Economy
IMF Cuts Global Growth Forecasts by 3%
By Adedapo Adesanya
The International Monetary Fund (IMF) has cut the growth forecast for 2019 to 3 percent according to the latest World Economic Outlook report and lowered the 2020 estimate to 3.4 percent.
This is a result of the global economic growth which is in its slowest pace since the 2008 financial crisis and down from a 3.8 percent pace seen in 2017.
The latest World Economic Outlook indicated that the IMF shaved global growth this year by 0.2 percentage points and 0.1 percentage point next year, compared with the organization’s view from July.
The IMF said it was pessimistic about the global economy as higher import tariffs are strangling manufacturing activity and international trade.
According to its chief economist Gita Gopinath, the global outlook remains precarious and warned there was no room for policy mistakes.
“With a synchronized slowdown and uncertain recovery, there is no room for policy mistakes, and an urgent need for policymakers to co-operatively de-escalate trade and geopolitical tensions,” she said.
This year’s slowdown according to the IMF was caused largely by trade disputes, which resulted in higher tariffs being imposed on many goods.
Although the world largest economies, the United States and China reached a temporary cease-fire in their trade fight when President Donald Trump agreed to suspend a tariff hike on $250 billion of Chinese products, but with no formal agreement reached and many issues yet to resolved, further talks will be needed to achieve any meaningful breakthrough.
The IMF forecast then predicted that about half the increase in growth expected next year will result from recoveries in countries where economies slowed significantly this year, mainly in Mexico, India, Russia and Saudi Arabia.
In addition to trade and geopolitical risks, the IMF predicted threats arising from a potential exit by Britain from the European Union (EU) on October 31 and as a result of this, The IMF urged policymakers to intensify their efforts to avoid economically damaging mistakes.
“As policy priorities go, undoing the trade barriers put in place with durable agreements and reining in geopolitical tensions top the list,” Gopinath said.
“Such actions can significantly boost confidence, rejuvenate investment, halt the slide in trade and manufacturing and raise world growth.” She added.
The new IMF chief, Kristalina Georgieva, who is set to preside over her first IMF meetings after succeeding Christine Lagarde this month as the fund’s director, said that the various trade disputes could produce a loss of around $700 billion in output by the end of next year or about 0.8 percent of world output.
By Adedapo Adesanya
Nigeria Employers’ Consultative Association (NECA) has inaugurated the country’s first Environmental, Social and Governance (ESG) Implementation Guide for Micro, Small and Medium Enterprises (MSMEs) to strengthen business sustainability.
The guide was inaugurated on Tuesday during the 2026 Nigeria Employers’ Summit in Abuja in collaboration with the International Labour Organisation (ILO).
Chairman of the NECA ESG Advisory Board, Mr Femi Jaiyeola, described the guide as a milestone for strengthening the competitiveness and sustainability of Nigerian MSMEs.
He said MSMEs remained the backbone of Nigeria’s economy and required practical tools to compete in an increasingly sustainability-driven global business environment.
Mr Jaiyeola said ESG had evolved beyond regulatory compliance into a strategic business tool for attracting investment, improving competitiveness and enhancing long-term enterprise value.
He said ESG also presented significant opportunities for MSMEs and Nigeria’s economy beyond meeting regulatory obligations.
According to him, the guide comes as regulators, financial institutions and global markets increasingly demand sustainable business practices from enterprises of all sizes.
The official said ESG reporting was expected to become mandatory in Nigeria by 2030, urging MSMEs to begin preparations immediately.
He said the guide provided a practical roadmap to help MSMEs adopt ESG principles progressively while delivering measurable business value and organisational resilience.
According to him, ESG adoption will improve access to finance, strengthen business reputation and expand opportunities in international value chains.
He described the guide as a practical tool that would enable Nigerian MSMEs to compete, grow and thrive in a sustainability-driven economy.
Mr Jaiyeola commended ILO consultants and members of the NECA ESG Advisory Board for supporting the development of the implementation guide.
He recalled that NECA, with ILO support, launched an ESG assessment on Dec. 4, 2025, to strengthen sustainability practices across Nigerian businesses.
According to him, the assessment highlighted the need to integrate MSMEs into Nigeria’s ESG framework because of their contributions to economic growth and employment.
Mr Jaiyeola said the implementation guide was the first designed specifically for MSMEs in Nigeria and, to NECA’s knowledge, across Africa.
He expressed confidence that the guide would help MSMEs understand ESG principles and improve competitiveness in local and international markets.
Mr Jaiyeola disclosed that six NECA officials were undergoing specialised ESG training for SMEs at the ILO International Training Centre in Turin, Italy.
He said the officials would train MSMEs across Nigeria’s six geopolitical zones after completing the programme. According to him, the initiative demonstrates NECA’s commitment to building business capacity for sustainability and global competitiveness.
By Adedapo Adesanya
The World Bank has approved $1.25 billion in development financing to help Nigeria spur economic growth and create jobs.
Unveiled under its Nigeria Actions for Investment and Jobs Acceleration programme, the approval was announced on Wednesday alongside the launch of a new Country Partnership Framework for Nigeria, spanning 2026 to 2032.
The global lender, in a statement, noted that the newly endorsed strategy aims to guide its support over the next six years, primarily focusing on creating higher-quality jobs.
The Bretton Woods-based bank said the $1.25 billion Development Policy Financing operation is expected to back reforms aimed at improving Nigeria’s business environment and strengthening long-term economic growth.
According to the statement, the planned reforms include expanding capital markets, updating regulations for the digital economy and e-governance, accelerating electricity sector reforms, reducing trade barriers in line with Nigeria’s commitments under the Economic Community of West African States (ECOWAS) and the African Continental Free Trade Area (AfCFTA), improving access to quality agricultural seeds and increasing domestic revenue generation.
The loan comes amid increased criticism over the rate of borrowing under the Bola Tinubu-led administration, which has seen the country’s debt profile now almost at N160 trillion, as per the latest data from the Debt Management Office (DMO).
The Bank stressed that the new framework is built on Nigeria’s recent macroeconomic reforms, which it noted have successfully driven economic growth, bolstered external reserves, and improved investor confidence.
“The World Bank Group has endorsed a new Country Partnership Framework for Nigeria spanning 2026–2032, setting out a strategy to create more and better jobs at scale by unlocking private sector-led growth,” the bank stated in the statement.
World Bank Country Director for Nigeria, Mr Mathew Verghis, while highlighting the need to convert financial benchmarks into human development, emphasised the core mission of the project.
“Our new Country Partnership Framework provides the strategy for how the World Bank Group will support Nigeria over the coming years, with a strong focus on helping to create more and better jobs, particularly by enabling private sector-led growth.
“The recent macroeconomic gains have been critical to help stabilise the economy. Translating improved macroeconomic conditions into better living standards will require addressing the structural constraints to spur private sector investment and job creation,” Mr Verghis said.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange improved by 0.89 per cent on Tuesday, June 30, spurring the market capitalisation to chalk up N22.72 billion to close at N2.580 trillion, in contrast to the preceding session’s N2.557 trillion.
In the same vein, the NASD Unlisted Security Index (NSI) added 37.85 points during the session to settle at 4,2991.41 points from Monday’s 4,261.56 points.
The unlisted securities market gained weight yesterday after finishing with three price losers and gainers, led by Nipco Plc, which improved its share price by N34.24 to N384.00 per unit from N349.76 per unit. FrieslandCampina Wamco Nigeria Plc appreciated by N10.25 to close at N152.01 per share versus N141.76 per share, and Food Concepts Plc soared by 7 Kobo to settle at N2.50 per unit versus N2.43 per unit.
On the flip side, Afriland Properties Plc weakened by N1.57 to N15.17 per share from N16.74 per share, Central Securities Clearing System (CSCS) Plc lost 48 Kobo to trade at N88.00 per unit compared with Monday’s N88.48 per unit, and Geo-Fluids Plc eased by 24 Kobo to N2.37 per share from N2.61 per share.
During the session, the volume of securities traded by market participants moved up by 268.9 per cent to 846,063 units from 229,314 units, while the value of securities dropped 34.9 per cent to N15.99 million from N24.6 million, and the number of deals crashed by 26.5 per cent to 25 deals from 34 deals.
Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis, with 3.4 billion units worth N8.4 billion, the second spot was occupied by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units valued at N6.5 billion, and the third spot was taken by CSCS Plc with 68.8 million units traded for N4.7 billion.
GNI Plc also ended the day as the most active stock by volume on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, followed by Infracredit Plc with 2.3 billion units transacted N6.5 billion, and Resourcery Plc with 1.1 billion units sold for N415.7 million.
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