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Job creation, for youths big challenge for ECOWAS sub-region—AfDB

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Africa Development Bank AfDB, has said that the unimpressive performance of the Nigerian economy resulted in the poor performance of the West Africa subregional economy as Nigeria accounts for 70 per cent of the subregion gross domestic product GDP. The bank in its just released African Economic Out Look said “the decline in the price of raw materials and the unimpressive performance of Nigeria, which alone accounts for about 70 per cent of the sub region’s GDP, were some of the key factors identified as responsible for stagnation.

It said “Economic growth in West Africa rebounded to 2.5 per cent in 2017 and is projected to rise to 3.8 per cent in 2018 and 3.9 per cent in 2019. Household consumption and the relative price recovery of certain materials are expected to contribute to this performance. After several good years, economic growth in West Africa stagnated at 0.5 per cent in 2016”.

Marie-Laure Akin-Olugbade, Deputy Director General of the African Development Bank for West Africa, identified job creation, especially for young people as the big challenge for the sub-region. “The 2018 Regional Economic Outlook for West Africa presents a comprehensive analysis of the economy and the labor market of 15 countries, focusing on macroeconomic stability, employment and poverty of the population living in West Africa. Let us not forget that some of the countries in this sub-region are facing enormous security challenges, “she said.

The African Development Bank has expanded its flagship publication, the African Economic Outlook, with five regional reports. The regional economic studies were released in Tunis (North Africa), Abidjan (West and Central Africa), Nairobi (Eastern Africa) and Pretoria (Southern Africa). “By offering regional approaches for the first time, we want to leverage the Bank’s expertise and give more depth of analysis and relevance to this publication,” said Celestin Monga, Chief Economist and Vice President of the African Development Bank’s Economic Governance and Knowledge Management. “The integration of specific reports for each region reflects the importance the Bank’s focus on the regional dimensions of development and inclusive growth in Africa,” said Mohamed El Azizi, Director General of the North Africa Region.

It said “North Africa ended 2017 with growth of 4.9 per cent of real GDP, up from 3.3 per cent recorded in 2016. The region’s economic performance is above a 3.6 per cent average for the continent, thanks to higher than expected oil production in Libya and the performance of Morocco, which saw growth rise from 1.2 per cent in 2016 to 4.1 per cent in 2017, on account of increased agricultural productivity. Egypt’s macroeconomic and structural reforms led to a 4 per cent growth in 2017. Overall, growth in the North Africa region was fuelled by new high value-added sectors such as electronics and mechanics, as well as private and public consumption. The region’s outlook remains positive for 2018 and 2019, on account of structural reforms. Growth in North Africa is expected to reach 5% and 4.6% respectively in 2018 and 2019.

According to Nnena Nwabufo, the Bank’s Deputy Director General for the East Africa Region,” the East African Economic Outlook highlights a number of policies that member countries must implement to transform their economies. East Africa, with thirteen countries, recorded the continent’s best economic performance with a GDP growth rate of 5.9 per cent in 2017 −a rate much higher than the growth recorded by the other regions of the continent, and above the continental average of 3.6 per cent. The good performance of the East African sub region is stimulated by six countries: Ethiopia, Tanzania, Djibouti, Rwanda, Seychelles and Kenya. The outlook remains positive for 2018 and 2019, with growth expected to continue, reaching 5.9 per cent in 2018 and 6.2 per cent in 2019.

It further said estimated at 1.6 per cent on average in 2017, real GDP growth in Southern Africa is expected to improve to 2 per cent in 2018 and 2.4 per cent in 2019. Deputy Director General of the Bank for Southern Africa, Josephine Ngure said “the Southern Africa region has made considerable progress in the fight against poverty and improvements in the quality of life of its inhabitants, through the implementation of policies targeting the acceleration of industrialisation and the promotion of growth and job creation.” However, economic forecasts remain cautious, especially given the very different growth patterns of the region’s economies.

“The economic “locomotive” of the region, South Africa, shows signs of slow growth, and possibly declining growth, while low-income countries and the economies in transition, such as Madagascar and Mozambique, recorded more important growth. High fiscal deficits and rising public debt pose challenges to macroeconomic stability in several southern African countries. Governments should put in place measures to improve the mobilisation of domestic resources and funds from the private sector to ensure adequate levels of development spending, stimulate growth and create jobs, especially for young people, “said Stefan Muller, Bank’s Senior Economist for Southern Africa.

“The Central African region recorded 0.9 per cent real GDP in 2017, the lowest growth rate of the continent, although it represents a relative improvement over growth of 0.1 per cent in 2016. This sub regional performance masks many disparities between countries: relatively good growth for Cameroon and the Central African Republic, and very low growth for Equatorial Guinea and Congo. The economic difficulties in Central Africa are largely due to lower raw material prices, which some countries in the region are heavily dependent on, as well as recurring security threats in others.

The outlook for 2018 and 2019 is more encouraging, fuelled by rising world prices for raw materials and domestic demand. According to the Bank’s projections, real GDP growth in Central Africa is expected to reach 2.4 per cent in 2018 and 3 per cent in the following year. Other enabling factors include sound macroeconomic management and a more favourable institutional environment. “With improvements in the economic situations of Congo and Equatorial Guinea, the economic performance of the sub-region is expected to improve in 2018 and 2019. It would be good to include this improvement over time through the diversification of economies of the sub region,” said Racine Kane, Deputy Director General of the African Development Bank for Central Africa.

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Bayelsa bans illegal mining activities

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Bayelsa State government has placed an outright ban on all unauthorized and illegal mining of mineral resources in communities across the state.

It also issued a stern warning to community leaders who had been reportedly signing memoranda of understanding with illegal miners in their domains to stop forthwith or face sanctions, declaring such agreements already entered into as null and void and of no effect.

Governor Douye Diri made the declarations, on Monday, during a town hall meeting with community leaders, top government officials and other critical stakeholders from Southern Ijaw, Brass and Ekeremor Local Government Areas of the state in Yenagoa.

Diri, who was represented by his Deputy, Senator Lawrence Ewhrudjakpo, described the illegal mining of “black sand” also known as silicon at Foropa, Agge, Die-ama, and other coastal communities in the state by miners from outside as a dangerous threat to the safety of the Bayelsa environment and health of the people.

While directing the immediate suspension of all such mining activities in all parts of the state, the governor pronounced an embargo on communities from signing memoranda of understanding (MoUs) with companies, without consulting with government, to mine minerals in their areas.

His words, “The state has recently witnessed a dimension we are not comfortable with. There is a developing issue in Ekeremor, Brass and Southern Ijaw LGAs. People from outside the state are illegally mining silicon or black sand in our community, without the authorization of government, and that has to stop forthwith. 

“It is both dangerous to the safety of our environment and health. Unchecked Illegal mining activities in the north contributed to the banditry that has engulfed several states in the north. We won’t allow that here.

“We learn some communities have gone ahead to sign MoUs with these illegal miners. Government is angry with those communities for signing agreements with miners without consulting the relevant government institutions and agencies. 

“Government is, therefore, directing the immediate suspension of all such illegal silicon or black sand mining activities across the state. 

“An embargo is hereby placed on MoUs between communities and companies from within or outside the state. And every MoU already signed without government approval is hereby declared invalid and of no effect.”

He pointed out that while his administration is creating the enabling environment to attract both foreign and local investors, it would not tolerate any business to undermine the security and safety of the people and their environment.

He warned that paramount leaders and other community leaders who violate the order would be arrested and prosecuted in line with relevant laws of the state, stressing that illegal mining does not only violate environmental impact assessment laws, but also poses a serious security threat and robs the state of legitimate revenues.

In his submission, the Commissioner for Environment, Hon. Ebi Ben-Ololo, stressed the need for communities to obey an extant law passed by the Bayelsa State House of Assembly, which regulates and outlines the procedure for carrying out mining activities with necessary government authorization. 

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Miners kick against northern governors’ proposed ban on mining activities

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The Miners Association of Nigeria says banning mining activities in the country is not the solution to the country’s security challenges.

The association said this in a statement jointly signed by its national president, Dele Ayankale, and its national secretary, Sulaiman Liman, on Monday. The Northern States Governors’ Forum recently called for the suspension of mining activities for six months following the abduction of school children and killings in some states.

They identified illegal mining as a key driver of insecurity and stated that the suspension  would allow for a comprehensive audit and revalidation of all mining licences in consultation with state governments. Nonetheless, MAN said that only illegal mining had been linked to fueling terrorism and other security challenges, not legal operations, and decried that the ban would hurt legal miners while giving room to illegal operations.

Mr Ayankale argued that previous bans on mining, as a strategy to curb insecurity, had not yielded positive outcomes, as seen in the 2019 ban on mining activities in Zamfara, saying the negatives outweigh the positives. He said, instead, banditry, kidnappings, and terrorism escalated in the state and extended to neighbouring states of Katsina, Kaduna, Niger, and Kebbi, among others.

“It is the disorderly, illegal mining that is conducted without licences and government regulations and control that practices money laundering and fuels insecurity. A clear distinction must be made between legal and illegal mining. Therefore, stigmatising mining as the cause of insecurity is a misnomer,“ he explained.

He stressed that the ban would be unjust and a serious disservice to legal miners and their employees, leading to mass unemployment, worsening multidimensional poverty, and insecurity. The victims of such bans, he said, were usually legitimate stakeholders, as illegal miners mostly linked with terrorists would still have access to mineral resources due to the government`s poor logistics and personnel to enforce compliance.

“Unfettered access of illegal miners to the mineral resources in a banned mining location offers incentives and empowerment to criminals as they exchange the minerals for arms and ammunition to improve their heinous activities, “ he said. The ban, he further explained, would undermine the Federal Government’s progress in attracting investment to the solid minerals sector, especially its initiatives aimed at removing bottlenecks and enhancing the sector’s visibility in global markets.

Mr Ayankale said that his members work in synergy with security agencies to maintain safety in their areas of operation, and that their activities follow standard procedures for responsible, environmentally friendly mining.

According to him, MAN’s members, through the implementation of the statutory Community Development Agreement, contribute significantly to infrastructure development in rural areas and to boosting the economy.
“Therefore, the call by our northern governors and elders to ban mining activities, at a time when the nation has started welcoming pockets of investments, is not only unfortunate, but highly unpatriotic,“ Mr Ayankale added.

He said the governors should use part of their security votes or create special funds to strengthen the operations of the Mining Marshals and other legal initiatives to address illegal mining.

According to him, the call for revalidation of mining licenses is akin to an agitation for resource control. Mr Ayankale added that it was fundamentally against the letter and spirit of the Constitution, which places the control and management of mineral resources on the Exclusive Legislative List. He urged the president to consider that the ban could create more recruits for terrorist activities. NAN

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Nigeria champions African-Arab trade to boost agribusiness, industrial growth

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The Arab Africa Trade Bridges (AATB) Program and the Federal Republic of Nigeria formalized a partnership with the signing of the AATB Membership Agreement, officially welcoming Nigeria as the Program’s newest member country. The signing ceremony took place in Abuja on the sidelines of the 5th AATB Board of Governors Meeting, hosted by the Federal Government of Nigeria.

The Membership Agreement was signed by Eng. Adeeb Y. Al Aama, the CEO of the International Islamic Trade Finance Corporation (ITFC) and AATB Program Secretary General, and H.E. Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Federal Republic of Nigeria. The Agreement will provide a strategic and operational framework to support Nigeria’s efforts in trade competitiveness, promote export diversification, strengthen priority value chains, and advance capacity-building efforts in line with national development priorities. Areas of collaboration will include trade promotion, agribusiness modernization, SME development, businessmen missions, trade facilitation, logistics efficiency, and digital trade readiness.

The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for deeper trade collaboration between African and Arab nations, stressing the importance of value-added Agribusiness and industrial partnerships for regional growth. Speaking in Abuja at the Agribusiness Matchmaking Forum ahead of the AATB Board of Governors Meeting, the Minister said the shifting global economy makes it essential for African and Arab nations to rely more on regional cooperation, investment and shared markets.

He highlighted projections showing Arab-Africa trade could grow by more than US$37 billion in the next three years and urged partners to prioritize value addition rather than raw commodity exports. He noted that Nigeria’s growing industrial base and upcoming National Single Window reforms will support efficiency, investment and private-sector expansion.

“This is a moment to turn opportunity into action”, he said. “By working together, we can build stronger value chains, create jobs and support prosperity across our regions”, Edun emphasized. “As African and Arab nations embark on this journey of deeper trade collaboration, the potential for growth and development is vast. With a shared vision and commitment to value-added partnerships, we can unlock new opportunities, drive economic growth, and create a brighter future for our people.”

Speaking during the event, Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC and Secretary General of the AATB Program, stated: “We are pleased to welcome Nigeria to be part of the AATB Program. Nigeria stands as one of Africa’s most dynamic and resilient economies in Africa, with a rapidly expanding private sector and strong potential across agribusiness, energy, manufacturing, and digital industries. Through this Membership Agreement, we look forward to collaborating closely with Nigerian institutions to strengthen value chains, expand regional market access, enhance trade finance and investment opportunities, and support the country’s development priorities.”

The signing of this Agreement underscores AATB’s continued engagement with African countries and its evolving portfolio of programs supporting trade and investment. In recent years, AATB has worked on initiatives across agribusiness, textiles, logistics, digital trade, export readiness under the AfCFTA framework, and other regional initiatives such as the Common African Agro-Parks (CAAPs) Programme.

With Nigeria’s accession, the AATB Program extends it’s presence in the region and adds a key partner working toward advancing trade-led development and fostering inclusive economic growth.

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