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AfDB offers solutions to Nigeria’s debt, forex challenges
The Bank’s Vice-President for Economic Governance and Knowledge Management, Prof. Kevin Urama, told the News Agency of Nigeria (NAN) that strategic borrowing and political stability were critical for growth.
Speaking on Nigeria’s debt profile, Urama, the AfDB’s Chief Economist, said that public debt itself was not inherently problematic.
“Debt for growth is a known way of growing economies. However, the quality and structure of the debt are crucial factors in determining its long-term impact,’’ he said.
The professor raised concerns about the growing trend of short-term, high-cost commercial loans in African countries, which came with higher refinancing risks.
“The problem arises when countries borrow short-term loans and are unable to repay them before investments mature. This cycle forces countries to continuously refinance, often at unfavourable terms.
“It is therefore important for African governments to focus on borrowing longer-term loans with lower interest rates, underpinned by clear investment plans that can generate returns capable of repaying the debt.
“For Nigeria, the key question should not be whether the country is borrowing more, but rather how borrowed resources are being used.
“If borrowed funds are invested in infrastructure that drives growth both in the short and long term, it is a smart move,” he said.
On foreign exchange and trade, Urama pointed to Africa’s dependence on imports, specifically food, as a critical area for reform.
He acknowledged the ongoing disruption of global supply chains due to geopolitical tensions, including the war in Ukraine, which had affected wheat imports to Africa.
The professor, however, urged African countries to address their dependence on imports, especially when the continent was home to vast agricultural potential.
“Africa has no business importing wheat from Ukraine because we have 65 per cent of the remaining arable land in the world.
“We also have a vibrant, youthful population eager to engage in productive activities. Africa has the capacity to feed itself and the world.
“And this can be achieved through initiatives such as the AfDB’s AgriPreneur and Special Agro-Industrial Processing Zones (SAPZ) programmes which are crucial tools for unlocking the continent’s agricultural potential,’’ he said.
Urama cited Ethiopia’s success in becoming a wheat exporter within just four years of focused agricultural investment.
He said this was a demonstration that Africa could transition from food dependence to food self-sufficiency and even become a global exporter.
On the broader economic challenges facing Nigeria and other African countries, the professor reiterated the importance of political stability and sound macroeconomic policy management.
Urama pointed to Botswana as an example of how stable governance and good policy could reduce capital costs, increase foreign investment, and improve economic growth.
“When political stability and good governance are in place, the cost of capital decreases, and investments flow more freely,” he said.
According to the AfDB vice-president, Africa’s economic challenges are solvable through long-term strategies focused on stability, sound economic management, and a shift towards local production and value addition.
“By doing so, African countries can reduce their dependence on external financing, stabilise their currencies, and ultimately foster sustainable economic growth,’’ he said.(NAN)
The Commander of Operation Safe Haven (OPSH), Maj.-Gen. Folusho Oyinlola, has decried the influx of large number of cattle into Barkin Ladi Local Government Area (LGA) of Plateau State.
Oyinlola, who doubles as the General Officer Commanding (GOC) 3 Division of the Nigerian Army, Rukuba, near Jos, said this on Tuesday during an engagement with stakeholders in Barkin Ladi.
He noted that the influx of the cattle was constituting a major security threat to the locality and the state in general.
According to him, the isolated attacks, farm destruction, and other illegal activities are as a result of the unhealthy development.
“I must express the concerns of security agencies about recent developments in parts of Barkin Ladi.
“There is a growing unease about the influx of large number of cattle into farming communities.
“While the movement of livestock in Barkin Ladi and indeed Pateau in general is not unusual, the scale and timings of this new influx raise legitimate security concerns.
“Unfortunately, this development has already resulted in adverse outcomes, including farm destructions, isolated attacks, and attacks on livestock.
“The impact of this action on food security, economic stability, and social harmony cannot be over emphasised,” he said.
The commander, who also expressed deep concerns over the recent killings in the locality, called on the stakeholders to unite and fashion out ways to end the violence.
He, however, promised to fish out the perpetrators of the heinous crime, who would be made to face the full wrath of the law.
Oyinlola explained that the stakeholders’ engagement was aimed at ensuring a successful and peaceful farming season in the locality.
“The faming season is already ongoing, and for many families, this is a period for securing their livelihood.
“Therefore, any disruption of farming activities now will have dire consequences for the rest of the year and beyond.
“To this end, this engagement is convened to hear from you, all stakeholders, to listen to your concerns,” he said.
The News Agency of Nigeria (NAN), reports that the meeting had in attendance heads of security agencies, government officials, traditional and religious leaders, among others.(NAN)
The Catholic Church’s cardinals issued an urgent appeal for peace on Tuesday, one day before they retreat into the Vatican’s Sistine Chapel to elect a new pope.
In a joint statement, they called on all warring parties worldwide to “achieve a lasting ceasefire as soon as possible.”
The statement, released by the Vatican, said the cardinals note “with regret” that there has been no “progress in promoting peace processes in Ukraine, the Middle East and many other parts of the world.”
On the contrary, they said, attacks have intensified, especially against the civilian population.
The cardinals called for ceasefires “without preconditions and without further delay” in order to negotiate “the peace long desired by the affected populations and the whole world.”
They also appealed to believers, asking them to intensify their prayers for a just and lasting peace.
The statement was delivered during the General Congregation of the College of Cardinals, the last meeting of the cardinals before the start of the conclave.
Starting on Wednesday, eligible cardinals under the age of 80 are to vote to elect a successor to pope Francis, who died on Easter Monday at the age of 88.
The World Health Organization (WHO) says on Tuesday that more than 30-year difference in life expectancy between the richest and the poorest countries highlights global health inequities.
The global health body stated this in its ‘World Report on Social Determinants of Health Equity’ launched on Tuesday by its Director-General, Dr Tedros Ghebreyesus.
The report revealed that where one was born could be the difference between living over three decades longer than someone else from a poorer country lacking safe housing, good educational opportunities and access to decent jobs.
According to the report, people in the country with the highest life expectancy will, on average, live for 33 years more than those born in the country with the lowest life expectancy.
It further revealed that lack of safe housing, good educational opportunities and access to decent jobs could be responsible for a reduction in life expectancy in both rich and poor countries alike.
“Our world is an unequal one. Where we are born, grow, live, work and age significantly influences our health and well-being,” said Ghebreyesus.
The report found that inequities in health were closely linked to degrees of social disadvantage and levels of discrimination.
“Health follows a social gradient whereby the more deprived the area in which people live, the lower their incomes are,” the UN global health agency said.
It stated that inequities’ were exacerbated in populations that face discrimination and marginalisation, such as Indigenous Peoples, who had lower life expectancies than their non-Indigenous counterparts.
According to the report, this is the case in both high and low-income countries.
The study was the first to be published since 2008 when the WHO Commission on Social Determinants of Health released its final report.
The report laid out targets for 2040 for reducing gaps between and within countries in life expectancy, childhood and maternal mortality.
It showed that these targets were likely to be missed and in spite of a scarcity of data, there was sufficient evidence to show that health inequities were often widening.
“For example, children born in poorer countries are 13 times more likely to die before their fifth birthday than in wealthier countries.
“Moreover, modelling shows that the lives of nearly two million children annually could be saved by closing the gap and enhancing equity between the poorest and wealthiest sectors of the population within low- and-middle-income countries.”
Additionally, while maternal mortality declined by 40 per cent between the years 2000 and 2023, the majority of deaths, 94 per cent, still occurred in low and lower-middle-income countries.
WHO called for collective action to address economic inequality and invest in social infrastructure and universal public services.
The agency also recommended other steps, including overcoming structural discrimination and the determinants and impacts of conflicts, emergencies and forced migration. (NAN)