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Rethink petrol subsidy, it mostly favours the rich, World Bank tells Nigeria

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Nigeria to Benefit as IMF Approves $45bn for Low, Middle-income Countries

World Bank has advised Nigeria to rethink its steps in the provision of N4 trillion for petrol subsidy payments in the 2022 budget.

David Malpass, president, World Bank Group, said this on Wednesday at the opening press conference of the 2022 IMF-World Bank spring meeting.

The national assembly had approved the request of President Muhammadu Buhari to earmark N4 trillion for petrol subsidy in 2022.

Subsidy or under-recovery is the underpriced sales of premium motor spirit (PMS), better known as petrol.


The N4trn budgetary allocation for petrol subsidy is more than 2021 CIT, VAT combined collection.

Malpass said the provision of petrol subsidy in Nigeria is not targeted at those most in need, encouraging Nigeria to rethink its subsidy effort.

“Generalised subsidies have significant negatives. One is, they are expensive because they go to everyone, and they’re often taken–more used by people with upper incomes than by people with lower incomes; they’re not targeted,” he said.

“So, we encourage, when there needs to be a subsidy for either food or fuel, that it be carefully targeted, well-targeted for those most in need. And we have encouraged Nigeria to rethink its subsidy effort.”

The World Bank president also cited multiple exchange rate systems and trade barriers as factors affecting Nigeria’s growth.

He said while the multiple exchange system is complicated and shows a lack of discipline in the country’s fiscal policies, trade barriers distort trade flows.

“Also, two other things that I’ll mention on Nigeria that are important. It runs a multiple exchange rate system, which is complicated and is not as effective as it would be if there were a single exchange rate,” he added.

“The most useful thing for development is to have a single exchange rate that’s market-based, that is stable over long periods of time. That attracts investment and it also means that there is discipline within the country’s fiscal policies. That would help.

“And then, Nigeria also has trade barriers that distort trade flows, and that could be improved substantially to help the people in Nigeria move forward. I do take note of the complicated situation that they face.

“Weapons are flowing in through northern Africa that finds their way to non-Nigerians that create violence in Nigeria. This is a very challenging situation that the government faces.

“And I think we, all over the world, people should have an understanding of the fragility that’s facing several parts of the world, but in particular the Sahel and the Sub-Saharan African area where the weapons flow from outside of Africa is putting a grave burden on governments around the continent.”

Malpass said Nigeria has a huge opportunity because of its natural resources but needs to improve on policies to accelerate growth.

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Organ harvesting: Dino Melaye reacts to arrest of Ekweremadu, wife

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Dino Melaye

Former Kogi West Senator, Dino Melaye has expressed his support for ex-Deputy Senate President, Ike Ekweremadu amid controversy of alleged organ harvesting.

Melaye said he stands with Ekweremadu because there was no wrongdoing by the Senator.

Ekweremadu and his wife, Beatrice were arrested in London for allegedly plotting to harvest the kidney of a Nigerian minor.

The UK metropolitan police had arrested and charged Ekweremadu and his wife to court, but the duo pleaded not guilty to the charges at the Uxbridge Magistrates’ Court.

“These are serious allegations and these matters are now adjourned until 7 July back here at Uxbridge,” Magistrate Lois Sheard said.

Ms Sheard remanded both defendants in custody ahead of their hearing next month.

Sharing Ekweremadu’s letter via his Twitter handle, Melaye wrote: “Sen. Ike Ekweremadu notified the British authorities on his trip with the said boy. I stand with Ike.”

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Supreme Court set to rule on controversial Electoral Act on Friday

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The Supreme Court of Nigeria will on Friday deliver judgment on the legality or otherwise of the controversial section 84 (12) of the Electoral Act 2022 .

The apex Court is set for its verdict in the suit instituted against the National Assembly by President Muhammadu Buhari and the Attorney General of the Federation AGF and Minister of Justice.

A notice for the judgment delivery has just been sighted, indicating that the apex Court will make its position known this morning.

The notice was served on Buhari and the National Assembly on Thursday, inviting them to appear before the court today for their judgment.

Our correspondent further observed that the suit is the only one for determination today.

Buhari and Abubakar Malami had filed the suit at the Supreme Court, seeking an interpretation of the controversial clause in the Electoral Amendment Act 2022.

In the suit filed on April 29, Buhari and Malami, who are the plaintiffs, listed the National Assembly as the sole defendant.

Section 84 (12) has been a subject of intense litigation and political debate in Nigeria since President Buhari signed the amended Electoral Act 2022 into law in February this year.

Shortly after signing it into law, Buhari had asked the parliament to delete the controversial clause in the Electoral Act, but the National Assembly declined the president’s request.

According to Section 84 (12) of the legislation, “No political appointee at any level shall be a voting delegate or be voted for at the convention or congress of any political party for the purpose of the nomination of candidates for any election.”

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World’s most livable cities: Vienna climbs back to its No. 1 spot. These are the biggest decliners

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World’s most livable cities: Vienna climbs back to its No. 1 spot
The Stephansplatz is a square at the geographical centre of Vienna. It is named after its most prominent building, the Stephansdom, Vienna's cathedral and one of the tallest churches in the world.

After two years, Vienna has overtaken Auckland as the world’s most livable city, according to a report by the Economist Intelligence Unit (EIU).

Vienna ranked first in 2018 and 2019, but was overtaken by Auckland, New Zealand, during the pandemic and slipped to 12th place in 2021, according to the Global Liveability Index 2022.

The EIU said that Auckland’s position on the index dipped to the 34th place this year because of higher Covid-19 infection rates and strict border controls in 2021. Although lockdowns ended in New Zealand in December, well-vaccinated cities in Europe and Canada had begun easing restrictions earlier.

However, it’s unlikely that Auckland would’ve clinched the top position in this year’s ranking even without a pandemic, according to the EIU.

“Other cities falling was why Auckland was top last time. Without Covid, it would likely be top 10, but not number one,” said Simon Baptist, global chief economist at the research and advisory firm.

Five other European cities — Copenhagen, Zurich, Geneva, Frankfurt and Amsterdam — also made the top ten. Canada’s Calgary and Vancouver took the third and fifth spots respectively. Japan’s Osaka and Australia’s Melbourne shared 10th place — the only two “Asian” cities that made it to the top 10.

The 172 cities that were included in the rating were assessed on these categories: stability, health care, culture and environment, education and infrastructure.

Biggest decliners
Cities in New Zealand and Australia were the biggest fallers in the EIU’s livability ranking.

New Zealand’s capital Wellington dived by 46 places, while Australia’s Adelaide and Perth lost their 2021 positions in the top 10. They are now in the 30th and 32nd place respectively.

Australian and New Zealand cities snagged six of the top 10 spots last year, but were “much, much lower down” on this year’s list as their partial reopening coincided with the spread of the more contagious omicron variant, Baptist told CNBC’s “Street Signs Asia” on Thursday.

But the EIU is optimistic that these cities would bounce back.

“We can expect to see Australian and New Zealand cities moving up the rankings next year, when we do the next round of the survey. And this will be because they will have relaxed more of their Covid restrictions,” said Baptist.

Other cities in the region saw their rankings slip as well.

Singapore fell three spots to 37th place this year, while Hong Kong dropped to 62nd place from 49th last year.

“This is a long term change, it’s not just about Covid. That is part of it. But Hong Kong’s loss of connectivity is likely to be permanent,” said Baptist, citing the decline of cultural and political freedom in the city.

Russian cities plunged
Russia’s invasion of Ukraine saw Moscow’s livability ranking fall by 15 places, while St. Petersburg dipped by 13 spots, the EIU reported.

“Both cities record a fall in scores owing to increased instability, censorship, imposition of Western sanctions and corporates withdrawing their operations from the country,” the report said.

The war on Ukraine also affected the rankings of other Eastern European cities that have been facing political standoffs security threats, food and energy insecurities, and rising inflation, EIU said.

For example, Poland’s Warsaw and Hungary’s Budapest saw their stability scores slip as a result of rising diplomatic tensions, the EIU added.

Ukraine’s capital Kyiv was also excluded from this year’s report, and 33 new cities — 11 of them in China — were added.

The top 10
These are the world’s most livable cities and their scores, according to The Global Liveability Index 2022:

  1. Vienna, Austria (99.1)
  2. Copenhagen, Denmark (98.0)
  3. TIE — Zurich, Switzerland (96.3)
  4. TIE — Calgary, Canada (96.3)
  5. Vancouver, Canada (96.1)
  6. Geneva, Switzerland (95.9)
  7. Frankfurt, Germany (95.7)
  8. Toronto, Canada (95.4)
  9. Amsterdam, Netherlands (95.3)
  10. TIE — Osaka, Japan (95.1)
  11. TIE — Melbourne, Australia (95.1)

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