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War in Ukraine pushing poverty higher —World Bank

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World Bank downgrades global growth outlook on Ukraine war

… As 2.8m Ukrainian refugees now in Poland, 360,000 in Germany***

World Bank Group President, David Malpass has expressed concern over higher poverty rates in developing countries due to the war in Ukraine and COVID-19 related shutdown.

A statement issued on Monday by the Bank quoted Malpass as making this known in his opening remark at the World Bank Spring Meetings 2022  media roundtable.

Also read: World Bank increases mineral survey aircrafts

“I am deeply concerned about developing countries.

They are facing sudden price increases for energy, fertiliser, and food, and the likelihood of interest rate increases. Each one hits them hard.

“These plus the war in Ukraine and China’s COVID-related shutdowns, are pushing global growth rates even lower and poverty rates higher.

“We have lowered our 2022 growth rate to 3.2 per cent from 4.1 per cent before. People are facing reversals in development for education, health and gender equality.

“They are facing reduced commercial activity and trade.

Also, the debt crises and currency depreciations have a burden that falls heavily on the poor,” Malpass said.

While noting that many discussions this week would focus on these topics, Malpass said that World Bank expected the debt crisis to continue to worsen in 2022.

According to him, debt and inflation are two big problems facing global growth.

He said that countries are under severe financial stress due to high debt and deficit levels.

“About 60 per cent of low-income countries are already in debt distress or at high risk of it.

“I participated virtually in our April 13 conference on debt transparency and sustainability and suggested steps to improve the implementation of the Common Framework.

“These included establishing a timeline for forming creditors’ committees and suspension of debt service payments and penalty interest.

“Others are expanding eligibility: a simple rule so that it can be evaluated and enforced and engaging commercial creditors at the beginning of the process,” Malpass said.

On the inflation problem, he said it was causing immense strain.

 

Malpass, however, said that policies need to be adjusted to enhance supply, not just increasing demand.

“Markets are forward-looking so it is vital for governments and private sectors to state that supply will increase and that their policies will foster currency stability to bring down inflation and increase growth rates.

“This is especially important as global supply chains shift away from dependency.

“Central banks need to use more tools under current policies.

The inequality gap has widened materially, with wealth and income concentrating in narrow segments of the global population.

” Central banks can use more of their tools, not just interest rates.

“Capital is being misallocated now.

One of the focal points should be using all the central bank tools so that capital is allocated in a way that helps increase supply.

“That will be an effective way to address inflation,” he said.

Malpass listed some of the tools to include changing the duration of their portfolio, encouraging supply through their regulatory policies and providing forward guidance that fosters currency stability.

 

In the meantime, Warsaw border guards on Tuesday said since the beginning of Russia’s war on Ukraine, close to 2.84 million people have fled to neighbouring Poland.

The Polish authorities said around 20,000 refugees arrived from Ukraine on Monday, an increase of 16 per cent compared to the previous day and at the same time, 14,400 people crossed the border the other way going back into Ukraine.

A total of 738,000 people also entered Ukraine from Poland since the war began on Feb. 24.

According to the authorities, most are Ukrainian citizens travelling to areas recaptured from Russian forces by the Ukrainian army.

There was no official information on how many people have remained in Poland and how many travelled on to other EU countries.

Ukrainian passport-holders do not need a visa to enter the bloc.

The Federal Police in Germany have registered 359,904 refugees from Ukraine, the German Ministry of the Interior tweeted on Tuesday.

It said these were mainly women, children and elderly people adding that the actual number was thought likely to be much higher

According to UN figures, of all Ukraine’s neighbours, Poland has taken in the most refugees with Romania, Russia, Moldova, Hungary, and Slovakia have also seen thousands each.

The UN figures also show that of the five million who have fled to neighbouring countries, the overwhelming majority have headed westwards.

 

 

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Economy

NOSDRA, Stakeholders Set To Tackle Oil Spillage – Emir of Keffi

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The National Oil Spill Detection and Response Agency (NOSDRA), has called on stakeholders in the petroleum industry to ensure the prevention of oil spillages in Nigeria.

The Emir of Keffi, Dr Shehu Yamusa III, who is the Chairman of, Governing Board, NOSDRA, made the call at a stakeholders’ meeting with oil companies in Nigeria on Thursday in Abuja.

Yamusa said that operators in the petroleum sector shared a common goal of ensuring an effective response to oil spills and sustainable management of the Nigerian environment for national development.

The Chairman was represented at the occasion by Mr. Idris Musa, the Director-General of, the National Oil Spill Detection and Response Agency (NOSDRA).

He added that the occurrence of oil spillage could be prevented through compliance with extant laws, regulations and guidelines on environmental management in the petroleum industry.

Yamusa, however, said that stakeholders would discuss action plans for the management of oil spills in 2023 with an emphasis on reviewing regulatory procedures regarding oil spill reporting.

Others, he said, included the conduct of Joint Investigation Visits (JIV), Clean-Up and remediation of oil spill-impacted sites, as well as the conduct of Post Spill Impact Assessment (PSIA), among others.

“The transparent conduct of these processes is very important, not just for the integrity and credibility of NOSDRA, but also for sustainable environment management, fair, just and amicable resolution of disputes that may arise therefrom.

Dr Shehu Yamusa III,

“The vision statement of the National Oil Spill Detection and Response Agency is to create, nurture and sustain a zero tolerance for oil spill incidents.

“This can only be achieved if players in the industry take measures to prevent oil spillages through compliance with extant laws, regulations, and guidelines on environmental management in the petroleum industry,” he said.

In a remark, the Director-General, of NOSDRA, Mr. Idris Musa, said that oil spill management “is of paramount importance to the agency and other stakeholders in the oil sector.

”We are actually aware of the devastating impacts that oil spills have on ecosystems, wildlife, local economies, the well-being and livelihoods of host communities.

“It is a collective responsibility that we must shoulder together, as stakeholders representing various sectors to tackle this pressing issue head-on and work towards effective and efficient solutions,” he said.

Meanwhile, Musa, while speaking to journalists at the event, said the agency had made an impact in cleaning oil spills in oil-producing areas through the Clean-Up and remediation of oil spill-impacted sites.

“As of today, I can tell you that NOSDRA as an agency, has certified about 40 cleaned-up impacted sites in Ogoni land and there are almost the same number in progress at different levels of operations.

“None is less than 50 percent completed. In another few months, we will be recording about 70 to 80 percent clean-up sites in Ogoni land,” he said.

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Economy

Subsidy Strike: NLC Condemns National Industrial Court Ruling As FG Secures Injunction 

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NLC mobilizes workers for industrial action in Rivers

The Nigeria Labour Congress (NLC) has rejected the ruling of the National Industrial Court (NIC) of favouring the Federal Government against the interest of the masses and workers in the country.

Mr Joe Ajaero, NLC President said this in a communique jointly signed with Mr Emmanuel Ugboaja, General Secretary of the Congress at the end of an emergency National Executive Council (NEC) meeting on Tuesday in Abuja.

It said that the NEC meeting was called to discuss the outcome of the dialogue between the NLC and the Federal Government on the petroleum product price hike.

The NLC had on June 3 ordered a nationwide strike that was supposed to commence on June 7 over the hike in fuel price.

It would also be recalled that the federal government had procured a Court injunction restraining Congress from proceeding with the proposed nationwide strike.

The NLC said NEC in session resolved that there was need to show government that it was important to comply with laid down laws and court rulings.

“Especially as it concerns obedience to the rulings of the Courts and their brazen disregard to the 2023 Appropriation Act.

“To therefore support and accept the decision of the leadership of Congress to suspend the proposed strike action in compliance with the flawed rulings of the NIC.

“Also to allow negotiations to flow freely and enable final agreement during or after the 19th June, 2023, negotiation round with the federal government.

“To however register in strongest terms its disgust and disapproval with the ruling of the NIC for its continuous weaponisation of the instrument of Exparte injunction in favour of government.

“That is against the interests of Nigerian workers in defiance of the position of the Supreme Court on the use of this instrument,” it said.

Congress further stated that all Affiliates and State Councils of Congress are hereby directed to suspend further action and mobilisation until the outcome of the final negotiations.

The communiqué commended all Affiliates and State Councils on their robust mobilaaisation towards a successful nationwide strike and to also remain vigilant in case there is a need to continue.

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Economy

Fuel Subsidy: Obaseki Reduces Edo Workers’ Days To 3

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Benin River Port Will Enhance Economic Diversification- Obaseki

Hikes Minimum Wage To N40,000***

Godwin Obaseki of Edo on Tuesday reduced the number of work days that civil and public servants would have to commute to their workplaces from five days to three days a week, amongst other measures.

In a statement made available to newsmen in Benin, Obaseki said the measure was part of efforts to ameliorate the sufferings currently faced by the people in the wake of the rise in prices of goods and services occasioned by the fuel subsidy removal.

“In the wake of fuel subsidy removal by the Federal Government, fuel prices have increased astronomically, leading to a rise in prices of goods and services and overall cost of living.

“The Edo State Government shares the pains of our people and wants to assure everyone that we are standing with them in these very challenging times.

“We want to reassure our people that we will do all within our powers as a sub-national government to reduce the pains and ameliorate the sufferings our people are currently facing due to the current realities.

“As a proactive government, we have since taken the step to increase the minimum wage paid to workers in Edo State from the approved N30,000 to N40,000.

“We hope to increase it even further if more allocation accrues to our state from the Federal Government in view of the expected savings from the removal of the fuel subsidy,” the governor said.

According to him, we know the hardship that has been caused by this policy which has increased the cost of transportation, eating deep into the wages of workers in the state.

465 returned migrants to benefit from IOM intervention project in Edo
*Gov. Godwin Obaseki of Edo

“Therefore, the Edo State Government is hereby reducing the number of work days that civil and public servants will have to commute to their workplaces from five days to three days a week till further notice.

“Workers will now work from home two days every week.

“Similarly, for teachers and parents, their commuting to school will be reduced as government is working on deepening the EdoBEST@Home initiative.

“To create more virtual classrooms, thereby, reducing the cost of commuting on parents, teachers and pupils.

“The Edo SUBEB will provide details on this initiative in the coming days,’’ Obaseki said.

He said that to lower the rising cost of energy on the people, the state government would continue to work with the electricity companies in the state to improve power supply to homes and businesses.

“Similarly, fiber optics connections are b4eing made available to help our people work remotely, thereby reducing their cost of transportation,” he said.

Obaseki called on all to remain calm and go about their daily businesses lawfully while government intensified effort to alleviate the burden of fuel price.

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