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COVID-19: Poor people in Africa to increase by 49.2m in 2021, Nigeria to record largest increase – AfDB reveals
The African Development Bank (AfDB) has disclosed that the number of extreme poor people could increase by 34 million and 49.2 million due to the COVID-19 pandemic in 2021.
The AfDB made the disclosure in its African Economic Outlook 2020 supplement amid coronavirus pandemic released on Tuesday.
According to the report, the development was because the Gross Domestic Product (GDP) growth continued to fall below population growth rates.
The report also revealed that Nigeria and Democratic Republic of Congo, two of Africa’s most populous countries, would record the largest increases.
It explained that it could be between 8.5 and 2.7 million respectively in the baseline scenario in 2020, and 11.5 and 3.4 million in the worst-case scenario, adding that an estimated 25 to 30 million jobs could also be lost.
The report further explained that about 773.4 million Africans were employed in 2019, projected under the pre-COVID–19 assumptions to grow to 792.7 million in 2020.
It added that under the baseline scenario of a 1.7 per cent GDP contraction, employment is projected to decline by 24.6 million jobs in 2020.
It further stated that under the worst-case scenario of a 3.4 per cent GDP contraction, up to 30 million jobs could be lost.
AfDB submitted, “Between 28.2 and 49.2 million more Africans could be pushed into extreme poverty.
“Although the number of people in extreme poverty in Africa (using the 1.90 dollars international poverty line) was projected to reach 425.2 million in 2020 under the no-outbreak scenario, COVID–19 could increase it further to 453.4 million in the baseline.
“The brunt will be mostly felt by the working poor, who account for almost half of the employed.
“And the crisis would also affect the nature of surviving jobs, since wages and working hours for those in the formal sector could be downgraded.
”The number of workers switching to informal sector jobs could increase as a survival strategy to maintain incomes in the face of lockdowns and restrictions”.
Former Chairman of the Nigerian Communications Commission (NCC), Prof. Adeolu Akande, has extended warm felicitations to Barrister Sarafadeen Ali, the Senator representing Oyo South Senatorial district, on the occasion of his 61st birthday.
In a statement released on Saturday in Ibadan, the Oyo state capital, on Saturday, Akande lauded the lawmaker, describing him as a luminary whose life has been marked by distinguished service to the nation.
“Today, I join the world in celebrating you on your special day, as you mark 61 years of God’s abundant love and glorious impact on humanity,” the former NCC gaffer expressed.
He added, “I wish you many more years of God’s grace in your life.”
The headquarters of Heritage Bank at Victoria Island, Lagos, was besieged on Thursday by members of the labour union, protesting the recent dismissal of 1,000 support workers.
The National President of the National Union of Banks, Insurance and Financial Institutions Employees, Comrade Anthony Abakpa, led the demonstration, condemning the bank’s management for what he deemed a lack of adherence to due process in the termination of employment contracts.
Speaking during the protest, Comrade Abakpa asserted that the leadership of Heritage Bank failed to follow established protocols before executing the mass layoffs.
He emphasised the union’s commitment to pursuing justice for the affected workers, vowing to escalate their demands until the bank’s management rectifies the situation.
“We will intensify our demands for justice,” declared Comrade Abakpa, urging the bank’s management to take corrective action to address the grievances of the dismissed workers.
The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, clarified that Nigeria is not utilising its foreign reserves to bolster the naira, despite recent fluctuations in reserve levels.
Speaking from Washington DC, where he is attending the International Monetary Fund-World Bank Spring Meetings, Cardoso highlighted the influx of $600 million into Nigeria’s reserves account within the past two days.
While the naira has experienced a notable appreciation against the dollar in recent weeks, climbing over 40% from approximately N1,900/$ to about N1,000/$1, Nigeria’s foreign reserves have been dwindling. As of April 15, reserves dropped to approximately $32.29 billion, marking the lowest level in over six years.
Cardoso emphasised that the shifts in reserves are typical for any country, where various financial obligations, such as debt repayments, necessitate withdrawals.
He stated, “What you’ve seen with respect to the shift in our reserves is normal in any country’s reserves where, for example, debts are due and certain payments need to be made. They are made because that is also part of keeping your credibility.”
Continuing, Cardoso underscored the dynamic nature of the market, advocating for a system driven by willing buyers, willing sellers, and price discovery.
He emphasised, “The shift in our reserves has really little or nothing to do with defending the naira, and that is certainly not our objective.”
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