<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/106912016-1626438957428-gettyimages-1232945042-BC_CancelledMarch2021_5997-820x462.jpeg" alt="" class="wp-image-469883" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/106912016-1626438957428-gettyimages-1232945042-BC_CancelledMarch2021_5997-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/106912016-1626438957428-gettyimages-1232945042-BC_CancelledMarch2021_5997-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/106912016-1626438957428-gettyimages-1232945042-BC_CancelledMarch2021_5997-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/106912016-1626438957428-gettyimages-1232945042-BC_CancelledMarch2021_5997-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/106912016-1626438957428-gettyimages-1232945042-BC_CancelledMarch2021_5997.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The logo of cryptocurrency exchange Binance displayed on a smartphone with the word “cancelled” on a computer screen in the background. Budrul Chukrut | SOPA Images | LightRocket via Getty Images</figcaption></figure>



One of two Binance executives detained in Nigeria has escaped custody, while the Nigerian government has filed new tax evasion charges against the global cryptocurrency exchange.



Nigeria’s Federal Inland Revenue Service (FIRS) Monday announced that four new charges relating to tax evasion had been filed at the Federal High Court in Abuja, according to multiple local media reports.



Binance faces charges of alleged non-payment of Value-Added Tax (VAT) and company income tax, failure to submit tax returns and complicity in aiding customers to evade taxes through its platform, the reports said.



Alongside the company, two senior executives — U.S. citizen Tigran Gambaryan and British-Kenyan Nadeem Anjarwalla — were both charged and remanded in custody by Nigerian authorities.



Reports emerged over the weekend that Anjarwalla escaped on Friday from the Abuja guest house where the pair was detained.



“We were made aware that Nadeem is no longer in Nigerian custody. Our primary focus remains on the safety of our employees and we are working collaboratively with Nigerian authorities to quickly resolve this issue,” a Binance spokesperson told CNBC.



The families of the two employees declined to comment at this time, but issued statements on March 20, following a hearing at which Nigerian authorities extended their detainment.



Anjarwalla’s wife, Elahe Anjarwalla, said she was “completely heartbroken” that he would not be home in time to celebrate their son’s first birthday.



“Nadeem has no authority to make high level decisions at Binance and I am once again asking from the bottom of my heart that the Nigerian authorities please allow him and Tigran to return home whilst they continue their discussions with Binance. I am also calling on the British and Kenyan governments to do more to get Nadeem back home to us,” she said.



Gambaryan’s wife Yuki said she did not know what to tell their two children about their father’s absence.



“Tigran is globally recognized for his work in law enforcement and many of his peers would say that Tigran’s continuous efforts are what keep crypto currencies safe and clean,” she said.



“Please let him come home to continue this good work. The longer that our husbands are away from our families, the harder it is becoming for us to go about our daily lives.”



<h2 class="wp-block-heading" id="h-background"><a></a>Background</h2>



Gambaryan and Anjarwalla were taken into custody in Nigeria on Feb. 26, although neither was charged at the time with any crimes. The Abuja government accused their employer of wreaking havoc on the country’s local currency.



The Nigerian naira is one of the worst-performing currencies in the world and has lost nearly 70% of its value to the U.S. dollar over the past year. Locals have flocked to cryptocurrencies in recent years to shelter their savings from the plunging currency and a soaring inflation rate that hit nearly 30% two months ago.



But Binance’s troubles in Nigeria appear to be less about a crypto crackdown and more of an attack on what Abuja sees as a bad actor in the space.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107375463-1708428203684-gettyimages-2015599138-AFP_34JR9E8-1-820x461.jpeg" alt="" class="wp-image-469884" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107375463-1708428203684-gettyimages-2015599138-AFP_34JR9E8-1-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107375463-1708428203684-gettyimages-2015599138-AFP_34JR9E8-1-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107375463-1708428203684-gettyimages-2015599138-AFP_34JR9E8-1-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107375463-1708428203684-gettyimages-2015599138-AFP_34JR9E8-1-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107375463-1708428203684-gettyimages-2015599138-AFP_34JR9E8-1-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107375463-1708428203684-gettyimages-2015599138-AFP_34JR9E8-1.jpeg 1920w" 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>



Nigeria has expressed two chief concerns with Binance — the fact that the government doesn’t know where money goes or how it moves through the exchange, and that the exchange was allegedly facilitating speculation on the price of the naira through its peer-to-peer marketplace.



The government alleged that Binance was laundering money and that $26 billion worth of untraceable funds had moved through the exchange.



Authorities in Abuja have also contended that traders using this P2P platform to trade the local currency for U.S. dollar-pegged stablecoins, like tether, were colluding on the price to maximize the exchange value. Binance has since shut down its peer-to-peer trading platform in Nigeria.



This is not the first time that Abuja has taken issue with Binance. In July 2023, Nigeria’s Securities and Exchange Commission put out a circular warning people against doing business with the exchange, noting that “any investing public dealing with this entity” was doing so at a “high level of risk” that “may result in total loss of investments.”

106912016-1626438957428-gettyimages-1232945042-BC_CancelledMarch2021_5997

Binance executive escapes Nigerian custody as authorities file new tax charges

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="579" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/77N47G4UEZLRZAXJNMCNLPRFOU-820x579.jpg" alt="" class="wp-image-469825" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/77N47G4UEZLRZAXJNMCNLPRFOU-820x579.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/77N47G4UEZLRZAXJNMCNLPRFOU-300x212.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/77N47G4UEZLRZAXJNMCNLPRFOU-127x90.jpg 127w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/77N47G4UEZLRZAXJNMCNLPRFOU-768x542.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/77N47G4UEZLRZAXJNMCNLPRFOU-1536x1084.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/77N47G4UEZLRZAXJNMCNLPRFOU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Women queue for food parcels during distribution by volunteers of the Lagos food bank initiative in a community in Oworoshoki, Lagos, Nigeria July 10, 2021. REUTERS/Temilade Adelaja</figcaption></figure>



LAGOS, March 25 (Reuters)&nbsp;&#8211;&nbsp;At a warehouse in Nigeria&#8217;s commercial capital Lagos, dozens of women patiently wait their turn to receive food handouts. Among them is 68-year-old widow Damilola Salami, who received an invitation to the facility just as she had almost run out of food.



The Lagos Food Bank is a crucial lifeline to residents like Salami, but has seen supplies from private and other donors fall as inflation soars in Africa&#8217;s biggest economy.



Nigeria is grappling with the worst cost of living crisis in decades, which has deepened since President Bola Tinubu rolled out bold but unpopular economic reforms after assuming office last May.



&#8220;There is nothing for us to eat, we are hungry,&#8221; said Salami as she waited for her share of food and cooking oil. &#8220;Our children are out of school because of the increase in fees. Now, the children are at home and there is no food.&#8221;



Mabel Wade, an 80-year-old charcoal seller, said sustenance was scarce and she often relied on neighbours before she was told of the food bank.



&#8220;Sometimes there is no food to eat at all&#8230; Sometimes, it is biscuit and water,&#8221; she said, after registering for food stamps.



Last month a stampede broke out and killed seven people at a food distribution centre in Lagos.



World Bank data shows that 46% of Nigeria&#8217;s population was deemed poor in 2023. Twenty million of them live in urban areas.



In the past, the imposing warehouse of Lagos Food Bank would be fully stocked with bags of Nigerian staples like rice, beans and vegetable oil. Not anymore.



Founder Michael Sunbola said the facility&#8217;s major donor had cut supplies by 93%, citing the high cost of food.



The food bank has now dialled back on quantities, providing families with enough supplies for a few days at a time when once their parcels would have lasted two weeks. The facility is also having to &#8220;narrow down the number of people we want to reach out to&#8221;, said Sunbola of the people invited to use the service.



&#8220;Now, we do only women from the age of 50,&#8221; he told Reuters.



No Hunger Initiatives, a food bank serving mostly internally displaced people in the capital Abuja, faces similar problems.



The number of people seeking food handouts has tripled since May 2023 but the facility is unable to keep up because donors have cut back supplies by half due to rising inflation, said Kumdet Yilkon, a senior official.



(Editing by MacDonald Dzirutwe and Lucy Marks)

Women queue for food parcels during distribution by volunteers of the Lagos food bank initiative in a community in Oworoshoki, Lagos

Nigeria food banks cut back on handouts as prices soar

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="568" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/F6D7PI4SJVK4DG7HSVQSJ637XA-1-820x568.jpg" alt="" class="wp-image-469791" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/F6D7PI4SJVK4DG7HSVQSJ637XA-1-820x568.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/F6D7PI4SJVK4DG7HSVQSJ637XA-1-300x208.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/F6D7PI4SJVK4DG7HSVQSJ637XA-1-130x90.jpg 130w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/F6D7PI4SJVK4DG7HSVQSJ637XA-1-768x532.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/F6D7PI4SJVK4DG7HSVQSJ637XA-1-1536x1065.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/F6D7PI4SJVK4DG7HSVQSJ637XA-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man walks past an MTN logo outside the company&#8217;s headquarters in Johannesburg, South Africa, March 13, 2023. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, March 25 (Reuters)&nbsp;&#8211;&nbsp;Africa&#8217;s biggest telecoms operator MTN Group&nbsp;MTNJ.J&nbsp;on Monday reported a 72.3% tumble in full-year profit as a sharp devaluation in the Nigerian naira pushed its biggest unit MTN Nigeria&nbsp;MTNN.LG&nbsp;to a loss.



South Africa-headquartered MTN said its headline earnings per share &#8211; one of the main profit measures &#8211; fell to 315 cents for the year ended on Dec. 31, from a restated 1,137 cents a year earlier.



Nigeria&#8217;s central bank in June adopted new forex rules that MTN said had since led to an approximately 96.7% devaluation in the exchange rate to 907.1 naira per dollar by the end of December.



Adjusted headline earnings per share declined by 9.5% to 1,203 cents.



MTN, with 295 million customers in 19 African markets, declared a final divided of 330 cents per share and said its group service revenue grew by 6.9% to 210.1 billion rand ($11.09 billion).



($1 = 18.9519 rand)



(Reporting by Nqobile Dludla; Edting by Tom Hogue and Muralikumar Anantharaman)

FILE PHOTO: MTN downgrades medium-term margin target for South Africa on power outages

South Africa’s MTN annual profit slumps on Nigeria naira devaluation

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="538" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/2JI3RXOROJL6DPHC5F7JG6RGEE-820x538.jpg" alt="" class="wp-image-468299" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/2JI3RXOROJL6DPHC5F7JG6RGEE-820x538.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/2JI3RXOROJL6DPHC5F7JG6RGEE-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/2JI3RXOROJL6DPHC5F7JG6RGEE-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/2JI3RXOROJL6DPHC5F7JG6RGEE-768x503.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/2JI3RXOROJL6DPHC5F7JG6RGEE.jpg 1080w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A general view of Adabraka in Accra, Ghana, December 5, 2016. Picture taken December 5, 2016. REUTERS/Luc Gnago/File Photo</figcaption></figure>



ACCRA, March 20 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s economy grew 3.8% year-on-year in the fourth quarter, the statistics agency said on Wednesday, bringing full-year growth to 2.9% in 2023,&nbsp;as the country recovers from its worst economic crisis in a generation due to spiralling public debt.



The annual growth rate was higher than the 2.3% estimated by the International Monetary Fund in January, but was still significantly slower than 3.8% growth in 2022.



Annual growth was largely driven by services and agriculture, while the industry sector saw a small contraction.



After defaulting on much of its overseas debt in 2022, the government last year secured a $3 billion loan programme with the IMF, and in January reached a deal to restructure $5.4 billion of loans with its official creditors.



It is now pushing for a deal with holders of about $13 billion in international bonds.



&#8220;We will have to ask ourselves if we&#8217;ve exhausted the full potential impact of the IMF dispensation and if the 2.9% (GDP growth) is all we can get,&#8221; government statistician Samuel Kobina Annim&nbsp;said at a news briefing.



&#8220;If you compare the growth rate of 3.8% in 2022 to 2.9% in 2023, (we) need to ask ourselves questions,&#8221; he said.



However, he noted growth was improving on a quarterly basis, after having slowed to 2.0% in the third quarter of last year.



The woes in Ghana&#8217;s cocoa sector, the world&#8217;s second-largest, did not appear to have impacted overall growth yet. Ghana&#8217;s cocoa output for the 2023/24 season is expected to be almost 40% below target due to factors like strong winds, scant rain, smuggling and disease. Growth in the cocoa sub-sector contracted 1.1% in the last quarter of 2023.



(Reporting by Christian Akorlie and Maxwell Akalaare Adombila; Writing by Nellie Peyton; Editing by Bate Felix and Bernadette Baum)

2JI3RXOROJL6DPHC5F7JG6RGEE

Ghana economic growth improves in Q4, but slows to 2.9% in 2023

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/IOK76AEDEZC2XPP3KQR2YLGFMI-820x547.jpg" alt="" class="wp-image-466482" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/IOK76AEDEZC2XPP3KQR2YLGFMI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/IOK76AEDEZC2XPP3KQR2YLGFMI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/IOK76AEDEZC2XPP3KQR2YLGFMI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/IOK76AEDEZC2XPP3KQR2YLGFMI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/IOK76AEDEZC2XPP3KQR2YLGFMI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/IOK76AEDEZC2XPP3KQR2YLGFMI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">An AI (Artificial Intelligence) sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai, China July 6, 2023. REUTERS/Aly Song &#8211; RC2GX1AXMNDP</figcaption></figure>



LAGOS, March 15 (Reuters)&nbsp;&#8211;&nbsp;Visually-impaired Nigerian Kehinde Olutubosun is a geography and animal enthusiast who struggled to find information because he has no smartphone. But that is changing, thanks to an Artificial Intelligence-powered mobile phone that works offline.



The service, launched by Canada-based Viamo in Nigeria last month, allows anyone – even in the middle of nowhere without the internet &#8211; to access AI technology.



Viamo uses a traditional handset to tap into local mobile phone networks to send commands or requests for information through SMS or voice calls.



It works like other AI chatbots and can be used by illiterate persons since it can be prompted by voice. It is also cheaper.



&#8220;For people who are not that financially buoyant, they still have this opportunity to use even as little as 10 naira to ask lots of questions that will actually benefit them, I am so happy,&#8221; said Olutubosun.



Viamo said the device was targeted at the world&#8217;s poorest and remotest communities and is being expanded to Pakistan, India and Tanzania after being first launched in Zambia.



Viamo is supported by development agencies in the United States and the United Kingdom, among others. UNICEF has partnered with Viamo to provide information on HIV, tropical diseases, nutrition, water, sanitation and hygiene.



(Reporting by Seun Sanni in Lagos and Abraham Achirga in Abuja; Editing by Sharon Singleton)

An AI (Artificial Intelligence) sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai

No smartphone or internet? No problem; AI-backed phone has the answers

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="548" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/TP3J7GYZQFJPRMG5M7QAFSB3M4-820x548.jpg" alt="" class="wp-image-466201" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/TP3J7GYZQFJPRMG5M7QAFSB3M4-820x548.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/TP3J7GYZQFJPRMG5M7QAFSB3M4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/TP3J7GYZQFJPRMG5M7QAFSB3M4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/TP3J7GYZQFJPRMG5M7QAFSB3M4-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/TP3J7GYZQFJPRMG5M7QAFSB3M4-1536x1026.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/TP3J7GYZQFJPRMG5M7QAFSB3M4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, January 25, 2023. REUTERS/Gonzalo Fuentes</figcaption></figure>



JOHANNESBURG, March 14 (Reuters)&nbsp;&#8211;&nbsp;A&nbsp;major internet outage affected&nbsp;West and Central Africa&nbsp;on&nbsp;Thursday, the internet observatory Netblocks said,&nbsp;as&nbsp;operators of multiple subsea cables&nbsp;reported&nbsp;failures.



The cause of the cable failures was not immediately clear.



African subsea cable operator SEACOM confirmed that services on its West African Cable System were down and that customers who relied on that cable were redirected to the Google Equiano cable, which SEACOM uses.



&#8220;The redirection happens automatically when a route is impacted,&#8221; it said via email.



Ivory Coast was experiencing a severe outage, while Liberia, Benin, Ghana and Burkina Faso were seeing a high impact, Netblocks&#8217;s data showed.



Internet firm Cloudflare said&nbsp;in a post on the X social media platform&nbsp;that major internet disruptions were ongoing in Gambia, Guinea, Liberia, Ivory Coast, Ghana, Benin and Niger.



&#8220;There seems to be a pattern in the timing of the disruptions, impacting from the north to the south of Africa,&#8221; Cloudflare Radar said.



South African telecoms operator Vodacom&nbsp;VODJ.J&nbsp;also blamed connectivity issues on undersea cable failures&nbsp;that impacted&nbsp;the country&#8217;s network providers.



(Reporting by Anait Miridzhanian, Ngouda Dione and Nqobile Dludla; Editing by Hugh Lawson, Alex Richardson and Bernadette Baum)

A Microsoft logo is seen in Issy-les-Moulineaux near Paris

West, Central Africa see major internet outage with undersea cables down

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="523" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/SINVWFGWQBKE5P2HMXE3TSGHTE-820x523.jpg" alt="" class="wp-image-465766" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/SINVWFGWQBKE5P2HMXE3TSGHTE-820x523.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/SINVWFGWQBKE5P2HMXE3TSGHTE-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/SINVWFGWQBKE5P2HMXE3TSGHTE-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/SINVWFGWQBKE5P2HMXE3TSGHTE-768x490.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/SINVWFGWQBKE5P2HMXE3TSGHTE-1536x979.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/SINVWFGWQBKE5P2HMXE3TSGHTE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A supporter of Senegalese presidential candidate Anta Babacar holds posters as he waits for her electoral campaign caravan to arrive in Thiaroye on the outskirts of Dakar, Senegal March 10, 2024. REUTERS/ Zohra Bensemra</figcaption></figure>



March 13 (Reuters)&nbsp;&#8211;&nbsp;Senegal holds a delayed election on March 24 to elect a successor to President Macky Sall, who is stepping down after two terms.



Below are some of the main issues influencing voters.



<h2 class="wp-block-heading" id="h-lack-of-jobs">LACK OF JOBS</h2>



Successive administrations have struggled to curb youth unemployment &#8211; an increasingly urgent issue for its fast-growing population, more than 60% of whom are now under the age of 25.



The share of young Senegalese not in employment, education or training stood at 35% in 2019. Since then the economic fallout from the coronavirus pandemic has further squeezed the job market.



Frustration at the lack of opportunities has spurred support for opposition firebrand Ousmane Sonko, particularly among the young. He is not running, but has called for supporters to back Bassirou Diomaye Faye, who is seen as a strong contender.



<h2 class="wp-block-heading" id="h-cost-of-living">COST OF LIVING</h2>



External shocks including the pandemic, Russia&#8217;s war on Ukraine and the appreciation of the dollar have hit growth and helped drive up the cost of living &#8211;&nbsp;a major concern in a country where around a third of the population of 17 million live in poverty, World Bank data shows.



Inflation has been declining slower than expected from a peak of 14% in late 2022, partly due to food price rises, according to the International Monetary Fund. India&#8217;s rice export restrictions have been especially painful for Senegal, where rice is the main staple.



These economic hardships have undermined support for the current authorities despite subsidies for poor families.&nbsp;Nearly three-quarters of Senegalese judged the government to be mishandling the economy, according to a 2023 poll by Afrobarometer.



The same poll showed that the number of people who believed the economic situation to be bad had risen to 62% in 2022 from 33% in 2017.



<h2 class="wp-block-heading" id="h-migration">MIGRATION</h2>



Many voters hope that whoever of the 19 candidates wins the presidency will make it easier to find work and earn a living in Senegal, curbing the flow of Senegalese risking their lives in the quest for better prospects abroad.



Migration from West Africa to Europe via the dangerous Atlantic route more than doubled in 2023 from 2022 with more than 39,900 people reaching Spain&#8217;s Canary Islands &#8211; mostly from Senegal and neighbouring Gambia, according to Spanish interior ministry data.



There is no reliable data on the number of people who don&#8217;t survive the perilous passage by wooden boat on the open ocean.



&#8220;The youth are not working and have nothing. The consequence is that they will die at sea,&#8221; said student Oumy Tall at a campaign rally of opposition candidate Anta Babacar, who has promised to create more jobs.



<h2 class="wp-block-heading" id="h-oil-boom">OIL BOOM</h2>



The launch of oil and gas production later in 2024 is set to boost the economy, raising questions about whether the natural resource wealth will benefit the wider population and create jobs.



Candidates&#8217; campaigns have targeted this concern. The Sonko-backed opposition coalition has promised to renegotiate energy contracts to maximise revenues, while Amadou Ba of the ruling Benno Bokk Yakaar (BBY) coalition is running on the slogan &#8220;Prosperity Shared&#8221;.



<h2 class="wp-block-heading" id="h-thwarted-postponement">THWARTED POSTPONEMENT</h2>



Recent political turmoil linked to the authorities&#8217; unsuccessful bid to postpone the vote by 10 months may have further undermined support for the ruling BBY coalition.



The move provoked widespread protests and revived fears Sall wanted to tweak the constitution to extend his mandate. He denies this.



There are no official public election polls, but of those who voted for Sall in the last election, only 60% are believed to be planning to vote for BBY&#8217;s candidate this time, according to internal government polling.



(Reporting by Alessandra Prentice; Additional reporting by Ngouda Dione; Editing by Bate Felix and Nick Macfie)

Senegal kicks off short election campaign after poll delays

Key issues shaping Senegal’s presidential vote

<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/ATJS62K74VJT5CFRC7KPK6PTRI-820x539.jpg" alt="" class="wp-image-465004" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ATJS62K74VJT5CFRC7KPK6PTRI-820x539.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ATJS62K74VJT5CFRC7KPK6PTRI-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ATJS62K74VJT5CFRC7KPK6PTRI-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ATJS62K74VJT5CFRC7KPK6PTRI-768x505.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ATJS62K74VJT5CFRC7KPK6PTRI-1536x1011.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/ATJS62K74VJT5CFRC7KPK6PTRI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Farouk Dalhatu, a tomatoes seller attends to buyer in a community market of Agodo in Lagos, Nigeria March 6, 2024. REUTERS/Seun Sanni/file photo</figcaption></figure>



ABUJA, March 11 Reuters)&nbsp;&#8211;&nbsp;Blessing Joseph has been weaving bags, sandals and jewellery earning enough money to feed her son and send him to school. But since November, she has fallen on hard times as customers have stopped coming and she and her son routinely go to bed hungry.



She is among millions in Africa&#8217;s largest economy, grappling with the worst cost of living crisis in decades, that has deepened since President Bola Tinubu introduced bold but unpopular economic reforms after he assumed office last May.



Last year, Joseph could easily make 30,000 naira ($18.83) a week but now she will be lucky to get 5,000 naira, she said.



&#8220;People used to place orders. I&#8217;ll design for them, sometimes even (for) weddings I&#8217;ll make souvenirs for them, but now those orders are not coming,&#8221; said the 29-year-old Abuja resident.



&#8220;It has been very, very difficult, especially that I have a son and he needs to go to school, he needs to eat.&#8221;



Tinubu inherited an economy that was already struggling with record debt, high unemployment, low oil output, subsidies that drained government finances and power shortages that have crimped growth.



Nigeria imports food and fuel and was buffeted by high global prices due to the Russia-Ukraine war, just as it had exited a COVID-19 induced recession in 2020.



Tinubu, who campaigned on a &#8220;Renewed Hope&#8221; slogan, removed a costly petrol subsidy and foreign currency controls, in an effort to improve government finances, restore credibility with investors and kick-start the economy.



But inflation has soared to its highest in three decades and the naira currency is slumping to record lows, pressured by acute dollar shortages. Prices of food, cooking gas, medicines, fuel, and public transport have shot up, squeezing household budgets.



&#8220;With about 8 percent of Nigerians deemed food insecure, addressing rising food insecurity is the immediate policy priority,&#8221; the International Monetary Fund said on March 4. after a staff visit.



Nigeria&#8217;s problems have also rippled through company boardrooms.



Foreign companies like Procter &amp; Gamble will stop manufacturing in Nigeria, while drug makers GSK Plc and Bayer AG will contract third parties to distribute their products, in part due to tough operating conditions and the naira slump.



Africa&#8217;s biggest telecoms operator MTN GroupMTNJ.J posted a big fall in full-year profit citing naira devaluation, which also prompted soap maker PZ Cussons PlcPZC.L to issue a profit warning.



<h2 class="wp-block-heading" id="h-food-price-surge">FOOD PRICE SURGE</h2>



At Agodo market in Lagos, tomato seller Farouk Dalhatu has just served his first customer in eight hours. The market is unusually quiet for the time of day when there is often a cacophonous din of traders and customers haggling over prices.



A basket of tomatoes now costs 55,000 naira &#8211; about double the national minimum wage &#8211; up from 12,000 naira in December. That has forced many of Dalhatu&#8217;s friends to quit the business.



&#8220;They are just trying to find what they can eat now and not do the tomatoes business,&#8221; he said, pointing to several empty stalls.



Escalating food prices are the major driver of inflation.



Widespread insecurity in food growing areas &#8211; including abduction for ransom by armed gangs, a long-running Islamist insurgency and farmer-herder clashes &#8211; is adding to the woes by keeping many farmers away from their fields.



&#8220;We have an emergency on our hands in terms of the social consequences of this reform, in terms of this food insecurity,&#8221; said Muda Yusuf, CEO at business advocacy firm Promotion of Private Enterprise, referring to the currency and fuel subsidy reforms.



Labour unions led some protests last month and have threatened to shut down the country to demand a tenfold rise in the minimum wage.



In response, the government on Thursday started national consultations on a new monthly minimum wage, which has been pegged at 30,000 naira since 2019.



A presidency spokesman declined to comment, but Tinubu&#8217;s administration has announced handouts of cash, grains, fertiliser and seed to vulnerable groups.



Unions say this is not enough and that focus should be on &#8220;substantive issues&#8221; that have been under discussion with the government since June 2023.



&#8220;These include critical matters such as wage increases, social welfare programs, infrastructure development, and the revitalisation of key sectors such as education and healthcare,&#8221; the Nigeria Labour Congress said in a statement.



For Joseph in Abuja, a thriving business and providing for her son is all she wants.



&#8220;I am just thinking about what he will eat if he comes back (from school),&#8221; she said while shuffling through empty pots.



($1 = 1,593.3400 naira)



(Reorting by Abraham Achirga in Abuja, Angela Ukomadu, Seun Sanni and MacDonald Dzirutwe in Lagos, Graphics by Libby George, Editing by Jane Merriman)

FILE PHOTO: An aerial view shows traffic and houses in Libreville

Hard times in Nigeria as reforms deepen cost of living crisis

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WJJQC2DZSRPNJLG46HWROZZG7M-820x547.jpg" alt="" class="wp-image-463604" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WJJQC2DZSRPNJLG46HWROZZG7M-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WJJQC2DZSRPNJLG46HWROZZG7M-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WJJQC2DZSRPNJLG46HWROZZG7M-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WJJQC2DZSRPNJLG46HWROZZG7M-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WJJQC2DZSRPNJLG46HWROZZG7M-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WJJQC2DZSRPNJLG46HWROZZG7M-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Senegal&#8217;s President Macky Sall in Brussels, Belgium October 25, 2023. REUTERS/Johanna Geron/File Photo</figcaption></figure>



DAKAR, March 6 (Reuters)&nbsp;&#8211;&nbsp;Senegalese President Macky Sall has scheduled a delayed presidential election for March 24, the government said on Wednesday after a top court ruled that a proposal to hold the vote after his mandate expires on April 2 was unconstitutional.



The announcement caps a dramatic evening that saw Sall dissolve the government and replace Prime Minister Amadou Ba with Interior Minister Sidiki Kaba so that Ba, the ruling coalition&#8217;s presidential candidate, can focus on his electoral campaign, the presidency said.



Earlier the Constitutional Council ruled that a proposal from a national dialogue commission for the vote to be held on June 2 was not in line with the constitution.



&#8220;The President of the Republic informed the Council of Ministers that the date of the presidential election had been set for Sunday 24 March,&#8221; the council of ministers said soon after in a statement.



The decision is the latest twist in a month-old electoral crisis that has sparked violent unrest and warnings from Senegal&#8217;s international allies that its reputation as one of coup-hit West Africa&#8217;s more stable democracies is under threat.



The&nbsp;new date was welcomed by opposition presidential candidate Anta Babacar, who was among the majority of the 19 contenders in the race who were pushing for the vote to be held as soon as possible.



&#8220;I think this is very good news. This is the reason why we were fighting for these past weeks and days, because we knew that it was actually possible to hold these elections before April 2,&#8221; she told Reuters.



The turmoil originates in a thwarted bid by the authorities&nbsp;in early February&nbsp;to postpone the Feb. 25 poll to December. Sall cited concerns about electoral disputes for the move, but some of the opposition said it amounted to an attempted institutional coup.



Wednesday evening also saw parliament approve an amnesty law proposed by Sall in a bid to ease tensions&nbsp;as he navigates&nbsp;the&nbsp;standoff with the opposition.



The law could grant amnesty to hundreds of protesters and opposition members accused of crimes relating to anti-government protests in the last three years, but it would also likely let security forces off the hook for excessive and sometimes deadly use of force against protesters, Human Rights Watch (HRW) warned on Tuesday.



At least 40 people have been killed during violent clashes since March 2021 with no accountability, according to HRW.



Much of the political unrest was triggered by concerns that Sall was trying to muzzle his opponents and hold onto power past the end of his mandate, which he has denied.



A fresh round of protests broke out last month after he announced the plan to postpone the vote.



(Additional reporting by Portia Crowe, Sofia Christensen, Ngouda Dione; Writing by Sofia Christensen and Alessandra Prentice, Editing by William Maclean and Diane Craft)

FILE PHOTO: Senegal’s President Macky Sall

Senegal schedules presidential election for March 24

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/GettyImages-1840408269-820x547.jpg" alt="" class="wp-image-463361" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/GettyImages-1840408269-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/GettyImages-1840408269-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/GettyImages-1840408269-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/GettyImages-1840408269-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/GettyImages-1840408269-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/GettyImages-1840408269-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The Central Bank of West African States (BCEAO) headquarters in Dakar, Senegal, on Saturday, Nov. 25, 2023. West Africa&#8217;s growth slowed to 3.7% this year from 3.9% in 2022 due to the global economy and higher inflation, the Economic Community of West African States said. Photographer: Damian Lemaski/Bloomberg via Getty Images</figcaption></figure>



DAKAR, March 6 (Reuters)&nbsp;&#8211;&nbsp;West Africa&#8217;s&nbsp;regional central&nbsp;bank kept its main lending rate unchanged at 3.5% in a decision announced on Wednesday.



&#8220;This decision &#8230; takes into account the reduction in inflationary pressures and the improvement of the union&#8217;s external accounts,&#8221; the bank said in a statement following a Monetary Policy Committee meeting in Dakar.



The Central Bank of West African States (the BCEAO) covers Benin, Burkina Faso, Ivory Coast, Guinea-Bissau, Mali, Niger, Senegal and Togo.



This is a developing story&#8230;



(Reporting by Diadie Ba; Writing by Nellie Peyton; Editing by Alexander Winning)

Senegalese Economy as West African Bloc Sees Growth Slowdown

West Africa central bank leaves main lending rate at 3.5%

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="536" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/TWPFC2BD5BP3RMHTKU7RSFBWQM-820x536.jpg" alt="" class="wp-image-463006" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/TWPFC2BD5BP3RMHTKU7RSFBWQM-820x536.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/TWPFC2BD5BP3RMHTKU7RSFBWQM-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/TWPFC2BD5BP3RMHTKU7RSFBWQM-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/TWPFC2BD5BP3RMHTKU7RSFBWQM-768x502.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/TWPFC2BD5BP3RMHTKU7RSFBWQM-1536x1003.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/TWPFC2BD5BP3RMHTKU7RSFBWQM.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Binance logo is seen in this illustration taken March 31, 2023. REUTERS/Dado Ruvic/Illustration/File Photo </figcaption></figure>



Binance on Tuesday announced that it will discontinue all Nigerian naira services, amid an ongoing legal dispute between the U.S. cryptocurrency firm remains and Africa’s most populous country.



In an update posted on its website, Binance said that, starting this Friday, any remaining naira balances in user accounts will be automatically converted to Tether, a cryptocurrency stablecoin pegged to the U.S. dollar.



The company will not support any deposits of Naira after 2 p.m. UTC on Tuesday and will no longer support withdrawals of the currency after 6 a.m. UTC on Friday, the announcement said.



Nigeria is also one of the world’s biggest crypto markets, but the Nigerian government has demanded almost $10 billion in compensation from Binance, which it accuses of manipulating foreign exchange rates via currency speculation and rate fixing, and arrested two of the firm’s senior executives last week, according to multiple media reports.



The Nigerian naira has lost almost 70% of its value over the past few months, as Africa’s largest economy faces a currency crisis and soaring inflation.

TWPFC2BD5BP3RMHTKU7RSFBWQM

Binance to discontinue Nigerian currency services as legal squabble deepens

<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)

West Africa

Binance executive escapes Nigerian custody as authorities file new tax charges

Nigeria food banks cut back on handouts as prices soar

South Africa’s MTN annual profit slumps on Nigeria naira devaluation

Ghana economic growth improves in Q4, but slows to 2.9% in 2023

No smartphone or internet? No problem; AI-backed phone has the answers

West, Central Africa see major internet outage with undersea cables down

Key issues shaping Senegal’s presidential vote

Hard times in Nigeria as reforms deepen cost of living crisis

Senegal schedules presidential election for March 24

West Africa central bank leaves main lending rate at 3.5%

Binance to discontinue Nigerian currency services as legal squabble deepens

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

News Tips

Advertise With Us

West Africa

Binance executive escapes Nigerian custody as authorities file new tax charges

Nigeria food banks cut back on handouts as prices soar

South Africa’s MTN annual profit slumps on Nigeria naira devaluation

Ghana economic growth improves in Q4, but slows to 2.9% in 2023

No smartphone or internet? No problem; AI-backed phone has the answers

West, Central Africa see major internet outage with undersea cables down

Key issues shaping Senegal’s presidential vote

Hard times in Nigeria as reforms deepen cost of living crisis

Senegal schedules presidential election for March 24

West Africa central bank leaves main lending rate at 3.5%

Binance to discontinue Nigerian currency services as legal squabble deepens

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

News Tips

Advertise With Us

Newsletters