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Rising Debts, Food Price Inflation Threaten Economic Recovery In Nigeria, Others

Notwithstanding The Economic Recovery Recorded In The Sub-Saharan Africa Region, As Well As The Modest Growth Projections For The ...
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Rising Debts, Food Price Inflation Threaten Economic Recovery In Nigeria, Others
~1.2 mins read
Notwithstanding the economic recovery recorded in the sub-Saharan Africa region, as well as the modest growth projections for the remaining part of 2021 and 2022, the International Monetary Fund (IMF), yesterday, warned that rising debts and food price inflation threaten to jeopardise previous gains in food security and exacerbate social and political instability.

The Fund, in its latest regional economic outlook for sub-Saharan Africa, stated that the regions recovery depends on the progress in the fight against COVID-19 and is vulnerable to disruptions in global activity and financial markets.

The IMF noted that Africas economic rebound from pandemic-induced shrinkage would be weaker than in the rest of the world in 2021 and 2022.

Low rates of vaccination against Covid-19 across the continent top the list of reasons for the slower recovery, the Washington-based institution said in a biannual report on the region.

Growth for sub-Saharan Africa should reach 3.7 percent in 2021 and 3.8 per cent in 2022, a welcome but relatively modest recovery, the IMF said in its forecasts.

Those figures would nevertheless be the slowest in the world given that the developed economies will grow by more than five per cent and the emerging or developing countries by more than six percent, it added.

With just 2.5 per cent of people vaccinated against Covid-19, lockdowns have been the sole option for containing the virus, said IMF Africa chief Abebe Aemro Selassie.

The Nigerian economy is expected to grow by 2.6 percent thanks to high oil prices, even if production will remain below pre-Covid levels. The IMF predicts 2.7 percent growth in Nigeria for 2022.

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Maximising The Benefits Of Cassava For Economic Growth

THE Minister Of Trade And Investment, Niyi Adebayo, Drew Attention Recently To Nigerias Failure To Leverage Its Prowess In Cassava...
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Maximising The Benefits Of Cassava For Economic Growth
~1.2 mins read
THE Minister of Trade and Investment, Niyi Adebayo, drew attention recently to Nigerias failure to leverage its prowess in cassava produce, thereby missing out in the international marketplace. His lament that the countrys position as the worlds largest producer with 45 million metric tonnes of cassava worth $18 billion annually had failed to bring a tangible boon to the country in export earnings is a self-indictment. It is his responsibility and that of the President, Major-General Muhammadu Buhari (retd.), and state governors to implement policies to transform this natural advantage into substantial economic benefits for the country and its people.

In many ways, the cassava debacle reflects the ingrained incompetence of successive Nigerian national and sub-national governments; how they have failed to transform natural endowments into wealth, defeat poverty and drive development. As Adebayo said when he hosted the organising committee of PAC Africa Expo and Conference in Abuja, the country is not an active player in the cassava trade in the international market. This is doubly sad. An economy suffering revenue shrinkage and a weak export base ought to be more astute.

Consider this: Out of the total 298.8MMT of cassava estimated by IMARC, a research firm, to have been produced worldwide (in 103 countries) in 2020, Nigeria accounted for 21 per cent. It is followed by Thailand by a wide gap, Indonesia, Brazil, Angola, Ghana, and the Democratic Republic of Congo. But Thailand led the top exporting nations list, followed by Vietnam, Cambodia, Laos, Paraguay, and Brazil in 2019. The UN Food and Agricultural Organisation says Nigerias output is a third more than Brazils and double those of Thailand and Indonesia.

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