Business
China’s Economic Slowdown To Hit Nigeria, IMF Warns
The International Monetary Fund has revealed that China’s diminishing economic growth is poised to impact Nigeria’s economic prospects.
The IMF pointed out that due to China’s extensive economic connections with sub-Saharan African countries in the last two decades, Nigeria’s growth may decrease by an average of 0.5 percentage points.
Notably, China serves as the largest trading partner for the region, purchasing a significant portion of exports such as metals, minerals, and fuel, while also supplying the majority of manufactured goods and machinery.
However, the IMF highlighted that China’s recovery from the pandemic is expected to have a positive ripple effect across Africa. This insight was shared in a post titled ‘China’s Slowing Economy Will Hit Sub-Saharan Africa’s Growth’ by the Washington-based lender.
It said, “However, China’s recovery from the pandemic has slowed recently due to a property downturn and flagging demand for its manufactured goods as global growth has also slowed.
“This matters for Africa. A one percentage point decline in China’s growth rate could reduce average growth in the region by about 0.25 percentage points within a year, according to the latest Regional Economic Outlook. For oil-exporters, such as Angola and Nigeria, the loss could be 0.5 percentage points on average.”
Additionally, the IMF emphasized that the repercussions of China’s economic slowdown extend to sovereign lending in sub-Saharan Africa, dropping below $1 billion last year, marking the lowest level in nearly two decades. This reduction signifies a departure from substantial infrastructure financing.
The IMF stressed that sub-Saharan African nations must adjust to China’s economic slowdown and decreased economic interactions by enhancing resilience through heightened intra-African trade.
Additionally, the IMF recommended building buffers through tax policy reforms and improvements in revenue administration. The institution underscored the importance of diversifying African economies to ensure sustained future growth.
It added, “The strong demand for minerals that support renewable energy development could provide an opportunity for countries to forge new trade relationships and develop more local processing capabilities. Countries can improve their competitiveness by creating a favorable business environment, investing in infrastructure, and deepening domestic financial markets.”
The Consul General of China in Lagos, Yan Yuging, revealed that the bilateral trade volume between China and Nigeria for the first three quarters of 2023 reached $17.25 billion.
He said, “China is a significant trade partner for Nigeria. According to Chinese customs data, the bilateral trade volume between China and Nigeria reached $23.9bn in 2022, with China’s exports to Nigeria amounting to $22.3bn and imports from Nigeria totaling $1.6bn.”
Given China’s significant role as a major lender in the region, the impact of reduced loans is anticipated to be felt in Angola, Cameroon, Kenya, Nigeria, and Zambia, where China stands as the largest bilateral official lender.
Data from the Debt Management Office disclosed that total borrowing from China increased to $4.29 billion by the end of December 2022.
In a sharp turn of events, the Nigerian Naira took a significant tumble on Tuesday, plunging to N1,416.57 against the US dollar at the official market.
This staggering drop of N62.36 from the previous trading day represents a 4.60 percent loss, sparking concerns among investors and analysts alike.
Data from the FMDQ Exchange, overseeing the Nigerian Autonomous Foreign Exchange Market (NAFEM), revealed this unsettling trend.
Despite the currency’s downward spiral, trading activity surged, with the daily turnover soaring to $160.77 million, compared to Monday’s $84.83 million.
Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira’s performance remained volatile, trading between N1,445 and N1,301 against the dollar, underscoring the currency’s precarious position in the market.
The management of Dangote Cement Plc., Ibese Plant has assured that it would continue to complement the efforts of the Ogun State Government in the development of its host communities through capacity building for the people, especially the youths.
In a statement, the company declared its commitment to development for the prosperity of the people and host communities for which it is placing a premium on the developmental needs of the communities and empowerment of their indigenes.
During a capacity development workshop for Host Community Representatives, General Manager, Human Asset Management/Admin, Aina Olugbenga, said, Dangote Cement remained committed to implementing value-adding empowerment programs to uplift the people and develop the host communities.
The workshop themed: “Team Building, Inclusivity and Stewardship, a panacea to effective Community Representatives” according to him, was to equip the Community reps with the right skills to offer quality representation for their people. He stated: this capacity building workshop is aimed at developing and strengthening the skills, instincts, and abilities of the communities through their representatives adapt and thrive in a fast-changing world.
Olugbenga noted that the workshop is part of the management’s strategy to improve relationships with the host communities and urged the participants to leverage the knowledge acquired from the workshop to improve service delivery to their people and the Cement plant.
According to him, Dangote Cement, Ibese Plant is committed to building the capacity of the people and institutions in the communities by identifying skill gaps and partnering to up their skills for economic prosperity. This, he stated, was in anticipation that other stakeholders will continue to play their part by partnering and supporting the Company to ensure peaceful co-existence and shared prosperity for all.
Said he, “Apart from reciprocating the good gesture of Dangote Cement by ensuring peace at all times and keeping an open and trusting mind towards the organization, we also desire from our community leaders and representatives who are present here, the ownership of all Social Investment programme, be it training or infrastructure because they are meant for the betterment of our people.”
On behalf of the Community Representatives, Hon. Dayo Ogunyinka thanked the Dangote Cement management for the workshop while assuring continued commitment to effective, efficient and selfless discharge of their roles and responsibilities to their various communities and the Plant.
The Nigeria Deposit Insurance Corporation (NDIC) has announced revisions to the Maximum Deposit Insurance Coverage for banks operating within the country.
NDIC’s Managing Director, Bello Hassan, disclosed the updated coverage benchmarks during a media briefing in Abuja on Thursday.
The coverage for Deposit Money Banks has been increased from N500,000 to N5 million, for Microfinance Banks from N200,000 to N2 million, for Primary Mortgage Banks from N500,000 to N2 million, and for Mobile Money Operators subscribers’ pass-through from N500,000 to N5 million per subscriber.
Hassan underscored that the objective of the update is to enhance depositor safety, foster public trust, promote the inclusivity of financial services, and ensure the overall stability of the financial sector.
More to follow.. . .. .
I’ve Dated More Than 100 Women – Singer Skales
I Got The Concept For “Men Are Crazy” From My Hubby – Simi
Fubara Bans All LGA Heads From Rivers Assembly
Rivers LGA Chiefs Back APC, Demand Gov Fubara’s Removal
Naira Slumps 4.60% Against Dollar
Bayelsa State Hosts 2024 NWFL Premiership Super Six
Sahara’s Tonye Cole resigns from GPHCDA
Oando opens ultra-modern petrol station in Lagos
Niger Delta Avengers: President Buhari Reads riot Act …considers the carrot and stick option
Adeosun: We are investing in infrastructure to grow the private sector
Shell launches Nigeria campaign on energy efficiency
