News
UN Report: 2024 Could Errand Protracted Period of Low Growth
UN Report: 2024 Could Errand Protracted Period of Low Growth
By: Michael Mike
A United Nations flagship economic report has raised an alarm that protracted period of low growth looms large, and could undermine progress on sustainable development.
According to the report released on Friday, weakening global trade, high borrowing costs, elevated public debt, persistently low investment, and mounting geopolitical tensions put global growth at risk.
The global economic growth is projected to slow from an estimated 2.7 per cent in 2023 to 2.4 per cent in 2024, trending below the pre-pandemic growth rate of 3.0 per cent, according to the United Nations World Economic Situation and Prospects (WESP) 2024, launched on Friday.
This latest forecast comes on the heels of global economic performance exceeding expectations in 2023. However, last year’s stronger-than-expected GDP growth masked short-term risks and structural vulnerabilities, according to the report.
The UN’s flagship economic report presents a sombre economic outlook for the near term. Persistently high interest rates, further escalation of conflicts, sluggish international trade, and increasing climate disasters, pose significant challenges to global growth.
The report stated that the prospects of a prolonged period of tighter credit conditions and higher borrowing costs present strong headwinds for a world economy saddled with debt, while in need of more investments to resuscitate growth, fight climate change and accelerate progress towards the Sustainable Development Goals (SDGs).
Reacting to the report, the United Nations Secretary- General, António Guterres, said: “2024 must be the year when we break out of this quagmire. By unlocking big, bold investments we can drive sustainable development and climate action, and put the global economy on a stronger growth path for all,” adding that:
“We must build on the progress made in the past year towards an SDG Stimulus of at least $500 billion per year in affordable long-term financing for investments in sustainable development and climate action.”
The report stated that growth in several large, developed economies, especially the United States, is projected to decelerate in 2024 given high interest rates, slowing consumer spending and weaker labour markets. The short-term growth prospects for many developing countries – particularly in East Asia, Western Asia and Latin America and the Caribbean – are also deteriorating because of tighter financial conditions, shrinking fiscal space and sluggish external demand.
Low-income and vulnerable economies are facing increasing balance-of-payments pressures and debt sustainability risks. Economic prospects for small island developing States, in particular, will be constrained by heavy debt burdens, high interest rates and increasing climate-related vulnerabilities, which threaten to undermine, and in some cases, even reverse gains made on the SDGs, according to the report.
The report further showed that global inflation is projected to decline further, from an estimated 5.7 per cent in 2023 to 3.9 per cent in 2024. Price pressures are, however, still elevated in many countries and any further escalation of geopolitical conflicts risks renewed increases in inflation.
In about a quarter of all developing countries, annual inflation is projected to exceed 10 per cent in 2024, the report highlighted, showing that since January 2021, consumer prices in developing economies have increased by a cumulative 21.1 per cent, significantly eroding the economic gains made following the COVID-19 recovery. Amid supply-side disruptions, conflicts and extreme weather events, local food price inflation remained high in many developing economies, disproportionately affecting the poorest households.
“Persistently high inflation has further set back progress in poverty eradication, with especially severe impacts in the least developed countries,” said United Nations Under- Secretary-General for Economic and Social Affairs, Li Junhua,.
He said: “It is absolutely imperative that we strengthen global cooperation and the multilateral trading system, reform development finance, address debt challenges and scale up climate financing to help vulnerable countries accelerate towards a path of sustainable and inclusive growth.”
According to the report, the global labour markets have seen an uneven recovery from the pandemic crisis. In developed economies, labour markets have remained resilient despite a slowdown in growth. However, in many developing countries, particularly in Western Asia and Africa, key employment indicators, including unemployment rates, are yet to return to pre- pandemic levels. The global gender employment gap remains high, and gender pay gaps not only persist but have even widened in some occupations.
Stronger international cooperation needed to stimulate growth and promote green transition.
It advised that Governments will need to avoid self-defeating fiscal consolidations and expand fiscal support to stimulate growth at a time when global monetary conditions will remain tight, adding that Central banks around the world continue to face difficult trade-offs in striking a balance between inflation, growth and financial stability objectives. Developing country central banks, in particular, will need to deploy a broad range of macroeconomic and macroprudential policy tools to minimize the adverse spillover effects of monetary tightening in developed economies.
Furthermore, the report emphasized that robust and effective global cooperation initiatives are urgently needed to avoid debt crises and provide adequate financing to developing countries. Low-income countries and middle-income countries with vulnerable fiscal situations need debt relief and debt restructuring to avoid a protracted cycle of weak investment, slow growth and high debt-servicing burdens.
It added that in addition, global climate finance must be massively scaled up. Reducing – and eventually eliminating – fossil fuel subsidies, following through on international financing commitments, such as the $100 billion pledge to support developing countries, and promoting technology transfer are critical for strengthening climate action worldwide. It also underscores the ever- increasing role of industrial policies to bolster innovation and productive capacity, build resilience and accelerate a green transition.
UN Report: 2024 Could Errand Protracted Period of Low Growth
International
Aftermath of Modi’s Visit: Nigeria Should Expect Rise in Already Existing Over 200 Indian Companies, Growth in $27 billion Indian investment, Indian Government Promises
Aftermath of Modi’s Visit: Nigeria Should Expect Rise in Already Existing Over 200 Indian Companies, Growth in $27 billion Indian investment, Indian Government Promises
By: Michael Mike
Nigeria should expect more Indian investment in Nigeria with the growth in over 200 companies presently operating in the country and increase in the present investment of over $27 billion in the nation’s economy by Indian interest, the Indian government has assured.
Addressing the media on Sunday in Abuja on the fallout from the visit of Indian Prime Minister, Narendra Modi to the country, the Secretary of Economic Relations at India’s Ministry of External Affairs, Dammu Ravi, said: “While Indian companies are very strong in the traditional areas of manufacturing in Nigeria, with more than 200 companies having invested $27 billion in the economy here, there are new areas that are being identified, which include, as we discussed, the agriculture part of it, particularly lentils and other things which are being considered as a possibility. Then irrigation services, seed, hybrid seed development, research and development on good seeds, climate-resistant seeds and other things are being considered so that that area can also come into focus between the two countries.
“So we talked about mining, we talked about various issues pertaining to small and medium enterprises, the skill development part of it.
“Already we have some experts who have been training for more than six months in SMEDAN over here, entrepreneurial development skills. And also through the Indian Technical and Economic Cooperation where we have been sending people to India for skill development, that also came into focus. So we would be considering all these things too, we are diversify the areas of our cooperation in trade and economic relations, as well as to strengthen our trade cooperation.”
He also revealed that India is interested in further investment in Nigeria’s oil and gas industry, stating that: “There was a very good concentration of topic on oil and gas investment. Some Indian companies are already working on the CNG areas, which is the focus area of the President also. There are companies which are working in CNG city-wide network as well as setting up the outlets for CNG over here. CNG kits are being also sent over here so that it can be put in the cars and vehicles to use the CNG.”
He noted that on pharmaceuticals and medicine, there are nearly $4 billion of investment by Indian companies in the pharmaceutical sector here in Nigeria, and there is already existing eye hospitals of India in Abuja and Lagos, as well as another multi-speciality hospital.
He said: “I can also tell you that there is going to be a bigger hospital, a 300-bed hospital that has come up in Abuja, which will be open very shortly with expert doctors and technicians and others from India with modern technology. So that hospital chain would also be expanding itself into other geopolitical areas too.”
He said India, in agreement with Nigeria, looks forward to the reform of the United Nations Security Council, stating that there is urgent need to update the global governance structure to reflect current realities.
He noted that the existing structure, established in 1945, no longer meets the needs of the modern world and that significant changes are required.
Ravi highlighted the shared stance of India and Nigeria in advocating for a more inclusive Security Council, pointing out that both nations represent the interests of the Global South, which remains underrepresented in international decision-making.
He insisted that: “The world has changed significantly since the establishment of the UN, but the Security Council’s structure has not evolved accordingly.
“Nigeria and India are on the same page on the need for reform. We have to keep working on that in different forums to sensitise the countries on the need for our positions.”
The call for reform came as part of a broader effort by developing nations to secure a greater voice in global governance.
Ravi underscored the importance of unity among countries in the Global South, including major players like India and Nigeria, to advocate effectively for changes in the UNSC’s composition.
The UNSC currently has 15 members, including five permanent members with veto power: the United States, Russia, China, the United Kingdom, and France.
However, despite having 54 member states in the UN, Africa lacks permanent representation.
The US recently proposed expanding the council to include two permanent seats for African countries, with Nigeria, South Africa, and Egypt emerging as leading contenders due to their economic and political influence.
According to Ravi, the key to successful reform lies in collective action.
He noted that countries from the Global South, which have experienced significant political and economic growth over the past few decades, should have a more substantial role in international decision-making.
He said, “We need to build this understanding that there is a need for the UN reform and that is the fundamental. The reform is necessary and it has to be done quickly.”
Addressing the question of African representation, Ravi acknowledged that Africa has its own consensus on the need for reform.
However, he pointed out the complexity of aligning the positions of various African nations with those of other countries advocating for change, such as India.
Aftermath of Modi’s Visit: Nigeria Should Expect Rise in Already Existing Over 200 Indian Companies, Growth in $27 billion Indian investment, Indian Government Promises
News
Senator Lawan Acknowledges APC Party Efforts Across Borno Central, Shows Appreciation Through Generous Gestures
Senator Lawan Acknowledges APC Party Efforts Across Borno Central, Shows Appreciation Through Generous Gestures
By: Our Reporter
Senator Kaka Shehu Lawan, SAN, representing Borno Central Senatorial District, has reaffirmed his commitment to consolidating the achievements of the All Progressives Congress (APC) in the state and advancing the “Renewed Hope Agenda” of President Bola Ahmed Tinubu.
This was conveyed at an event held at GRA Primary School, where Hon. Ali Umar Bolori, Special Adviser (Political) to Governor Babagana Umara Zulum, delivered the senator’s goodwill message.
In the message, Senator Kaka Shehu Lawan highlighted his accomplishments in delivering democratic dividends, including empowerment programs, skills acquisition initiatives, and sponsorship of impactful bills aimed at fostering development across the state. Despite his short tenure of two years in office, his efforts have earned praise from party leaders and constituents.
In their remarks, Alhaji Waziri Bukar, Chairman of APC MMC, and Alhaji Kachallah Maifata, Jere Local Government Chairman, commended the senator for instilling confidence among constituents through credible representation in the Senate.
To appreciate the dedication of APC party machinery, Senator Kaka Shehu Lawan distributed 920 bags of rice and ₦500,000 to each of the 15 wards in MMC and 12 wards in Jere. He assured that similar gestures would soon be extended to other local governments in Borno Central.
Party executives expressed gratitude for the senator’s generosity and pledged continued support and prayers.
The event was graced by notable dignitaries, including Hon. Abba Kyari Abba Kolo, Member of the Borno State House of Assembly (Jere); Hajiya Inna Galadima, Executive Chairman of Jere; and members of the APC State Executive Council.
Senator Lawan Acknowledges APC Party Efforts Across Borno Central, Shows Appreciation Through Generous Gestures
News
Nigerian Army troops recover arms, dismantles refining sites, and seizes stolen oil in Niger Delta
Nigerian Army troops recover arms, dismantles refining sites, and seizes stolen oil in Niger Delta
By: Michael Mike
Troops of the Nigerian Army’s 6 Division, in collaboration with other security agencies, have intensified anti-oil theft and illegal refining operations across the Niger Delta.
In a statement Acting Deputy Director, Army Public Relations 6 Division Lieut. Col. Danjuma Jonah Danjuma said between November 11 and 17, 2024, the forces recorded significant successes, including the deactivation of 46 illegal refining sites, the seizure of 47 boats used for transporting stolen oil, and the recovery of over 95,000 litres of stolen petroleum products. Twenty-eight suspected oil thieves were also apprehended.
He said in Rivers State, troops acted on intelligence regarding vandalism along the Oando pipeline in Ogba/Egbema/Ndoni Local Government Area (ONELGA). Armed vandals exchanged fire with the troops but fled after being overwhelmed. Soldiers recovered an AK-47 rifle, a loaded magazine, and additional ammunition.
Danjuma said in Obiafu-Ndoni, a major bust intercepted wooden boat carrying 28,320 litres of stolen crude oil. Seven suspects were arrested. Operations in Buguma, Asari Toru LGA, dismantled illegal refining sites, confiscating 9,500 litres of stolen products.
He said further efforts in Degema LGA, including Tuma and Krakrama areas, led to the destruction of numerous wooden and fibre boats and the recovery of 10,500 litres of stolen Automotive Gas Oil (AGO). In Bille, a wooden boat with 2,500 litres of stolen products was intercepted, while in Obiafu Oil Field and along the Imo River stretch, troops dismantled illegal refining sites, destroying 16 boats and recovering over 19,000 litres of stolen petroleum products.
In Bayelsa, operations in Ekeremor and Nembe LGAs resulted in the deactivation of illegal refining sites and the recovery of over 12,500 litres of stolen oil. Danjuma said A significant seizure included 600 vandalized Shell Petroleum Development Company pipes.
In Delta troops intercepted a Sienna bus carrying stolen condensates near Oyede in Isoko South LGA. The driver abandoned the vehicle upon sighting troops. A pipeline breach in Afiesere, Ughelli North LGA, was also reported and secured.
In Akwa Ibom, several vehicles carrying 2,160 litres of stolen AGO were intercepted in Ikot Abasi LGA, leading to the arrest of five suspects.
Major General Jamal Abdussalam, General Officer Commanding 6 Division, reaffirmed the Army’s commitment to safeguarding critical infrastructure and dismantling criminal networks. He assured the public that operations would persist to bolster oil output and secure national assets.
Nigerian Army troops recover arms, dismantles refining sites, and seizes stolen oil in Niger Delta
-
News8 months ago
Roger Federer’s Shock as DNA Results Reveal Myla and Charlene Are Not His Biological Children
-
Opinions3 years ago
THE PLIGHT OF FARIDA
-
News8 months ago
EYN: Rev. Billi, Distortion of History, and The Living Tamarind Tree
-
ACADEMICS9 months ago
A History of Biu” (2015) and The Lingering Bura-Pabir Question (1)
-
Columns9 months ago
Army University Biu: There is certain interest, but certainly not from Borno.
-
Opinions9 months ago
Tinubu,Shettima: The epidemic of economic, insecurity in Nigeria
-
Opinions3 years ago
POLICE CHARGE ROOMS, A MINTING PRESS
-
National News9 months ago
Fraud and Mismanagement Rock INGO’s IDP Cash Assistance Effort in Bama