The President of the World Bank Group, David Malpass, has revealed that the bank needs to spend at least $70 billion per year to tackle the impact of the pandemic induced poverty. This was revealed by Mr. Malpass during the recently concluded Annual Meetings Plenary, closely monitored by Nairametrics.
Mr. Malpass noted that the World Bank’s new poverty projections suggest that by 2021, an additional 110 to 150 million people would have fallen into extreme poverty, living on less than $1.90 per day. COVID-19 and its associated economic crisis, compounded by the effects of armed conflict and climate changes, are reversing hard-won gains in poverty reduction, ending more than two decades of continuous progress.
Commenting on how he arrived at the $70 billion estimates, Mr. Malpass said,
“To put the financial challenge in perspective, consider the 100 million people we fear have already been pushed into extreme poverty by COVID-19. To provide them just $2 per day would cost $70 billion per year – that’s just to undo one part of COVID’s damage and well beyond the financial capacity of the World Bank Group or any other development agency.
“It makes clear that IDA-19’s three-year envelope of US$82 billion will not be sufficient enough to meet the needs of the world’s poorest countries at this desperate time,”
Speaking further, he said, “A $25 billion supplemental COVID emergency financing package would avert a ‘financing cliff’ in FY22-23 and make available additional resources to IDA countries to support their recoveries.’’
Nairametrics had earlier reported World Bank’s warning that as many as 150 million people would fall into extreme poverty by 2021, due to the economic effect of the pandemic. Further noting that about 8 out of every 10 persons that will fall into extreme poverty will be from middle-income countries.
Why it matters
It is clear that we face a unique pandemic of inequality, the downturn is broader and deeper and it has affected virtually all sectors and people – with women and children being the hardest hit.
With the recent disclosure by the World Bank, it is imperative we find viable solutions. As proven by various empirical studies, poverty, economic inequality and other factors fuel civil unrest, crime, and in extreme cases terrorism. Hence, the need to urgently proffer solutions.
What they are doing
Malpass revealed what the World Bank Group is doing to address these challenges. The highlights of the group’s intervention so far include;
- Provided over $160 billion in surge financing to the world’s extremely poor countries, with over $50 billion of this fund available in grants and long-maturity loans.
- Plan to make available $12 billion to countries for the purchase and deployment of COVID-19 vaccines. IFC also invested heavily in vaccine manufacturers through its $4billion Global Health Platform.
- Facilitated reduction in the debt burden of extremely poor countries, which manifested in G20 and Paris Club suspending collection of debt-service payment for about 44 countries, with an estimated sum of $5 billion in debt service relief.
- Provided $83billion in climate-related investments in the past five years.
FG explains why the loan for youth investment fund is limited to N300,000
At N300,000 per beneficiary, only 41,000 beneficiaries would be covered in the first tranche of N12.5bn.
The Federal Government has explained why it limited the loan amount for the current beneficiaries of the N75 billion Nigeria Youth Investment Fund (NYIF) to N300,000.
The government said that it had to place a limit of N300,000 for individuals and eligible businesses who meet the conditions and guideline in order to ensure that it gets to as many beneficiaries as possible.
This disclosure is contained in a statement signed by the Director of Press, Federal Ministry of Youth and Sports Development, who noted that the disbursement of the fund is being done in phases.
What the statement from the Federal Ministry of Youth and Sports Development is saying
The statement explained that the ministry had received more than 3 million applications for the initial N12.5bn made available adding that at the current cap of N300,000 per beneficiary, only about 41,000 beneficiaries could be covered.
The statement from the ministry partly reads, “The Ministry of Youth and Sports Development has been following with interest the reaction of some beneficiaries of the NYIF, particularly those expressing disappointment at the N300,000 cap on disbursement under the first tranche of N12.5bn.
Firstly, the framework specified N250,000 as the maximum for individuals and eligible businesses that are critical can access up toN3m subject to meeting key criteria set in the guideline and conditions.
Considering the number of applications received, there was the need to ensure spread and enable more beneficiaries enjoy the facility.”
The ministry assured beneficiaries that higher loan thresholds would be possible once additional funds were available in subsequent phases.
The ministry in the statement also noted that it is ideal to start and gradually increase, considering that there are lots of first-time borrowers as well.
The ministry reaffirmed that NYIF was not a grant, but a loan, targeted at supporting the youth to start small businesses or to inject funds into existing small businesses.
What you should know
- It can be recalled that the Federal Government had on October 15, 2020, launched the N75 billion Nigerian Youth Investment Fund, which was set up for investment in the innovative ideas, skills, and talents of Nigerian Youth.
- It is to also institutionally provide the Nigerian youth with a special window for accessing much-needed funds, finances, business management skills, and other inputs critical for sustainable enterprise development.
- The Federal Ministry of Youth and Sports Development is the lead implementation entity and is responsible for budgetary provisions and for funds mobilization.
How FCT residents, businesses are adjusting to ease of lockdown
FCT residents are putting aside the pains of the lockdown period as they go about their daily lives and businesses in the typical resilient fashion that Nigerians have come to be known for.
On the 2nd of January, 2021, the Federal Government announced the guidelines for the extension of the eased lockdown (phase 3) by one month following the rising cases of coronavirus disease in the country.
The eased lockdown has since seen businesses reopen nationwide albeit cautiously and in line with social distancing and other government protective recommendations implemented. The most heralded of these recommendations, the use of nose masks in public places and social distancing, have been fairly adhered to although, in recent times, it would seem that many Nigerians are moving on from the initial dread that sparked full compliance with these directives in the heat of the pandemic last year.
As with many parts of Nigeria, life has gradually returned to normal in the FCT. On Tuesday, 2nd March 2021, the National Primary Health Care Development Agency announced the arrival of the expected COVAX Astrazeneca/Oxford COVID-19 vaccines, which today has seen Nigeria record 1,096,727 vaccinations, with the FCT recording 49,192 vaccinations as of April 18th 2021. Although vaccine apathy is still reasonably high, residents are warming up to the idea of getting the required shots to protect themselves and others against the virus.
The FCT is typically a ‘Civil Service’ domain but this is not to say that there aren’t other businesses being conducted in the region. Nairametrics took a tour around the Abuja metropolis to get a general feel and assessment of business reopening in the region.
The first points of call were the banks which have maintained strict compliance with the enforcement of the use of nose mask and the admission of a limited number of people into the banking hall at a time. As with several other banks, at the Guarantee Trust Bank branch at AYA junction in Asokoro, customers are required to obtain a ticket from the bank security with a number written on it. Customers are admitted into the banking hall in order of the number on their tickets.
One customer, Mary, expressed displeasure at the turn of events, citing the discomfort and the amount of time expended in carrying out hitherto simple transactions. “It used to be uncomfortable at first, but since it for our safety, we have no choice but to adhere to the protocol,” she stated.
In the area of transportation, ride-hailing services which had until last year enjoyed immense patronage, are also just beginning to pick up. Emmanuel a driver for a ride-hailing service confirmed that business has picked up compared to the first phase of the lockdown easing. He, however, lamented the effect that rising inflation was having on his daily income from the executive cab business.
“Honestly, I am happy that businesses are picking up but we still need support. The rising prices of things are not reflected in the fare that our passengers are charged. We have to service the car, pay for fuel, and other needs. Although we are happy to be back, we feel things can be better,” he affirmed.
Public transport, on the other hand, has long moved on from the days of enforcement of a limited number of passengers in vehicles and the compulsory masking up of all passengers. Neither the drivers nor the conductors of the buses boarded during this investigation were particular about social distancing or the use of masks. Many safety-conscious passengers were, however, observed to still use their masks while onboard.
Bus fares have largely remained the same as they were pre-covid. For instance, the fare for a trip from Karu Junction to Berger still ranges from N150-N200, depending on the time of the day.
Restaurants and food outlets including fast food grottos are also businesses that enjoyed immense patronage pre-covid but were forced to shut down or at best, streamline their services to strictly take-outs and online orders in the aftermath of the breakout of the pandemic. A trip to a KFC outlet at Area 11 in Garki, and a number of other food courts revealed that customers are not allowed entry without a mask. However, once inside, the mask could be set aside to place orders and eat meals.
In Gwarinpa, at the Rooftop Puzzles Restaurant and Bar, customers are required to sanitise their hands and wear a mask before entry, but once inside, are allowed to sit anywhere and be attended to by staff kitted in nose masks.
To conclude, life has pretty much returned to normal in the FCT and residents are gradually putting aside the pains of the lockdown period as they go about their daily lives and business concerns in the typical resilient fashion that Nigerians have come to be known for.
On the Legislative side of things, the FCT Minister has recently concluded plans with the FEC to boost infrastructure development in the city, with Nairametrics recently reporting that the Federal Economic Council has approved the sum of N82 billion for the completion and rehabilitation of infrastructure projects in the Federal Capital Territory. The projects range from the Federal Secretariat to the expansion of the outer Southern Expressway amongst many others.
Nairametrics | Company Earnings
Access our Live Feed portal for the latest company earnings as they drop.
- 2020 FY Results: Guinea Insurance Plc reports a loss of N227.7 million.
- 2020 FY Results: Unity Bank Plc posts profit after tax of N2.09 billion.
- Guinea Insurance Plc reports a loss of N142.13 million in 9M 2020.
- Unilever Nigeria Plc set to hold Annual General Meeting on 6th of May.
- UBA Plc posts profit after tax of N38.16 billion in Q1 2021.