Nigeria’s political uncertainty rumbles on

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Africa Headlines

• Heightened headwinds and risks remain, but soft landing possible – The IMF Managing Director Kristalina Georgieva said yesterday that the global economy remains resilient and with careful economic policies, it can avoid a hard landing. She alluded to the progress in the fight against highest levels of inflation in 40 years in most developed economies. However, recovery is not only slow in many economies, but it has also been uneven and divergent. The outlook for the global economy remains weak and below the 3.8% average recorded in the 2000s and 2010s. According to the data she shared, cumulative global output loss from successive shocks since 2020 amounts to US $3.7 trillion as of 2023. US is the only major economy that has returned to pre pandemic path. To improve economic conditions, sha advocates the reinforcement of economic and financial stability and the rebuilding of fiscal positions that have been blighted by debts and deficits. She praised Nigeria for removing the fuel subsidies that costs it US $10 billion annually.

• South Africa Rands hits four month low – The South Africa Rand hit a four-month low at yesterday’s trading against the US $, 19.5 against the US $. The South African economy, like most emerging economies, have been buffeted by the ramifications of rising interest rates in the US, leading investors to the safety of the US $ against riskier assets in emerging economies. According to Reuters, the governor of the Reserve Bank Lesetja Kganyago says the Bank will not seek to defend the Rand as it will be “futile”. The Rand has lost 13% of its value against the US $ since the start of this year. Africa currencies have lost between 10% and 70% of their values against the US $, causing intolerable levels of inflation, affecting savings, and driving up poverty on the continent. Nigeria is currently the most battered, losing over 70% since the start of the year following initial 40% devaluation in June and losing another 30% since then.

• Senegal is cracking down on Europe bound refugee boats – The Senegalese government, through its navy, is cracking down on irregular migration through boats. According to AlJazeera, while it only stopped one boat in the whole of last year, it has prevented about 1500 from crossing the dangerous Atlantic Ocean on boats. Tunisia also says it has foiled 88 attempts in the last three days of those attempting to cross into Europe via the Mediterranean. Meanwhile, the UK and Italy government has called for stronger action on irregular migration, even as EU members States have reached an agreement on common migration policy that will support national governments during crisis around irregular migration. This will help countries like Italy that carries the

• Nigeria’s political uncertainty rumbles on after Atiku’s press conference – The presidential candidate of the People’s Democratic Party of Nigeria (PDP) argued yesterday that President Bola Ahmed Tinubu forged the certificate presented to INEC ahead of the presidential elections earlier this year. The 2023 elections have just one more leg to go to reach its conclusion. Following the loss at the presidential election tribunal last month, both Abubakar Atiku and Peter Obi, the presidential candidate for the Labour Party have approached the Supreme Court. However, it is the controversy around the certificate from Chicago State University (CSU) submitted to INEC by the Presidential candidate of the All Progressive Congress and now President Bola Ahmed Tinubu that has gripped the nation, and legal interpretations in the country and in the US.

Global Headlines

• Russian Missile Strike Hits Eastern Ukraine – Early yesterday, Russia missile hit Hroza village in Eastern Ukraine, killing 51 people. The missile hit a Café and Ukraine government says it believed it was targeted. Reuters reported that it was the deadliest in the Kharkiv region since Russian’s invasion 19 months ago. Meanwhile, both the Ukrainian President Volodymyr Zelensky and Russian President Vladmir Putin agree that without support from the West, Ukraine will lose the war.