Economy & Politics
P&ID: President Buhari issues strong warning to international firms
President Muhammadu Buhari has issued a strong warning to international firms aiming to defraud the country (Nigeria)
President Muhammadu Buhari has issued a strong warning to international firms aiming to defraud the country (Nigeria), as he tagged the controversial $9.6 billion controversial judgment case Process and Industrial Development (P&ID) won against Nigeria a “scam.”
Speaking at the General Debate of the ongoing 74th Session of the United Nations General Assembly in New York, the President maintained that his administration would not tolerate attempts by persons and organizations he called international criminals to defraud the country.
Buhari, however, noted that the world was facing various crises, including financial crimes, and called for collective efforts by all countries to address the problems.
The President’s words: “Organised criminal networks, often acting with impunity across international borders present new challenges where only collective actions can deliver genuine results.
“This is true in the battle against violent extremism, against trafficking in people and drugs and against corruption and money laundering.
“The present Nigerian government is facing the challenges of corruption head-on. We are giving notice to international criminal groups by the vigorous prosecution of the P&ID scam attempting to cheat Nigeria of billions of dollars.”
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Recent development: As the court hearing of the on-going legal battle between the Federal Government and P&ID approaches, Nigerian delegates have departed to the United Kingdom to quash the earlier judgment.
It was learnt that a team of high-powered government officials is in London ahead of September 26th court session in the case against P&ID.
The Delegates: According to reports, the Attorney General of the Federation, Mr. Abubakar Malami, the Inspector-General of Police, Mohammed Adamu, and the Governor of Central Bank of Nigeria, Godwin Emefiele, led the Government delegation to the U.K on Saturday.
Other member of the delegation include the Minister of Information and Culture, Lai Mohammed, and the acting Chairman of the Economic and Financial Crimes Commission, Ibrahim Magu.
The Backstory: As earlier reported by Nairametrics in its articles, P&ID was awarded $6.6 billion in an arbitration decision over a failed project to build a gas processing plant in the Southern Nigerian city of Calabar. With the accumulated interest payments, the sum now tops $9 billion, which amounts to about 20% of Nigeria’s foreign reserves.
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IMF lifts 2021 global GDP growth to 6%
The group also warned that economic recoveries are diverging dangerously across and within countries.
The International Monetary Fund has lifted its global growth outlook to 6% in 2021 (0.5% point upgrade) and 4.4% in 2022 (0.2 percentage point upgrade), after an estimated historic contraction of -3.3% in 2020 due to the effects of the COVID-19 pandemic. This disclosure was made on the organisation’s website on Tuesday.
The group also warned that economic recoveries are diverging dangerously across and within countries, as economies with slower vaccine rollout, more limited policy support, and more reliance on tourism do less well.
READ: Corruption erodes the constituency for aid programmes and humanitarian relief – IMF
What the IMF is saying
“The upgrades in global growth for 2021 and 2022 are mainly due to upgrades for advanced economies, particularly to a sizeable upgrade for the United States (1.3 percentage points) that is expected to grow at 6.4 percent this year.
This makes the United States the only large economy projected to surpass the level of GDP it was forecast to have in 2022 in the absence of this pandemic.
China is projected to grow this year at 8.4 percent. While China’s economy had already returned to pre-pandemic GDP in 2020, many other countries are not expected to do so until 2023.”
READ: Nigeria needs structural and monetary policy reforms to unlock potential – IMF
On divergent recoveries
The IMF stated that divergent recovery paths are likely to create wider gaps in living standards across countries compared to pre-pandemic expectations.
“The average annual loss in per capita GDP over 2020–24, relative to pre-pandemic forecasts, is projected to be 5.7 percent in low-income countries and 4.7 percent in emerging markets, while in advanced economies the losses are expected to be smaller at 2.3 percent,” they said.
“Faster progress with vaccinations can uplift the forecast, while a more prolonged pandemic with virus variants that evade vaccines can lead to a sharp downgrade. Multispeed recoveries could pose financial risks if interest rates in the United States rise further in unexpected ways.“
For Africa, IMF forecasts economic growth of 3.4% in 2021 and 4% by 2022, Nigeria is expected to grow by 2.5% in 2021 and 2.3% by 2022, while South Africa is projected to hit growths of 3.1% and 2.0% for the respective years in focus.
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In case you missed it
The International Monetary Fund (IMF) identified some factors that hamper the economic recovery of low-income countries from the devastating impact of the coronavirus pandemic, factors including access to vaccines, limited policy space to respond to the crisis, the lack of means for extra spending, pre-existing vulnerabilities such as high levels of public debt in many low-income countries and sometimes weak, negative, total factor productivity performance in some low-income countries. These factors continue to act as a drag on growth.
