In its latest Nigeria Development Update, the World Bank revealed that 24 million Nigerians had been pushed below the poverty line in 5 years - between 2018 and 2023. In tandem, poverty rate in the country has increased to 46 percent in 2023 compared to 40 percent recorded in 2018 with the number of poor people also rising from 79 million in 2018 to 104 million in 2023, a 31.6 percent increase. A rural-urban comparison shows that a larger proportion of poor people reside in rural areas standing at 84 million compared with 20 million poor people residing in urban areas. The increase in poverty rates is attributed to rising inflation, slow economic growth, and a high population growth rate
President Bola Ahmed Tinubu, on the 29th of November 2023, presented the 2024 budget before the joint session of the National Assembly. The budget is the largest in Nigeria’s history with a size of N27.5 trillion and a revenue projection of N18.32 trillion resulting in a budget deficit of N9.18 trillion. Revenue comprises oil revenue of N7.69 trillion, non-oil revenue of N3.52 trillion and Independent and other revenue sources of N6.86 trillion. The expenditure consists of capital expenditure of N8.72 trillion, non-debt recurrent expenditure of N9.92 trillion, debt service of N8.49 trillion and statutory transfer of
N1.38 trillion. These estimates imply that debt service is 30% of total expenditure and 95% of capital expenditure.
Data from the National Oil Spill Detection and Response Agency (NOSDRA) reveals that 156 oil spill incidents were reported between September and November 2023, costing the waste of about 2792.51 barrels of crude oil. According to the November report, the spill happened at various oil companies’ facilities, with Total Exploration and Production having reported the most significant spillage at 803.06 barrels of crude oil spilled representing about 72.5% of overall oil spillage, followed by Heritage Energy Operational Service Limited, NNPC Exploration and Production Ltd, Nigerian Agip Oil Company, Midwestern Oil and Gas spilled and Shell Petroleum Development Company (SPDC) with about 233 barrels, 30.5 barrels, 26.43 barrels, 7.26 barrels, and 7 barrels of crude oil respectively. Oil spillage has several devastating impacts on the environment, ecosystems, and the livelihoods of local communities.
This brief evaluates the current state of enabling institutions, policies, and citizen engagement, in fostering greater data value creation in the public sector. Based on our analysis of selected sub indicators from the World Bank’s GovTech Maturity Index (GTMI or the Index), we observe that while African countries are investing more in the digital transformation of their public sector, governments in the region have mainly focused on strengthening digital infrastructure to optimise public sector operations and service delivery, but have recorded mixed results in terms of the overall achievement of enabling institutions, policies and citizens’ involvement to harness the potential of public sector data.
This policy insights examines the potential impact of the African Continental Free Trade Area, and its underlying agreement, on biodiversity, agriculture and food security in Africa. It highlights the significant benefits that the implementation of the agreement promises to bring, particularly in the agricultural sector, and the potentially negative effects on Africa’s biodiversity, smallholder farmers and the environment. To mitigate these potentially negative effects, this policy insight recommends various policies aimed at supporting biodiversity-based agriculture, establishing a common approach to intellectual property rights protection, regularly assessing compliance with multilateral environmental
agreements, promoting access to biodiverse and nutritious produce, and investing in
capacity development, research and partnerships.
This paper was first publised by SAIIA. READ MORE
The average retail prices per litre of petroleum products such as Premium Motor Spirit (petrol), Automobile Gas Oil (diesel), and Household Kerosene (kerosene) generally increased in October 2023. According to the National Bureau of Statistics (NBS), the average price of petrol in October 2023 stood at N630.63, indicating an increase of about 0.71% compared with September, when the average price of petrol stood at N626.21. Also, the price of kerosene in October stood at N1303.16, indicating an increase of about 0.32% compared with N1,299.03 recorded in September 2023 on a month-on-month basis. The price of diesel in-creased the most among the three products. Within a month, the price of diesel increased by 12.82%, from N890.80 in September 2023 to N1004.98 in October 2023. The differential increase in the price of the three products could be associated with the initial plan by the government to introduce 7.5% VAT on diesel. However, the plan was paused for six months. There is a high likelihood that the increment experienced in October was caused by the planned proposed VAT policy. With erratic power supply and high dependence on diesel to power generators, the price increment would contribute to an increase in the cost of operation, and firms would push it to consumers in the form of higher prices, thereby further contributing to the high inflation. To ease the burden of the high diesel price of an average Nigerian, there is a need for the government to ensure a stable power supply.
Data from the National Bureau of Statistics (NBS) shows that Nigeria’s headline inflation rate increased to 27.33% in October 2023 from 26.72% recorded in August 2023 and 21.09% in October 2022. The headline inflation is three times the upper bound inflation target of 9%. The data further show that food inflation stood at 31.52%. Core inflation, which is all item excluding food and energy, rose to 22.58%. Persistent double digit inflation rate erodes household purchasing power at a fast pace, thereby pushing thousands of Nigerians into poverty. If the high inflation, especially food inflation, persists for the next 3 months, insecurity and social unrest would increase at an alarming rate. Prompt action, including implementing social protection programs for the most disadvantaged households and setting up food bank to increase access to quality and nutritional meals, is required from the government. In July, President Tinubu declared state of emergency on food. Three months afterwards, food prices continue the upward trajectory rising from 25.25% in June to 31.52% in October. There is a need for the government to update the nation on the agriculture programme. This is important in unpacking likely drivers of the high food inflation beyond insecurity, flooding, and rising transportation costs. Additionally, the government can offer companies tax breaks and other financial incentives, particularly those about to go out of business due to high cost of operation.
Green hydrogen is a promising alternative towards the global target of mitigating greenhouse gas emissions. As such, attention is geared towards green energy hydrogen technologies and markets. Invariably, this also provides investment opportunities for both institutional and private investors. To this end, seventeen green hydrogen markets are studied using network modelling techniques. Among other key findings, Plug Power leads the industry’s returns while Bloom Energy leads its volatilities as net transmitters. Intuitively, these markets serve as signals or yardsticks in identifying performances, developments, investment opportunities and prospects in the green hydrogen industry. Conversely, Fuel Cell Energy and Nikola are the leading net return and volatility receivers respectively. Nonetheless, the outbreak of the coronavirus altered the nature of connectedness existing in the renewable green hydrogen industry. This is further confrmed using the Welch (two samples) test. Besides, the outbreak of the COVID-19 pandemic strengthened and improved the industry’s overall connectedness. Generally, vital evidence for understanding the green hydrogen industry is presented and discussed. Evidence-based Investment and portfolio management policy implications and recommendations are made.
Time-of-use pricing in retail electricity markets implies that wholesale market scarcity becomes easily communicated to end consumers. Yet, it is not well-understood if and how the price formation process in retail electricity markets will help to reward the demand for operational flexibility due to growth in intermittent generation. To contribute to this discussion, this paper develops a partial equilibrium model of the retail electricity market calibrated to Chinese data. The paper finds that tariffs in this market may not be significantly suppressed by growth in near-zero costs renewable sources when controlling for flexibility restrictions on thermal generation assets and when a significant curtailment of variable renewable resources exists in the market. In addition, it shows that the price formation process in retail electricity markets which controls for flexibility restrictions on thermal generation while allowing for consumers to respond slowly to price changes is a feasible strategy to reward the demand for operational flexibility. Finally, the paper reveals that while integrating intermittent generation beyond levels which the available storage capacities can accommodate may result in losses to producers, benefits to consumers may offset these losses, leading to overall welfare gains.