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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

JUST IN: Tinubu Asks Senate To Confirm New NUPRC, NMDPRA Chief Executives

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President Bola Tinubu has asked the Senate to confirm the nominations of new chief executives for the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The request followed the resignation of Farouk Ahmed as the chief executive of the NMDPRA and Gbenga Komolafe, chief executive of the NUPRC.

Ahmed and Komolafe were appointed in 2021 by the late former Muhammadu Buhari to head the two regulatory agencies created under the Petroleum Industry Act (PIA).

In separate letters to the Senate, Tinubu nominated Oritsemeyiwa Amanorisewo Eyesan as chief executive of the NUPRC and Saidu Aliyu Mohammed as chief executive of the NMDPRA.

President Tinubu has written to the Senate, requesting expedited confirmation of Oritsemeyiwa Amanorisewo Eyesan as CEO of NUPRC and Engineer Saidu Aliyu Mohammed as CEO of NMDPRA.

The two nominees are seasoned professionals in the oil and gas industry.

Eyesan, a graduate of Economics from the University of Benin, spent nearly 33 years with the NNPC and its subsidiaries. She retired as Executive Vice President, Upstream (2023–2024), and previously served as Group General Manager, Corporate Planning and Strategy at NNPC from 2019 to 2023.

Engineer Saidu Aliyu Mohammed, born in 1957 in Gombe, graduated from Ahmadu Bello University in 1981 with a Bachelor’s in Chemical Engineering. He was announced today as an independent non-executive director at Seplat Energy.

His prior roles include Managing Director of Kaduna Refining and Petrochemical Company and Nigerian Gas Company, as well as Chair of the boards of West African Gas Pipeline Company, Nigeria LNG subsidiaries, and NNPC Retail.

He also served as Group Executive Director/Chief Operating Officer, Gas & Power Directorate, where he provided strategic leadership for major gas projects and policy frameworks, including the Gas Masterplan, Gas Network Code, and contributions to the Petroleum Industry Act (PIA).

Engineer Mohammed played a pivotal role in delivering key projects such as the Escravos–Lagos Pipeline Expansion, the Ajaokuta–Kaduna–Kano (AKK) Gas Pipeline, and Nigeria LNG Train.

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BIG STORY

BREAKING: NMDPRA Boss Farouk Ahmed, NUPRC CEO Gbenga Komolafe Resign As Tinubu Names New Oil Regulators

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President Bola Tinubu has asked the Senate to confirm new chief executives for the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Nigerian Upstream Petroleum Regulatory Commission following the resignation of the current heads of the agencies.

The President’s request was contained in separate letters to the Senate on Wednesday.

Farouk Ahmed resigned as Chief Executive of the NMDPRA, while Gbenga Komolafe stepped down as Chief Executive of the NUPRC.

Both officials were appointed in 2021 by former President Muhammadu Buhari after the enactment of the Petroleum Industry Act.

This was announced in a statement issued by the President’s Special Adviser on Information and Strategy, Bayo Onanuga.

More details later…

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BIG STORY

Alaafin To Install Seyi Tinubu As ‘Okanlomo of Yorubaland’ Saturday

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The Alaafin of Oyo, Oba Abimbola Owoade, is set to install Seyi, the son of President Bola Tinubu, as the “Okanlomo of Yorubaland” on Saturday.

The monarch on the same occasion will also install Senator Abdul’Aziz Yari representing Zamfara West as the “Obaloyin of Yorubaland”.

The chieftaincy installation of the duo was contained in a flyer that was obtained on social media platforms on Wednesday.

In the flyer, the monarch and his wife, Ayaba Abiwumi Owoade, invited the general public to the event and implored them to save the date, as it was scheduled to take place on Saturday, December 21, 2025.

“Okanlomo of Yorubaland” is a prestigious Yoruba title meaning “the one dear to the hearts of all Yoruba people” or “beloved child,” signifying deep affection and importance to the race.

Confirming the chieftaincy installation to our correspondent in a telephone conversation on Wednesday, the Alaafin’s media aide, Bode Durojaiye, said it is true and that the event will hold as planned.

He affirmed that the press statement for the said event would be made available to journalists any time soon.

“Yes, it is true. The Alaafin of Oyo wants to install Seyi Tinubu as the Okanlomo of Yorubaland and Senator Abdul’Aziz Yari as the Obaloyin of Yorubaland.

“The press statement on the said event would be made available today or anytime soon,” he said.

This was coming a few months after Alaafin’s counterpart, the Ooni of Ife, Oba Enitan Ogunwusi, bestowed the title of “Okanlomo of Oodua” on an Ibadan-born philanthropist and the Bada Olubadan designate, Dotun Sanusi.

This title sparked supremacy controversy between the two respected monarchs of Yorubaland, but was quelled by the region’s stakeholders.

Recently, the Ooni also conferred the First Lady, Remi Tinubu, with the prestigious chieftaincy title of Yeye Asiwaju Gbogbo Ile Oodua.

Arriving at the Ooni’s palace around 1 pm amid fanfare and heightened security, Mrs Tinubu was received by the monarch and his chiefs.

The installation ceremony, held at the Palace Square, coincided with celebrations marking Oba Ogunwusi’s 10th coronation anniversary.

The event drew a gathering of traditional rulers and dignitaries from across Yorubaland, including the Olu of Warri, Ogiame Atuwatse III; the Sultan of Sokoto; and the Soun of Ogbomoso, alongside cultural leaders and other notable personalities.

The title Yeye Asiwaju Gbogbo Ile Oodua carries historical significance, having been previously held by the late Hannah Idowu Dideolu Awolowo, wife of the revered statesman Chief Obafemi Awolowo.

The title Yeye Asiwaju Gbogbo Ile Oodua carries historical significance, having been previously held by the late Hannah Idowu Dideolu Awolowo, wife of the revered statesman Chief Obafemi Awolowo.

It is a recognition of leadership, influence, and contributions to society, particularly within the Yoruba cultural sphere.

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