The federal government may have lifted the ban on importation of vehicles through the land borders, it has been revealed.

The development is projected to revitalise economic activities within the corridor.

It would be recalled that the last administration closed land borders between Nigeria and Cotonou, Benin Republic, and subsequently banned importation of vehicles through that axis.

Director of Road Transport in the Ministry of Transportation, Ibrahim Musa, yesterday, however, disclosed that the federal government has approved the re-opening of the Seme border for the importation of vehicles.

He disclosed this at the Economic Community of West African States (ECOWAS) meeting, organised between officials of Nigeria and Benin.

Musa said the development followed complaints by freight forwarders operating at the border.

The director, who spoke at the ECOWAS Monitoring Team’s visit to the Seme-Krake Joint Border Post, said, “I was here with the former minister of state for transportation when the freight forwarders pleaded that the border should be reactivated for the free movement of goods and services.

 “The former minister made us prepare a memo to that effect. It was considered and sent to the government.”

Also speaking, Customs Area Controller of Seme Border Command, Dera Nnadi, said the service had noticed a reduction in its revenue since the importation of vehicles was banned from the land borders.

Daily Trust

WESTERN PERSPECTIVE

Ukraine, US agree: counteroffensive creeps ahead, measured in blood

Ukraine has been publicly cautious in counting gains in a counteroffensive it launched this month to reclaim territory occupied by Russian forces, and on Friday its president and a U.S. general acknowledged that progress is measured in blood.

The top U.S. military officer, Army General Mark Milley, told an audience at the National Press Club in Washington that the counteroffensive was "advancing steadily, deliberately working its way through very difficult minefields ... 500 meters a day, 1,000 meters a day, 2,000 meters a day, that kind of thing."

He said he was unsurprised progress was slower than some people and computers might have predicted.

"War on paper and real war are different. In real war, real people die. Real people are on those front lines and real people are in those vehicles. Real bodies are being shredded by high explosives."

He added, "What I had said was this is going to take six, eight, 10 weeks, it's going to be very difficult. It's going to be very long, and it's going to be very, very bloody. And no one should have any illusions about any of that."

Last week, Ukrainian President Volodymyr Zelenskiy said the counteroffensive was "slower than desired", without getting too specific. Ukraine says it has recaptured a cluster of villages in operations that liberated 130 square km (50 square miles) in the south, but this is a small percentage of the total territory held by Russia.

On Friday, Zelenskiy said his forces advanced "in all directions of our active operations," while Hanna Maliar, deputy defense minister, said the military assessed progress as "going according to plan," and that the counteroffensive should be evaluated by "a lot of different military tasks."

Reuters was unable to verify the situation on the battlefield. Russia, which began its full-scale invasion of its neighbor in February 2022 has not acknowledged the Ukrainian gains and has said Ukraine's forces are suffering heavy casualties.

SLOWING DOWN TO SAVE LIVES

Zelenskiy was quoted as saying Ukraine wanted to show results before a July 11 NATO gathering in Lithuania, at which Kyiv is hoping for an invitation to begin the process of joining the U.S.-led military alliance - but not at any cost.

"Before the summit we have to show results," Spanish national broadcaster RTVE quoted him as telling Spanish media in Kyiv, based on a translation of his remarks. "But every kilometer costs lives."

Zelenskiy acknowledged plans for the counteroffensive had slowed in recent months. "We stopped because we could not advance," he said. "Advancing meant losing people and we had no artillery."

RTVE of Spain quoted him as saying Ukraine was "very cautious in this regard" and that he would choose to take longer if it meant losing fewer people. "Between time and human beings, people are the most important," RTVE quoted him as saying.

Zelenskiy was speaking on a day when he ordered top military commanders to strengthen the northern military sector following the arrival of Russian mercenary leader Yevgeny Prigozhin in Belarus, under a deal negotiated by President Alexander Lukashenko that ended his mercenaries' mutiny in Russia.

Prigozhin's Wagner Group could set up a new base at a vacant military base near the town of Asipovichi, about 90 km (50 miles) from the Belarusian capital, Minsk, Russian media reported.

After pushing Russian forces out of northern regions last year, Ukraine took steps to tighten the defense of its border with Belarus, a close ally of Russia.

Zelenskiy said the situation in other frontline areas, supplies of artillery and shells, and advances by Ukrainian troops against Russian forces were discussed at a meeting with military commanders on Friday.

"Ukraine is fighting for their life," Milley said in Washington. "We are giving them as much help as humanly possible. But at the end of the day, Ukrainian soldiers are assaulting through minefields and into trenches" against Russia's much larger army.

** Donetsk region school suffers direct hit, two dead, say Ukraine police

A Russian missile attack on Friday on a village school near the frontline in Ukraine's eastern Donetsk region killed two women, including a teacher, and injured six, Ukrainian police said.

The 56-year-old primary school teacher and a chief accountant, 44, died in the strike on the village of Serhiivka, Ukrainian police said. Twelve employees were the building's only occupants, the prosecutor's office said. Ukrainian schools were not in session for students on Friday.

"Russian troops, in a direct hit, destroyed a school where civilians were located," Ukraine's national police said in a statement.

The Donetsk region prosecutor's office said four men aged 54 to 69 and two women aged 24 and 34 were injured and taken to hospital, and that it had launched an investigation into the attack.

Reuters was unable immediately to verify details of the attack.

Police shared a video showing a motionless, bloodied person being lifted into an ambulance, and a woman being extracted from extensive ruins.

Groups of men, some in civilian clothing, others emergency workers in helmets, and uniformed police, walked atop the ruins, searching for survivors. Two men carefully laid a piece of green army fabric over a body.

The police said paramedics helped rescue two women from the rubble and that occupying Russian forces were responsible for the attack, which was preliminarily assessed to have been caused by an Iskander missile.

RUSSIAN PERSPECTIVE

Study reveals extent of Western aid to Kiev

Ukraine received more than $170 billion in military, financial, and humanitarian assistance between January 2022 and February 2023, according to a fresh study published this month by a German economic research center.

The data from the Kiel Institute for the World Economy (IfW) covers aid provided by Ukraine’s 41 largest donors, which mostly consist of the US and its Western allies.

Washington unsurprisingly emerged as Kiev’s largest single donor, with its total aid accounting for more than 45% of all assistance provided to Ukraine over that period. Roughly 60% of that money was spent on weapons, the data shows.

The UK’s military assistance to Kiev accounted for 67% of London’s total aid to Ukraine over that period. Most money Warsaw and Amsterdam allocated for Ukraine was also spent on arms, the research indicated.

The EU’s support, including both the aid provided by Brussels and bilateral assistance provided by the bloc’s members, amounted to almost 40% of the total aid for Ukraine over the same period.

The US was also the biggest military aid provider for Ukraine, spending a total of $47.16 billion on arms for Kiev’s troops, leaving all other nations far behind. The UK became the second largest contributor by spending $7.1 billion on weapons for the Ukrainian forces.

According to the IfW, both the US and the UK were not the most transparent assistance providers, when it comes to aiding Kiev. London and Washington took the 17th and 18th places out of 41 respectively in the list of most transparent donors compiled by the German research center. The first two places on this list were occupied by Switzerland and Germany respectively.

Some of Kiev’s Western backers shouldered additional costs due to the need to accommodate refugees coming from Ukraine, the IfW study showed. Poland, which spent 0.6% of its GDP on bilateral aid to Ukraine, had to spend another 2.2% on Ukrainian refugees, according to the data.

The accumulated costs of helping Ukraine exceeded 2% of GDP in the case of Latvia and Estonia as well.

This week, the Pentagon announced a new package of weapons for Ukraine, including 30 Bradley infantry fighting vehicles. More than a dozen of the armored vehicles have reportedly been damaged or destroyed since Kiev launched its counteroffensive against Russian forces earlier this month.

According to the Wall Street Journal, Washington is also mulling sending long-range missiles to bolster Ukrainian capabilities in its ongoing campaign, which has largely stalled so far.

Pulitzer Prize-winning reporter Seymour Hersh recently criticized US military aid to Kiev by calling it a “very bad investment.” Hungarian Prime Minister Viktor Orban also said this week that Ukraine could not defeat Moscow on the battlefield and called for a negotiated solution to the conflict instead.

** CIA director calls Russian intel chief assuring US uninvolved in Wagner mutiny — WSJ

CIA Director William Burns called Director of Russia’s Foreign Intelligence Service (SVR) Sergey Naryshkin this week to tell him that the US had nothing to do with the mutiny attempt by the Wagner Private Military Company (PMC), The Wall Street Journal said on Friday citing its sources.

According to them, the phone conversation between Burns and Naryshkin was the highest-level interaction between the US and Russia since the incident. The conversation, initiated by the American side, aimed to deliver a message that the US "had no involvement" in Wagner founder Evgeny Prigozhin’s actions and did not intend to exacerbate tensions in Russia, the newspaper writes, noting that the conversation took place this week.

According to the newspaper, Burns told Naryshkin that the US had no role in the mutiny and the incident was Russia’s internal affair.

On the evening of June 23, several audio recordings were posted on the Telegram channel of Wagner PMC founder Yevgeny Prigozhin. In particular, he claimed that his units had come under attack, blaming the Russian military. The Russian Defense Ministry slammed the Wagner boss’ allegations of a strike on the PMC’s "rear camps" as fake news. The PMC units that supported Prigozhin headed to Rostov-on-Don and toward Moscow. The Federal Security Service (FSB) opened a criminal case on calls for armed mutiny. Russian President Vladimir Putin, in a televised address to the nation on June 24, described the Wagner group’s actions as armed mutiny and a betrayal.

Later on June 24, Belarusian President Alexander Lukashenko, in coordination with Putin, held talks with Prigozhin, resulting in the PMC standing down, turning its units around, and retreating to their base camps. Kremlin Spokesman Dmitry Peskov said that the Russian authorities pledged not to prosecute those Wagner PMC fighters who took part in the mutiny in light of their "frontline achievements." The criminal case on armed mutiny was dropped, the FSB said.

** Russia blocks Wagner-linked media

Russia has blocked access to several news websites linked to businessman Evgeny Prigozhin, whose private military company Wagner Group was involved in the short-lived mutiny last week. 

Public access has been “restricted” to riafan.ru and four other websites operating under the umbrella of the Patriot Media Group, according to the database run by the regulator Roskomnadzor (RKN). The group’s website has also been blacklisted.

The websites mostly focus on covering Russia’s standoff with the West and Moscow’s military operation in Ukraine. 

News agency TASS cited employees of the affected outlets as saying that their parent company would be closed and all of its subsidiaries cease operation. 

Prigozhin, who initially made his fortune as a restaurateur and catering tycoon, was listed as the head of the Patriot Media Group’s board of trustees until May.

Earlier, the RKN ordered popular Russian social media platform VK to take down web pages associated with Wagner to “prevent the spread of calls to armed rebellion.” 

On June 23, Prigozhin, who accused the Defense Ministry of mishandling the operation in Ukraine, declared a “march for justice” on Moscow. His fighters halted their advance on Saturday evening and returned to their bases after a deal was struck with the authorities. The charges of leading an armed rebellion were dropped as part of the arrangement, and Wagner members were given a choice to sign contracts with the Russian military, return to civilian life, or move to Belarus.

Reuters/RT/Tass

"Vaginal seeding," a controversial practice of exposing babies born by cesarean section to their parent's vaginal fluids after birth, may benefit newborns' gut microbiomes, a new study suggests.

Babies born by C-section don't have the same gut microbes as those born vaginally, potentially because they're not exposed to their parent's vaginal microbiome during birth. Studies have shown that the gut microbiomes of cesarean-born newborns more closely resemble the communities of microbes that typically inhabit the skin, rather than the gut. This has raised questions about how birth methods affect babies' development, given evidence that the community of microbes in the intestines, or gut microbiota, shapes the brain and immune system in early life.

Studies have linked cesarean births to a higher risk of neurodevelopmental disorders,  early-life infections, allergies, inflammatory diseases and metabolic diseases, and some suspect that differences in gut microbiota may contribute to this risk.

The new study, published June 15 in the journal Cell Host & Microbe, suggests that vaginal microbiota transfer (VMT), also known as vaginal seeding, is likely a safe and effective method of restoring the gut microbiome in cesarean-born infants so that it resembles that of vaginally delivered babies. 

To establish the potential safety and benefit of vaginal seeding, researchers across multiple institutions in China conducted a clinical trial that included 68 pregnant women scheduled for C-sections. Around half of the women's babies were exposed to a gauze that contained the vaginal fluids of their mother, and the other half were exposed to a sterile saline gauze. 

The incidence of adverse events in the first 42 days after birth was similar in both groups of  babies, indicating that vaginal seeding is safe. The most common adverse events were mild skin disorders, including redness and blister-like sores; none of these events could be attributed to vaginal seeding.

The babies' gut microbiota were sampled at several points after birth, and an analysis showed that gut microbiota in the babies in the vaginal seeding group moved faster from "stunted" types to "mature" types, compared with the microbiota of the control group. 

For comparison, the team also studied the microbiomes of 33 vaginally born babies. The results showed that babies who had undergone vaginal seeding had gut microbiota that more closely resembled that of the vaginally delivered group.

The team also found that infant neurodevelopment at six months, as measured by scores on a common developmental screening questionnaire, was significantly higher for babies exposed to vaginal fluids compared with those exposed to saline, suggesting that vaginal seeding could improve neurodevelopment in cesarean-born babies. However, inferences about any potential long-term impact of vaginal seeding on neurodevelopment cannot be made since the study only measured out to six months. 

Live Science

A 4-and-a-half-year-old Nelore breed cow known as Viatina-19 FIV Mara Imóveis was recently priced at $4.3 million, making it the most expensive cow in the world by a large margin.

One-third of the ownership of the cow was recently sold at an auction in Arandú, Brazil for 6.99 million real ($1.44 million), putting its total value at a staggering $4.3 million. Viatina-19 FIV Mara Imóveis had already been named the world’s most expensive bovine last year when half of its ownership was auctioned off for around $800,000, which was another record-breaking price at the time. The record-breaking transaction is indicative of the Nelore cattle breed’s genetic qualities, as well as the demand for high-quality animals with outstanding genetic characteristics.

Viatina-19 FIV Mara Imóveis price is considered a new milestone for the Nelore, a cow breed highly valued all over the world for its qualities. Characterized by their bright white fur, loose skin, and a large bulbous hump above their shoulders, the Nelore is primarily known for their naturally high resistance to hot weather. Their white fur plays a big part in this, as it reflects most wavelengths of light, as does the fact that their sweat glands are twice as large and 30 percent more numerous than those of most European breeds.

Nelore cattle, named after the Indian district of Nellore in Andhra Pradesh, also have a very efficient metabolism, which allows them to thrive even on low-quality forage. Incredibly hardy and resilient, the Nelore can resist a number of parasitic infections and their tough skin is much harder for blood-sucking insects to penetrate. The breed also breeds very easily, as females have wider pelvic openings and larger birth canals than other cattle breeds, and calves require almost no assistance from humans.

According to a 2018 report by the Guardian, sperm from the most valuable Nelore bulls can cost $5,000 per 0.55-milliliter (0.03 ounces) dose. There are around 167,000,000 Nelore cows in Brazil, around 80 percent of the cattle in the South American country.

Oddity Central

National Agency for Food and Drug Administration and Control (NAFDAC) has warned the public of a batch of “unwholesome” Sprite 50cl drink circulating in Nigeria.

In a statement on Wednesday, the agency said the contaminated drinks have the batch number AZ6 22:32, manufacturing date of April 18, 2023 and an expiry date of April 4, 2024.

NAFDAC said the product was discovered following a consumer complaint and upon investigation, over five crates of the batch were discovered to be contaminated with particles.

“The affected batch of the unwholesome product has been sampled for laboratory analysis in the NAFDAC laboratory and the agency has directed all zonal directors and state coordinators to carry out surveillance and mop up the implicated batch of the unwholesome product,” the statement reads.

“Similarly, a comprehensive current Good Manufacturing Practice (cGMP) inspection of the manufacturing site is to be carried out by the agency. This is to find the root cause of the contamination and ensure compliance to marketing authorisation.

“Furthermore, the company, (Nigerian Bottling Company Limited, Abuja plant) has been directed to recall the implicated batch of the unwholesome product and report to NAFDAC for effective monitoring.

“NAFDAC implores distributors, retailers, and consumers to exercise caution and vigilance to avoid the consumption, sale, or distribution of the unwholesome product. The products’ authenticity and physical condition should be carefully checked.

“Anyone in possession of the above-mentioned batch of Sprite 50cl glass bottles is advised to submit stock to the nearest NAFDAC office. If you, or someone you know, have consumed this product or suffered any adverse reaction/event after consumption, you are advised to seek immediate medical advice from a qualified healthcare professional.”

The Cable

The World Bank has disclosed that no fewer than four million Nigerians were pushed into the poverty trap in the first six months of this year, with another 7.1 million more expected to join the conundrum if properly targeted measures are not taken to manage the impact of fuel subsidy removal.

According to the Washington-based institution, “compensating transfers will be essential in helping to shield Nigerian households from the initial price impacts of the petrol subsidy reform.”

It would be recalled that the National Bureau of Statistics last year reported that 133 million Nigerians were “multinationally poor”.

The multilateral development institution which made the disclosure in Abuja, yesterday, during the launch of the Nigeria Development Update (NDU), also stated that the recent removal of petrol subsidy and the foreign exchange (FX) reforms were critical steps towards addressing long-standing macroeconomic imbalances.

The reforms, it noted, have the potential to establish a solid foundation for sustainable and inclusive growth.

Dissecting the NDU, the World Bank Lead Economist for Nigeria and co-author of the report, Alex Sienaert, said four million more Nigerians were pushed into poverty in the first half of 2023.

Sienaert, who stressed the need for a new social compact to protect poor and most vulnerable Nigerians in the aftermath of fuel subsidy removal, noted that about 7.1 million more Nigerians would further slip into the poverty quagmire at the end of the year if the right incentives were not properly channeled to help poor and vulnerable Nigerians.

Commenting on the headwinds of the forex reforms, he observed a number of adverse consequences, including rising inflation and the increase of debt-to-GDP to about 46 per cent.

The June 2023 edition of the World NDU titled, ‘Seizing the Opportunity,’ acknowledged the recent major reforms initiated by the new administration under President Bola Tinubu, such as the elimination of the petrol subsidy and reforms in the FX market.

The report observed that the reforms were crucial to begin to rebuild fiscal space and restore macroeconomic stability, adding that they would lift Nigeria’s growth potential, with the economy expected to grow at 3.3 per cent in 2023, 3.7 per cent in 2024, and 4.1 per cent in 2025.

“While inflation will be higher in 2023, it will be lower in 2024 and 2025 if the right policy mix is sustained. Compensating transfers will be essential in helping to shield Nigerian households from the initial price impacts of the subsidy reform.

“Without compensation, many households could be pushed into poverty by higher petrol prices and forced to resort to coping mechanisms with long-term adverse consequences, such as not sending children to school, or not going to health facilities to seek preventative healthcare.

“To build on the immediate, major reforms, and seize the opportunity to rise to its potential, Nigeria still has other urgent choices to make,” the report said.

It stated: “In the first part of 2023, Nigeria’s economic growth weakened, and real gross domestic product (GDP) growth fell from 3.3 per cent in 2022 to 2.4 per cent year-on-year (y-o-y) in Q1 2023.

“The challenging global economic context has put pressure on Nigeria’s economy. However, domestic policies play the major role in determining Nigeria’s economic performance and resilience to further external shocks.

“The previous mix of fiscal, monetary, and exchange rate policies, including the naira redesign program, did not deliver the desired improvements in growth, inflation and economic resilience.

“The new government has recognised the need to chart a new course and has already made a start on critical reforms, such as the elimination of the petrol subsidy and reforms in the FX market.

“With the petrol subsidy removal, the government is projected to achieve fiscal savings of approximately N2 trillion in 2023, equivalent to 0.9 per cent of GDP.

“These savings are expected to reach over N11 trillion by the end of 2025. However, compensating transfers will be essential to help shield the most vulnerable Nigerian households from the initial price impacts of the subsidy reform, as without compensation, many households could be pushed into poverty by higher petrol prices and have to resort to coping mechanisms with long-term adverse consequences.”

It added: “Similarly, the move to harmonise the FX windows will help to improve the efficiency of the FX market, unlock private investment, and reduce inflationary pressures, but it is crucial to complete this important reform by removing FX restrictions, clearly communicating how the new FX regime will operate, and implementing supportive monetary and fiscal policies.

“The current move by the government to implement long-anticipated reforms such as the removal of costly and opaque petrol subsidy, and efforts to harmonise the multiple FX windows, are timely and crucial to set Nigeria on the path of economic growth.”

“Persistently high inflation and low fiscal revenues continue to hinder economic growth. It remains imperative to change course, as sluggish economic growth risks becoming deeply entrenched through low investment due to weak macroeconomic conditions, escalating poverty, and fragility.

“The removal of the petrol subsidy and the FX reforms have opened a window of opportunity that, if effectively seized by sustaining and building on these reforms, could have a transformative impact on the lives of millions of Nigerians and establish a solid foundation for sustained growth,” the World Bank report stated.

The report recommended specific, critical measures to build on the government’s ‘bold start’ in implementing critical reforms, to ensure that Nigeria rises to its full potential.

These included restoring macroeconomic stability by increasing non-oil revenue, reducing inflation through a sequenced and coordinated mix of trade, monetary and fiscal policies, and completing the FX reform.

Others are expanding social protection to protect the poor and most vulnerable, and developing and communicating how, as fiscal space recovers, resources will be redirected over time to meet urgent development challenges.

The World Bank report observed that Nigeria could seize this window of opportunity to further implement a comprehensive reform package that encompasses a range of complementary fiscal, monetary, trade, and structural policy measures to maximise the collective impact on growth, job creation, and poverty reduction.

To shield the poor and most vulnerable from increases in living costs, temporary and targeted cash transfers should be considered, as part of a new social compact to sustainably redirect resources towards addressing Nigeria’s most urgent development priorities, it stated.

Thisday/NewsScroll

Presidential Candidate of Labour Party (LP) in the 2023 elections, Peter Obi, has urged leaders at every level in Nigeria to lead by example.

The call came against the background of the outrage being expressed by Nigerians over the “outlandish display of power” by President Bola Tinubu during a recent visit to Lagos State.

Head, Obi-Datti Media Office, Diran Onifade, in a statement Thursday, said Tinubu during the visit was escorted by an unprecedented 124-vehicle convoy.

According to him, not since the creation of Nigeria by the British has such mindless and embarrassing exhibitionism been purveyed by a politician. Not even the military known for their brash and unbridled display of raw naked power dared to exhibit such recklessness.

Responding to a question on the development on Thursday afternoon in Awka, the Anambra State capital, Obi said he had yet to see a video footage of the Tinubu 124-vehicle convoy, but leaders in Nigeria must lead by example.

“The present Nigeria requires that all those who serve and lead must do so by example. Their behaviour and public conduct must be in consonance with what the society requires today. We cannot continue to preach for the people to make sacrifice without sacrificing too. The sacrifice must now start from the leaders, visibly, measurably at all times because the people are suffering; and we must now be at the forefront of the suffering,” Obi said.

Onifade said the Obi-Datti Media, like millions of Nigerians whose sense of decency have been affronted by Tinubu’s unbridled tendency to flaunt power and position, joins the presidential candidate in pointing the hypocrisy inherent in Tinubu’s action.

He said, “For a man who promised to cut the cost of governance to be moving around with an over-bloated convoy of security details and aides, surely speaks volumes of his ‘do what I say and not what I do’ attitude.”

Some supporters of the president have argued that the convoys of some dignitaries, including Governor Babajide Sanwo-Olu of Lagos, were among the ones captured in the viral video.

Daily Trust

Jama’atu Nasril Islam (JNI), the umbrella body of Muslims in Nigeria, has called on political leaders to cut their extravagant lifestyles and ease the sufferings of the masses.

Speaking after observing the Eid al-Adha prayers at Dodan Barracks prayer ground in Lagos, President Bola Tinubu had said Nigerians must make sacrifices for the prosperity of the country.

JNI, in a sallah message by Khalid Aliyu, its secretary-general, alleged that while the masses are making sacrifices to “keep the nation moving”, the leaders are living in affluence.

“On this joyous occasion, JNI would like to extend its felicitations to the new leaders at all levels in the executive and legislative arms,” the statement reads.

“They should be mindful of the trust reposed in them by Allah and humanity on which they will be asked to give account on the day of judgement.

“It appears that only the common Nigerians are making painful sacrifices to keep the nation moving but the leaders are perpetually living in affluence to the detriment of the malnourished commoners.

“The JNI, therefore, call on the leaders to cut their extravagant lifestyles, make adjustments and come up with policies that will make the life of the common Nigerian a bit comfortable.”

JNI urged Muslims to reflect on the occasion of the Eid al-Ahda and be selfless.

“This auspicious occasion serves as a reminder of the values of sacrifice, compassion, and unity that are at the core of Islam,” JNI added.

“As we gather with family, friends, and loved ones to observe the Eid, let us reflect upon the importance of selflessness and generosity.”

The Cable

As Pakistan spiralled into crisis this year, Wilson Muthaura pressed its government to put the tea Kenya's KTDA co-operative produces 3,400 miles away on a list of essentials that would grant importers access to precious U.S. dollars.

His urgent lobbying reflects anxiety about a scarcity of dollars - the lifeblood of global trade - across emerging market and developing economies (EMDEs) that is impeding commerce and piling pressure on local currencies and sovereign debtors.

The World Bank estimates that one in four EMDEs have effectively lost access to international bond markets, a key source of hard currency needed to pay for oil and commodities like food.

It has halved growth forecasts for some economies hurt by the credit squeeze, the product of a global flight to safety as interest rates rose to combat inflation that surged last year when economies reopened after Covid and Russia invaded Ukraine.

Affected countries are also likely to see foreign direct investment being curbed, said Charlie Robertson, head of macro strategy at FIM Partners in London.

Without dollars from KTDA's customers in Pakistan, its biggest market, the co-op that produces 60% of Kenya's tea, would have struggled to pay its own bills.

"We were actually hit," Muthaura said, explaining that KTDA had to rent extra warehouse space after sales slumped. Kenyan shipments of tea - its major export - have fallen by a fifth over the last year, according to the local regulator.

While customers usually pay up front and in dollars, "we had to resort to letters of credit with those buyers from Pakistan", said Muthaura.

His efforts in Islamabad paid off, but KTDA is seeing similar strains emerging in Egypt, its second-biggest market, where three steep currency devaluations have raised worries about Cairo's ability to service dollar debt.

The spike in global interest rates has already tipped Sri Lanka and Ghana into defaulting. Tunisia is teetering. Nigeria could soon be spending half or more of government revenues on interest payments. Even Kenya itself is seen at risk.

"Frontier economies are suffering from surging import bills exacerbated by a tightening of global financial conditions and a general flight to safety," said David Willacy, a foreign exchange trader at StoneX in London.

Reuters Graphics

BLACK MARKET

Although the dollar's share as a global reserve currency has dropped to 59% from 70% over a decade, it continues to dominate global trade.

And because it is widely accepted and broadly holds its value, it remains strongly favoured among ordinary citizens in developing countries.

The emergence of parallel exchange rates or an unofficial market to buy dollars and other major currencies is often an early sign a country is running into problems.

"If I want dollars, I have to buy on the black market, which is expensive," said Oreoluwa Ojo, a student in Nigeria's capital Lagos taking online lessons with a British university.

Africa's biggest economy is a major oil exporter that sells its crude in dollars. But because it lacks refinery capacity, it has to import fuels, so hard currency is tight.

Nigeria has long had a web of multiple exchange rates which it is now trying to untangle, having also devalued its naira currency again last week.

Argentina's recurring crises mean it has had parallel exchange rates for years, while in Cuba and Venezuela a mix of deep economic problems and U.S. sanctions mean dollars or euros are often needed to buy goods from medicines to meat.

With Cuba's big foreign exchange earner, tourism, still recovering after the pandemic, a widening gap between those with and without access to hard currency is helping drive a record exodus of migrants from the island to the United States.

Reuters Graphics

RESERVES BURN

A country burning through foreign currency reserves is another widely acknowledged sign of stress.

Specialist firm Chaucer, which provides political risk insurance, estimates that 91 of 142 countries have seen their FX reserves shrink in the last 12 months, over a third by more than 10% - a trend amplified by a rising dollar.

A plunge of around 70% in Bolivia's reserves has spawned queues at banks and currency exchange shops as some merchants stopped accepting local currency.

"It is better for our clients to come with dollars, because with bolivianos it is not going to add up," said La Paz TV salesman Ronal Mamani. "We don't know exactly where the exchange rate is."

Countries like Sri Lanka, Lebanon, Pakistan, Ukraine and Turkey have imposed capital controls, while Ethiopia, its problems exacerbated by civil conflict, banned imports of dozens of goods, including cars, to conserve money for food and fuel.

Some countries are trying to break or circumvent the dollar's stranglehold.

Since Western sanctions cut Russia off from the global banking system, China and India have paid for Russian oil in other currencies, while Ghana is paying for oil with gold.

Brazil's President Luiz Inacio Lula da Silva has floated the idea of a common currency for the BRICS group of emerging economies, saying in April: "We need a currency that gives countries more calm."

The BRICS may discuss that proposal at a Johannesburg summit in August, although it is unlikely to become a reality soon. But the group is seeking closer ties with countries like Saudi Arabia as it positions itself as a counterweight to the West.

Reuters Graphics

TRADE BOTTLENECKS

Dollar shortages are nearly always tied to worsening debt problems.

Echoing the World Bank, JPMorgan calculates that 21 countries with a combined $240 billion of international debt are now effectively locked out capital markets - a near record.

International Monetary Fund chief Kristalina Georgieva said recently the lender is seeing more requests for aid, adding: "The IMF becomes the source of protection."

In Africa, where the tough conditions attached to IMF loans have made some countries wary of relying on the Fund, politicians including Kenya's president William Ruto have also argued for a trade payments system using local currencies.

"Why are we bringing dollars in the middle of our trade?" said Ruto, blaming dollar use for trade bottlenecks.

Argentina has said it will pay for Chinese imports in yuan. But China's capital controls - and the unrivalled depth of U.S. financial markets - mean its currency is unlikely to challenge the dollar as a global force soon.

Reuters

Cletus Okafor

Economic and Financial Crimes Commission (EFCC) has declared Deepak Khilnani, a British citizen of Indian descent “wanted” after he failed to appear in court to answer charges of several counts of Fraud and Money Laundering.

In suit number FHC/L/588/2022 filed in the Federal High Court, Ikoyi on October 18th, 2022 the EFCC charged Khilnani and a company in which he has interest with “conspiracy to alter and file at Corporate Affairs Commission, Abuja fraudulent resolution on allotment of Shares...”.

The charges also included “forgery of the signatures of [names withheld] contained on a Take Over Certificate with intent that it may be acted upon as Genuine”.

Khilnani had been under EFCC investigation since 2017, during which time the 63- year-old businessman tried different ways to avoid investigation and arraignment.

Sources said that at one time, he jumped administrative bail, left for the UK, and failed to honor EFCC’s invitations.

The anti-corruption agency eventually placed the fugitive on their Watchlist at all Nigerian ports of entry.

When he returned in January 2018, an unsuspecting Khilnani was promptly arrested and detained at Lagos Murtala Mohammed Airport and handed over to the EFCC.

An official, on condition of anonymity, confirmed that in May 2019, Khilnani deposited a British bank cheque for £4,620,000 at the EFCC Ikoyi Zonal office. The cheque was payable to his former employers and was believed to be part refund of the money he allegedly stole. The British bank did not honor the cheque.

In December of the same year, shortly after the UK cheque was dishonored, Khilnani’s lawyers took his former employers and the EFCC to court in a civil Suit No. FHC/L/CS/2266/2019 where they sought “An order of perpetual injunction restraining the 4th Defendant (EFCC) from further Mediation, or inviting the Plaintiffs (Khilnani and anor), or questioning the Plaintiffs, or instituting any Charge against the Plaintiffs....”.

Undeterred, the EFCC defended its right to investigate crime, and the case was eventually struck out in February 2022 due to the court’s lack of jurisdiction. It was therefore not until October 2022, after 5 years of investigation and legal tussle, that the EFCC was finally able to charge Khilnani to court for financial crimes.

As he failed to answer the court summons and appear in court, the EFCC in March 2023 obtained the Court’s Order and declared Khilnani wanted, which was published in the Punch Newspaper of May 17th 2023 as well as on the EFCC website.

Investigations reveal he is taking refuge outside Nigeria, while EFCC is making efforts to extradite the suspect to Nigeria.