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Nigeria’s Economy Slipping – World Bank

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The World Bank has said that the Nigerian economy has been slipping since 1995 and this continued till 2018.

 

The bank, in its latest report on the regional economy titled, ‘Africa’s Pulse’, released the taxonomy of growth performance in sub-Saharan Africa, which focused on the macroeconomic and financial features that led to growth resilience on the continent.

 

 

 

According to the bank, the taxonomy is used to help identify the factors that are correlated with success or failure in economic growth performance in sub-Saharan Africa, with emphasis on macroeconomic and financial variables.

 

The analysis, it said, involved a series of macroeconomic variables for 44 sub-Saharan African countries from 1995 to 2018.

 

The key elements that determined the positions of each of the 44 sub-Saharan economies in the taxonomy, the World Bank said, included the level of income per capita of the countries; structural transformation, as captured by sectoral value-added share and sectoral employment share; and capital flows.

 

Others are level and composition of public sector indebtedness, as captured by the general government gross debt and its currency composition, and the outstanding external public debt.

 

The last of the indicators has to do with governance vis-a-vis government effectiveness, regulatory quality, control of corruption, voice and accountability, political stability, and absence of violence and rule of law.

 

According to the World Bank, the taxonomy compares the average annual GDP growth rates during 1995–2008 and 2015–2018 against predetermined thresholds.

 

 

 

It also categorised growth performance into five groups: falling behind, slipping, stuck in the middle, improved, and established. The five groups were further reclassified into three groups: Top tercile, middle tercile and bottom tercile.

 

 

 

The Bretton Wood institution said, “If a country’s economic performance declined from 1995–2008 to 2015–18, the country is categorised in the bottom tercile, which includes ‘falling behind’ and ‘slipping.’ If a country’s growth rate remained invariant over time, between 3.5 and 5.4 per cent in both periods, it is categorised in the middle tercile (or stuck in the middle). If a country’s economic performance improved from 1995–2008 to 2015–18, with the growth of more than 5.4 per cent per year, the country is categorised in the top tercile, which includes the ‘improved’ and ‘established’ groups.”

 

Based on the above classification, the Nigerian economy was categorised alongside 18 other sub-Saharan African economies as slipping having recorded declined economic performance between 1995 and 2018.

The key elements that determined the positions of each of the 44 sub-Saharan economies in the taxonomy, the World Bank said, included the level of income per capita of the countries; structural transformation, as captured by sectoral value-added share and sectoral employment share; and capital flows.

 

Others are level and composition of public sector indebtedness, as captured by the general government gross debt and its currency composition, and the outstanding external public debt.

 

The last of the indicators has to do with governance vis-a-vis government effectiveness, regulatory quality, control of corruption, voice and accountability, political stability, and absence of violence and rule of law.

 

According to the World Bank, the taxonomy compares the average annual GDP growth rates during 1995–2008 and 2015–2018 against predetermined thresholds.

 

 

It also categorised growth performance into five groups: falling behind, slipping, stuck in the middle, improved, and established. The five groups were further reclassified into three groups: Top tercile, middle tercile and bottom tercile.

 

 

 

The Bretton Wood institution said, “If a country’s economic performance declined from 1995–2008 to 2015–18, the country is categorised in the bottom tercile, which includes ‘falling behind’ and ‘slipping.’ If a country’s growth rate remained invariant over time, between 3.5 and 5.4 per cent in both periods, it is categorised in the middle tercile (or stuck in the middle). If a country’s economic performance improved from 1995–2008 to 2015–18, with the growth of more than 5.4 per cent per year, the country is categorised in the top tercile, which includes the ‘improved’ and ‘established’ groups.”

 

Based on the above classification, the Nigerian economy was categorised alongside 18 other sub-Saharan African economies as slipping having recorded declined economic performance between 1995 and 2018.

 

The World Bank said, “The bottom tercile consists of 19 countries: Angola, Burundi, Botswana, the Republic of Congo, the Comoros , Gabon, Equatorial Guinea, Liberia, Lesotho, Mauritania, Malawi, Namibia, Nigeria, Sierra Leone, Eswatini, Chad, South Africa, Zambia, and Zimbabwe.  These countries did not show any progress in their economic performance from 1995–2008 to 2015–18. For instance, their median economic growth rate decelerated, from 5.4 per cent per year in 1995–2008 to 1.2 per cent per year in 2015–18.”

 

 

 

The bottom performing economies, according to the World Bank, produce almost 60 per cent of the region’s total GDP, emphasising that the three largest countries in the region—Nigeria, South Africa, and Angola—and many commodity exporters are in this group.

 

Burkina Faso, Côte d’Ivoire, Ethiopia, Ghana, Guinea, Guinea-Bissau, Kenya, Mali, Rwanda, Senegal, and Tanzania made the top tercile.

 

The middle tercile countries are Benin, the Central African Republic, Cameroon, the

 

Democratic Republic of Congo, Cabo Verde, The Gambia, Madagascar, Mozambique, Mauritius, Niger, Sudan, São Tomé and Príncipe, Togo, and Uganda.

 

The World Bank also cut its growth forecast for sub-Saharan Africa this year to 2.8 per cent from an initial 3.3 per cent.

 

The commodity price slump of 2015 cut short a decade of rapid growth for the region, and the bank said growth would take longer to recover as a decline in industrial production and a trade dispute between China and the United States take their toll.

 

The bank’s 2019 forecast means economic growth will lag population growth for the fourth year in a row and it will remain stuck below three per cent, which it slipped to in 2015.

 

“The slower-than-expected overall growth reflects ongoing global uncertainty, but increasingly comes from domestic macroeconomic instability including poorly managed debt, inflation and deficits,” the bank said.

 

The Bretton Wood institution equally cut Nigeria’s growth forecast by 0.1 pecent

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Ecobank Sacks Over 900 Staff In A Week

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In what many have described as a fallout of the prevailing harsh operating environemnt in the country, Ecobank Nigeria has over the last week sacked over 900 of its employees across the country, thereby adding to the nation’s already bloated unemployment market.

Some of the affected ex-employees told Daily Sun that the bank allegedly sacked 800 tellers last Friday while another 100 were thrown out of job on Tuesday. This was even as the bank argued that the sacked workers were not its direct employees.

But the National Union of Banks Insurance and Financial Institutions (NUBIFIE), Wednesday, accused the bank management of being economical with the truth. NUBIFIE President, Comrade Anthony Abakpa, in an interview with the Daily Sun, yesterday, said the workers were sacked without following due process.

According to him, some of the workers sacked had been in the Ecobank employment for over ten years and were paid parting peanuts of between N50,000 to N100,000.

“We’ve been having issues with the bank’s management over its flagrant disregard for labour laws in the country, but the recent action of sacking our members without due consultation with the union would be the last straw that broke the camel’s back and we can no longer continue to be quiet,” he said. Abakpa said in recent time, over 1000 members have been sacked by Ecobank management without following due process He listed among other breaches committed by the bank against its members to include, non payment of pension up to date, denial of such employees of health facilities, offered through Oceanic Health and payment of N5,000.00 per diem for drivers on official assignment out of their station.

The union also accused the bank of victimisation of outsourcing of staff by the core staff, non -provision of protective uniform for the despatch riders while on duty, using of drivers beyond 6pm by the branch marketers without allowances, and the Omniflow unit not paid over -time allowances to date.

Also listed among the bank’s misdemeanours include coming to weekend work with no rest for the staff of Omniflow, series of sickness and death in the Omniflow unit and poor salaries among others. He said, “The argument of the bank that they are contract staff is not tenable, because in Nigeria, every worker irrespective of his status is protected by law and belongs to a union.

“We are not saying they cannot sack, but what we want is that the workers must be adequately compensated and this right we are going to enforce on behalf of our members.

Meanwhile, Ecobank Nigeria in its official reaction said it did not disengage its staff, but rather decided not to renew the contract of its third party recruitment agencies which expired recently and as such returned this category of personnel back to the agencies that engaged them.

The bank’s statement read in part “As a demonstration of the bank’s concern and compassion for the affected personnel of our contractors, palliative measures were put in place by the bank to cushion the effect on them: These include payment of contract cessation packages of over half a billion Naira already paid through their employers as well as opportunity given to those with requisite qualification to apply to the bank for permanent employment. “In addition, the bank has offered them the opportunity to become Xpress point agents of Ecobank as a way of further providing them entrepreneurial and financial empowerment. May we state that Ecobank is not obligated to renew its contract with the service providers involved.

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Few Businesses You Can Do With N100,000 Or Less

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With the state of the country’s economy and the rate of unemployment, entrepreneurship seems to be the answer to being idle.

However, not many people know what business to invest in even when they have the capital. A twitter user, @boda_lanre has suggested 20 businesses you can do with N100, 000 or less and they are helpful.

Read below Disclaimer: In business, you need the right attitude unless, you’ll sink. Ensure friends and family pay for goods sold. If you feel you’re too big for a certain kind of business, then you’ll sink.

There’s something we Yorubas call “Afarawe” Copying others lifestyle, don’t do it! 1, Bedsheet/Beddings Production. Pay a visit to Lagos Island, or Oshodi where they sell bulk materials, pick good designs and I tell you they guys who will sew it for you are just within the same Market. You can start will less that 100k and diligently grow your money.

There are tailors in Lagos Island or better learn the skill it will save you all the heartbreaks imaginable. Taiwo Street in Lagos Island is where you should be. Materials ranging from 700 – 1k per yard, sew for 1500/2k, Sell for 5-7k Schedule a trip to Aba Market, The cost of production of boxers, you can get one for as low as N300, all you need is to package it in 3s, and market these babies properly beg your friend on twitter for RTs, we buy 3s pack boxers for 1500-2500 sell yours for 1200 gradually grow.

E-Payments and POS Business: You can a get POS machine from your Bank, and activate online banking: If you live in a place where banks aren’t much you can handle e payments for people and make your small change. I paid someone N200 to withdraw 10k in Ikorodu. ATM queue was crazy.

Mobile and electronic Accessories such Pouches, Chargers, USB cables, HDMI cables, earphones and more, can be sourced on Alibaba, Ali Express, Deal Extreme, etc. The more you buy the lower the price. And they are light so shipping won’t be a burden. Sell on here or jumia and co. We all know this guy! We buy everytime.

Bags of corn – Mile 12 Branded Nylon Sugar, Salt & Butter. The beauty of this is when properly made, its aroma will attract it’s customers. Manual sealing machine -7/9k Popcorn Machine is 65k on Jumia Popcorn can be served anywhere. It costs less than N40 to make a pack of popcorn Sales and Customizing of Football Team Football team supporters always want to show how much they’re rooting for a team. Consult my sister @The_Ronke She’ll show you how well you survived the business. She’s cheerful enough to train you too.

Snail farming in Nigeria is even more popular, due to its relatively cheap cost of start up and If you market your products well, your business will thrive. This is a business you can start from your backyard. Best in mind, snails take almost a year to mature so Patience is Key!

Fairly Used Goods such as Jeans, Tops, t-shirts, shoes etc. They could be sourced at Badagry, even Cotonou. 100k can’t get you a bale but you can select and mix them. Wash then and pack neatly. Marketing is all it takes, you’ll Sell and see your money multiply.

Cleaning Services: Some people find it hard to clean their apartments cos they’re busy from Monday to Friday and Saturday the have engagement and on Sunday all they wanna do is rest. Your tools won’t cost you up to 30k and you can clean 6 apartments a weekend.

Home Cooking and Delivery: You can cook a variety of meals well and apply customer service, People will pay good money for your services, You can run this from home @Soup_A_Market and @Marrgarritah are more than capable when to comes to training you on how to start up.

Digital Marketing: The success of any business is in its ability to effectively reach its teeming customers and this is achieved by effective marketing: Get a Used Laptop and Smartphone, temporarily your smartphone can double as your hotspot Persistence and Passion is Key Cakes and Confectionery: This is one business that always comes to play, people celebrate, and bakers are always consulted. Ask my Boss here @mycreamydelight Get the required skill, a decent oven, passion and customer service! You’ll grow! They are open to training too.

Aso-Oke Beading and Stoning has become sometimes in vogue now, and this is another sweet business one can start with 100k. You just have to learn how to bead and unlock your creative mind. Ask my padi @wuragold2 The Also Oke Girl. She stated from the confines of her home in IB. Bead Making: I’m not sure there’s really much to say here. All you need is training, passion, creativity, unique designs and styles, then adequate marketing. You absolutely don’t need 100k to start this.

Home Service Barber: This is another profitable small scale business. The beautiful thing about this is you bring your services to your clients for an extra token above regular. The starting capital to get the equipments and I’m sure you know we have rechargable clippers.

Tutorial Classes: No matter your age, this is another well paying job, either as part-time or full-time. Many families are willing to spend what it takes for their children’s success and there’s one subject you’re well versed at. Just close the gap, meet their need for a fee.

Internet Services: Forget the extensive coverage of internet and the fact that people can assess it on their phones, Do you know how much applicants pay just to have Jamb applications filled online? You need a good system, printer & ISP. People pay as much as 1k per application

Production Of Zobo, Smoothies, cocktail, small chops, cupcakes and chinchin! You’d realise the importance of this combo cant be ruled out. You can render these services with 100k startup capital + proper marketing, branding and packaging. @aisinshugga@DojaCulinary can train you #20 Re-Invest Your seed Capital in an existing business. Not everyone has the head for business but they can sniff opportunities. You can always sow your money as operating capital and draft an agreement on profit sharing.

You can at least support your investment by bringing customers so the business can thrive. Market it on all your social media pages and who knows. 100k can so a lot!!!! Let me give you another Jara! Production of Hand-Made cards: Do you know people pay good money for these thing made of paper and strawboard. This is one business you can start with less than 100k. My friend @CraftsVillageNG started from his bedroom! And his cards went far. Truth is there so much one can do with very little, it takes persistence, focus, interest and above all hardwork. We can’t all be rich but we all shouldn’t be poor.

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I Once Withdrew $10m From Bank Just To Look At It – Aliko Dangote

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Aliko Dangote, Africa’s richest man, says he withdrew $10 million just to look at it and convince himself that he is rich.

Speaking at the Mo Ibrahim governance weekend ongoing in Abidjan, Dangote said he knew he was rich on paper, but had to find out to convince himself that he was indeed rich.

To do this, the multi-billionaire said he drove to a bank, withdrew $10 million, took it home, put it on his bed, looked at it, and returned it back to the bank the following day.

“The way it is that when you first start business, your target is to make your first million. Fine, I did that,” Dangote told Mo Ibrahim.

“After a year or so, I realised that I had much more, and I said ok, fine, all these numbers are just written numbers.

“One day I went to a bank, and at that time, there were no restrictions, and I wrote a cheque and cashed $10m from the bank and put it in the boot of my vehicle, and I went home and I opened it and I looked at $10m and I said ‘now I believe I have money’.”

Dangote added that he took it back to the bank the next day — after his mission was concluded.

The Nigerian businessman is has been the richest man in Africa for nearly a decade, following the expansion of his cement business, and the change of model to focus on local manufacturing.

According to the Bloomberg Billionaires Index, Dangote is the 74th richest man in the world as of April 6, and he is valued at $16.4 billion.

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