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Africa loses 15% GDP to climate change – AfDB

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AfDB inaugurates project to create jobs in 3 African countries

… As FG inaugurates $200m World Bank-backed IDEAS Project***

Africa has been losing from five per cent to 15 per cent of its Gross Domestic Product (GDP) per capita growth because of climate change and its related impacts.

Group Acting Chief Economist and Vice President, African Development Bank (AfDB), Mr Kevin Urama, said this in a statement posted on the AfDB website on Tuesday.

Also read: Climate Change: 600m Africans at risk of severe droughts — AfDB, GCA report

Urama added that Africa needed 1.6 trillion dollars between 2022 and 2030 to meet its nationally determined contributions (NDCs).

According to the statement, the AfDB vice president said this on Sept. 7 at a panel discussion on the sidelines of the Egypt International Cooperation Forum (Egypt-ICF 2022) in Cairo.

NDCs embody efforts by each country to reduce national emissions and adapt to the impacts of climate change.

They are submitted by countries under the Paris Agreement of the United Nations Framework Convention on Climate Change.

The panel discussion was titled, “African Countries Ownership in Determining Climate Agenda.”

“Collectively, African countries received only 18.3 billion dollars in climate finance between 2016 and 2019.

This results in a climate finance gap of up to 1288.2 billion dollars annually from 2020 to 2030.

“Climate change affects Africa severely, while the continent contributes to only three per cent of global emissions,” said Urama.

He reiterated the need for the global community to meet its 100-billion-dollar commitment to help developing countries and African economies to mitigate the impacts of climate change and to adapt to it.

“Investing in climate adaptation in the context of sustainable development is the best way to cope with the climate change impacts; gas must remain included in the continent’s plan for the gradual transition to clean energy,” he said.

He also affirmed that Africa had great potential in terms of green investment opportunities that the private sector, including banks, could tap into.

Egyptian Environment Minister, Yasmine Fouad, highlighted Egypt’s National Strategy for Alignment for both climate mitigation and adaptation, which had five key pillars.

“The first pillar focuses on how we can adopt a low greenhouse path, which centers on the sectors around renewable transport, gas, industry and waste.

“The second one relates to adaptation and how best to make the communities more resilient.

The third and fourth ones are focused on how to protect coastal zones and have more accessibility and availability of water.

“The last one is about the need for developing more smart and integrated concoctions and that’s the stereotype of a strategy on climate,” said Fouad.

He, however, added that the fight against climate change needed an integration among the government, civil society and the private sector.

Ghada Wally, Executive Director of the United Nations Office on Drugs and Crime (UNODC) said women and young people were among Africa’s best assets.

Wally, who is also Director-General of the United Nations Office in Vienna, stressed the importance of exploring avenues to tap into “this significant asset for the sake of the continent’s sustainable development.”

The Egypt-ICF 2022 was held from Sept. 7 to 9 in Cairo.

In the same vein, the Government of Egypt and the African Development Bank (AfDB) Group have signed a Memorandum of Understanding (MoU) to host the AfDB annual meetings in May 2023.

This is contained in a statement issued by the Communication and External Relations Department of AfDB, which was made available to newsmen on Tuesday in Abuja.

The statement said the Acting Governor of Egypt’s Central Bank, Hassan Abdalla signed on behalf of his country, while the AfDB Group Secretary-General, Vincent Nmehielle signed on behalf of the institution.

Abdalla is also the current chair of the bank group’s Boards of Governors.

Nmehielle said Egypt was selected to host the 2023 event following the country’s expression of interest for the 2022 to 2027 cycle.

He said it was made possible by the high-quality standards that Egypt possessed in meeting the requirements for hosting the annual meetings of the bank group.

He said the signing of the MoU, which defined the host country’s responsibilities and outlines other requirements for hosting the meetings, marked the commencement of planning for the 2023 event.

“The African Development Bank is pleased that preparations for the 2023 Annual Meetings have commenced.

“This MoU we have just signed reflects our alignment on the 2023 Annual Meetings.

“It also signals that as parties to this agreement, we are ready to move forward with the successful organisation of the 2023 Annual Meetings in Sharm El Sheikh—also known as the City of Peace.

“On behalf of Dr Akinwumi Adesina, President of the AfDB Group, I wish to extend our sincere appreciation to Mr Abdel Fattah Al Sisi, President of the Arab Republic of Egypt, for his staunch support and commitment to the bank,”  he said.

He further conveyed the bank’s gratitude to the Egyptian government for its “wonderful hospitality”.

Also speaking, Abdalla underscored the AfDB’s lead role as a catalyst for Africa’s economic development.

He said Egypt considered hosting the meetings an essential contribution to the continent’s development course.

“Egypt’s hosting of the African Development Bank Group’s Annual Meetings falls within Egypt’s strategic efforts to promote African integration.

“And to provide the needed accessible funds to support African economies, particularly with the current global challenges,” he said.

The meetings, which comprise the 58th annual assembly of the AfDB and the 49th meeting of the African Development Fund (ADF), will hold between May 22 and May 26, 2023, in the city of Sharm El Sheikh, Egypt.

The annual meetings are the AfDB’s topmost statutory event as they provide the stage for its boards of governors and management to review the organization’s activities over the previous year.

The 2023 meetings will also provide an opportunity for leaders to take stock of Africa’s response to the growing threat posed by climate change.

The meetings will also discuss the impact of the situation in Ukraine on Africa’s food security and its untapped natural resources.

Egypt has been a founding member of the AfDB group since 1964 and is one of the largest regional member country shareholders.

 

Economy

FAAC: FG, States, LGs Share N1.208trn Revenue For April

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FAAC: FG, States, LGs Share N1.208trn Revenue For April

The Federation Account Allocation Committee (FAAC), has shared the sum of N1.208 trillion as revenue for April among the Federal Government, states and Local Government Councils (LGCs).

The revenue was shared on Thursday at the May meeting of FAAC in Abuja.

A communiqué issued by the committee said that the N1.208 trillion total distributable revenue comprised statutory revenue of N284.716 billion, and Value Added Tax (VAT) revenue of N466.457 billion.

It also comprised Electronic Money Transfer Levy (EMTL) revenue of N18.024 billion, and Exchange Difference revenue of N438.884 billion.

The communique said the total revenue of N2.192 billion was available in April.

“Total deduction for cost of collection is N80.517 billion; total transfers, interventions and refunds is N903.479 billion.

The communique said the Gross statutory revenue of N1.233 billion was received for the month under review. This was higher than the sum of N1.017 billion received in March by N216.282 billion,” it said.

It said that the gross revenue available from VAT in April was N500.920 billion, which is lower than the N549.698 billion available in March by N48.778 billion.

The communiqué said that from the N1.208 trillion total distributable revenue, the Federal Government received N390.412 billion, the state governments received N403.403 billion and the LGCs received N293.816 billion.

“A total sum of N120.450 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue,” it said.

It said that on the N284.716 billion distributable statutory revenue, the Federal Government received N112.148 billion, the state governments received N56.883 billion and the LGCs received N43.855 billion.

It said that the sum of N71.830 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue.

“The Federal Government received N69.969 billion, the state governments received N233.229 billion and the LGCs received N163.260 billion from the N466.457 billion distributable VAT revenue.

“A total sum of N2.704 billion was received by the Federal Government from the N18.024 billion EMTL, the state governments received N9.012 billion and the LGCs received N6.308 billion.

“The Federal Government received N205.591 billion from the N438.884 billion Exchange Difference revenue; the state governments received N104.279 billion, and the LGCs received N80.394 billion.

“The sum of N48.620 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue,” it said.

According to the communiqué, Oil and Gas Royalties, Companies Income Tax (CIT), Excise Duty, Petroleum Profit Tax (PPT), EMTL and CET Levies increased significantly.

It, however, said that Import Duty and VAT recorded considerable decreases.

“The balance in the ECA was 473.754 million dollars.

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Extension Of Nigeria’s Continental Shelf As Lesson On Continuity

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Extension Of Nigeria’s Continental Shelf As Lesson On Continuity

On May 14, the High Powered-Presidential Committee on Nigeria’s Extended Continental Shelf Project was in the Presidential Villa, Abuja.

The committee came to brief President Bola Tinubu on recommendations given to Nigeria regarding its submission for an extended continental shelf by the United Nations Commission on the Limits of the Continental Shelf (CLCS).

The briefing was led by veteran diplomat, Amb. Hassan Tukur, the Chairman of the committee.

The update with the president featured technical presentations by Prof. Larry Awosika, a renowned marine scientist and Mr Aliyu Omar, Member/Secretary of the Committee and former staff of the National Boundary Commission (NBC).

Omar also served as the Desk Officer for the project office in New York for several years.

Worthy of note, Nigeria’s request to have it continental shelf extended was approved by the CLCS in August 2023.

The project, which aims to extend Nigeria’s maritime boundaries under the United Nations Convention on the Law of the Sea (UNCLOS), has granted Nigeria sovereignty over an additional 16,300 square kilometres of maritime territory.

This is roughly five times the size of Lagos State.

The CLCS is mandated to, inter alia, consider the data and information submitted and provide recommendations on the outer limits submitted by the coastal state.

Article 76 of UNCLOS (1982) allows a qualifying coastal state to extend its continental shelf up to a maximum of 350M (350 nautical miles) or 150m nautical miles beyond its traditional Exclusive Economic Zone of 200 nautical miles.

Extension Of Nigeria’s Continental Shelf As Lesson On Continuity
President Bola Tinubu receiving Nigeria’s CLCS report from the committee

The continental shelf is the natural submerged prolongation of its land territory.

The journey to extend Nigeria’s continental shelf project began in 2009 with the country’s submission to the CLCS.

The project faced delays due to a lack of funds and administrative challenges; in 2013 the Senate of the Federal Republic in its resolution of Feb. 14, 2013, urged the Federal Government to fund the project and set up an independent body to handle it.

However, it was only in November 2015 that the then President Muhammadu Buhari revitalised it.

Subsequently, he appointed the High-Powered Presidential Committee (HPPC), headed by the former Minister of Justice and Attorney-General of the Federation, Malam Abubakar Malami, to oversee the project.

The HPPC operated as an independent technical body, effectively managing the project by cutting down on government bureaucracy.

Omar had led the Nigerian Technical Team through the question-and-answer sessions with the UN Commission on the Limits of the Continental Shelf (CLCS).

He was also the Member/Secretary of the HPPC with a strong institutional memory of the project, highlighted this during the committee’s briefing to President Tinubu on May 14.

Omar said that when the HPPC briefed Buhari in 2022 on the status of the project, the United Nations Commission on the Limits of the Continental Shelf (CLCS) was still considering Nigeria’s submission and having technical interactions with the HPPC.

”These interactions and consideration have now culminated in the approval for Nigeria to extend its continental shelf beyond 200M (200 nautical miles).

”As it stands now, the area approved for Nigeria is about 16,300 square kilometres, which is about five times the size of Lagos State”, he said.

Nigeria’s extended continental shelf is in an area that is referred to as the ‘Golden Triangle of the Gulf of Guinea’ due to its abundance of natural resources such as hydrocarbons, natural gas, and a variety of solid minerals.

Awosika, a pioneer member and former Chairman of the CLCS, explained that the technical team’s work involved lengthy processes.

He said it also required highly technical steps in the acquisition, processing and analysis of extensive marine scientific data offshore Nigeria’s margin for the submission to the UN CLCS.

He said that the Nigerian team had to defend the submission with the CLCS which involved highly technical question-and-answer sessions and provision of additional data and information.

Receiving the report, Tinubu commended the members of the technical team for working tirelessly.

He applauded their high technical and scientific expertise and solidarity to national cause throughout the eight years of service to the nation before an agreement was finally reached with the UN CLCS in August 2023.

It is instructive to note that Tinubu highlighted the interactions he had with his predecessor, Buhari, on the project; given that it was he, Buhari, who set up the HPPC to oversee the project in 2015.

Tinubu recounted how Buhari briefed him on the importance of the project.

”This is a big congratulations for Nigeria. I commend the team and we must take advantage of this and invite you again to have a repeat of this knowledge exploration on geography, hydrography and marine life.

”Nigeria is grateful for the efforts that you put into gaining additional territory for the country without going to war; some nations went to war; and lost people and economic opportunities.

”We lost nothing but have gained great benefits for Nigeria; we will pursue the best option for the country,” Tinubu said.

Tinubu has also promised to ‘pursue the best option for the country’ on the project, even though the CLCS recommendations fall short of Nigeria’s submitted claim.

Perceptive observers say the achievement is a lesson on the importance of continuity in government projects. Abandoning projects due to changes in administration can lead to wasted resources and lost opportunities.

The extended continental shelf is a significant achievement of Tinubu’s administration and to Nigeria.

According to experts, this is something that has never happened in the nation’s history, and may never happen again.

By learning from the ECS project, Nigeria can improve its approach to governance and project management, ensuring that with perseverance and continuity strategic initiatives are completed despite challenges.

The ECS project, initiated in 2009, faced delays and funding issues but persistence through the efforts of the immediate past administration paid off, and was finally approved by the UN in August 2023, shortly after Tinubu assumed office.

The country has taken note of articles 7 and 8 in Annex II to the Convention on the Law of the Sea concerning recommendations received from the CLCS.

The project also demonstrates the importance of long-term thinking in governance.

Discerning stakeholders hold that while the project’s benefits may not be immediate, it will surely have a significant impact on Nigeria’s economy and maritime boundaries in the future.

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Economy

Naira Gains N61.38 Against Dollar At Official Market

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Naira Gains N61.38 Against Dollar At Official Market

The Naira on Wednesday appreciated at the official market, trading at N1,459.02 to the dollar.

Data from the official trading platform of the FMDQ Exchange revealed that the Naira gained N61.38.

This represents a 4.04 per cent gain when compared to the previous trading date on Tuesday, when the local currency exchanged at N1,520.40 to a dollar.

Also, the total daily turnover increased to 289.14 million dollars on Wednesday up from 128.76 million dollars recorded on Tuesday.

Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,593 and N1,401 against the dollar. 

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