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Ethiopia Allocates $2.9 Billion to Combat Inflation and Avoid Hunger Protests

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Ethiopia Allocates $2.9 Billion to Combat Inflation and Avoid Hunger Protests

Ethiopia Allocates $2.9 Billion to Combat Inflation and Avoid Hunger Protests

The Ethiopian government has unveiled a significant plan to address the rising cost of living and prevent potential unrest similar to Nigeria’s recent hunger protests. The government plans to allocate 240 billion birr ($2.9 billion) for social spending amid ongoing economic reforms.

In an interview with Bloomberg, Eyob Tekalign Tolina, State Minister in the Finance Ministry, emphasized that the government has learned from the experiences of other nations. He highlighted that Ethiopia is prepared for the inflationary impact of its reforms.

“We are proposing a supplementary budget of about 550 billion birr ($5.9 billion), with approximately 40% dedicated to subsidizing essential commodities, petroleum, and fertilizers for farmers. We will also implement a safety net program to provide direct support to citizens,” Tolina stated.

Recently, Ethiopia floated its currency, the birr, transitioning to a market-determined exchange rate system. This move preceded the securing of a four-year IMF loan worth $3.4 billion and $1.5 billion in budget support from the World Bank.

Following the float, the birr’s value plummeted by 70%, from 57.48/$ on July 26, 2024, to 101.43/$ on August 6, 2024, as per data from the Commercial Bank of Ethiopia.

Despite a decline in Ethiopia’s inflation rate to 19.9% in June from 23.3% in May 2024, the IMF predicts inflation will rise to 30% in 2024 before easing to 16.2% in 2025 due to these reforms.

In contrast, Nigeria announced in February 2024 that it would disburse N25,000 each to 15 million households to mitigate the impact of inflation spurred by economic reforms, including the fuel subsidy adjustment and currency float. Since Nigeria floated the naira in June 2023, inflation has soared to a 28-year high of 34.19% in June 2024, significantly eroding purchasing power and raising living costs by 50% within a year.

Nigeria’s Finance Minister Wale Edun mentioned plans to provide an additional 60,000 metric tons of grains and distribute N50 billion in non-refundable grants to at least 1,000 artisans, traders, and small businesses across the country. Despite these measures, widespread protests have erupted against economic insecurity and the cost-of-living crisis under the #EndBadGovernance movement.

Experts argue that while these reforms were necessary, they were implemented hastily without fully considering their impact on vulnerable citizens. Adeola Adenikinju, President of the Nigerian Economic Society, noted, “The government has good intentions to fix the economy, but fell short in delivery.” Muda Yusuf, CEO of the Centre for Promotion of Private Enterprises (CPPE), echoed this sentiment, urging the administration to expedite mitigating measures to alleviate the reform’s adverse effects.

SBM Intelligence, an Africa-focused consultancy, warned that the Nigerian government could face further trouble if it fails to address the protesters’ demands adequately.

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Jos DisCo urges Gombe customers to reciprocate improved power supply

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Jos DisCo urges Gombe customers to reciprocate improved power supply

The Jos Electricity Distribution Plc (JED), on Wednesday, appealed to its customers in Gombe State to pay their electricity bills as a way of reciprocating the improved power supply in the state and its franchise.

Mr Abdu Mohammed, the managing director of JED, made the call while speaking at a customer consultative forum held in Gombe.

Mohammed decried the non-payment of electricity bills by consumers in the state, noting that the attitude of energy users in that regard was posing a big challenge to the company.

Represented by Mr Yerima Baba, the manager of Doma regional office, Mr Mohammed said the customers had a duty to pay for services that they have enjoyed.

According to him, this will enable JED sustain the improvement towards guaranteeing customers’ satisfaction across its franchise.

He stated that in the month of August, the energy bill for the state was N1.3 billion and only about 15.4 per cent of the total bills charged had been paid by customers.

“The electricity business is changing gradually and drastically. It is well known that Jos electricity is giving out the total volume of energy.

“There are feeders we give up to 100 per cent energy; this means that if translated to money, our monthly energy increases as well as the bill.

“But unfortunately, the response from the customers is appalling, so bad that if it continues like that, it would be difficult to sustain the business.

“We are consuming the total energy that is worth over N2 billion yet, the income generated from the two regions in Gombe State as at Tuesday September 17 is less than N200 million.

“We were billed over N1.3 billion for the month of August for the whole of Gombe and Doma,” he said.

Mohammed said there was high level of apathy in terms of payment of electricity bills, lamenting that people were paying just what they like.

“We are calling on customers to reciprocate now that energy is stable and availability is increasing; we are out to serve you please help us to serve you better,” he said.

Mohammed also decried the high rate of energy theft and vandalism which he said was affecting the company.

Also speaking, Mr Saad Abubakar, the manager of Gombe regional office said JED was working to improve on its metering, adding that improvements and customers’ satisfaction remained a critical component of the organisation.

Abubakar commended the customers for turning out to engage with JED on how to improve service delivery while assuring them that all genuine concerns raised would be addressed.

Our correspondent reports that customers during the engagement lauded JED for improved power supply in the state.

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Tito Jackson, Michael Jackson’s Brother and Jackson 5 Member, Dies at 70; Nigerians Pay Tribute

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Tito Jackson, Michael Jackson’s Brother and Jackson 5 Member, Dies at 70; Nigerians Pay Tribute

Tito Jackson, renowned as a member of the iconic Jackson 5 and the older brother of Michael Jackson, has passed away at the age of 70. His death has sparked a wave of mourning among fans in Nigeria and around the world.

Tito’s contributions to music and his role in the Jackson 5, a group that revolutionized pop music, are being remembered fondly.

Tributes are pouring in as fans and fellow musicians celebrate his legacy and the significant impact he had on the music industry.

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Yobe Govt Donates N100m to Support Borno Flood Victims

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Yobe Govt Donates N100m to Support Borno Flood Victims

Yobe Govt Donates N100m to Support Borno Flood Victims

Yobe State Governor, His Excellency Hon. Mai Mala Buni CON, has extended a N100 million donation to the Borno State Government to aid victims of the recent Maiduguri floods. The announcement was made during a sympathy visit to Governor Babagana Umara Zulum in Maiduguri on Saturday.

In addition to the state donation, Governor Buni also pledged a personal contribution of food items worth N50 million to assist those affected by the floods. He described the humanitarian crisis as devastating and urged everyone to come forward with support.

“Yobe and Borno states are like twins, sharing similar hardships. We must stand by each other in times of need,” Buni stated.

The Yobe Governor also expressed condolences for those who lost their lives in the disaster and wished a quick recovery for the injured.

Governor Zulum expressed gratitude to Governor Buni and the people of Yobe State for their generosity and solidarity. He highlighted the strong bond between the two states, noting that Buni’s administration has further strengthened the unity between Borno and Yobe.

“The people of Yobe and Borno are one family, and this support reinforces that connection. We deeply appreciate the gesture,” Zulum said.

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