Nigeria’s economy resilient despite hard reforms –Report

Cape Economic Research and Consulting, an economic think-tank group, has projected that Nigeria’s economic outlook for the third quarter of 2023 maintains its resilience, albeit with a moderated tone, driven by substantial policy reforms. In its Economic Newsletter for August, which was shared with NIGERIAN ANCHOR on Saturday, the think-tank emphasized that the effects of subsidy removal and the recent exchange rate policy adjustment are gradually permeating the economy, resulting in elevated inflationary pressures and anticipated dampening of aggregate demand. The report underscores the lasting impact of subsidy removal and exchange rate unification until households and businesses fully adapt to the new economic landscape. The implementation of essential support measures is anticipated to bolster the economy’s resilience. Consequently, the report predicts that output growth will remain positive during the third quarter of 2023. CAPE observed that the heightened cost of production, fueled by significant increases in input costs, including wages, has led to a slowdown in production. As the government prepares to roll out relief measures to mitigate the repercussions of recent policies on the economically disadvantaged, aggregate demand and output are projected to respond favorably. The report anticipates a further increase in inflation for August 2023. Projections indicate that headline food and core inflation could rise to 23.51%, 26.41%, and 21.34% respectively. The main drivers of this forecast are food prices, exchange rates, and short-term assets, contributing 5.94%, 1.96%, and 0.44% respectively. CAPE also highlights the macroeconomic implications of persistent negative interest rates, including low savings and investment, the emergence of parallel markets with higher interest rates, inefficient resource allocation, and suboptimal investment efficiency. Additionally, these rates constrain the government’s capacity to raise resources through bond issuance. The newsletter sheds light on the tightening stance adopted by numerous central banks in both advanced and emerging economies throughout 2022 and the first half of 2023. While this approach has led to price moderation in some economies, core inflation remains relatively persistent. However, these measures have brought about output moderation and financial stability, accompanied by an elevated risk of potential financial crises.

Nigerian Survivor Recounts Harrowing Ordeal In The Hands Of Kidnappers

In a harrowing account, Mrs. Mercy Williams, a survivor of a traumatic kidnapping, recounts her terrifying ordeal and the miraculous reunion with her husband. On January 29, 2022, Mercy was abducted by armed assailants while traveling from Kaduna to Abuja, along the Kaduna highway. She endured captivity until her release on February 4, 2022. Describing the ordeal to reporters in Abuja, Mercy detailed how the gunmen intercepted their vehicle in a manner reminiscent of a military operation, signaling the driver to halt. As soon as she noticed the hooded and concealed faces of the assailants, she recognized them as kidnappers, instilling fear within her. In her desperation, she began to pray and thought of her beloved husband. Mercy narrated her experience, saying, “We were en route to Abuja from Kaduna, having just passed a village near a police checkpoint, which I couldn’t identify. Suddenly, armed men overtook our bus, instructing our driver to stop. They commenced firing erratically, leaving all of us in a state of dread, fervently praying for our lives.” Continuing, she revealed, “Ultimately, our terrified driver complied, and we were directed to disembark and lie flat on the ground. Initially, I feared they might harm us or that they were extremists seeking Christians to target, a common occurrence in the region.” Mercy continued to explain how the kidnappers robbed them of their possessions and separated the men from the women, binding the men together. She was among four women, all younger than her. Subsequently, the kidnappers blindfolded them and led them into a dark, ominous forest, more than an hour’s walk from the initial abduction site. Within the eerie darkness, Mercy discerned five huts and shadowy figures moving about. The kidnappers intermittently employed flashlights, heightening the atmosphere of dread. Mercy recalled whispers from the kidnappers and the sobs of her fellow women. She prayed ceaselessly as they ventured deeper into the forest. “It was pitch black, but I could discern about five huts and silhouettes of individuals moving in the darkness,” Mercy said. “They exclusively used flashlights, switching them off at intervals. Upon arrival, an elderly woman approached us, assuring us that we would be safe, only if we cooperated.” Mercy proceeded to recount the dreadful days that ensued, marked by fear, violence, and uncertainty as four people were killed in her presence. The hut where they were held captive was gloomy and foul-smelling, with the constant sound of nearby gunshots signifying grim fates for some captives. After enduring days of torment, Mercy received word that her husband had been contacted by the kidnappers and was cooperating. This provided her with a glimmer of hope. However, on the fourth day, she was disguised as a man, her face concealed, and she was warned not to speak. Ultimately, Mercy embarked on a perilous journey through the forest until she was dropped off at an unknown location by the kidnappers and she found her way to Abuja through the help of a good Samaritan whom she narrated her ordeal to. Mercy expressed gratitude for surviving the ordeal and reuniting with her husband, disclosing that he had paid a ransom of ten million Naira for her release. In his account of the ordeal, her husband, Mr. Williams, revealed the shock he experienced when one of the kidnappers called, threatening to harm his wife unless he cooperated. Williams recounted, “The caller was unequivocal, ‘We will harm your wife if you don’t cooperate or involve the police. We’ll be in touch, but to ensure her safety, provide us with N10 million within three hours.’” “Following the call, I was distraught and unsure of what to do. I wept, prayed, and implored divine intervention, fearing for my wife’s life. I then mustered the strength to gather the money. “They didn’t contact me as promised that day; I repeatedly called, but the number remained disconnected. I must have called it more than 300 times. I couldn’t sleep or eat that entire day. Worse, I couldn’t ascertain my wife’s condition or inform anyone. “Finally, on the third day, they called to tell me that my wife would be dropped off as my ransom has been received but I dare not call the police or I will only receive her corpse.” Williams expressed immense gratitude for his wife’s safety and return, reflecting on the terrifying incident. “I trembled throughout, fearing the worst but I thank God. It’s unfortunate that Nigeria has devolved into a place where kidnapping thrives, impeding citizens’ freedom of movement and premature deaths,” he concluded. Regarding reporting the incident to the police, Williams stated that he was primarily relieved to see his wife alive but noted that the location of his wife’s kidnapping was in close proximity to a police checkpoint. This astonishing narrative underscores the resilience and determination to overcome adversity, even in the face of overwhelming fear and peril.