Business News
#EndSARS: IMF Links protests to economic difficulties
IMF reiterated that the protest in the country is not just against police brutality, but also unemployment and poverty.
The African Department of the International Monetary Fund has attributed the civil unrest in Nigeria, spiked by the peaceful #EndSARS protest to the vulnerable state of the Nigerian economy.
This statement was made by the Board of the African Department of International Monetary Fund, during the Sub-Saharan Africa (SSA) Regional Economic Outlook briefing, which was monitored by Nairametrics yesterday.
Optics
The Board blamed the civil unrest and the social instability in the Nation on the economic difficulties in the country as well as Nigeria’s economy low growth prospect. IMF reiterated that the protest in the country is not just against police brutality, but also unemployment, poverty.
The Department explained that the difficult event that followed since the wake of the decline in oil prices in 2015-16 in Nigeria, has made economic prospects low in the country, and this dislocation has exerted pressure on standards of living, which fueled the protest.
(READ MORE: NCC creates digital economy department to harness technology in Nigeria)
What they are saying
Mr. Abebe Amero Selassie, the Director of the African Department of IMF in his statement said; “where you have these kinds of economic difficulties, you know, social protests are not uncommon”.
He advised thus: “It is critical for the nation to get policy-induced barriers out of the way to facilitate stronger economic growth. The government needs to do more to raise revenues through the area of non-oil resources to be able to invest in health education which would, you know, allow people to be more successful at getting jobs but also improve the economy’s potential. So, I think that the development agenda that Nigeria has, I think, has to be tackled with gusto and vigour so that the millions of jobs that the country needs can be created.”
Other issues discussed
While speaking on the support the IMF gave Nigeria earlier this year, Mr. Selassie said: “The support is to help cushion the awful effects that the pandemic and the economic crisis that has unfolded has had on Nigeria. The important need for the government is to spend the resources on health, education, and other important areas at a difficult time like this. I think the government is committed to provide us with an explanation of what the resources have been used for and you know, audits of how that was used in due course. And we look forward to that in the coming months.”
(READ MORE: IMF assessing additional tools to provide aid to pandemic-hit countries)
What to expect
On growth projections, the IMF emphasized that although the protests happened after the fund had closed its projections for the year, the board explained that changes will depend really on how the protests evolve.
Hence, if the protests persist with significant effects on the economy and macroeconomic data, changes would be internalized in due course.
The Central Bank of Nigeria (CBN) has revealed that the Coalition Alliance Against COVID-19 (CACOVID) has so far incurred an expenditure of N43.27billion on the acquisition of, not only medical equipment and supplies but also food palliatives for vulnerable Nigerians.
The recent press release noted that the funds raised by CACOVID was used to support 3 key priorities – Medical facilities and equipment, food relief programs and communications plans.
The breakdown of the expenditure in the aforementioned areas are:
- Medical Facilities and equipment: In collaboration with other stakeholders, CACOVID developed 39 fully equipped isolation centers across the 36 States of the Country including the Federal Capital Territory (FCT). The sum of N4.19billion was spent in Building Isolation Centers. In addition, medical equipment such as PCR test kits for suspected cases of COVID-19 were procured along with other required medical items at a cost of N9.02billion.
- Food relief programs: As a way of cushioning the impact of the lockdown on vulnerable citizens, CACOVID provided palliatives in the form of essential food items to 1.7million households, which is equivalent to supporting 8 million Nigerians. A total of N28.76billion was spent procuring these food supplies.
- Communication plans: CACOVID also worked to improve awareness in rural communities on the COVID-19 virus, and the measures community health workers and other members of society should take when someone in the community is suspected of having symptoms similar to that of COVID-19. In lieu of this, expenses were incurred on Print, TV, radio, and social media as part of CACOVID communication plans.
Why this matters
The recent disclosure is in line with the principle of accountability and transparency, as the organization seeks to lay bare facts regarding expenditure incurred so far; thereby, nipping in the bud, suspicions and unfounded rumor.
What you should know
Due to the sudden global health challenge (COVID-19), which wreaked havoc on most economies of the world, coupled with declining oil prices and declined government revenue; the Bankers Committee, comprising the Central Bank of Nigeria and the Deposit Money Banks, as well as key stakeholders in the private sector came together to set up an alliance in March 2020, known as the Coalition Alliance Against COVID-19 (CACOVID).
The ultimate objective is working with the government to provide support in areas that would result in improved health and welfare for vulnerable Nigerians.
Companies
PZ Cusson announces retirement of Chairman, Kola Jamodu
PZ has announced the retirement Chief Kola Jamodu as Non-Executive Director and Chairman of the Board of the company.
The Board of Directors of PZ Cussons Nigeria Plc has announced the retirement of Chief Kola Jamodu as Non-Executive Director and Chairman of the Board of the company.
This disclosure was made in a notification signed by the Company’s Secretary, Jacqueline Ezeokwelume, and sent to the floor of the Nigerian Stock Exchange.
According to the notification issued by Mrs. Ezeokwelume, Chief Kola Jamodu will retire as a Non-Executive Director and Chairman of the Board effective 11 December 2020 to enable him to pursue other personal endeavours.
What you should know
Chief Jamodu joined PZ Cussons Group in 1974 and served in Executive positions for 24 years rising to the position of Chief Executive Officer of the Company, a position he held until he retired in 1999.
He thereafter continued as a Non-Executive Chairman of the Board until 2001 when he was appointed as the Honourable Minister of Industry of the Federal Republic of Nigeria, a position he held until 2003.
He was reappointed as the Chairman of the Board of PZ Cussons Nigeria Plc in November 2014.
Appointments
Abbey Mortgage Bank announces appointment of 6 Directors
The Central Bank of Nigeria has approved the appointment of 6 Directors of Abbey Mortgage Bank.
Abbey Mortgage Bank has announced the appointment of 6 Directors, including Mr. Madu Hamman as the substantive Managing Director.
The disclosure is contained in a notification, signed by the Bank’s Secretary, Geoff Amaghereon Esq. and sent to the Nigerian Stock Exchange market today, as seen by Nairametrics.
What you should know
Five (5) other Directors were appointed by the CBN – 2 Executive and 3 Non-Executive Directors.
The names and portfolios of the Directors are; Mr. Mobolaji Adewumi – Executive Director; Mr. Oladipupo Ayodele Adeoye – Executive Director; Mr. Nonso Okpala – Non-Executive Director; Professor Marius N. Umego – Non-Executive Director; and Brigadier-General John Obasa (rtd) – Non-Executive Director.
The notice also mentioned that all appointments have been approved by the Central Bank of Nigeria.
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PZ Cusson announces retirement of Chairman, Kola Jamodu
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Abbey Mortgage Bank announces appointment of 6 Directors
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