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AfDB President warns African Governments on Foreign Debt

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The President of African Development Bank (AfDB), Akinwumi Adesina, has urged Africa’s governments to boost tax revenue and steer clear of international borrowing as the continent is facing its worst economic slump in more than a decade.

Adesina said he expected the downturn in Africa, which was triggered by the slump in commodity prices and the slowdown in China, to last for up to another three years.

Africa was facing a debt “challenge” rather than crisis, he said, but warned that “there has to be a lot more fiscal consolidation”.

Adesina said that expanding the tax base and improving the efficiency of tax administration would be the easiest ways to boost public finances.

He said the tax-to-GDP ratio in sub-Saharan Africa was about 14.5 per cent, compared with more than 30 per cent for most developed nations.

He said, “So, a lot more needs to be done to expand the tax base in Africa. Today it’s about $500bn a year [for the region], which is much better than it used to be, but we need to expand that.

The AfDB chief said not only was it risky for governments to borrow overseas because many African currencies were weakening and the US Federal Reserve appeared set to raise interest rates again this year, but also unnecessary.

Instead of African countries running off to raise a lot of Eurobonds, I think there’s huge amounts of capital available more locally that we must tap for Africa’s development,” Adesina said.

He added that borrowing should only be undertaken to finance projects that enhance economic growth.

Adesina said African pension funds had a pool of $334bn, sovereign wealth funds $164bn and there was some $56bn of foreign direct investment looking for bankable projects.

However, he acknowledged that “there’s a lot of work that needs to be done to unlock that capital,” particularly in improving legal and regulatory environments.

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Akeredolu: There’s A Serious Security Crisis In Ondo

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Akeredolu: There’s A Serious Security Crisis In Ondo

Governor Akeredolu

Governor Rotimi Akeredolu of Ondo State has expressed that there is a serious security crisis in Ondo State.

He made this remark while lamenting the murder of a monarch in the state, Olufon of Ifon in Ose local government, Oba Isreal Adeusi, who was killed by suspected kidnappers.

In a statement issued by the Commissioner for Information and Orientation, Donald Ojogo, Akeredolu described the incident as a sad one for the State.

Also Read: Unknown Gunmen Kill Ondo Traditional Ruler, Olufon Of Ifon

The governor described the act as a heinous crime that is too heavy and unbearable.

He said he has directed security agencies, especially the Nigeria Police, to fish out the perpetrators of the crime.

Akeredolu also vowed to do all he can to unravel those behind the act and make them face the full wrath of the law.

He advised that caution should be exercised from making public reference in statements or utterances in respect of the “great loss.”

 

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Nigeria’s Economy May Emerge From Recession In 2021 Q1, Says Emefiele

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 Nigeria’s Economy May Emerge From Recession In 2021 Q1, Says Emefiele

CBN Governor – Godwin Emefiele

The Central Bank of Nigeria (CBN) has predicted that the nation’s economy may emerge from recession in the first quarter of 2021.

Recall that some days ago, Nigeria entered into recession for the second time since 2016.

CBN Governor, Godwin Emefiele, made the prediction on Friday during the 55th annual Bankers Dinner which held in Lagos.

He expressed that the expected economic growth was two per cent.

Also Read: Nigeria Will Exit Recession By First Quarter Of 2021 – Finance Minister

Emefiele said, “With the sustained implementation of our intervention measures, we do expect that the Nigerian economy could emerge from the recession by the first quarter of 2021.”

“We also expect that growth in 2021 would attain 2.0 per cent. However, downside risks remain, as restoration of full economic activities, particularly in service-related sectors, remains uncertain until a COVID vaccine is produced and made available to millions of people across the world.

“Second, with the significant rise in cases in advanced markets and the imposition of lockdowns in parts of Europe, concerns remain on the impact this could have on growth in advanced economies, commodity prices and the financial markets.”

He also called for measures to “insulate our economy from the impact of these shocks through our diversification efforts, while also working to ensure that we adhere to safety protocols in order to prevent a surge in COVID-19 related cases, as this could further cripple economic activities.

This prediction by the apex bank echoes the projection of the Minister for Finance, Budget and National Planning, Zainab Ahmed, who stated that Nigeria would exit recession in the first quarter of 2021.

 

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Shehu Sani Reacts To Hisbah’s Call For Scrapping Of Black Friday

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Shehu Sani Reacts To Hisbah's Call For Scrapping Of Black Friday

Shehu Sani

Former lawmaker, Senator Shehu Sani has reacted to the call for the scrapping of the popular ‘Black Friday’sales by the Kano State Hisbah Board.

Recall that earlier on Friday, the board asked a radio station, demanding that it stops using the word “Black Friday” to refer to Friday.

Also Read: TECNO Stormed Computer Village with BBNaija’s OZO to Wrap up its Black Friday Sales Activities

The board explained that since Friday is regarded as a holy day in Islam, tagging it “Black Friday” is derogatory and a thus, should not be condoned.

Reacting to the statement, the former lawmaker from Kaduna described the threat by the Hisbah board as ‘nonsensical.”

He wrote:

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