<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="539" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCWD7IWFJNOLJEYIJRGNYD7QSI-820x539.jpg" alt="" class="wp-image-462535" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCWD7IWFJNOLJEYIJRGNYD7QSI-820x539.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCWD7IWFJNOLJEYIJRGNYD7QSI-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCWD7IWFJNOLJEYIJRGNYD7QSI-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCWD7IWFJNOLJEYIJRGNYD7QSI-768x504.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCWD7IWFJNOLJEYIJRGNYD7QSI-1536x1009.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCWD7IWFJNOLJEYIJRGNYD7QSI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: People participate in a protest against the postponement of the presidential election scheduled on February 25 in Dakar, Senegal February 24, 2024. REUTERS/Zohra Bensemra/File Photo</figcaption></figure>



DAKAR, March 4 (Reuters)&nbsp;&#8211;&nbsp;Writer Moustapha Gueye voted for Senegalese President Macky Sall at the last two elections.



But disappointment in Sall&#8217;s second term and the president&#8217;s thwarted attempt to postpone the next vote have shaken Gueye&#8217;s allegiance to the ruling Benno Bokk Yakaar (BBY) coalition.



Reclining on a sofa at his home in Dakar, Gueye said he was saddened that Sall&#8217;s presidency had culminated in a bitter electoral tussle with the opposition and in unrest that has dented Senegal&#8217;s reputation as one of West Africa&#8217;s more stable nations.



&#8220;These are domestic issues that Senegal should have grown out of,&#8221; he said.



Sall&#8217;s shock decision to issue a decree delaying the election just weeks before it was due to take place in February revived widespread fears that he was trying to tweak the constitution to stay in power longer.



Sall denies this. A court later overruled his order, but too late to keep to the original electoral schedule.



Mechanic Ousmane Sene said he was tired of second-guessing the ruling party&#8217;s intentions.



&#8220;The reason I won&#8217;t vote for Benno (BBY) anymore is simply that I trusted them, but not anymore. That trust has been betrayed,&#8221; he said at his roadside repair shop in a Dakar suburb.



Authorities have still not confirmed a new date for the vote.



As the process grinds on, BBY and Sall will be gauging how the unresolved crisis is swaying other long-time supporters like Gueye and Sene and how it is affecting the chances of their handpicked candidate in the presidential race, Amadou Ba.



<h2 class="wp-block-heading" id="h-total-confusion">&#8216;TOTAL CONFUSION&#8217;</h2>



Sall cited concerns over potential election disputes as the reason for the delay. But many believe BBY and Sall tried to postpone the vote because they were unsure about their own candidate and wanted time to think.



Sall has publicly stood by Ba. But equally public critics of the candidate include at least two cabinet ministers and senior BBY member Souleymane Jules Diop, who took to the radio in late 2023 to accuse Ba of being bland and uninspiring, local media reported.



&#8220;It&#8217;s very evident that the election delay would not have taken place if Macky Sall believed that Amadou Ba was clearly capable of winning the presidency,&#8221; Tochi Eni-Kalu, Africa analyst at political risk consultancy Eurasia Group, said.



A 10-month delay could have bought enough time for a reshuffle of the candidate list, but on Feb. 15 a top court ruled that such a postponement would be unlawful and ordered the election be scheduled as soon as possible.



With Ba still on the ticket for now, the crisis may turn out to have been a politically costly miscalculation by Sall and BBY if their electoral manoeuvring has put off many other voters like Gueye and Sene.



With no official public election polls, shifts in voter intention are hard to measure.



But of those who voted for Sall in the last election in 2019, only 60% are believed to be planning to vote for BBY&#8217;s candidate this time, said statistician Moubarak Lo who, as adviser to the prime minister, produces strategic analysis for the authorities.



Lo said he thought the estimated fall was less a response to the recent upheaval than a natural drop-off in support over the course of a presidential term.



He cautioned against drawing any conclusions about the election outcome at this stage. &#8220;Today, it&#8217;s total confusion,&#8221; he told Reuters on Feb. 24.



<h2 class="wp-block-heading" id="h-opposition-momentum">OPPOSITION MOMENTUM</h2>



All eyes are on whether Sall agrees with a June 2 election date proposed on Tuesday after talks that were boycotted by most of the opposition presidential candidates. Some of them have formed an informal alliance in response to the electoral turmoil.



This closer collaboration could influence the result of the election if it leads to them rallying around a single candidate in a second round in the event no contender secures more than 50% in the first round.



&#8220;It&#8217;s very clear the momentum is on the opposition side now and that could have a bearing on the election,&#8221; Eurasia Group analyst Eni-Kalu said.



&#8220;It&#8217;s become very obvious that it&#8217;s going to be very difficult for Amadou Ba to win outright in the first round,&#8221; he added. &#8220;A lot depends on what happens in the next few weeks in terms of the opposition closing ranks and presenting a united front ahead of a run-off.&#8221;



The electoral turbulence has not deterred all BBY supporters. A pro-BBY rally in Dakar on Feb. 24 attracted hundreds of people, comparable in size to a pro-opposition rally a week earlier.



The crowd chanted and waved Senegalese flags handed out by organisers. One man carried a homemade cardboard sign that said &#8220;Macky, Senegal loves you.&#8221;



Penda, who gave only her first name, said her support for BBY was unchanged by recent events.



&#8220;We are here to show everyone, including the President, that those who love him continue to do so,&#8221; she said.



($1 = 602.7500 CFA francs)



(Additional reporting by Cooper Inveen and Diadie Ba; Editing by Andrew Heavens and Crystal Chesters)

FILE PHOTO: Senegalese civil society groups protest over delayed presidential election in Dakar

Senegal election crisis shakes support for Macky Sall’s coalition 

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/3UP4IYO7MZPNFONHCCNZJCCYTU-820x547.jpg" alt="" class="wp-image-449453" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/3UP4IYO7MZPNFONHCCNZJCCYTU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/3UP4IYO7MZPNFONHCCNZJCCYTU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/3UP4IYO7MZPNFONHCCNZJCCYTU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/3UP4IYO7MZPNFONHCCNZJCCYTU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/3UP4IYO7MZPNFONHCCNZJCCYTU-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/3UP4IYO7MZPNFONHCCNZJCCYTU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Central Bank of Nigeria&#8217;s logo is seen on the headquarters building in Abuja, Nigeria January 22, 2018. REUTERS/Afolabi Sotunde/File Photo</figcaption></figure>



ABUJA, Feb 27 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s central bank hiked interest rates by 4 percentage points on Tuesday, as trade unions protested over soaring food and fuel prices that have increased hardship in Africa&#8217;s biggest economy.



Central Bank of Nigeria Governor Olayemi Cardoso said the rise in the bank&#8217;s main lending rate to 22.75% from 18.75%&nbsp;NGCBIR=ECI&nbsp;was needed to arrest inflation, which has soared to its highest in almost three decades.



&#8220;The previous policy rate hikes have slowed the rise in inflationary pressure but not to a desirable extent. Members concluded that inflation could become more persistent in the medium term and pose more regulatory challenges if not effectively anchored,&#8221; Cardoso told a news conference.



He said all 12 members of the Monetary Policy Committee participated in the rate decision, which was the first since Cardoso took office last September.



Economists had predicted a big hike but were divided on the size the central bank would go for.



Nigeria&#8217;s international dollar bonds rose as Cardoso spoke, having fallen in price earlier in the day. The 2029 maturity was up the most, by about 0.3 cents to 95.5 cents, according to Tradeweb data.&nbsp;XS2445169985=TE



Inflation has been spurred by bold but unpopular reforms implemented by President Bola Tinubu in his first year in charge, including ending a costly fuel subsidy and devaluing the local naira currency twice&nbsp;NGN=D1.



Tinubu has defended those reforms, saying they were needed to boost growth and attract investment, but they have prompted public anger and, in some cases, desperation.



On Friday, some people were killed and others injured when authorities ran out of stock at a food distribution centre in Lagos, causing a stampede, the Nigeria Customs Service said.



&#8220;The crowd became desperate and charged through our barricades in search of rice bags inside emptied containers,&#8221; it said in a statement, adding that more than 5,000 people had showed up for the distribution.



The government this week approved the immediate resumption of cash transfers to 12 million vulnerable households, but labour unions want Tinubu&#8217;s administration to go further.



&#8220;The removal of the petroleum subsidy and the dollar issue have caused untold hardship,&#8221; said Ibrahim Tajo Siraj, chair of a union of academic staff in the northern city of Kano, who joined a protest against the government&#8217;s economic policies on Tuesday.



(Reporting by Chijioke Ohuocha and Elisha Bala-GbogboAdditional reporting by Hamza Ibrahim in Kano, and Camillus Eboh and Ahmed Kingimi in Abuja, Rachel Savage in JohannesburgWriting by Bhargav Acharya and Nellie PeytonEditing by Alexander Winning and Christina Fincher)

Central Bank of Nigeria’s logo is seen on the headquarters building in Abuja

Nigeria hikes interest rates as unions protest economic hardship

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SXGKQXEHZNJHHKDBGEFSY7CHIU-820x547.jpg" alt="" class="wp-image-460329" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SXGKQXEHZNJHHKDBGEFSY7CHIU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SXGKQXEHZNJHHKDBGEFSY7CHIU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SXGKQXEHZNJHHKDBGEFSY7CHIU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SXGKQXEHZNJHHKDBGEFSY7CHIU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SXGKQXEHZNJHHKDBGEFSY7CHIU-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SXGKQXEHZNJHHKDBGEFSY7CHIU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Senegal&#8217;s President Macky Sall arrives for the closing session of the New Global Financial Pact Summit, Friday, June 23, 2023 in Paris, France. Lewis Joly/Pool via REUTERS/File Photo</figcaption></figure>



DAKAR, Feb 26 (Reuters)&nbsp;&#8211;&nbsp;Senegal&#8217;s President Macky Sall on Monday urged participants in a national dialogue to reach a consensus on a date to hold a delayed presidential election, failing which he will ask the Constitutional Council to find his replacement when his mandate ends on April 2.



The West African nation, set to become an oil and gas producer by the end of the year, has been thrown into an unprecedented political crisis after Sall postponed the election initially scheduled for Feb. 25.



Senegal&#8217;s Constitutional Council, the highest election authority, later ruled that Sall&#8217;s decision to postpone the election, and a subsequent 10-month postponement voted by parliament, were unconstitutional.



The electoral crisis has led to violent protests and warnings of authoritarian overreach in one of coup-hit West Africa&#8217;s more stable democracies.



Sall has declared that his mandate will end on April 2 as stipulated by the constitution so as to assuage fears he wanted to extend his rule in the country. However, the process to elect a new president was unlikely to be concluded by that date.



&#8220;If we reach a consensus, I will set the date for the election,&#8221; Sall said late on Monday while concluding the first of two days of the national dialogue. Participants included some candidates, political parties, civil society and traditional and religious organizations.



&#8220;Otherwise, I will ask the Constitutional Council to find my a replacement on April 2,&#8221; Sall warned.



The talks were boycotted by 15 of the 19 approved candidates who want him to hold the election as soon as possible and leave office when his mandate ends on April 2.



Sall told the national dialogue that the government will propose a general amnesty for those detained between 2021 and 2024 due to the political crisis.



The amnesty could see the release of firebrand opposition leader Ousmane Sonko who was excluded from the race, and his handpicked successor Bassirou Diomaye Faye, who are both detained.



(Reporting by Portia Crowe and Diadie Ba; Writing by Bate Felix; Editing by David Gregorio)

FILE PHOTO: New Global Financial Pact Summit in Paris

Senegal seeks consensus on date for delayed presidential election

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-820x547.jpg" alt="" class="wp-image-424605" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man counts Nigerian naira notes in a market place as people struggle with the economic hardship and cashflow problems ahead of Nigeria&#8217;s Presidential elections, in Yola, Nigeria, February 22, 2023. REUTERS/Esa Alexander/File Photo</figcaption></figure>



ABUJA, Feb 26 (Reuters)&nbsp;&#8211;&nbsp;Nigeria will outlaw street-trading of foreign currency in the country under new regulations set out by the central bank which also stipulate higher minimum capital levels for bureau de change operators.



The central bank issued the guidelines in a document published late on Friday but did not say when they would come into effect.



The moves are part of broader reforms to Nigeria&#8217;s currency market, which has suffered chronic dollar shortages after foreign investors fled following a previous oil price collapse and introduction of capital controls in 2015.



Hard currency is sold on the streets in the business districts of Lagos and Abuja by individuals or agents of bureaus de change officials who operate outside offices to cut down operating costs.



The central bank said in its guidelines that bureau de change operators will be required to have at least 2 billion naira ($1.28 million) in capital in order to be national operators, up from 35 million naira currently.



Exchange bureaus operating regionally will be required to have a minimum capital of 500 million naira.



Under the new regulations, individuals will not be able to take out more than $500 in hard currency in cash at a time, as higher amounts will need to be settled through the bank.



The bank will end a two-day policy meeting on Tuesday with analysts expecting it to lift interest rates by 225 basis points to 21.00%. It is Governor Olayemi Cardoso&#8217;s first meeting since he took office in September.



On Monday, the naira firmed to 1,550 per dollar on the parallel market, a similar level to on the official market, from 1,800 naira a week earlier.



The naira&#8217;s official exchange rate has been trading at levels close to the parallel market level after the currency was devalued last month, its second adjustment in less than a year as the crippling dollar shortage pushed the Nigerian currency lower.



The anti-graft agency raided bureau de change operators in Abuja on Friday and over the weekend, and held some officials. The agency has in the past accused operators of speculating on the currency.



The Economic and Financial Crimes Commission did not respond to a request for comment.



Under the new guidelines, the central bank capped the amount and frequency of purchases by individuals seeking foreign currency for travel, school fees and hospital bills.



($1 = 1,560.00 naira)



(Additional reporting by Camillus Eboh and Felix Onuah; Editing by Susan Fenton)

FILE PHOTO: Man counts Nigerian naira notes in a market place ahead of Nigeria’s Presidential elections in Yola

Nigeria outlaws street-trading by FX bureaus in new rules to stem naira slide

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107375463-1708428203684-gettyimages-2015599138-AFP_34JR9E8-820x547.jpeg" alt="" class="wp-image-458363" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107375463-1708428203684-gettyimages-2015599138-AFP_34JR9E8-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107375463-1708428203684-gettyimages-2015599138-AFP_34JR9E8-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107375463-1708428203684-gettyimages-2015599138-AFP_34JR9E8-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107375463-1708428203684-gettyimages-2015599138-AFP_34JR9E8-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107375463-1708428203684-gettyimages-2015599138-AFP_34JR9E8-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107375463-1708428203684-gettyimages-2015599138-AFP_34JR9E8-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">IBADAN, Nigeria &#8211; Feb. 19, 2024: Demonstrators are seen at a protest against the hike in price and hard living conditions in Ibadan on February 19, 2024. Samuel Alabi | Afp | Getty Images</figcaption></figure>



With annual inflation nearing 30% and a currency in freefall, Nigeria is facing one of its worst economic crises in years, provoking nationwide outrage and protests.



The Nigerian naira hit a new all-time low against the U.S. dollar on both the official and parallel foreign exchange markets on Monday, sliding to almost 1,600 against the greenback on the official market from around 900 at the start of the year.



President Bola Tinubu announced Tuesday that the federal government plans to raise at least $10 billion to boost foreign exchange liquidity and stabilize the naira, according to multiple local media reports.



The currency is down around 70% since May 2023 when Tinubu took office, inheriting a struggling economy and promising a raft of reforms aimed at steadying the ship.



In a bid to fix the beleaguered economy and attract international investment, Tinubu unified Nigeria’s multiple exchange rates and enabled market forces to set the exchange rate, sending the currency plunging. In January, the market regulator also changed how it calculates the currency’s closing rate, resulting in another de facto devaluation.



Years of foreign exchange controls have also generated enormous pent-up demand for U.S. dollars at a time when overseas investment and crude oil exports have declined.



“The weakened exchange rate should increase imported inflation, which will exacerbate price pressures in Nigeria,” Pieter Scribante, senior political economist at Oxford Economics, said in a note Friday.



The country is Africa’s largest economy and has a population of more than 210 million people, but relies heavily on imports to meet the needs of its rapidly growing population.



“Shrinking disposable incomes and worsening cost-of-living pressures should remain concerns throughout 2024, further stifling consumer spending and private sector growth,” Scribante added.



Inflation, meanwhile, continues to soar, with the headline consumer price index hitting 29.9% year-on-year in January, its highest level since 1996. The increase is being driven by a persistent rise in food prices which jumped by 35.4% last month compared to the year before.



The surging cost of living and economic hardship prompted protests across the country over the weekend. The plummeting currency has added to the negative impact of government reforms such as the removal of gas subsidies, which tripled gas prices.



President Tinubu said in late July that the government had already saved more than 1 trillion naira ($666.4 million) from removing the subsidies, which it will redirect into infrastructure investment.



Alongside soaring inflation and a plunging currency, Nigeria is also battling record levels of government debt, high unemployment, power shortages and declining oil production — its main export. These economic pressures are compounded by violence and insecurity in many rural areas.



“Excess market liquidity, exchange rate pressures, and food and fuel shortages threaten price stability, while inflation risks rising out of the government’s control,” Oxford Economics’ Scribante added.



“Robust import demand could force the Central Bank of Nigeria (CBN) to reimpose import bans and FX restrictions to lessen the burden on the balance of payments. This could exacerbate domestic product shortages and increase inflation further.”



Inflation is expected to peak at nearly 33% year-on-year in the second quarter of 2024, according to Oxford Economics, and could stay higher for longer given the plethora of economic risks ahead.



“Furthermore, rising inflation and increased hawkishness by the CBN indicate that the policy rate could be raised this quarter,” Scribante said. The policy rate currently sits at 18.75%.



“We expect a combined 200 bps in rate hikes at the next two MPC meetings, scheduled for end-February and end-March this year; however, we think that more hikes are needed to stem rising inflation,” Scribante added.



Jason Tuvey, deputy chief emerging markets economist at Capital Economics, sees the CBN opting for a bigger interest rate bazooka when policymakers meet on Feb. 26 and 27.



“The meeting will be a key test of whether the policy shift under President Tinubu is truly regaining some momentum,” Tuvey said in a note Thursday.



“We expect that the MPC will try to restore some of its inflation-fighting credibility by delivering a large interest rate of 400bp, to 22.75%.

107375463-1708428203684-gettyimages-2015599138-AFP_34JR9E8

Africa’s largest economy is battling a currency crisis and a crumbling economy

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="551" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NTAF3RKZSJJXNCIQJJUXCISBBE-820x551.jpg" alt="" class="wp-image-458037" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NTAF3RKZSJJXNCIQJJUXCISBBE-820x551.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NTAF3RKZSJJXNCIQJJUXCISBBE-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NTAF3RKZSJJXNCIQJJUXCISBBE-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NTAF3RKZSJJXNCIQJJUXCISBBE-768x516.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NTAF3RKZSJJXNCIQJJUXCISBBE-1536x1031.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NTAF3RKZSJJXNCIQJJUXCISBBE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Men sit as they wait for a prospective employer for the day in Abuja, Nigeria December 19, 2018. REUTERS/Afolabi Sotunde</figcaption></figure>



ABUJA, Feb 20 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s unemployment rate rose to 5% in the third quarter amid a cost-of-living crisis after the government scrapped a popular but costly petrol subsidy.



President Bola Tinubu has defended his two biggest reforms &#8211; the scrapping of the subsidy and foreign exchange controls &#8211; saying although this would lead to hardship in the short term, they are necessary to attract investment and boost government finances.



The unemployment rate rose from 4.2% in the previous quarter, according to data released by the National Bureau of Statistics late on Monday.



The jobless rate among young people aged 15-24 rose to 8.6% from 7.2%. Unemployment in the urban areas also rose marginally to 6% from 5.9% in the previous quarter.



Nigeria, Africa&#8217;s most populous nation of more than 200 million people, has been dogged by high unemployment for decades due to a rapid population rise that has outpaced economic growth.



But the jobless rate has crashed from a record 33% in the fourth quarter of 2020 after the government revised the methodology for computing the data in early 2023.



Still, underemployment persists with 87% self-employed. Only 12.7% were in wage employment during the period.



The informal employment rate, which measures the proportion of workers in the grey economy, was little changed at 92.3%, according to the NBS, while the workforce participation also fell slightly to 79.5% from 80.4% in the second quarter.



(Reporting by Elisha Bala-Gbogbo; Editing by Shri Navaratnam)

Men sit as they wait for a prospective employer for the day in Abuja

Nigeria’s Q3 jobless rate rises to 5% as impact of reforms takes effect

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/QV7ZOHJXTNLE7JAJJXH4EOPHSI-820x461.jpg" alt="" class="wp-image-457691" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/QV7ZOHJXTNLE7JAJJXH4EOPHSI-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/QV7ZOHJXTNLE7JAJJXH4EOPHSI-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/QV7ZOHJXTNLE7JAJJXH4EOPHSI-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/QV7ZOHJXTNLE7JAJJXH4EOPHSI-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/QV7ZOHJXTNLE7JAJJXH4EOPHSI-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/QV7ZOHJXTNLE7JAJJXH4EOPHSI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">An aerial view of the streets in the capital Niamey, Niger July 28, 2023. REUTERS/Souleymane Ag Anara</figcaption></figure>



DAKAR, Feb 19 (Reuters) &#8211; Niger last week missed a debt payment of 13.4 billion CFA francs ($22 million), the West African debt management agency said on Monday, bringing the total default to some $519 million since a July coup and its suspension from regional financial markets.



The West African monetary union debt management agency UMOA Titres said in a statement that Niger had failed to make a repayment of principal which was due on Feb. 16.



It noted that this occurred in the context of Niger being subject to sanctions imposed by the conference of heads of state and government of the West African Economic and Monetary Union (known by its French acronym, UEMOA).



&#8220;This situation is carefully monitored by UMOA-Titres in collaboration with the institutions concerned,&#8221; it said in a statement.



Niger has been suspended from the regional financial market, and the regional central bank by the Economic Community of West African States (ECOWAS) and UEMOA following a military coup in July that ousted President Mohamed Bazoum.



The country announced last month, along with neighbours Mali and Burkina Faso, that it was leaving ECOWAS with immediate effect. The regional bloc has a summit planned for Feb. 24 to discuss the situation.



($1 = 604.0000 CFA francs)



(Reporting by Nellie Peyton, editing by Ed Osmond)

Aerial view of the streets in Niamey

Niger misses debt payment, default up to almost $520 million

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AIFLZ6H3FJJ7LBTWCWOBKCFBCM-820x547.jpg" alt="" class="wp-image-428991" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AIFLZ6H3FJJ7LBTWCWOBKCFBCM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AIFLZ6H3FJJ7LBTWCWOBKCFBCM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AIFLZ6H3FJJ7LBTWCWOBKCFBCM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AIFLZ6H3FJJ7LBTWCWOBKCFBCM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AIFLZ6H3FJJ7LBTWCWOBKCFBCM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AIFLZ6H3FJJ7LBTWCWOBKCFBCM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigeria&#8217;s President Bola Tinubu looks on after his swearing-in ceremony in Abuja, Nigeria May 29, 2023. REUTERS/Temilade Adelaja/File Photo</figcaption></figure>



ABUJA, Feb 15 (Reuters)&nbsp;&#8211;&nbsp;Nigeria is considering the introduction of state police in its 36 states to bolster its national police force as it struggles to contain widespread violence and insecurity, the information minister said on Thursday.



An Islamist insurgency in the northeast, kidnappings for ransom, deadly farmer-herder clashes in the central belt and separatist and gang violence in the southeast are some of the challenges faced by Nigeria&#8217;s police force.



President Bola Tinubu met the country&#8217;s state governors to discuss insecurity, which is hurting farmers and contributing to high food prices and inflation.



The federal government and the state governments agreed that a state police force was necessary, marking &#8220;a significant shift&#8221; in approach, Information Minister Mohammed Idris told reporters after the meeting.



This is the first time that Nigeria&#8217;s federal and state governments have agreed on the need to set up state police to reinforce the more than 300,000-strong national police force in Africa&#8217;s most populous nation.



Nigerian Police Inspector General Kayode Egbetokun said last year at least 190,000 more officers were needed to secure the country adequately. He said the force was well below the United Nations&#8217; recommended ratio of one police officer to about 450 citizens.



Some states, like Lagos, have annual budgets the size of small African countries, and have long advocated for their own state police, saying this would help combat insecurity.



Ikemesit Effiong of risk consultancy SBM Intelligence said establishing state police would not solve the whole problem.



&#8220;Expanding the police force is one thing, fundamentally reframing the architecture and focus of policing from retribution and state control to investigation and crime prevention is quite another,&#8221; Effiong said.



(Reporting by Felix Onuah; Editing by Ros Russell)

FILE PHOTO: Nigeria’s President Bola Tinubu looks on after his swearing-in ceremony in Abuja

Nigeria mulls state policing to combat growing insecurity

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-820x547.jpg" alt="" class="wp-image-427563" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



ACCRA, Feb 15 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s new finance minister, Mohammed Amin Adam, pledged on Thursday to keep its $3 billion International Monetary Fund (IMF) programme on track as it aims to finish restructuring its overseas debt before an election in December.



President Nana Akufo-Addo replaced Ken Ofori-Atta with Adam, a petroleum economist who was minister of state at the finance ministry, in a cabinet reshuffle after criticism of the ex-banker&#8217;s leadership during the West African country&#8217;s worst economic crisis in a generation.



Ofori-Atta negotiated the IMF bailout loan to address the crisis, which saw inflation and debt servicing costs spiral upwards in 2022. He was, alongside Adam, seeking relief on about $13 billion owed to private bondholders when he was removed.



&#8220;There will not be any delays in the ongoing debt negotiations with bondholders because I have been part of the process,&#8221; Adam, once deputy minister of energy in charge of petroleum, said in a telephone interview.



&#8220;The advisers remain the same and the targets have not changed,&#8221; he said, noting that he was involved in talks from the start.



With national elections approaching in December, some analysts fear the new minister could relax fiscal consolidation to bolster the electoral fortunes of the ruling party.



&#8220;There will be no reversal on the IMF programme of fiscal consolidation. Revenue mobilization will be aggressive, backed by new reforms at the Ghana Revenue Authority,&#8221; Adam said.



He also said spending would be efficient and directly benefit Ghanaians.



&#8220;I am a pro-reform person,&#8221; Adam said. &#8220;And therefore strongly support the structural benchmarks under the IMF programme&#8221;.



The IMF has expressed its support for the new minister.



The World Bank board last month approved $300 million for Ghana, after it reached a deal to restructure $5.4 billion of loans with its official creditors.



Ghana is entitled to a three-part, $900 million Development Policy Operation loan from the World Bank and Adam told a local radio station earlier on Thursday that negotiations for the next disbursement were about to start.



(Reporting by Maxwell Akalaare Adombila, Editing by Rachel Savage, Alison Williams and Alex Richardson)

FILE PHOTO: The IMF logo is seen outside the headquarters building in Washington

Ghana’s new finance minister pledges to keep IMF programme on track

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-820x462.jpeg" alt="" class="wp-image-420118" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The new economic measures laid out by the U.K. government “will likely increase inequality”, according to a spokesperson from the International Monetary Fund.
Yuri Gripas | Reuters</figcaption></figure>



JOHANNESBURG, Feb 15 (Reuters)&nbsp;&#8211;&nbsp;Senegal&#8217;s diversified funding sources mean it could be better placed than some countries to navigate investor concerns sparked by political uncertainty, after President Macky Sall delayed a presidential election, the International Monetary Fund said.



A significant portion of Senegal&#8217;s funding is on concessional terms, and a planned reduction in issuing more expensive syndicated loans will minimise its dependence on volatile private debt, a spokesperson for the fund said in emailed comments.



The abrupt postponement of the Feb. 25 vote until December plunged the once-stable country into crisis, intensifying a backlash against what many see as a bid to extend Sall&#8217;s mandate and undermine one of the remaining democracies in coup-hit west Africa.



Three people were killed and around 270 reportedly detained during the protests that swept the capital Dakar and several other Senegalese cities late last week, raising fears of protracted unrest.



&#8220;Recent political developments in Senegal have created some uncertainty, potentially impacting investor confidence and economic activity,&#8221; the IMF spokesperson said.



&#8220;While potential investor caution could lead to higher interest rates and tighter financial conditions, &#8230; Senegal may be better positioned than some to navigate potential investor concerns due to its diversified and less volatile funding sources.&#8221;



In a December report, the IMF noted that Senegal had borrowed more in 2023 to cover its 2024 financing needs, &#8220;in order to avoid interest rate spikes as the 2024 presidential elections approach&#8221;.



That caution could pay dividends.



&#8220;Senegal does not plan further debt issuance in 2024, a move that would require parliamentary approval,&#8221; the IMF spokesperson said.



Nonetheless, Senegal needs to stay on track with planned economic reforms in order to maintain debt sustainability, the IMF said.



Senegal&#8217;s public debt-to-GDP ratio climbed to an estimated 79.6% last year but was forecast to fall to 72.5% this year, the IMF said in December.



Senegal secured a three-year loan of about $1.9 billion from the IMF in June last year.



(Reporting by Rachel Savage; Editing by Alexander Winning and Michael Perry)

107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico

Senegal ‘better positioned than some’ to navigate investor concern, says IMF

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/7KVHJR6UA5PHZGXNL4DBLFNXXE-1-820x547.jpg" alt="" class="wp-image-428233" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/7KVHJR6UA5PHZGXNL4DBLFNXXE-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/7KVHJR6UA5PHZGXNL4DBLFNXXE-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/7KVHJR6UA5PHZGXNL4DBLFNXXE-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/7KVHJR6UA5PHZGXNL4DBLFNXXE-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/7KVHJR6UA5PHZGXNL4DBLFNXXE-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/7KVHJR6UA5PHZGXNL4DBLFNXXE-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: People buy and sell vegetables at Mile 12 International Market in Lagos, Nigeria May 13, 2022. REUTERS/Temilade Adelaja</figcaption></figure>



ABUJA, Feb 14 (Reuters)&nbsp;&#8211;&nbsp;Nigeria is planning to set up a national commodity board to regulate the price of grains and other items, as rising food costs stoke double-digit inflation in a country where smallholder farmers dominate production.



Nigeria&#8217;s annual inflation hit a nearly three-decade high of 28.92% in December as food prices surged, adding to a worsening cost of living crisis. Inflation data for January is due on Thursday.



Vice President Kashim Shettima said on Tuesday that the National Commodity Board would maintain a strategic food reserve that could be used to reduce volatility and stabilise prices and tackle escalating food inflation in Africa&#8217;s most populous nation.



Food inflation, which accounts for the bulk of Nigeria&#8217;s inflation basket, rose to 33.93% in December from 32.84% a month earlier, with higher prices across a broad range of items including bread, fish, meat, fruit and eggs.



Shettima said the government will revitalise food supply in the short-term through measures such as the distribution of fertiliser and grain to farmers and households, to counter the effect of removing a costly but popular fuel subsidy.



President Bola Tinubu last May embarked on Nigeria&#8217;s boldest reforms in decades by scrapping the fuel subsidy and devaluing the currency to try to revive economic growth.



But growth is yet to pick up while inflation has worsened.



Widespread kidnapping and banditry in farming areas has also pushed up food prices.



Shettima said the government will engage its &#8220;security architecture&#8221; to protect both farms and farmers, so they can return and work without fear of attack.



He added that concessionary funds will be granted to farmers while the government will drive irrigation to ensure year-round food production.



Nigeria scrapped marketing boards that guaranteed farmers minimum prices in the 1980s as part of reforms to end subsidies, promote exports and stabilise markets after prices rose on informal channels.



(Reporting by Felix Onuah; Writing by Chijioke Ohuocha; Editing by Kirsten Donovan)

People buy and sell vegetables at Mile 12 International Market in Lagos

Nigeria plans commodity board to regulate food prices as inflation soars

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="484" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/U7GSX2DBZNPOLFHLJ3TVW2S62E.jpg" alt="" class="wp-image-422637" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/U7GSX2DBZNPOLFHLJ3TVW2S62E.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/U7GSX2DBZNPOLFHLJ3TVW2S62E-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/U7GSX2DBZNPOLFHLJ3TVW2S62E-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">Ghana&#8217;s Finance Minister Ken Ofori-Atta speaks during a news conference in Accra, Ghana December 13, 2022. REUTERS/Cooper Inveen</figcaption></figure>



ACCRA, Feb 14 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s President Nana Akufo-Addo has replaced the finance minister in a cabinet reshuffle amid criticism of his handling of the country&#8217;s economic&nbsp;problems.



The move, announced on Wednesday by the president&#8217;s office, comes ahead of an election in December.



Outgoing finance minister Ken Ofori-Atta has been overseeing the government&#8217;s debt restructuring efforts as the West African country tries to emerge from its worst economic crisis in a generation.



Akufo-Addo&#8217;s office said Ofori-Atta would be replaced by Mohammed Amin Adam, currently the minister of state at the finance ministry.



Amin Adam previously served as the deputy energy minister responsible for the petroleum sector.



Akufo-Addo chose Ofori-Atta as his finance minister when he became head of state in 2017, pledging to create jobs, fight poverty and boost economic growth by cutting taxes and red tape.



Ofori-Atta has been heavily criticised by protesters and lawmakers from the opposition and his own party for his handling of&nbsp;Ghana&#8217;s&nbsp;economic woes.



(Reporting by Christian Akorlie and Maxwell Akalaare Adombila; Writing by Anait Miridzhanian and Nellie Peyton; Editing by Alexander Winning and Angus MacSwan)

Ghana’s Finance Minister Ken Ofori-Atta speaks during a news conference in Accra

Ghana president replaces finance minister in reshuffle

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="548" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SASCQ4QDRBPHVFIDDQZIJW3XRM-820x548.jpg" alt="" class="wp-image-455760" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SASCQ4QDRBPHVFIDDQZIJW3XRM-820x548.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SASCQ4QDRBPHVFIDDQZIJW3XRM-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SASCQ4QDRBPHVFIDDQZIJW3XRM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SASCQ4QDRBPHVFIDDQZIJW3XRM-768x514.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SASCQ4QDRBPHVFIDDQZIJW3XRM-1536x1027.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SASCQ4QDRBPHVFIDDQZIJW3XRM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: President of Senegal Macky Sall delivers a national statement at the World Climate Action Summit during the United Nations Climate Change Conference (COP28) in Dubai, United Arab Emirates, December 1, 2023. REUTERS/Amr Alfiky</figcaption></figure>



DAKAR, Feb 13 (Reuters) &#8211; Senegal&#8217;s communications ministry told mobile operators to suspend internet access on Tuesday, ahead of a planned silent march by activist groups, which was banned by authorities, over the abrupt postponement of a presidential election.



The announcement just weeks ahead of the planned Feb. 25 vote that it would be postponed, triggered violent clashes last week that resulted in the death of three young people and multiple arrests.



Parliament has voted to hold the election on Dec. 15.



The delay spurred opposition members&#8217; concerns as it extended President Macky Sall&#8217;s mandate in an unprecedented break with Senegal&#8217;s democratic tradition.



It was unclear whether the march would take place after authorities on Monday banned it, citing logistical concerns.



The civil society and religious groups that called the demonstration will hold a press conference later on Tuesday to announce next steps, spokesman Amadou Samb told Reuters.



The vote&#8217;s postponement dismayed many in Senegal, one of West Africa&#8217;s more stable democracies, in a region where military takeovers and constitutional manoeuvring have forced democracy into retreat in many countries in recent years.



In a statement, the ministry blamed hateful online messages for the deaths and material damage incurred during the recent demonstrations.



In the capital Dakar, police in riot gear on Friday fired tear gas, stun grenades and what appeared to be rubber bullets at protesters who were burning tyres and throwing stones, a Reuters reporter said.



Amnesty International and the U.N. human rights office called on the Senegalese government to investigate the killings and police brutality against protesters.



At least 266 people have been arrested across the country, including journalists, spokesperson for the U.N. High Commissioner for Human Rights Liz Throssell said.



West Africa&#8217;s regional bloc ECOWAS on Monday sent a parliamentary diplomatic mission to Senegal to discuss the political situation in the country.



(Reporting by Bate Felix, Alessandra Prentice, Emma Farge and Portia Crowe; Writing by Anait Miridzhanian; Editing by Bernadette Baum)

FILE PHOTO: Senegal President Macky Sall

Ahead of planned march over vote delay, Senegal suspends internet access

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/THZQRJPZIFI3JPNGWNL6YVEHR4-820x547.jpg" alt="" class="wp-image-455675" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/THZQRJPZIFI3JPNGWNL6YVEHR4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/THZQRJPZIFI3JPNGWNL6YVEHR4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/THZQRJPZIFI3JPNGWNL6YVEHR4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/THZQRJPZIFI3JPNGWNL6YVEHR4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/THZQRJPZIFI3JPNGWNL6YVEHR4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/THZQRJPZIFI3JPNGWNL6YVEHR4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Burkina Faso&#8217;s interim President Ibrahim Traore attends a meeting with Russia&#8217;s President Vladimir Putin following the Russia-Africa summit in Saint Petersburg, Russia, July 29, 2023. Alexander Ryumin/TASS Host Photo Agency via REUTERS/File Photo</figcaption></figure>



JOHANNESBURG/NIAMEY, Feb 13 (Reuters)&nbsp;&#8211;&nbsp;Days after Burkina Faso, Mali and Niger announced last month they were quitting the West Africa political union ECOWAS, Burkina Faso&#8217;s military ruler Ibrahim Traore was already naming his next target: the region&#8217;s CFA franc currency.



&#8220;It&#8217;s not just the currency. Anything that maintains us in slavery, we&#8217;ll break those bonds,&#8221; the 35-year-old army captain turned coup leader said in an interview, posted on YouTube.



The three countries jointly announced on Jan. 28 they were pulling out of the Economic Community of West African States (ECOWAS) after it pressured them to restore constitutional order following a string of coups.



Having already kicked out French soldiers and rolled back a U.N. mission in Mali, these states have consistently shown they value sovereignty over expediency.



Their attitude towards the euro-pegged CFA franc appears no different, although economists and experts say dumping the CFA franc would be riskier and significantly more complicated than withdrawing from ECOWAS, a move seen as a bold, if potentially ill-advised, act of defiance.



Last November, the finance ministers of Burkina Faso, Mali and Niger said they would weigh the option of setting up a monetary union and top officials from all three countries have, to varying degrees, voiced support for abandoning the currency.



The head of the Niger junta, Abdourahamane Tiani, said in an interview on state television on Sunday that abandoning the CFA franc would be a sign of sovereignty and a necessary step in moving away from French &#8220;colonisation&#8221;.



To do so, however, would mean much more than simply printing new banknotes.



A newly created central bank would need to manage a delicate transition away from the CFA franc, formulate monetary policy, and decide what to do about more than $4.6 billion in outstanding CFA-denominated regional bonds.



<h2 class="wp-block-heading" id="h-the-french-robbed-us">&#8216;THE FRENCH ROBBED US&#8217;</h2>



The CFA franc currencies &#8211; one West African and another for Central Africa &#8211; sit at the heart of an emotional debate over sovereignty and development in French-speaking Africa.



Proponents hail the CFA franc&#8217;s peg to the euro as a guarantee of macroeconomic stability in one of the world&#8217;s most volatile regions.



Critics denounce it as a brake on growth and an outdated vestige of French colonial rule: until a 2019 reform, countries were required to hold a portion of their foreign reserves with the French Treasury.



But never since its inception in 1945 has there been the prospect of such a mass exodus.



&#8220;The French have robbed us with the CFA franc. African countries must definitively break with this currency,&#8221; said Omar Issoufou, a 25-year-old Nigerien who is studying electrical engineering in the capital Niamey.



The military takeovers that have swept across the arid Sahel region were driven by anger over Islamist violence, which Mali&#8217;s U.N. mission and a sprawling French anti-militant operation had failed to snuff out.



Punishment for the putsches &#8211; the imposition of economic sanctions by ECOWAS, including freezing of some of Mali and Niger&#8217;s assets held by the regional central bank &#8211; fuelled tensions between the new regimes and the West African Economic and Monetary Union, known by its French acronym UEMOA.



&#8220;The moment UEMOA became a weapon of war &#8230; I can understand why these three countries moved to clearly free themselves from their engagements towards the Union,&#8221; Hamma Hamadou, a former head of Niger&#8217;s tax authority, told Reuters.



Beyond ideological issues of sovereignty and practical concerns related to sanctions, some view moving away from the CFA franc as an opportunity.



&#8220;The CFA franc has been very detrimental to these countries over the long run,&#8221; said Ndongo Samba Sylla of International Development Economics Associates, a network of economists focused on the Global South. &#8220;They have lower inflation and extra exchange rate stability, but they&#8217;ve suffered from an over-valued currency.&#8221;



All three countries have largely agricultural economies. But their inability to set monetary policy has left their exports uncompetitive, he said, and hindered industrial development.



The peg to the euro, meanwhile, makes little sense when the bulk of West Africa&#8217;s external trade is done in dollars, he added.



<h2 class="wp-block-heading" id="h-great-depression">&#8216;GREAT DEPRESSION&#8217;</h2>



Withdrawing from ECOWAS is already looking easier said than done. Disentangling their economies and finances from UEMOA will be even more delicate.



UEMOA&#8217;s eight members deposit their foreign exchange reserves with the Dakar-based regional central bank. Those reserves are mutualised as are liabilities, making a determination of how much each country would be able to walk away with a difficult calculation.



Then there&#8217;s the question of CFA-denominated debt. Burkina Faso has over 1.2 trillion CFA francs ($1.99 billion) in outstanding bonds. Mali has slightly over 1 trillion CFA francs, while it&#8217;s 498 billion CFA francs for Niger.



&#8220;We will enter into a zone of turbulence if these countries pull out,&#8221; said one financial expert involved in regional debt issuances, who asked not to be named due to market sensitivity.



There was no clarity, he said, on where the bonds would be listed, whether they would remain in CFA francs or even if the new currency would be convertible.



&#8220;There would be a lot of problems for the holders of these sovereign bonds,&#8221; he said.



The turmoil would likely leave the three states cut off from future financing from regional and international capital markets, experts said. Burkina Faso already called off a bond auction in the wake of its ECOWAS withdrawal announcement due to a lack of interest.



Uncertainty could provoke capital flight and an immediate depreciation of a new currency. Imports could become prohibitively expensive, fuelling run-away inflation.



&#8220;I think you&#8217;re taking 10% to 20% off your GDP,&#8221; said Charlie Robertson, head of macro strategy at London-based FIM Partners. &#8220;Leaving the single currency is bringing on the Great Depression,&#8221; he said, adding it would be the worst policy mistake the countries could make.



In light of these risks, the juntas are approaching the currency question more carefully than their ECOWAS withdrawal.



Two government officials from the countries told Reuters that the committee charged with studying a new monetary union, while still planned, had not yet met.



Prime Minister Choguel Maiga of Mali &#8211; the only one of the three to have ever issued its own currency &#8211; has urged patience.



When Mali exited UEMOA in 1962 in the wake of independence, its new currency was at parity with the CFA franc, but upon its return to the union in 1984 was worth only half as much.



To ensure lessons have been learned, Maiga says the committee needs time to assess all the implications before the country draws up plans for a new currency with its two neighbours.



&#8220;This is what I say to the Malians,&#8221; Maiga told business leaders last month. &#8220;Sure, you have this passion. You want it. But this is strategic.&#8221;



($1 = 604.0000 CFA francs)



(Reporting by Joe Bavier and Boureima Balima; Additional reporting by Loucoumane Coulibaly in Abidjan, Moussa Aksar in Niamey, Giulia Paravicini in Nairobi and Leigh Thomas in Paris; Editing by Susan Fenton)

FILE PHOTO: Russia’s President Putin and Burkina Faso’s interim President Traore meet in St Petersburg

For West African juntas, CFA franc pits sovereignty against expediency

<figure class="wp-block-image size-large"><img decoding="async" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/05/Herbert-Wigwe-Group-CEO-Access-Bank-Plc1-781x800.jpg" alt="" class="wp-image-417434"/></figure>



Feb 10 (Reuters)&nbsp;&#8211;&nbsp;Six people, including the group chief executive of one of Nigeria&#8217;s largest banks, were killed in a helicopter crash in Southern California on Friday, authorities and the banking group said.



Six people were on board the helicopter when it crashed around 10 p.m. Friday (0600 GMT Saturday) near Nipton, California, the U.S. Federal Aviation Administration said in a statement.



Access Holdings said its CEO&nbsp;Herbert&nbsp;Wigwe, his wife and son were among those who died in the crash.



&#8220;We extend our deep and sincere sympathies to his family and loved ones,&#8221; Access Holdings Chairman Abubakar Jimoh said in a statement on Sunday, adding that the company will soon appoint an acting CEO.



Local media reported that the Nigerian Exchange Group&#8217;s former Chairman Abimbola Ogunbanjo also died in the crash.



The San Bernardino County Sheriff’s Department said the scene of the crash was determined to be east of the 15-Freeway, near Halloran Springs Road, adding that no survivors had been located as of Saturday.



The FAA identified the helicopter as a Eurocopter EC 130 and said it would investigate along with the National Transportation Safety Board.



The helicopter was headed to Las Vegas when it crashed near a border city between Nevada and California, according to multiple reports.



(Reporting by Surbhi Misra, Jyoti Narayan in Bengaluru and MacDonald Dzirutwe in Lagos; Editing by Andrea Ricci and Sharon Singleton)

Herbert-Wigwe-Group-CEO-Access-Bank-Plc1

Nigeria’s Access Bank Group CEO among six dead in California helicopter crash

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LJZJUTAQVRMTHACAA5HPVNQF5I-820x573.jpg" alt="" class="wp-image-453236" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LJZJUTAQVRMTHACAA5HPVNQF5I-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LJZJUTAQVRMTHACAA5HPVNQF5I-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LJZJUTAQVRMTHACAA5HPVNQF5I-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LJZJUTAQVRMTHACAA5HPVNQF5I-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LJZJUTAQVRMTHACAA5HPVNQF5I-1536x1074.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LJZJUTAQVRMTHACAA5HPVNQF5I-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man counts Nigerian naira notes in a market place as people struggle with the economic hardship and cashflow problems ahead of Nigeria&#8217;s Presidential elections, in Yola, Nigeria, February 22, 2023. REUTERS/Esa Alexander/File Photo</figcaption></figure>



LAGOS, Feb 5 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s second currency devaluation in less than a year and new forex rules suggest the central bank is gearing up to let the naira float freely, but a huge backlog of orders for dollars and low liquidity may stall reform momentum, investors and analysts said.



Foreign investors in particular will need more convincing that Africa&#8217;s biggest economy is finally ditching the controls that have for long distorted its currency market, making the country of 200 million people less attractive to foreign capital.



The official naira exchange rate last week plunged to as low as 1,531 per dollar from 900, well below black market levels, after the market regulator changed its closing rate calculation methodology, in a de facto devaluation. The official rate had been drifting towards parallel market levels as forex shortages funnelled demand to unofficial sources.



Also last week, the Central Bank of Nigeria (CBN) announced limits on how much banks can hold in foreign currencies and eased rules on international money transfer operators, allowing them to quote the naira at prevailing market rates.



&#8220;You could call this a turning point,&#8221; said Kyle Chapman, FX markets analyst at London-based Ballinger &amp; Co.



&#8220;Now that there is no longer a more favourable (exchange) rate, the lack of incentives to take part in the official markets may turn into a tipping point that sees a true free float emerge if the central bank does not intervene,&#8221; Chapman added.



Nigeria is struggling with a record amount of government debt, high unemployment and power shortages that have contributed to years of anaemic economic growth. Oil output is shrinking, and rampant insecurity means swathes of the countryside are outside government control.



In his first days in office last year, President Bola Tinubu scrapped a costly fuel subsidy and lifted some forex controls.



But the reform drive appeared to lose steam as the naira continued to weaken without central bank intervention.



Andrew Matheny, senior economist with Goldman Sachs, said the latest devaluation made the naira look &#8220;cheap.&#8221;



&#8220;This makes foreign portfolio inflows potentially appear attractive, however only in the circumstance that other aspects of monetary policy come together,&#8221; said Matheny.



These include ending financing the budget deficit through central bank overdrafts, which increases the money supply and helped propel inflation to 28.92% in December, the highest level in nearly three decades.



<h2 class="wp-block-heading" id="h-forex-backlog">FOREX BACKLOG</h2>



Years of forex controls have created pent-up demand for dollars while the country struggles to raise its production of oil, its single largest export earner.



Foreign currency shortages have created a large backlog of unpaid dollar transactions, which the CBN last year put at nearly $7 billion.



On Monday, CBN governor Yemi Cardoso told broadcaster Arise TV that $2.2 billion remained outstanding and that $2.4 billion would not be honoured after an audit found irregularities.



Goldman put the backlog at $12 billion, which has kept foreign investors away due to worries they will not be able to take their money out.



&#8220;The economy is severely starved of dollars. The (forex)injections so far appear to have not made a dent,&#8221; said David Omojomolo, Africa economic at Capital Economics.



&#8220;The FX backlog to my knowledge is still large, and the pronouncements that it will be cleared &#8216;soon&#8217; made for months now appear to encourage speculation rather than stabilisation.&#8221;



The CBN will later this month hold its first monetary policy meeting since last July and it is under pressure to deliver a big hike in its benchmark interest rate from the current 18.75%.



&#8220;For us to take a more active position in the local currency market we would still need greater clarity on the direction&#8230; and exactly how they&#8217;re going to support the operations on the forex side with &#8230; the monetary policy side,&#8221; said Yvette Babb, a hard and local currency debt portfolio manager at William Blair.



The central bank&#8217;s one-year treasury bill, for example, was selling at 17% while the government&#8217;s bill sold at 11% as the government seeks to keep its borrowing costs low.



As long as big downside risks to local bond prices remain due to the unanchored nature of short-term yields with regard to the policy rate &#8211; reflected in the significant gap between the two &#8211; foreign investors will avoid local debt, said Gergely Urmossy, emerging markets strategist at Societe Generale.



&#8220;To restore the anchoring role of the policy rate, the CBN will have to deliver money market reforms,&#8221; Urmossy said.



(Reporting by MacDonald Dzirutwe in Lagos, Chijioke Ohuocha in Abuja, Rachel Savage in Johannesburg and Karin Strohecker in London; Editing by Hugh Lawson)

Nigeria’s latest devaluation may be ‘turning point’ in currency reform drive

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/MRZTA6S36JOK3F7VXZRUYJE4XE-820x615.jpg" alt="" class="wp-image-452045" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/MRZTA6S36JOK3F7VXZRUYJE4XE-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/MRZTA6S36JOK3F7VXZRUYJE4XE-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/MRZTA6S36JOK3F7VXZRUYJE4XE-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/MRZTA6S36JOK3F7VXZRUYJE4XE-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/MRZTA6S36JOK3F7VXZRUYJE4XE-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/MRZTA6S36JOK3F7VXZRUYJE4XE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: West African leaders gather for Economic Community of West African States (ECOWAS) Head of States and Government meeting in Abuja, Nigeria August 10, 2023. REUTERS/Abraham Achirga/File Photo</figcaption></figure>



DAKAR, Jan 31 (Reuters)&nbsp;&#8211;&nbsp;Mali&nbsp;said on Wednesday it was not planning to leave West Africa&#8217;s currency zone while Burkino Faso indicated it would do so after they and Niger announced their withdrawal from the region&#8217;s political bloc in protest.



In a blow to hard-fought regional integration, the three military-led nations, among the world&#8217;s poorest, are planning to quit the 15-member Economic Community of West African states (ECOWAS) after being criticised for their respective coups.



That has left uncertain their future in the eight-nation West African Economic and Monetary Union (UEMOA or WAEMU) which uses a common currency, the CFA franc, pegged to the euro.



Asked whether Mali planned to leave UEMOA, Foreign Minister Abdoulaye Diop told Reuters: &#8220;Mali is withdrawing from ECOWAS but remains a member of UEMOA.&#8221;



Speaking separately about their decision to leave ECOWAS, Burkina Faso&#8217;s military leader Ibrahim Traore said a departure from the monetary union was on the cards.



&#8220;This means that in some time you will tackle the currency, which is the CFA?&#8221; journalist Alain Foka asked Traore in a video posted on his YouTube channel. &#8220;Probably,&#8221; Traore replied.



Mali, Burkina Faso and Niger are all ruled by military officers who seized power in coups since 2020 and have resisted ECOWAS&#8217; and other outside pressure to restore democracy.



The three countries, battling insurgencies from militants linked to al Qaeda and Islamic State, have created a new pact known as the Alliance of Sahel States and declared their intention to strengthen political, economic and monetary union.



Critics of the CFA franc see it as a relic of French colonialism while proponents say it has provided financial stability in a turbulent region.



Moody&#8217;s ratings agency said economic growth was at risk.



&#8220;While not our baseline expectation, an exit from WAEMU would be much more detrimental to sovereigns leaving the monetary union because of the credit support that WAEMU membership provides in terms of macroeconomic stability and reduced external vulnerability,&#8221; it added.



The ECOWAS region&#8217;s trade and services flows are worth nearly $150 billion a year.



(Reporting by Giulia Paravicini and Bate Felix; Writing by Bhargav Acharya and Nellie Peyton; Editing by Tom Hogue and Andrew Cawthorne)

West Africa

Senegal election crisis shakes support for Macky Sall’s coalition

Nigeria hikes interest rates as unions protest economic hardship

Senegal seeks consensus on date for delayed presidential election

Nigeria outlaws street-trading by FX bureaus in new rules to stem naira slide

Africa’s largest economy is battling a currency crisis and a crumbling economy

Nigeria’s Q3 jobless rate rises to 5% as impact of reforms takes effect

Niger misses debt payment, default up to almost $520 million

Nigeria mulls state policing to combat growing insecurity

Ghana’s new finance minister pledges to keep IMF programme on track

Senegal ‘better positioned than some’ to navigate investor concern, says IMF

Nigeria plans commodity board to regulate food prices as inflation soars

Ghana president replaces finance minister in reshuffle

Ahead of planned march over vote delay, Senegal suspends internet access

For West African juntas, CFA franc pits sovereignty against expediency

Nigeria’s Access Bank Group CEO among six dead in California helicopter crash

Nigeria’s latest devaluation may be ‘turning point’ in currency reform drive

Burkina may quit West African currency union, but not Mali

News Tips

Advertise With Us

West Africa

Senegal election crisis shakes support for Macky Sall’s coalition

Nigeria hikes interest rates as unions protest economic hardship

Senegal seeks consensus on date for delayed presidential election

Nigeria outlaws street-trading by FX bureaus in new rules to stem naira slide

Africa’s largest economy is battling a currency crisis and a crumbling economy

Nigeria’s Q3 jobless rate rises to 5% as impact of reforms takes effect

Niger misses debt payment, default up to almost $520 million

Nigeria mulls state policing to combat growing insecurity

Ghana’s new finance minister pledges to keep IMF programme on track

Senegal ‘better positioned than some’ to navigate investor concern, says IMF

Nigeria plans commodity board to regulate food prices as inflation soars

Ghana president replaces finance minister in reshuffle

Ahead of planned march over vote delay, Senegal suspends internet access

For West African juntas, CFA franc pits sovereignty against expediency

Nigeria’s Access Bank Group CEO among six dead in California helicopter crash

Nigeria’s latest devaluation may be ‘turning point’ in currency reform drive

Burkina may quit West African currency union, but not Mali

News Tips

Advertise With Us

Newsletters