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Rate Hikes May Trigger Recession, World Bank Warns FG

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The World Bank Group has warned Nigeria as well as other developing economies that simultaneous rate hikes in response to increasing inflationary pressure may trigger a global recession and a string of financial crises.

In its new study titled “Risk of Global Recession in 2023 Rises Amid Simultaneous Rate Hikes,” the Washington-based bank said the currently expected trajectory of interest-rate increases and other policy actions might not be sufficient to bring global inflation back down to levels seen before the pandemic.

Central banks around the world have been raising interest rates this year with a degree of synchronicity not seen over the past five decades, a trend that is likely to continue well into next year, according to the report.

Investors expect central banks to raise global monetary policy rates to almost 4 percent through 2023, an increase of more than two percentage points over their 2021 average.

According to the report, unless supply disruptions and labor-market pressures subsided, those interest-rate increases could leave the global core inflation rate (excluding energy) at about 5 percent in 2023, nearly double the five-year average before the pandemic, the study found.

To cut global inflation to a rate consistent with their targets, central banks might need to raise interest rates by an additional two percentage points, according to the report’s model. If this were accompanied by financial-market stress, global GDP growth would slow to 0.5 percent in 2023, a 0.4 percent contraction in per–capita terms that would meet the technical definition of a global recession.

“Global growth is slowing sharply, with further slowing likely as more countries fall into recession. My deep concern is that these trends will persist, with long-lasting consequences that are devastating for people in emerging markets and developing economies,” said World Bank Group President, David Malpass.

“To achieve low inflation rates, currency stability, and faster growth, policymakers could shift their focus from reducing consumption to boosting production. Policies should seek to generate additional investment and improve productivity and capital allocation, which are critical for growth and poverty reduction.”

The study highlighted the unusually fraught circumstances under which central banks were fighting inflation today. Several historical indicators of global recessions were already flashing warnings, the report noted.

It noted that the global economy was now in its steepest slowdown following a post-recession recovery since 1970.

In its recommendation, the World Bank said central banks should persist in their efforts to control inflation, and it could be done without touching off a global recession, the study found. But it would require concerted action by a variety of policymakers, the World Bank said.

BIG STORY

US Sends Troops To Nigeria After December Airstrikes

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The United States has deployed a small team of troops to Nigeria, the first official US military presence on the ground since airstrikes targeted terrorists on Christmas Day 2025.

The deployment of Nigeria follows airstrikes ordered by President Donald Trump in December 2025 on what he described as “Islamic State targets” in the country.

Trump had also indicated that further US military action in Nigeria could follow.

Reuters reports that the US had been conducting surveillance flights over Nigeria from neighbouring Ghana since at least late November 2025, providing intelligence support ahead of the December strikes.

According to a report by Reuters on Tuesday, the deployment follows an agreement between the Federal Government and Washington to deepen cooperation against growing terrorist threats in West Africa

Head of the U.S. Africa Command, General Dagvin R.M. Anderson, said during a press briefing on Tuesday, “That has led to increased collaboration between our nations to include a small US team that brings some unique capabilities from the United States.”

He did not disclose the size or specific role of the team but said it would support Nigeria’s counterterrorism efforts.

According to Reuters, Defence Minister Christopher Musa also confirmed the team’s presence but declined to give further details.

Security sources cited by Reuters said the Americans are likely involved in intelligence gathering and assisting Nigerian forces in targeting groups such as Boko Haram and the Islamic State West Africa Province.

Nigeria has faced intense pressure from Washington over its handling of terrorist attacks, particularly after U.S. President Donald Trump accused the government of failing to protect Christians in the northwest — a claim the Federal Government has rejected.

The FG has stressed that its military operations target all armed groups that attack civilians, regardless of religion.

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BIG STORY

BREAKING: Lagos Assembly Suspends Makoko Demolition

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Following protests by residents and advocacy groups, the Lagos State House of Assembly has ordered an immediate suspension of ongoing demolitions in Makoko.

Rising from a meeting between lawmakers and representatives of the Makoko community at the Assembly Complex in Alausa, Ikeja, on Tuesday, the Majority Leader of the House, Noheem Adams, issued a directive to halt the demolitions.

“On behalf of the Speaker of the Lagos State House of Assembly, Rt. Hon. Mudashiru Ajayi Obasa, and honourable members of this House, we are taking this matter seriously. All ongoing demolitions should be stopped,” Hon. Adams said.

He added that the Assembly would work with relevant ministries and agencies to review issues surrounding the demolitions and ensure all stakeholders are properly engaged.

He called for transparency by demanding the full list of taskforce members and the criteria used for engagement, adding, “We want to see the list of the taskforce that was constituted because we want the residents to be duly involved and to be carried along. So we want to have the schedule of those task forces and the criteria for those that we are inviting.”

Hon. Adams assured residents of the affected communities that, “As your representatives, we are giving you all assurances that they will stop demolitions henceforth and there will be compensations for all those whose properties have been demolished.”

Similarly, Hon. Stephen Ogundipe, member of the ad-hoc committee, said there is a need for clear communication, adding that residents targeted for relocation or redevelopment must be informed of the government’s plans in advance.

Babatunde Olajide, Special Adviser to the Governor of Lagos on E-GIS and Urban Renewal, confirmed that $2 million had been earmarked since 2021 to transform Makoko into a modern, internationally compliant water city.

He said enumeration of affected properties is underway and reiterated the administration’s commitment to handling the situation with a human face, prioritising resident safety and fair compensation.

 

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BIG STORY

JUST IN: DSS Arraigns Malami, Son Over Firearms Possession, Terrorism Financing

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The Department of State Services has arraigned former Attorney-General of the Federation, Abubakar Malami, and his son, Abdulazeez Malami, on five-count charges of terrorism financing and illegal firearm possession.

As reported by Channels Television on Tuesday, they were arraigned before Justice Joyce Abdumalik of the Federal High Court, Abuja.

In the charge filed before the Federal High Court in Abuja, Malami is also accused of refusing to prosecute suspected terrorism financiers, whose case files were handed to him while he served as the AGF and Minister of Justice.

Malami and Abdulaziz are equally accused of warehousing firearms in their residence at Gesse Phase II Area, Birain Kebbi LGA, Kebbi State, without lawful authority.

In count one of the charge, the DSS said the Former AGF with knowingly abetting terrorism financing, while the ex-AGF and his son are charged in counts two to five, with unlawful, possession of a Sturm Magnum 17-0101 firearm, 16 Redstar AAA 5720 live rounds of cartridges and 27 expended Redstar AAA 5’20 cartridges, contrary to and punishable under relevant Sections of Terrorism (Prevention and Prohibition) Act, 2022 and Firearms Act, 2004.

Malami and Abdulaziz pleaded not guilty when the counts in the charge sheet were read to them.

Shortly after they pleaded to the charge, prosecuting lawyer, Calistus Eze, prayed the court to order their remand in the custody of the DSS and fix a date for the commencement of trial.

Responding, defence lawyer Shuaibu Aruwan (SAN) orally applied for bail for the defendants, arguing that the defendants have been in DSS custody for over two weeks.

Justice Joyce Abdulmalik rejected the oral bail application, noting that her court is a court of record, and ordered the defence to file a formal application for bail.

She ordered that the defendants be remanded to the custody of the DSS and adjourned the matter till February 20 for the commencement of the trial.

Counts in the charge read:

“That you, Abubakar Malami of Gesse Phase II Area, Birnin Kebbi LGA, Kebbi State, Adult, male, sometime in November, 2022 at Federal Ministry of Justice, Maitama, Abuja, within the jurisdiction of this honourable court, did knowingly abet terrorism financing by refusing to prosecute terrorism financiers whose case files were brought to your office as the Attorney-General of the Federation, for prosecution, and thereby committed an offence contrary to and punishable under Section 26 (2) of Terrorism (Prevention and Prohibition) Act, 2022.

“Abubakar Malami and Abdulaziz Abubakar Malami of Gesse Phase II, Area, Birnin Kebbi LGA, Kebbi State, adults, males, sometime in December, 2025, in your res:dence at Gesse Phase II Area, Birnin Kebbi LGA, Kebbi State, within the jurisdiction of this Honourable Court, did engage in a conduct in preparation to commit act of terrorism by having in your possession and without licence, a Sturm Magnum 17-0101 firearm, Sixteen (16) Redstar AAA 5’20 live rounds of Cartridges and Twenty-Seven (27) expended Redstar AAA 5’20 Cartridges, and thereby committed an offence contrary to and punishable under Section 29 of Terrorism (Prevention and Prohibition) Act, 2022.

“That you, Abubakar Malami and Abdulaziz Abubakar Malami, of Gesse Phase II Area, Birnin Kebbi LGA, Kebbi State, adults, males, sometime in December 2025, in your residence at Gesse Phase II Area, Birnin Kebbi LGA, Kebbi State, within the jurisdiction of this honourable court, without la icence, did have in your possession a Sturm Magnum 17-0101 firearm, and thereby committed an offence contrary to Section 3 of the Firearms Act 2004 and punishable under Section 27 (1) of the same Act.

“That you, Abubakar Malami and Abdulaziz Abubakar Malami, of Gesse Phase II Area, Birnin Kebbi LGA, Kebbi State, adults, males, sometime in December, 2025, in your residence at Gesse Phase II Area, Birnin Kebbi LGA, Kebbi State, within the jurisdiction of this honourable court, without licence, did have in your possession sixteen (16) Redstar AAA 5’20 live rounds of cartridges, and thereby committed an offence contrary to Section 8(1) of Firearms Act 2004 and punishable under Section 27 (1) of the same Act.

“That you, Abubakar Malami and Abdulaziz Abubakar Malami, of Gesse Phase II Area, Birnin Kebbi LGA, Kebbi State, adults, males, sometime in December, 2025, in your residence at Gesse Phase II Area, Birnin Kebbi LGA, Kebbi State, within the jurisdiction of this honourable court, without licence, did have in your possession twenty-seven (27) expended Redstar AAA 5’20 cartridges, and thereby committed an offence contrary to Section 8(1) of Firearms Act 2004 and punishable under Section 27 (1) of the same Act.

 

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