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Ghana’s inflation rises to 54.1% , highest level in 22 years

Ghana’s annual consumer inflation rate accelerated to a new 22-year high of 54.1 percent in December 2022, up from 50.3 percent in November.

Samuel Kobina Annim, the government statistician for Ghana, announced this at a media briefing on Wednesday.

The latest inflation rate is the highest since April 2001, when it was at 59.7 percent.

Ghana’s statistics office attributed the hike to steep increases in food, transport, and housing costs.

It said prices rose the most in the category of housing, water, electricity, gas, and other fuels, increasing to 82.34 percent yearon-year.

Furnishings and household equipment came second at 71.52 percent, followed by transport at 71.42 percent, then personal care, social protection, and miscellaneous goods and services at 60.94 percent.

The agency said inflation for food and non-alcoholic beverages rose to 59.71 percent year-on-year.

It added that inflation for locally produced items was 51.1 percent, while that of imported items stood at 61.9 percent.

Since last year, the West African country has been battling an economic crisis.

In July, it approached the International Monetary Fund (IMF) to ask for financial help after soaring prices and other economic woes spurred street protests.

A staff-level agreement with the IMF for a $3 billion three-year support package was later secured in December.

One of the grounds on which Ghana got the facility from the IMF is a “comprehensive debt restructuring”.

As part of efforts to restore public debt sustainability, the Ghanaian government, on December 5, launched a domestic debt exchange programme.

The government also suspended debt service payments on eurobonds and commercial term loans.

Oil theft: ‘7-year-old’ illegal tapping point uncovered in Rivers community

By Abubakar Yunus Abuja

An illegal tapping point on the Trans Niger Pipeline (TNP) has been uncovered in the Nonwa Uedume community of Tai local government area, Rivers state.

Mbakpone Okpe, executive chairman of Tai LGA, Rivers, led the discovery team to the site on Monday.

Others present at the site include security operatives of the Nigerian army, officers of the Department of State Services (DSS), Tai local security taskforce and pipeline surveillance contractors.

Speaking on the incident, Fyneface Dumnamene Fyneface, executive director, Youths and Environmental Advocacy Centre (YEAC-Nigeria), in a statement seen by Peoples Daily, condemned the act by the illegal oil refiners.

The executive called on the federal government to provide alternative livelihood opportunities for artisanal crude oil refiners in the Niger Delta, through modular refineries and establishment of the presidential artisanal crude oil refining development initiative (PACORDI).

Fyneface said employees of Shell Petroleum Development Company (SPDC), operator of TNP, were performing routine maintenance work on the pipeline at the time of the discovery, as the tapping point was near their site.

He said the workers “were surprised that a tapping point on their pipeline was close to where they were but they did not know”.

“After the exposure, they took over the point, working to remove the tapping of about one and half inches pipe said to have been operated for over seven years with capacity to load two tankers of 33,000 liters per night,” Fyneface said.

On his part, Okpe, speaking to journalists at the site, said the discovery of the illegal connection on the facility, cost a lot of resources.

He said the illegal connection was discovered following a tip-off, calling for a collaboration between his team and the government.

“This discovery cost me money to get the intel (information) and this access. That does not mean that Shell does not have operators that are doing surveillance for them,” he said.

“The federal government also has companies doing surveillance for them. I need to partner with them. I called Shell after I discovered this on their line.

“I wish they would come so that we can jointly collaborate to clamp down on it. It is not only discovering it but also closing it so that it doesn’t recur. Since then, Shell has not come. It is part of the problem I have been having with them.”

Okpe also said some illegal oil bunkering activities are still ongoing as preliminary findings indicated that there may be more of such illegal camps in the area.

He also accused Shell of not taking responsibility despite discovering the illegal pipeline.

“As I speak with you, there are a lot of bunkering operations going on in some of the communities around here. Even when I discovered it and I called them (Shell) to come let us collaborate. It is their asset, not mine,” Okpe said.

“I cannot risk my resources and my personnel in discovering this, at the end of the day the owners are not coming forward to take responsibility.

“This thing you are seeing happening here, if anybody tells you that the larger number of the population here are not aware of it, it is a lie.

“If you go beyond here to the far end, you will see another spot like this. So, how are we responding to it to ensure that people who are doing this thing will know that there are owners and the owners are protecting their property?’’

At the time of filing this report, Shell Petroleum Development Company (SPDC) did not respond to a request for comments.

President Muhammadu Buhari commissions Projects executed by the Yobe State Government and Nigerian Police in Yobe State on 9th Jan 2023

World Bank: High inflation rate expected to frustrate Nigeria’s economic recovery

Abubakar Yunus Abuja

The World Bank says a sharp, long-lasting slowdown is expected to hit developing countries hard this year as the global economy weakens.

The bank said this in its latest ‘global economics prospects’ report, released on Tuesday.

It said the 2023 global growth is expected to slow to 1.7 percent — a downgrade from 3 percent earlier projected in June 2022.

The World Bank warned that shocks including higherthan-expected inflation, sudden spikes in interest rates to contain price increases, or a pandemic resurgence could tip the global economy into a recession.

“Given fragile economic conditions, any new adverse development — such as higherthan-expected inflation, abrupt rises in interest rates to contain it, a resurgence of the COVID-19 pandemic, or escalating geopolitical tensions — could push the global economy into a recession,” the report reads.

“This would mark the first time in more than 80 years that two global recessions have occurred within the same decade.

“The global economy is projected to grow by 1.7 percent in 2023 and 2.7 percent in 2024. The sharp downturn in growth is expected to be widespread, with forecasts in 2023 revised down for 95 percent of advanced economies and nearly 70 percent of emerging market and developing economies.”

For Sub-Saharan Africa (SSA), the region which accounts for about 60 percent of the world’s extreme poor, the bank said growth in per capita income over 2023-24 is expected to average just 1.2 percent, a rate that could cause poverty rates to rise.

In his view on the report, David Malpass, World Bank Group president, said the crisis facing development is intensifying as the global growth outlook deteriorates.

“Emerging and developing countries are facing a multi-year period of slow growth driven by heavy debt burdens and weak investment as global capital is absorbed by advanced economies faced with extremely high government debt levels and rising interest rates,” Malpass said.

“Weakness in growth and business investment will compound the alreadydevastating reversals in education, health, poverty, and infrastructure and the increasing demands from climate change.”

Meanwhile, in the report, the bank said GDP levels in emerging and developing economies by the end of 2024 will be roughly 6 percent below levels expected before the pandemic.

It further noted that, although global inflation is expected to moderate, it will remain above pre-pandemic levels.

The World Bank also cut Nigeria’s 2023 economic growth projection to 2.9 percent from a previous projection of 3.1 percent.

This, the bank explained, is due to production challenges in the oil sector, rising insecurity, and flooding.

“In Nigeria, growth is projected to decelerate to 2.9 percent in 2023 and remain at that pace in 2024 barely above population growth,” the report reads.

“A growth momentum in the non-oil sector is likely to be restrained by continued weakness in the oil sector. Existing production and security challenges and a moderation in oil prices are expected to hinder a recovery in oil output.

“Policy uncertainty sustained high inflation, and rising incidence of violence are anticipated to temper growth. Growth in agriculture is expected to soften because of the damage from last year’s floods.

“As fiscal position is expected to remain weak because of high borrowing costs, lower energy prices, a sluggish growth of oil production, and a subdued activity in the non-oil sectors.”

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Buhari reappoints Obadiah Nkom as DG of Mining Cadastre Office

By Abubakar Yunus Abuja

President Muhammadu Buhari has approved the reappointment of Obadiah Nkom as the director general of Nigeria Mining Cadastre Office (MCO).

The appointment was confirmed by Femi Adesina, spokesperson to the president in a statement recently.

The four-term appointment takes effect from January 12, 2023.

Nkom was among the 19 heads of government agencies appointed on January 12, 2019, for an initial period of four years.

Adesina, in the statement, said under the leadership of Nkom in the past four years, the Nigeria Mining Cadastre Office recorded 86 percent increase in revenue generation.

He added that the office raked in over N8.9 billion between 2019 and 2021, compared to N4.8 billion generated in the corresponding period of 2016 to 2018.

This also accounted for about 50 percent of the contribution of the ministry of mines and steel development to the economy.

“His recently unveiled reforms in the automation of the mining cadastre system had revolutionised online and realtime mineral title administration and management, ” the statement reads.

“It is also to the credit of Nkom during his first term that the Nigeria Mining Cadastre Office was named the best agency of the federal government in the category of digital innovation awards for the year 2022.

“This was done under the auspices of the Nigeria Internet Registration Association (NIRA), for adding value to the activities of the cadastre office.”

NCS: We’ll do everything necessary to

generate revenue, promote trade

By Abubakar Yunus Abuja

The Nigeria Customs Service says it will do everything necessary to promote trade and generate revenue for the country.

Hameed Ali, comptrollergeneral, NCS, spoke on Tuesday at the decoration ceremony of the three newly appointed assistant comptroller-generals, and other officers of the service, held in Abuja.

According to the 2023 appropriation bill recently signed by President Muhammadu Buhari, customs revenue stood at N639.65 billion between January and November 2022.

The federal government said the customs collections for the period (comprising import duties, excise, fees, and special levies), exceeded the target by N15.42billion — representing a 102 percent performance in revenue generation.

Speaking at the decoration ceremony, Ali said Nigeria was relying on the service for revenue generation.

“I don’t know how to say this, but I have to say it that the nation depends on us to generate revenue. We must do all that we need to do to get that money,” he said.

“We must also work hard and ensure that we facilitate trade because that is what will bring in the revenue. Wherever you find yourself as an officer, you must conduct yourself as an officer, in or outside the uniform.”

Meanwhile, Ali charged the newly promoted officers to be good ambassadors of the organisation.

He said the responsibility of the NCS was to ensure that “we do not disgrace the service, and by that commitment, it means that in whatever you do, on-duty and off-duty, you must behave as a responsible officer”.

“Promotion comes with a lot of responsibilities. Every step you go in your service you become more visible. The expectations from [you] are going to be more and you will be given assignments that will get you to be visible,” the comptroller-general said.

“Let me congratulate all of you and say this is a step forward. Today at the Nigeria Customs Service, we have been able to streamline our processes with regards to promotion. We have a standing operational procedure.

“I want to assure every customs man and woman that if you work hard and maintain good conduct, and you pass your exams, I bet you, promotions are at your beck and call.

So, let me use his medium to, once again, impress on all of us to take our jobs seriously. Our attitude is gradually changing, we are taking this service seriously. We are now realising why we are in this uniform. I’ve always said that once you make up your mind to wear this uniform, please give it the respect that it deserves.

“It is a great opportunity that out of the over 200 million people, 15,000 of us are today representing Nigeria in this service. It is a great thing of pride and I expect us to work with our heads high.”

L-R: Globacom’s Regional Activation Manager (North), Mr. David Ameh; latest Glo Festival of Joy promo car winner, Richard Ijah; Divisional Police Officer, Jos Area, SP Obinna, and Chairman, Bassa Local Government, Plateau State, Steven Igbala, presenting the key to a brand new car to the prize winner in Jos, Plateau State, yesterday.

GTBank, UK finance agency reach settlement over anti-money laundering control gaps

By Abubakar Yunus Abuja

Guaranty Trust Bank UK Limited (GTBank UK) says it has reached settlement with the Financial Conduct Authority (FCA), accepting findings in relation to historical anti-money laundering (AML) controls in its operations between October 2014 and July 2019.

The bank spoke on the matter in a statement recently, said it has implemented measures to ensure its AML framework operates within regulatory standards.

The FCA had said GTBank failed to undertake adequate customer risk assessments, often not assessing or documenting the money laundering risks posed by its customers.

It also accused the bank of failing to monitor customer transactions and business relationships to the required standard.

“These weaknesses were repeatedly highlighted to GTBank by internal and external sources, including the FCA, but despite this, GTBank failed to take appropriate action to fix them,” FCA had said.

“GTBank’s conduct is particularly egregious as this is not the first time that the bank has faced enforcement action in relation to its AML controls, with the FCA fining GTBank £525,000 in August 2013 for serious and systemic failings.”

Consequently, the financial regulator slammed a £7,671,800 fine on the bank, adding that without the 30 percent discount, the financial penalty would have been £10,959,700.

In response to the findings, GTBank said it has cooperated fully with the FCA investigation and has agreed to the penalty sum of £7.6 million.

It said the penalty was calculated by reference to a proportion of the revenues of GTBank UK over the relevant period and includes a 30 percent discount for early settlement.

Meanwhile, GTBank explaind that the FCA’s investigation focused on its UK subsidiary’s AML controls and steps taken by it to remediate these to ensure they operated in line with the relevant requirements.

The bank said the FCA findings were final, and no further action is anticipated in respect of the matter.

According to the bank, the FCA acknowledged in its findings that the financial institution has spent considerable time and resources in order to bring its AML standards up to the required level.

Commenting on the issue, Gbenga Alade, managing director of GTBank UK, said: “As a responsible financial services institution that is committed to best practices, GTBank UK takes its AML obligations extremely seriously.”

“We note with sincere regret the FCA’s findings regarding AML control gaps in our operations in the past and we are very sorry for this.”

Alade assured stakeholders and the general public that necessary steps have been taken to address and resolve the identified gaps.

“Whilst there was no direct customer impairment arising from the period under review [and the FCA’s findings do not include any instances of suspected money laundering], we have since reinforced our AML control framework and implemented changes in our AML processes in line with best practice with a view to ensuring that the highest standards are maintained in our operations,” he explained.