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Evaluation of the effects of African Continental Free Trade Area (AfCFTA) on Africa's Biodiversity

Free Trade Agreements (FTAs), such as the African Continental Free Trade Area (AfCFTA), can significantly influence biodiversity conservation based on their design and implementation. While AfCFTA may encourage countries to strengthen environmental regulations in line with international agreements like the Convention on Biological Diversity (CBD) and CITES, there are concerns that economic goals might overshadow ecological considerations. This could lead to industrial growth in agriculture and mining, risking deforestation, soil erosion, and water pollution. Using a combination of qualitative and quantitative methods, this study employs the Energy-Environment Integrated CGE (EEICGE) Model to analyze AfCFTA’s impacts on Africa's biodiversity. Simulation results for Nigeria indicate a rise in fossil fuel demand and carbon emissions. Stakeholder insights reveal that increased trade may drive intensified land use, contributing to deforestation and biodiversity loss. The study underscores that the impact of AfCFTA on biodiversity is contingent on specific provisions, enforcement capacities, and implementation contexts. To ensure FTAs support sustainable development, strategic measures are vital, including robust environmental regulation enforcement, local community engagement, and investment in renewable energy to meet rising energy needs while adhering to global commitments like the Paris Agreement.

AUTHORS: Augustine Iraoya, Chukwuka Onyekwena, David Okorie, Adedeji Adeniran

This paper was first published HERE

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Social Assistance and Coping With Crises in Borno, Nigeria

This paper examines the relationship between social assistance, violent conflict, and intersecting crises, and considers how social assistance can help offset erosive forms of coping that could otherwise drive poverty and food insecurity. To investigate these issues, the study draws on newly collected household data covering 1,000 survey respondents in 2023 from the Konduga and Maiduguri Municipal Council local government areas in Borno, Nigeria. Borno has been an epicentre for violence over the past 15 years, and has experienced a range of intersecting crises.

Study findings indicate that 43 per cent of households experienced disruptions to income or agriculture, or asset loss, either due to conflict, flooding, or drought. Of these households, 41 per cent reported that more than half of their income source was lost. Despite the negative effects of crises, only 1 in 10 households received social assistance in the year preceding the survey, mainly through non-governmental organisations. This indicates that social assistance is simply not getting through to the people who need it. Perhaps as a result, households are increasingly drawing on negative and even erosive forms of coping – for example, by being less able to save, less able to make investments, and increasing reliance on loans that together could drive downward mobility. The paper concludes with broad-brush implications for social assistance programmes to become more effective amidst violence and climate-related disasters

 

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Debt for Climate and Development Swaps in Nigeria

Africa’s largest economy has found itself in an increasingly vulnerable financial position due to several shocks in the past decade. It relied on private creditors to compensate for revenue shortfalls in 2016 and 2017 after the collapse of commodity prices. The COVID-19 pandemic induced more borrowing, this time from multilateral sources. These events have led to the highest external debt levels in Nigeria since 2004.

Increased debt levels clogged financing for key SDG outcomes relating to social welfare sectors more broadly and gender equality and the environment in particular. This paper explored the need for, viability of, and impacts of debt swaps in Nigeria. It focused on two sources of debt that are mostly likely to be involved in a debt swap: Paris Club ODA debt and underperforming private sector debt. These two sources together comprise a sum of more than $3.7 billion whose exchange could free up resources to fund development priorities for facilitators of the debt swap. If the entirety of the eligible debt were to be swapped, it would create an average of nearly $300 million of budgetary resources (per year) for the next six years. Beyond funding development projects, remaining funds could decrease the debt burden, provided they do not beget additional borrowing. The paper also traced the experiences of five countries participating in debt-for-nature swaps.

This Paper was first published by RED SUR as part of the Working Paper of the Project “Promoting a pandemic recovery: evidence to support managing the growing debt crisis” (IDRC - Red Sur N° 109742-001)

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Instructional Alignment in Nigeria using the Surveys of Enacted Curriculum

Systematic, quantitative evidence on education system coherence is limited. Prior research has indicated alignment of instructional components, such as curriculum standards, assessments, and teachers’ instruction, is important for children’s learning. This study uses the Surveys of Enacted Curriculum methodology to investigate alignment of instructional components in Nigeria's primary education system. The study analyzes curriculum standards, national exams, and classroom instructional content for mathematics and English language across all six primary-level grades. We find that key foundational mathematics and English language skills are covered by all three components, with some notable omissions on the end-of-cycle English language exams. All three components give high emphasis to the low cognitive demand processes of ‘memorize’ ‘perform’, and ‘demonstrate’, and give very low emphasis to the more demanding cognitive processes of ‘analyze’ and ‘apply to non-routine situations’. Both the curriculum standards and classroom instruction depict a slow pace of content progression across grades, manifested through broad but shallow content coverage. The high alignment suggests the potential for a well-functioning education system, however, low student performance in mathematics and English language exams suggest otherwise. The findings suggest the Nigerian primary education system may be operating in a low-achieving equilibrium in which the system is aligned for low levels of cognitive demand and student mastery.

This Working paper was first published here .

Authors: Adedeji Adeniran, Sixtus Onyekwere, Anthony Okon, Julius Atuhurra, Rastee Chaudhry and Michelle Kaffenberger

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The Role of Social Influence in Enforcing Tax Compliance: Experimental Evidence from Nigeria

Economic development is linked with increased state capacity including the ability to mobilise domestic tax resources. For many developing countries, high levels of informality are a major constraint in this regard. Yet, economic incentives like changing the tax rate or increasing the filling and audit rate can be ineffective in a highly informal economic structure.

In this paper, we explore possible roles for behavioural interventions such as sharing information about peers’ tax behaviour to engineer higher tax compliance. Based on an artefactual field experiment among own account workers in Nigeria, we find that information interventions can play an important role in ensuring tax compliance.

Specifically, targeting information around what people can directly observe can be a way to improve tax compliance. Providing information on punishment or good practices that appeal to feelings of morality yields higher tax compliance.

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