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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

Aare Abisoye Fagade Joyously Celebrates The Coronation Of The 43rd Olubadan Of Ibadan, Oba Akinloye Owolabi Olakulehin

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In a momentous celebration that echoes through the vibrant streets of Ibadan, Aare Abisoye Fagade extends his exuberant congratulations to Oba Akinloye Owolabi Olakulehin on his enthronement as the 43rd Olubadan of Ibadan. This landmark coronation ushers in a new era of leadership, heritage, and progress for the illustrious city of Ibadan.

With a heartfelt connection that spans decades, Aare Fagade has cherished the guidance and wisdom of Oba Olamilehin, whom he has revered not only as an esteemed uncle but also as a distinguished entrepreneur and an astute politician, a legacy passed down through his father, the late Elder David Oladokun Fagade. The bond between their families is woven into the very fabric of Ibadan’s history, making this occasion deeply personal and profoundly significant.

“Today, we celebrate not just a coronation but the dawn of a new chapter in the storied history of Ibadan,” proclaimed Aare Abisoye Fagade. “Oba Akinloye Owolabi Olakulehin embodies the virtues of wisdom, integrity, and visionary leadership. His ascent to the throne heralds a future filled with promise and prosperity for our beloved city.”

Aare Fagade’s jubilant praise for the new Olubadan is accompanied by fervent prayers for his reign. “May the reign of Oba Akinloye Owolabi Olamilehin be showered with divine blessings, peace, and unprecedented growth. May his leadership unite us and inspire us to reach new heights of excellence and harmony.

The coronation of Oba Olakulehin is not merely a ceremonial event but a rallying cry for all Ibadan indigenes to come together in support of their new monarch. Aare Fagade calls upon every son and daughter of Ibadan to embrace this momentous occasion with unity and enthusiasm, pledging their support to a reign that promises to uphold the grandeur and legacy of Ibadan.

As the city of Ibadan rejoices in this historic event, the air is filled with anticipation and hope for a future sculpted by the vision and guidance of Oba Akinloye Owolabi Olamilehin. Aare Abisoye Fagade stands proudly with his fellow Ibadan natives, celebrating the dawn of a new era.

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JUST IN: President Tinubu Renames National Theatre After Wole Soyinka

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Nigeria’s President, Asiwaju Bola Ahmed Tinubu, has renamed the national theatre in Lagos after Wole Soyinka.

Tinubu made the pronouncement in a birthday message to the Nobel laureate who turns 90 on July 13.

“It is also fitting we celebrate this national treasure while he is still with us,” Tinubu said.

“I am, accordingly, delighted to announce the decision of the Federal Government to rename the National Theatre in Iganmu, Surulere, as the Wole Soyinka Centre for Culture and the Creative Arts.

“We do not only celebrate Soyinka’s remarkable literary achievements but also his unwavering dedication to the values of human dignity and justice.”

 

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HEALTH: FG Inaugurates Committee To End Mother-To-Child Transmission Of HIV

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The federal government has established a multidisciplinary committee to eliminate the transmission of HIV from mothers to children in Nigeria.

Minister of State for Health and Social Welfare, Tunji Alausa, launched the Prevention of Mother-to-Child Transmission (PMTCT) and Pediatric HIV Programme Committee in Abuja on Thursday.

Alausa highlighted that Nigeria accounts for 25% of global mother-to-child HIV transmission and emphasized the ministry’s commitment to collaborating with the National Agency for the Control of AIDS (NACA) and the National AIDS and STIs Control Programme (NASCP) to ensure that no child is born with HIV, thereby eradicating vertical transmission.

“As you are aware, Nigeria contributes 25% of the global burden of HIV transmission between mothers and their children,” Alausa said.

“Despite testing approximately 4 million pregnant women in 2023, our PMTCT (prevention of mother-to-child transmission) and pediatric HIV coverage remain at about 35%, falling significantly short of the 95% target.

“Through the National Agency for the Control of AIDS (NACA) and the National AIDS and STIs Control Programme (NASCP), we will provide effective governance for this programme.

“Eliminating mother-to-child transmission of HIV and ensuring care for all persons living with HIV, especially our children, aligns with the renewed hope agenda of Mr President.”

Also speaking, Temitope Ilori, the director-general of NACA, expressed concern over the low coverage of PMTCT and pediatric HIV in Nigeria.

Ilori said about 140,000 children below 14 years old are living with HIV as of 2023, with 22,000 new infections and 15,000 AIDS-related deaths occurring among underage people.

The NACA DG noted that the newly constituted committee will drive the implementation of the initiative, in line with the sector-wide approach to health care in Nigeria.

“Nigeria faces a critical challenge in preventing mother-to-child transmission (PMTCT) of HIV and ensuring access to care for children living with HIV,” Ilori said.

“The objective of today’s meeting is to formally inaugurate the acceleration plan committee to provide oversight to the PMTCT and pediatric HIV programme implementation in line with the three-one principle of one coordinating agency, one strategic framework, and one M&E system.”

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