Nigerians who feel slighted by UK Conservative Party leader Kemi Badenoch’s disparaging comments about their country are free to respond to her in whatever manner suits them. When someone like Badenoch makes denigrating comments about Nigeria, it is its people who suffer the indignity of such talk. A country might be an abstract entity, but it is also occupied by real-life people who deserve some courtesy. So, yes, I do understand the Nigerians taking her comments badly. What I vehemently disagree with is Vice President Kashim Shettima joining them. He is just as opportunistic and should have no mouth to talk.

Since he seems to have forgotten his priors, let me remind him—again—that just 10 years ago, he and some northern governors pulled a similar stunt against President Goodluck Jonathan in Washington, DC, USA. Media reports tell us that then Nigerian Ambassador, Ade Adefuye, restrained them as they backstabbed the country before Western observers. Now, the same Shettima is wailing because someone else is doing it. If denigrating Nigeria for gain worked well enough to make him the vice president, who is he to tell anyone else not to use the same tactic? What has Badenoch said that is substantially different from what All Peoples Congress had said about Nigeria when they were in the “opposition”?

Whether “Yoruba” or “Nigerian”, Badenoch can identify as she pleases. Even though it does not make sense to me that one can be one without the other, burning emotional fuel over someone else’s choices is not worth it. Who knows the sacrifices they have had to make to be who they are? What I do know for sure is that however Badenoch chooses to identify, she has something in common with Nigerians who speak indecorously of Nigeria when they are seeking the benevolence of white power. Some of those excoriating Badenoch (like Shettima) have either done so themselves or will do so if the prize is right.

Some years ago, I was a judge on a committee that awarded a prize for fiction to young writers, and I ended up traumatised by the entries from Nigerians. From the violence of Boko Haram to child marriage, sexual assaults, and other horrors, Nigeria came across as an entirely joyless place in its writings. None of the aspiring writers envisioned a world where dysfunctionality was not the Nigerian norm. In my report, I had to urge the prize organisers to reconsider the themes they put out so that entrants would be forced to think differently. Still, they are no different from the Nigerians seeking asylum in North America/Europe, who claim they are escaping from whatever horror is trending. At a time, it was genital mutilation. Nowadays, they are either fleeing homosexual persecution or Boko Haram/maniacal herdsmen. Whatever story touches the hearts of white Western powers, they will trade their country for it.

In January, humanist Leo Igwe wrote an article lamenting how Nigerians predate on stories of persecuted humanists like Mubarak Bala to seek asylum abroad. Recently too, a Nigerian couple in the UK escaped deportation by claiming to the court that they needed to stay because the wife would be unable to access IVF facilities in Nigeria. Saying a country lacks IVF clinics in 2024 is tantamount to claiming it is behind in time, but yes, people will say anything that gets them ahead. Perhaps some of such people also genuinely think Badenoch is “throwing Nigeria under the bus”.

By virtue of my job, I have been solicited to testify in court on behalf of some Nigerians seeking asylum in the USA. When you hear the stories about Nigeria these applicants have told the oyinbo lawyers fighting on their behalf, you will be embarrassed. While I will not lie under oath on behalf of anyone, I also do not go around puncturing their claims. While their stories might not be factually true, they might also not be substantially false. Who knows what battles they fought to get where they are?

Whatever one thinks of Badenoch’s politics, we should also accept that it is part of the tactics that brought her so far. For instance, in the interview where she related her experience with the Nigerian police, the question was about the British police. She dragged in the Nigerian police to make them a foil of their British counterparts. She tactically deflected issues since an uncomplimentary comment about the police could be ideological suicide for a right-wing politician like her. To praise the British police, she had to justify it by bringing the inept Nigerian police. It could not have been that hard for her to find a story to tell. Anyone who trawled the internet during #EndSARS will be spoilt for choice of which distressing police encounter to narrate. We can console ourselves by pulling up statistics of violence in the UK to relativise issues, but in our quiet moments, can we also acknowledge to ourselves that no situation has arisen in the UK that their nationals are selling their worldly goods to escape to Nigeria?

Whatever we might think of Badenoch’s rhetorical manoeuvres, we cannot deny it works. It has brought her far; why should she change now? Politicians generally say what their constituents want to hear and until that kind of talk stops exciting her audience, no amount of glowering by Shettima will change anything. No reasonable person alters a method that works.

Shettima and his fellow travellers need to think beyond an individual. Between June 2022 and 2023, about 141,000 Nigerians migrated to the UK alone. Within that same period, another 22,000 Nigerians also settled in Canada. Most of them are young. Add other countries, and you will see a large pool of who will breed children of hyphenated nationalities you will be hearing about in the next 30 years. The probability that one of them might become the leader of a first-world nation rises as the number of migrants increases. Is Nigeria going to wait until one of them attains a political height before sending Abike Dabiri-Erewa to stick their “Nigerianness” on them? They had better start cultivating relationships with them while still young.

Years ago, I learned from a friend (who is French) that France has schools for its citizens in the USA where they learn French culture, history, and politics. They are taught in French, so they speak it fluently. It got me thinking about how forward-looking Western governments can be. They know that some of those kids will one day rise to strategic places in the USA, and they are already looking out for France’s interest by inculcating “Frenchness” in them. The USA, Israel, and other powerful countries all do the same. When Shettima compared Badenoch to former British PM of Indian heritage Rishi Sunak, what he did not factor in is the relationship India must have built with him before he got that far.

Someone of Badenoch’s profile badmouthing Nigeria should be a wake-up call for leaders to move conversations beyond whether Nigerians should japa or not. They should have realised by now that it cannot be taken for granted that children of Nigerian heritage will be sentimental towards their parents’ country. As more children are being born abroad, you should start an outreach to get them on your side as they grow. You cannot guarantee that every single one will be your ambassador, but when that day comes someone says something disparaging, you will have a solid structure that will overwhelm that individual defector. Even better, you will not need to disgrace yourself in the international media by asking that person to change their name. Imagine someone with a “non-Nigerian” name like “Kashim Shettima” asking a Yoruba woman to change her name because he disagrees with her politics. Yeye!

Punch

Melissa Houston

Many people dream of starting a business but they don’t know how to start a business from nothing. It can feel overwhelming and intimidating to think about where to begin, and many talk themselves out of it before they even give their idea a chance.

There are more than 33 million small businesses in the United States accounting for more over 99% of all U.S. firms. The American economy is driven by small businesses, so what is holding you back from starting a business?

The good news is that it is possible to start a business from nothing, provided you have the right strategy, you are determined and you possess a certain amount of creativity.

Let’s explore some tips on how to start your business from nothing:

1. You need an entrepreneurial mindset

The journey of entrepreneurship requires having a positive mindset. The right mindset will propel your business to success, while a negative mindset can sink your business. It can feel very scary to start a business and limiting beliefs will surface, but you need a strategy to reframe those doubts so you can overcome them. Entrepreneurship requires resiliency and an openness to learning new things.

2. Start with what you have

There are resources out there on starting a business that you can access for free. Start by making a list of the skills that you have, the networks you have access to and the tools you need to start your business. Starting a business is expensive, but you can begin with minimal investment and grow your business as your customer base increases. Bootstrapping your way to growth is an approach that many successful entrepreneurs start with.

3. Choose a profitable niche

The importance of choosing a profitable niche cannot be understated. You need to identify a niche with market demand, because if nobody buys your product or service, your business will fail. Before you invest too much time or money into a business idea, be sure to validate your offer. When people are willing to pay for it, you have a proven offer and can start planning for bigger.

4. Create a business plan

A business plan is your roadmap for turning your business idea into a viable business. It clarifies your vision, identifies your target audience, and helps guide you in the strategic decision-making process. If you are seeking investors or loans, stakeholders will want to see a business plan. The business plan reduces risk and uncertainty and defines the financial goals and projections of the business.

5. Build your brand and business on a budget

Your brand goes beyond basics of having a logo, website and brand colors. Your brand helps you build credibility and trust. When you use consistent messaging and stories, you build brand awareness that helps people to know, like and trust you. When those factors have been established, customers are more likely to buy from you. Leverage social media at the outset to get your message out there. Social media is free to use and has been proven to be effective.

6. Learn as you grow

You will never stop learning as a business owner if you stay open to continuous learning and adapting. There are free resources such as YouTube tutorials that can help you learn how to deal with problems that arise in your business. Networking with likeminded business owners can offer a community where you help each other with issues that arise.

7. Scale strategically

When you start small and prove your offer, you can start scaling your business. If you want to avoid taking on debt in your business you can grow your business by reinvesting those profits back into your business. If you need faster growth you can consider taking on debt, but be careful as to how much debt you take on and how much equity you give away in the process. Find the right debt instrument that works best for you and your business.

The bottom line is it is scary to start a business, but you need to feel the fear and do it anyways. A strong entrepreneurial mindset can be your biggest asset on this journey. Success is achievable when you have a strategy in place, stay persistent and consistent, and listen to what your customers want. Take your first step today by finding that profitable niche and creating your plan!

Forbes

A recent National Bureau of Statistics (NBS) survey has exposed alarming crime trends in Nigeria, revealing that citizens paid an estimated N2.23 trillion in ransoms between May 2023 and April 2024.

The comprehensive crime experience and security perception report documented approximately 51.89 million criminal incidents across Nigerian households during the one-year period. The data paints a troubling picture of security challenges facing the country.

Regional Breakdown of Crime Incidents:

- North-West emerged as the most crime-prone zone, reporting over 14 million cases

- North-Central followed with 8.7 million incidents

- South-East recorded the lowest number of crimes at around 6.2 million

Notably, rural areas experienced slightly more criminal activities (26.5 million incidents) compared to urban areas (25.4 million incidents).

Kidnapping and Ransom Highlights:

- 65% of households experiencing kidnapping paid a ransom

- Average ransom payment was N2.67 million

- Total estimated ransom payments reached a staggering N2.23 trillion

Home Robbery Statistics:

- 4.14 million households were victims of home robbery

- Only 36.3% of robbery victims reported incidents to the police

Individual Crime Experiences:

- 21.4% of Nigerians reported being crime victims

- Phone theft was the most common crime, affecting 13.8% of individuals

- 90% of phone theft victims reported to the police

- Only 50% of victims expressed satisfaction with police responses

Reasons for Low Reporting:

The study identified key factors discouraging crime reporting, including:

- Lack of confidence in law enforcement

- Belief that police intervention would not yield meaningful results

The report underscores significant security challenges facing Nigeria, highlighting the urgent need for improved law enforcement and crime prevention strategies.​​​​​​​​​​​​​​​​

In a significant fiscal development, major international technology companies, including Google, Facebook, Netflix, and others, have paid N3.85 trillion in taxes to the Nigerian Federal Government during the first nine months of 2024.

Tax Collection Highlights:

- 68.12% increase from N2.29 trillion in the same period of 2023

- Comprises Company Income Tax (CIT) and Value Added Tax (VAT)

- Quarterly progression shows consistent growth in tax revenues

Detailed Tax Breakdown:

1. Company Income Tax (CIT)

   - Total collection: N2.57 trillion

   - 43.65% increase from N1.789 trillion in 2023

   - Quarterly progression:

     * Q1: N598.13 billion

     * Q2: N1.12 trillion

     * Q3: N852.29 billion

2. Value Added Tax (VAT)

   - Total collection: N1.28 trillion

   - Remarkable 157.03% surge from N498.34 billion in 2023

   - Quarterly progression:

     * Q1: N435.73 billion

     * Q2: N395.74 billion

     * Q3: N448.85 billion

Regulatory Context:

- CIT: 30% tax on company profits

- VAT: 7.5% consumption tax

- Government initiated tax collection from digital service providers in 2020

Targeted Digital Service Providers:

- Video streaming platforms

- Social media sites

- Digital content download services

- Companies like Netflix, Facebook, Twitter, Alibaba, and Amazon

Compliance Status:

- Google, LinkedIn, and Meta have met tax compliance requirements

- TikTok and X (formerly Twitter) are yet to comply with tax filing regulations

The significant increase in tax collection reflects the Nigerian government's enhanced efforts to capture revenue from digital service providers operating in the country, even without physical offices.

Experts anticipate further revenue growth as more social platforms begin remitting their statutory tax obligations.​​​​​​​​​​​​​​​​

The Central Bank of Nigeria (CBN) has introduced new regulations for point-of-sale (PoS) transactions, setting a daily withdrawal limit of N100,000 per customer as part of its ongoing efforts to promote a cashless economy.

Key Withdrawal Restrictions:

- Maximum daily cash withdrawal per customer: N100,000

- Weekly cash withdrawal limit: N500,000

- Daily cumulative cash-out limit for agents: N1,200,000

The comprehensive directive, issued through a circular to deposit money banks, microfinance banks, mobile money operators, and super-agents, aims to:

- Address industry challenges

- Combat potential fraud

- Establish uniform operational standards

Detailed Compliance Requirements:

1. Agent Banking Terminal Limitations

   - Daily transaction cash-out capped at N100,000 per customer

   - Strict demarcation between agent banking and merchant activities

   - Mandatory use of Agent Code 6010 for banking activities

2. Account and Transaction Monitoring

   - Transactions to be conducted exclusively through designated float accounts

   - Monitoring of accounts associated with agents' Bank Verification Numbers (BVN)

   - Electronic reporting of daily transactions to the Nigerian Interbank Settlement System (NIBSS)

Regulatory Oversight:

- Principals will be held fully responsible for their agents' actions

- CBN will conduct unannounced back-end configuration checks

- Non-compliance may result in monetary and administrative sanctions

The move represents a significant step in the CBN's strategy to digitize financial transactions and reduce cash circulation in the Nigerian economy.

Banks and financial institutions have been directed to implement these guidelines immediately, marking a new phase in Nigeria's financial regulatory landscape.​​​​​​​​​​​​​​​​

Gaza ceasefire talks gain momentum as officials push for deal

An agreement to halt the 14-month-old war in Gazaand free hostages held in the Palestinian enclave could be signed in the coming days with talks in Cairo making progress, sources briefed on the meeting said on Tuesday.

The U.S. administration, joined by mediators from Egypt and Qatar, has made intensive efforts in recent days to advance the talks before President Joe Biden leaves office next month.

"We believe - and the Israelis have said this - that we're getting closer, and no doubt about it, we believe that, but we also are cautious in our optimism," White House spokesperson John Kirby said in an interview with Fox News.

"We've been in this position before where we weren't able to get it over the finish line."

The sources said a ceasefire deal could be days away that would stop the fighting and return hostages held by the Islamist movement Hamas in Gaza in exchange for Palestinian prisoners held in Israeli jails.

CIA Director William Burns, a key U.S. negotiator, was due in Doha on Wednesday for talks with Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani on bridging remaining gaps between Israel and Hamas, other knowledgeable sources told Reuters.

The CIA declined to comment.

Hamas said in a statement a deal was possible if Israel stopped setting new conditions. A Palestinian official close to the mediation efforts said negotiations were serious, with discussions under way about every word.

Sources briefed on the meeting said Netanyahu was on his way to Cairo, but a statement from Netanyahu's office said he had a meeting on Tuesday with senior military and security officials on Mount Hermon, a strategic plateau just inside Syria.

Separately, his spokesperson messaged Israeli correspondents to say: "The prime minister is not in Cairo."

Two Egyptian security sources said that Netanyahu was not in Cairo "at this moment" but that a meeting was under way to work through the remaining points, chief among them a Hamas demand for guarantees that any immediate deal would lead to a comprehensive agreement later.

The Egyptian sources said they were making progress and felt that Tuesday night could be decisive in setting the next steps.

Netanyahu had been excused on Tuesday from giving previously scheduled testimony at his corruption trial. He met in Israel on Monday with Adam Boehler, designated by U.S. President-elect Donald Trump to be his special envoy for hostage affairs.

At a press conference in Florida on Monday, Trump reiterated his threat that "all hell is going to break out" if Hamas does not release its hostages by Jan. 20, the day he takes office.

Later, Trump said that if no ceasefire deal is reached by the time he takes office, "It's not going to be pleasant." He did not elaborate.

U.S. and Israeli officials have expressed growing optimism that negotiations brokered by Egypt and Qatar could produce a deal by the end of the month but have also cautioned that the talks could fall through.

Israeli negotiators were in Doha on Monday looking to bridge gaps between Israel and Hamas on a deal Biden outlined in May.

There have been repeated rounds of talks over the past year, all of which have ended in failure, with Israel insisting on retaining a military presence in Gaza and Hamas refusing to release hostages until the troops pulled out.

The war in Gaza, triggered by a Hamas-led attack on communities in southern Israel that killed some 1,200 people and saw more than 250 abducted as hostages, has sent shockwaves across the Middle East and left Israel isolated internationally.

Israel's campaign has killed more than 45,000 Palestinians, displaced most of the 2.3 million population and reduced much of the coastal enclave to ruins.

Israeli airstrikes killed extended families in homes in two parts of the northern Gaza Strip on Tuesday, medics said.

At least 10 people were confirmed killed in an airstrike on a house in Gaza City that destroyed the building, while further north in the town of Beit Lahiya at least 15 people were believed to be dead or missing under the rubble of a house hit around dawn.

Reuters

WESTERN PERSPECTIVE

Ukraine kills Russian chemical weapons chief Igor Kirillov in Moscow

A top Russian general accused by Ukraine of being responsible for the use of chemical weapons against Ukrainian troops was assassinated in Moscow by Ukraine's SBU intelligence service on Tuesday morning in the most high-profile killing of its kind.

Lieutenant General Igor Kirillov, who was chief of Russia's Nuclear, Biological and Chemical Protection Troops, was killed outside an apartment building along with his assistant when a bomb hidden in an electric scooter went off, Russia's Investigative Committee, which probes serious crimes, said.

An SBU source confirmed to Reuters that the Ukrainian intelligence agency had been behind the hit. "The liquidation of the chief of the radiation and chemical protection troops of the Russian Federation is the work of the SBU," the source said.

The source said that a scooter containing explosives was detonated, killing both Kirillov and his aide, as they stepped out of a building on Ryazansky Prospekt in Moscow.

Unverified video footage of the attack circulating on social media showed two men exiting the building to get into a car followed by a large explosion as the two men remained on the pavement. Reuters could not independently verify the footage.

Kirillov, 54, is the most senior Russian military officer to be assassinated inside Russia by Ukraine and his murder is likely to prompt the Russian authorities to review security protocols for the army's top brass.

Former President Dmitry Medvedev, now a senior Russian security official, told a meeting shown on state TV that Moscow would avenge what he called an act of terrorism.

"Law enforcement agencies must find the killers in Russia," said Medvedev. "Everything must be done to destroy the masterminds (of the killing) who are in Kyiv. We know who these masterminds are. They are the military and political leadership of Ukraine," he said.

Foreign Ministry spokeswoman Maria Zakharova, speaking to Russian news agencies, dismissed a comment from the U.S. State Department that Washington had no connection to the killing or any prior knowledge of it.

The United States, she said, "created the Kyiv regime, sponsors it, provides money and sends weapons endlessly. The proof is clear: Washington has not once condemned a single terrorist act or planned murder committed by the Kyiv regime."

There was no immediate comment from President Vladimir Putin.

Moscow holds Ukraine responsible for a string of high-profile assassinations on its soil designed to weaken morale and punish those Kyiv regards guilty of war crimes. Ukraine, which says Russia's war against it poses an existential threat to the Ukrainian state, has made clear it regards such targeted killings as a legitimate tool.

Reuters photographs and video from the scene showed a shattered entrance to an apartment building with bomb-blackened bricks and the doors hanging off their hinges and what looked like two bodies lying beneath black plastic sheets on the snow.

KIRILLOV WORKED 'FEARLESSLY FOR THE MOTHERLAND'

Russia denies Ukrainian allegations it uses chemical weapons on the battlefield and Kirillov, who was married with two sons, was himself sometimes shown on state TV giving briefings at the Defence Ministry in which he accused Ukraine of violating nuclear safety protocols or the West of various alleged crimes.

Britain in October imposed sanctions on Kirillov and his nuclear defence forces for using riot control agents and over multiple reports of the use of the toxic choking agent chloropicrin on the battlefield.

Such agents, Ukraine has alleged, are used to disorient its troops, leaving them unable to defend themselves against Russian attacks.

Sergei Sitnikov, a regional Russian governor, said Kirillov was his friend and had told him he was aware of a threat against him.

"Some time ago, he told me that he had already been warned that the hunt for him had begun," Sitnikov said in a statement, saying he believed Kyiv wanted to kill Kirillov for various reasons, including his involvement in the development and use of a heavy flamethrower system.

Kirillov was murdered a day after Ukrainian state prosecutors charged him in absentia with the alleged use of banned chemical weapons, the Kyiv Independent cited the SBU as saying.

The lieutenant general was also listed in a sprawling unofficial Ukrainian database of people considered to be enemies of the country called Myrotvorets (Peacemaker). A photograph of Kirillov on the website was overwritten with the word "Liquidated" in red letters on Tuesday morning.

Russia says Ukraine has carried out a string of targeted assassinations since the start of Moscow's full-scale war on Ukraine in February 2022.

The most high-profile cases include the 2022 killing of Darya Dugina, the daughter of Russian nationalist ideologue Alexander Dugin, the murder of pro-war blogger Vladlen Tatarsky in a 2023 cafe bombing, and the shooting last year of a Russian submarine commander accused of war crimes by Kyiv.

Russia's radioactive, chemical and biological defence troops, which Kirillov commanded, are special forces who operate under conditions of radioactive, chemical and biological contamination and who are tasked with protecting ground forces operating in extreme conditions.

RUSSIAN PERSPECTIVE

What we know about Russian general killed in Moscow blast

Lieutenant General Igor Kirillov, the head of Russia’s Radiological, Chemical, and Biological Defense Forces (RChBZ), has died in a blast together with his aide. According to investigators, an explosive device hidden in a scooter was detonated on Tuesday morning near the entrance of a residential building in Moscow’s south-east.

Here’s what is known about Kirillov:

• From September 2014 to April 2017, he served as the head of the Military Academy of the RChBZ named after Marshal of the Soviet Union Semyon Timoshenko.
  
• In April 2017, Kirillov became the chief of the RChBZ troops.
  
• Kirillov dealt with anti-terrorism both domestically and abroad. He exposed the provocations of the controversial White Helmets volunteer organization in Syria, and participated in mitigating the consequences of natural and man-made disasters.
  
• Since the beginning of the military operation against Ukraine in February 2022, Kirillov has spoken at briefings held by the Ministry of Defense, where he shared information about Ukrainian developments in the areas of radiological, chemical, and biological weapons. In March 2022, he announced that Ukrainian biolaboratories were studying the potential for transferring highly dangerous infections through migratory birds.
  
• The same month, Kirillov presented copies of documents that, according to him, confirmed the Pentagon’s funding of biological laboratories in Ukraine.
  
• In June 2024, Kirillov stated that spent nuclear fuel and hazardous chemical waste were being imported into Ukraine for a potential “dirty bomb” creation. He added that radiochemical substances were still being brought into Ukraine for disposal. According to him, these supplies were overseen by Andrey Yermak, Vladimir Zelensky’s right-hand man, with primary routes passing through Poland and Romania.
  
• In October 2024, the UK slapped Kirillov with sanctions after he accused Ukraine of preparing a false-flag chemical weapons attack with the aim of framing Russia and undermining its position at the OPCW. Kirillov noted that NATO had provided Ukraine with a much larger amount of chemical protective equipment than the country actually needs, calling it further evidence of an impending plot.
  
• In November 2024, Kirillov said that Ukraine planned to seize a nuclear power plant during its large-scale incursion into the Kursk Region.
  
• Kirillov was killed in the blast one day after Ukraine’s Security Service (SBU) formally declared him a suspect in the alleged use of chemical weapons against Kiev’s military. The general rejected claims that Russia had been attacking Ukraine with riot control agents and chemical weapons, recalling that the OPCW had confirmed the complete destruction of all Russian chemical weapons stockpiles in 2017.

Reuters/RT

It was a bold idea, encapsulated in a snappy slogan: “From billions to trillions.” A decade ago, when private capital was sloshing into developing economies, governments and development institutions saw an opportunity to turbocharge progress on poverty reduction and other development goals. “The good news is that, globally, there are ample savings, amounting to $17 trillion, and liquidity is at historical highs,” read a key strategy document of the time.

The bad news is that it all turned out to be a fantasy. Instead, the financing landscape for development has been upended. Since 2022, foreign private creditors have extracted nearly $141 billion more in debt-service payments from public-sector borrowers in developing economies than they have disbursed in new financing.

But there is one striking exception: In 2022 and 2023, the World Bank and other multilateral institutions pumped in nearly $85 billion more than they collected in debt-service payments. Thus, multilateral institutions have been thrust into a role that they were never designed to play. They are now lenders of last resort, deploying scarce long-term development finance to compensate for the exit of other creditors.

Last year, multilateral institutions accounted for about 20% of developing economies’ long-term external debt stock, five points higher than in 2019. The World Bank’s International Development Association (IDA) now accounts for nearly half of the development aid going from multilateral institutions to the 26 poorest countries. And in 2023, the World Bank accounted for one-third of the overall net debt inflows going into IDA-eligible countries – $16.7 billion, more than three times the volume a decade ago.

These developments reflect a broken financing system. Since capital – both public and private – is essential for development, long-term progress will depend to a large degree on restarting the capital flows that benefited most developing countries in the first decade of this century. But the risk-reward balance cannot remain as lopsided as it is today, with multilateral institutions and government creditors bearing nearly all the risk while private creditors reap nearly all the rewards.

When global interest rates skyrocketed in 2022 and 2023, leading to increased debt distress in the poorest countries, the World Bank followed its usual practice. It shifted from providing low-interest loans to providing grants to countries at high risk of distress. It also increased its overall financing for these countries, typically with generous repayment terms ranging from 30 to 50 years. But private creditors headed for the exits, with high interest rates more than fully compensating them for the investment risks they had taken.

In the absence of a predictable global system for restructuring debt, most countries facing distress opted to tough it out rather than default and risk being cut off indefinitely from global capital markets. In some cases, new financing arriving from the World Bank promptly went back out the door to repay private creditors.

In 2023, developing countries spent a record $1.4 trillion – nearly 4% of their gross national income – just to service their debt. While principal repayments remained stable at about $951 billion, interest payments surged by more than one-third, to about $406 billion. The result, for many developing countries, has been a devastating diversion of resources away from areas critical for long-term growth and development, such as health and education.

The squeeze on the poorest and most vulnerable countries – those eligible to borrow from the IDA – has been especially fierce. Their interest payments on external debt have quadrupled since 2013, hitting an all-time high of $34.6 billion in 2023. On average, interest payments now amount to nearly 6% of IDA-eligible countries’ export earnings – a level not reached since 1999. For some countries, the burden ranges from 10% to as much as 38% of export earnings. It is no wonder that more than half of IDA-eligible countries are either in debt distress or at high risk of it, or that private creditors have been retreating.

These facts imply that the world’s poorest countries are suffering not from liquidity problems, but from a metastasizing solvency crisis. It might be easy to kick the can down the road by providing these countries with just enough financing to help them meet their immediate repayment obligations. But doing so will simply prolong their purgatory. These countries need faster growth if they are ever going to reduce their debt burdens, but faster growth requires higher investment. Given the size of their debt burdens, that is unlikely to materialize. On current trends, their ability to repay will never be restored.

We need to face reality: the poorest countries facing debt distress need debt relief if they are to have a shot at sustained economic growth and lasting prosperity. A twenty-first-century global system is needed to ensure fair play in lending to all developing economies. Sovereign borrowers deserve at least some of the protections that are routinely afforded to debt-strapped businesses and individuals under national bankruptcy laws. Private creditors that make risky, high-interest loans to poor countries ought to bear a fair share of the cost when the bet goes bad.

In an era of deepening international mistrust, it will be a struggle to establish these precepts. But without them, all major development goals will remain in peril, facing the same fate as the “billions to trillions” promise.

Project Syndicate

Nigeria's inflation rate climbed to 34.60% in November, according to the National Bureau of Statistics (NBS), marking a continued upward trajectory in the country's economic challenges.

The report reveals an increase of 0.72 percentage points from October's 33.88% inflation rate. Compared to November 2023, the current inflation rate is significantly higher, jumping 6.40 percentage points from the previous year's 28.20%.

Food inflation has been particularly stark, reaching 39.93% year-on-year, which is 7.08 percentage points higher than November 2023's 32.84%. The surge is attributed to price increases in key food categories, including:

- Tubers like yams and potatoes

- Grains such as guinea corn, maize, and rice

- Oils, including palm and vegetable oils

- Tobacco and beer products

On a month-to-month basis, food inflation increased by 2.98% in November, slightly up from 2.94% in October. The rise stems from price hikes in fish, cereals, eggs, milk, and meat products.

The average annual food inflation rate for the twelve months ending November 2024 reached 38.67%, a substantial 11.58 percentage points higher than the previous year's average of 27.09%.

These figures underscore the ongoing economic pressure facing Nigerian consumers, with food prices playing a significant role in the escalating inflation rate.​​​​​​​​​​​​​​​​

Ademola Lookman, the Super Eagles winger, was crowned the 2024 CAF Men’s Player of the Year at a star-studded ceremony in Marrakesh, Morocco, on Monday. The 27-year-old Atalanta forward triumphed over strong contenders, including Achraf Hakimi, Simon Adingra, Ronwen Williams, and Serhou Guirassy, to claim the prestigious individual honor.

This victory marks a significant milestone for Lookman, who followed in the footsteps of Victor Osimhen, the 2023 winner. It also represents the first time in over 27 years that Nigerian players have won the award in consecutive years, with Nwankwo Kanu winning in 1996 and Victor Ikpeba following in 1997.

Lookman’s stellar 2023/24 season saw him score 17 goals and provide 11 assists across all competitions for Atalanta, who maintained their place as one of Serie A’s top clubs. He also starred in the Europa League, scoring a hat-trick in the final against Bayer Leverkusen, leading Atalanta to their first-ever European title. On the international stage, Lookman was one of Nigeria’s standout performers at the Africa Cup of Nations (AFCON) in Côte d’Ivoire, where he netted three goals and helped the Super Eagles secure a silver medal. His efforts earned him a place in the tournament’s Best XI alongside captain William Troost-Ekong.

During his acceptance speech, Lookman reflected on his journey, acknowledging his growth after a difficult moment in his career. He recalled his infamous penalty miss in 2020 while playing for Fulham against West Ham United, a moment that earned him widespread mockery. “Just over four years ago, I failed in front of the world. Fast forward four years, I’m the best player in Africa,” Lookman said. He urged young fans to not let failures define them, emphasizing the importance of turning pain into power.

“I want to say to the young children and people watching this: don’t let your failures weigh you down that they break your wings. Turn your pain into your power and continue to fight,” he added.

Lookman also expressed gratitude to his family, teammates, and the Almighty God for the support and blessings that have shaped his career. “This award today is a blessing to me, to my family, to my nation,” he said, beaming with pride.

The ceremony also saw other notable awards presented, with Zambia’s Barbra Banda winning the Women’s Player of the Year and Chiamaka Nnadozie of Nigeria claiming the Women’s Goalkeeper of the Year for the second consecutive year. The Super Falcons were named the Women’s National Team of the Year, while Côte d’Ivoire’s national team won the Men’s National Team of the Year.

Full List of Winners:

• Player of the Year (Men): Ademola Lookman

• Player of the Year (Women): Barbra Banda

• Goalkeeper of the Year (Women): Chiamaka Nnadozie

• Goalkeeper of the Year (Men): Ronwen Williams

• Interclub Player of the Year (Women): Sanaa Mssoudy

• Interclub Player of the Year (Men): Ronwen Williams

• Young Player of the Year (Women): Doha El Madani

• Young Player of the Year (Men): Lamine Camara

• Coach of the Year (Women): Lamia Bouhamedi

• Coach of the Year (Men): Emerse Fae

• Club of the Year (Women): TP Mazembe

• Club of the Year (Men): Al Ahly FC

• National Team of the Year (Women): Super Falcons of Nigeria

• National Team of the Year (Men): Elephants of Côte d’Ivoire

• Goal of the Year: Mabululu (Angola)