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Economic Reforms: Nigerians Under Poverty Line Rise To 104m — World Bank

Published

2 years ago

December 14, 2023

Editor

A World Bank report has indicated that Nigeria’s poverty level has taken a notch higher, at the backdrop of the recent economic and fiscal reforms.

The key reforms include the removal of petrol subsidy and the foreign exchange market rate restructuring.

The bank, however, commended the Federal Government for what it considered ‘bold reforms’ necessary to rescue Nigeria from fiscal cliff, describing the current pains as temporary.

But it also said the policies have created intense pressures on cost of living, which have pushed more Nigerians into hardship, with 104 million now living below the poverty line.

The World Bank report also indicated that the number of poor people in Nigeria had grown from 95 million in 2021 to 100 million in 2022, while the Nigerian Bureau of Statistics, NBS, indicated that the figure was 82.9 million in 2019 and 85.2 million in 2020.

In its World Bank Nigeria Development Update, NDP, entitled ‘Turning the Corner: Time to Move From Reforms to Results’, the bank stresses the need to continue with the reform momentum to complete the reforms and to address the costs of the reforms.

It further stated: ‘‘Inflation remains at record high levels for Nigeria, 27.3 per cent Year-on-Year, YoY, in October 2023, partly driven by the one-off price impacts of the removal of the gasoline subsidy.

‘‘The impact of this is especially hard on poor and vulnerable citizens. The FX market has remained volatile and in a period of continuing adjustment to the new policy approach, with significant fluctuations in the exchange rate in both the official and the parallel markets. Revenue gains from the FX reform are visible.

‘‘However, there is a need for more clarity on oil revenues, especially the financial gains of Nigeria National Petroleum Corporation Limited, NNPCL, from the subsidy removal, the subsidy arrears that are still being deducted, and the impact of this on Federation revenues.”

In his appraisal of the country’s reforms, Shubham Chaudhuri, World Bank Country Director for Nigeria, stated: “The petrol subsidy and FX management reforms are critical steps in the right direction towards improving Nigeria’s economic outlook. Now is the time to truly turn the corner by ensuring coordinated fiscal and monetary policy actions in the short to medium term.

“Continued reform implementation can ensure that Nigeria benefits from the difficult adjustments underway. This includes ensuring that improved oil revenues following the sharply increased PMS price accrue to the Federation.

‘‘In the medium-term, the economy will then begin to benefit from increasing fiscal space for development spending, including on power and transport infrastructure, as well as on human capital.”

He further said that between N300 billion –N400 billion was expended on fuel subsidy monthly, before the subsidy removal and that the expectation was that the NNPCL should have been paying such amount to the Federation Account, but which has not been the case.

World Bank’s recommendations
The latest NDU report recommended specific actions required to further sustain and achieve the full benefits of reforms already embarked on by the Government.

These include: controlling inflation and improving the stability of the FX market; achieving fiscal consolidation by sustaining savings from the PMS subsidy reform and improving non-oil revenues; addressing structural barriers to growth, such as removing trade barriers.

It stated further: “With the continued implementation of macroeconomic stabilization reforms, Nigeria’s economy is expected to grow at an average annual rate of 3.5 per cent in 2023-2026, or 0.5 per centage points higher than in a scenario where the reforms had not been implemented.”

Alex Sienaert, World Bank Lead Economist for Nigeria and co-author of the Report, also stated: ‘‘In 2024, Nigeria has an opportunity to turn the corner to a more stable and predictable macroeconomic environment, and easier access to foreign exchange (FX) and imported inputs, which is critical to creating new jobs and lifting people out of poverty”.

The NDU report indicated that Nigeria was not yet out of the woods but on the path to full recovery, as a result of the various policies being implemented by both fiscal and monetary authorities.

The World Bank called on the Nigerian National Petroleum Company Limited (NNPCL) to make public its Statement of Accounts and transparently disclose its revenue inflows.

The report read in part, “The removal of the subsidy was announced on May 29 and pump prices were adjusted on June1.

“This results in expected fiscal savings of around N2 trillion in 2023 or 0.9 per cent of GDP.

“Between 2023 and 2025, the expected gains are over N11 trillion, against a scenario in which the subsidy had continued’’.

NNPCL’s account for scrutiny —Edun

The Minister of Finance and Coordinating Minister for the Economy, Mr. Wale Edun, also insisted that NNPCL’s account must be audited.

His words, “There will be earnest scrutiny and I am sure NNPC is getting ready for that. We want revenue to come into the government coffers from NNPC and all other revenue agencies.”

The last two Minister of Finance, namely, Mrs. Kemi Adeosun and Mrs. Zainab Ahmed had publicly said that the accounts of the NNPCL would be looked into, but there has been no report of such audit made public.

Mr. Edun also revealed that the federal government would come up with a new structure of salaries in 2024.

He did not give details, other than that it was statutory to review salaries every five years, according to the Salaries and Wages Commission Act and that all stakeholders including labour leadership would be involved.

Huge FX in Domiciliary Accounts
The Minister of Finance revealed that wealthy Nigerians were holding huge sums of dollars and other foreign currencies in their Domiciliary bank accounts in the country.

According to him, there was a lot of FX liquidity in Nigeria and the Federal Government would take steps to make holders of such accounts release the money.

Mr. Edun said that the government would not force holders of such accounts to give them up but would provide incentives to enable them invest in attractive instruments, going forward.

I‘m not against quasi-fiscal interventions but —Cardoso

The Governor of the Central bank of Nigeria, Mr. Olayemi Cardoso, who was a panelist at the NDU presentation said that he was not against quasi fiscal interventions by the CBN but that his focus would remain how to reduce inflation through price stability.

On the controversy around his failure to convene a Monetary Policy Meeting since coming into office, the governor said that the past frequent MPCs did not achieve their objectives and that he would not continue along that line.

His words, “To what extent did the meetings achieve their objectives? The answer is no. That is why we have chosen to do it differently. Holding these meetings take a lot of time and energy.”

According to him, his team holds Liquidity Management meetings every 8.00 am to review the liquidity situation in the system and that he would take every necessary action to mop up excess liquidity in the system, adding, “we have increase OMO (Open Market Operations) both in value and volume.”

Industry Minister counters W/Bank on power subsidy

In her contribution, the Minister of Industry, Doris Uzoka-Anite, disagreed with the position of the World bank on Power subsidy.

The bank had advocated a power regime without subsidy in order to boost investor confidence and ensure a cost- reflective tariff.

However, the minister insisted, “there is nothing wrong with power sector subsidy. Subsidy in the power sector is subsidy that supports production. Countries everywhere support production and export.”
VANGUARD

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Trump Administration Proposes New Rule Limiting Nigerians, Others

Published

4 hours ago

August 28, 2025

Editor

The Trump administration has unveiled a proposal that would restrict the length of time international students can remain in the United States for their studies.

According to the Department of Homeland Security (DHS), the regulation, which is expected to be published on Thursday, would impose a four-year cap on student visas and other categories of temporary admissions.

According to Fox News, the DHS said the proposal is part of efforts to curb “visa abuse” and strengthen the government’s ability to “properly vet and oversee these individuals.”

It added that some students have “taken advantage of U.S. generosity” and become “forever” students by staying enrolled in colleges to prolong their residence.

“For too long, past Administrations have allowed foreign students and other visa holders to remain in the U.S. virtually indefinitely, posing safety risks, costing untold amount of taxpayer dollars, and disadvantaging U.S. citizens,” a DHS spokesperson stated.

“This new proposed rule would end that abuse once and for all by limiting the amount of time certain visa holders are allowed to remain in the U.S., easing the burden on the federal government to properly oversee foreign students and their history,” the spokesperson continued.

Currently, F visa holders may stay in the U.S. for the “duration of status,” meaning the period they are enrolled full-time. The new proposal would allow stays for the length of a programme but would not permit them to exceed four years, generally less than the time needed for postgraduate studies.

Foreign journalists would also be affected. Under the plan, they would receive an initial admission period of 240 days, with the possibility of a single extension for another 240 days, but not longer than their assignment.

The DHS said regular assessments would provide “proper oversight” and help reduce the number of people residing in the U.S. on temporary visas.

But education experts warned the measure could hurt universities financially. International students typically pay higher tuition and have fewer opportunities for scholarships, which contributes significantly to the financial support of American colleges.

“It will certainly act as an additional deterrent to international students choosing to study in the United States, to the detriment of American economies, innovation, and global competitiveness,” Fanta Aw, executive director and CEO of NAFSA: Association of International Educators, said in a statement to Politico.

Headline

Russia Hits Ukraine With ‘Massive’ Deadly Overnight Strikes

Published

8 hours ago

August 28, 2025

Editor

Russian forces launched a “massive” attack on Kyiv on Thursday, hitting the Ukrainian capital with strikes that killed at least four people and wounded around 30 others, Ukrainian officials said.

The attack came as Moscow and Kyiv traded blame over an impasse in diplomatic efforts towards a peace deal spearheaded by US President Donald Trump.

AFP journalists in Kyiv witnessed powerful explosions that illuminated the night sky and left behind a column of smoke.

Ukraine’s Interior Minister Igor Klymenko said the strikes killed four people and wounded “about 30 people.”

Those killed included a 14-year-old girl, while five children aged seven to 17 were among those who sustained “injuries of varying severity,” Tymur Tkachenko, the head of the city’s military administration, said.

Mayor Vitali Klitschko described the strikes as a “massive attack” that caused damage in several districts of the capital.

Tkachenko said Moscow had fired ballistic and cruise missiles as well as Iranian-designed Shahed drones from different directions to “systematically” target residential buildings.

Red tracer bullets sailed through the night sky in an effort to intercept drones above the city centre, an AFP journalist saw. At least one missile appeared to be shot down.

Around 100 people took refuge in a subway station, with some lying in sleeping bags and others holding their pets.

A five-story building in the Darnytsky district had collapsed, and a shopping mall was hit in the city centre, Klitschko reported.

– Ukrainian attacks on Russia –
Kyiv suffered one of its worst attacks of the over three-year war on July 31, leaving more than 30 people dead including five children.

Ukrainian officials also reported a Russian strike in the southeastern Zaporizhzhia region on Thursday.

Russian authorities said they destroyed over 100 Ukrainian drones overnight. A Ukrainian attack sparked a fire at an oil refinery in the Krasnodar region but caused no casualties, according to local officials.

Russian forces have been slowly but steadily gaining ground in Ukraine in recent months, as diplomatic efforts have accelerated.

Trump held a high-profile summit with Russian President Vladimir Putin in Alaska this month, followed by a meeting with his Ukrainian counterpart Volodymyr Zelensky and European allies.

But there has been little progress since then.

Before concluding any peace agreement, Ukraine wants security guarantees from the West to deter any future Russian attacks.

Moscow has cast Kyiv’s demands as unrealistic and has raised particular objection to the notion of stationing Western peacekeeping troops in Ukraine.

Zelensky said on Wednesday that members of his administration would meet with US officials in New York on Friday.

The Ukrainian leader said he saw “very arrogant and negative signals from Moscow regarding the negotiations”, urging extra “pressure” to “force Russia to take real steps”.

AFP

Headline

Two US Pastors Arrested In $50m Human Trafficking, Fraud Case

Published

8 hours ago

August 28, 2025

Editor

Two church leaders in the United States have been arrested in an alleged multi-million-dollar conspiracy after multiple Federal Bureau of Investigation raids across the country on Wednesday, including one in Hillsborough County’s exclusive Avila neighborhood.

In a statement issued via its website on Wednesday, the U.S. Department of Justice said Michelle Brannon, 56, was arrested at a mansion near Tampa, while David Taylor, 53, was arrested in North Carolina over allegations of multi-million dollar money laundering, forced labour and human trafficking.

According to the DOJ, Taylor and Brannon are the leaders of Kingdom of God Global Church, formerly known as Joshua Media Ministries International.

The Justice Department said Taylor referred to himself as “Apostle” and to Brannon as his Executive Director.

FBI officials said law enforcement arrested Brannon early Wednesday at 706 Guisando De Avila in Hillsborough County, which is owned by the church, according to property records.

Investigators arrested Taylor on Wednesday morning in North Carolina, while SWAT and FBI agents also raided a hotel owned by the church in Houston.

A 10-count indictment alleged that Taylor and Brannon ran call centres in Florida, Texas, Missouri, and Michigan to solicit donations to the church.

The pair convinced their victims to work at the call centres and work for Taylor as personal servants – referred to as “armour bearers” – for long hours without pay, according to the indictment.

Federal investigators said Taylor and Brannon “controlled every aspect of the daily living of their victims,” who slept at the call centre or in a “ministry” house and were not allowed to leave without permission.

The indictment also says the suspects forced the victims to transport women to Taylor and ensure that those women took Plan B emergency contraceptives.

The church received about $50 million in donations through its call centres dating back to 2014, according to the DOJ.

Taylor and Brannon are accused of using much of that money to buy luxury properties, luxury vehicles, and sporting equipment such as boats, jet skis, and ATVs.

Taylor and Brannon face charges of forced labour, conspiracy to commit forced labour, and conspiracy to commit money laundering.

Each alleged crime carries a maximum sentence of 20 years in federal prison.

A federal grand jury in the Eastern District of Michigan returned a 10-count indictment against two defendants for their alleged roles in a forced labour and money laundering conspiracy that victimised individuals in Michigan, Florida, Texas, and Missouri.

Assistant Attorney General Harmeet Dhillon of the Justice Department’s Civil Rights Division said the two defendants were arrested in North Carolina and Florida in a nationwide takedown of their forced labour organistion.

“Combating human trafficking is a top priority for the Department of Justice.

“We are committed to relentlessly pursuing and ending this scourge and obtaining justice for the victims,” he said.

Also speaking, U.S. Attorney Jerome Gorgon Jr. for the Eastern District of Michigan, said, “We will use every lawful tool against human traffickers and seek justice for their victims.

“A case like this is only possible through a concerted effort with our federal partners across the country and the non-governmental agencies who provide victim support. We thank them all.”

“The indictment of David Taylor and Michelle Brannon demonstrates the FBI’s steadfast efforts to protect the American people from human exploitation and financial crimes, including forced labour and money laundering.

“The alleged actions are deeply troubling. I want to thank the members of the FBI Detroit Field Office, with strong support from our federal and agency partners in the FBI Tampa Field Office, FBI Jacksonville Field Office, FBI St. Louis Field Office, FBI Charlotte Field Office, FBI Houston Field Office, and the Detroit IRS-CI Field Office, in addition to several local, county and state law enforcement partners, for their role in executing this multi-state operation.

“The FBI in Michigan will continue to investigate those who violate federal law and remain focused on ensuring the protection and safety of our nation,” said Acting Special Agent in Charge Reuben Coleman of the FBI Detroit Field Office.

“Money laundering is tax evasion in progress, and in this case, the proceeds funded an alleged human trafficking ring and supported a luxury lifestyle under the guise of a religious ministry.

“IRS-CI stands committed to fighting human trafficking and labor exploitation, and pursuing those who hide their profits gained from the extreme victimization of the vulnerable,” said Special Agent in Charge Karen Wingerd of IRS Criminal Investigation, Detroit Field Office.

According to the DOJ, conspiracy to commit forced labour carries up to 20 years’ imprisonment and a fine up to $250,000, while forced labour carries up to 20 years’ imprisonment and a fine up to $250,000.

It noted that conspiracy to commit money laundering carries up to 20 years’ imprisonment and a fine up to $500,000 or twice the value of the properties involved in the money laundering transactions.

It was gathered that Brannon appeared in federal court in Tampa on Wednesday afternoon, but an attorney for Brannon wasn’t present.

A judge asked where her attorney was and whether she had representation.

Brannon told the judge that she had two private attorneys, out of St. Louis and Oklahoma, who were already working with them. However, she said she hadn’t heard from either of them.

The judge said the attorneys were not able to be reached through the phone numbers provided to federal prosecutors. It’s not clear if Brannon has legal representation at this point.

The judge continued Brannon’s hearing to Thursday afternoon. He instructed Brannon to find an attorney in the Tampa area in the meantime.