nuhu Ribadu, the Honourable Minister of Information and National Orientation, Mohammed Idris, and the Governor of Plateau State, Caleb Mutfwang.

The Special Envoy also met with the co-chairs of the Nigeria Inter-Religious Council, Archbishop Daniel Okoh, President of the Christian Association of Nigeria, and HRH the Sultan of Sokoto, Muhammadu Sa’ad Abubakar III, President-General of the National Supreme Council for Islamic Affairs.

At the end of the visit, the UK Special Envoy for Freedom of Religion or Belief, David Smith MP, said: “Over the past few days, I have been honoured to meet a wide range of people — from senior government figures and civil society to faith leaders and local communities. I came to listen, learn, and see both how freedom of religion or belief is experienced in everyday life, and how it connects to – and is a core part of addressing – Nigeria’s wider challenges around security and cohesion.

“Some of the most powerful moments of this visit were at community level. Visiting Father Emmanuel Unamba’s parish and meeting Christian and Muslim neighbours living side by side was a real reminder that peaceful coexistence is something people build every day through leadership, dialogue, and shared responsibility.

“What I take away from this visit is the importance of further progress being Nigerian led, rooted in strong institutions and inclusive dialogue, with FoRB at its heart. The UK will continue to support practical efforts in ensuring greater peace, security and prosperity for all.”

The visit also included a roundtable with partners of the UK’s Strengthening Peace and Resilience in Nigeria (SPRiNG) programme, a £38 million UK government-funded conflict and resilience programme operating primarily in Kaduna, Katsina, Benue and Plateau states.

During the visit, Special Envoy David Smith MP held meetings with the Institute for Peace and Conflict Resolution, the Nigerian National Human Rights Commission, and civil society organisations working at the intersection of insecurity and religious freedom. He also visited the National Mosque and the National Ecumenical Centre in Abuja.

Speaking to the various stakeholders, Mr Smith called for greater tolerance across religion or belief in Nigeria and hoped that the cohesion he saw on a community level in the capital, could be achieved nation-wide with the same resolve. He hoped to continue these dialogues with interlocutors in the UK.

The visit builds on the momentum of President Tinubu’s State Visit to the United Kingdom in March 2026, which reinforced the UK-Nigeria Strategic Partnership and included interfaith events attended by President Tinubu and His Majesty The King, underlining both countries’ shared commitment to fostering constructive interfaith dialogue.


Kindly share this post
Continue Reading

Trending