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Ghana battles economic crisis, inflation climbs over 50 percent

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The packing machine at Nakobs’ Pac factory in the outskirts of Ghana’s capital Accra is running at full pace, churning out sachets of treated drinking water.

But all is not well at Nakobs’. Like other small businesses in Ghana these days, owner Daniel Tekyi is struggling.

With inflation at over 50.3 percent in November from 40.4 percent in October — the highest rate since 2004, the currency worth half what it was last year, fuel prices doubling and debt payments gobbling up more than half the government’s revenues, Ghana is battling its worst economic crisis in decades.

Ghana signed a $3 billion bailout deal with the International Monetary Fund on Tuesday in a bid to shore up public finances, but economic stability is still a way off.

“It would be better for us to close the factory. We really don’t know when this crisis is going to end,” said Tekyi.

Once applauded as a rock of economic stability and security in a region plagued by coups and jihadist wars, Ghana has steadily lost investor confidence.

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Like much of the continent, Ghana slowly emerged from the pandemic only to face the fallout of the war in Ukraine and the surge in fuel and food costs.

Facing a crunch in payments, President Nana Akufo-Addo this year reversed course from his “Ghana Beyond Aid” concept and entered talks with the IMF for a bailout.

Already, the government has announced a 2.5 percent increase in VAT and a freeze on public worker hires to help cut costs and hike revenues. A debt restructuring is underway.

With an IMF team in Accra, Finance Minister Kenneth Ofori-Atta promised the credit deal, debt swap and a reform package would restore investor confidence and steer the economy out of “grave times”.

But many Ghanaians are bracing for potential austerity before any stability returns, with the impact of new taxes and spending cuts.

How Ghana’s government emerges may also have political fallout. Elections are two years away with Akufo-Addo stepping aside and ruling New Patriotic Party or NPP allies already jostling for position for primaries in early 2023.

The government has to find ways to mitigate any impact from reforms, especially on public sector employment and high taxes, economist Daniel Anim Amarteye said.

“If that is not done, it could be politically fatal,” he said.

Ghana’s economic story was brighter a few years ago. Before the pandemic, the West African state was a star with fast growth rates, growing oil production and strong investor interest.

But its high level of debt was a looming problem.

Since the start of the year, its cedi currency has lost half its value, which has helped increase its debt burden by $6 billion, with warnings Ghana risked a default.

A major part of the IMF agreement is bringing the country back to debt sustainability through a restructuring, calling on investors to exchange bonds for new ones maturing later.

IMF approval of the $3 billion loan will depend on its success. Officials say they have the means to help offset any impact on local banks or pension funds — major holders of domestic bonds.

But Ghana’s major labour movement, the Trades Union Congress, is already rumbling over the deal’s potential impact on workers’ pensions.

Opposition National Democratic Congress has been quick to blame Akufo-Addo’s government for ballooning debt, even trying and failing to censure the finance minister.

“No matter how the IMF programme turns out and how they can turn the corner, the records will show that they took us to 40 percent inflation, the records will show the market was closed to us, the markets will show the cedi depreciated 54 percent,” said NDC lawmaker Isaac Adongo.

Akufo-Addo’s government spent heavily on social programmes such as free high schools. But his ruling New Patriotic Party says the crisis is all about external shocks — Covid and Russia’s war in Ukraine.

“Assuming Covid didn’t happen, what would our story be?” NPP communications director Richard Ahiagbah told AFP.

Testifying before parliament last month, Ofori-Atta apologised to Ghanaians for their pain, but officials dismissed NDC charges of mismanagement.

But political calculations are not a luxury Patience Tesonkeh can afford.

Stung by the soaring price of cooking gas the single mother switched to cheaper charcoal to cook. Her usual weekly shopping budget no longer stretches to all her family’s needs.

“I withdrew 300 cedis ($20) thinking I would get everything I needed but I couldn’t,” she said on a recent trip to buy rice, fish and yams at a market in her Accra neighbourhood.

Unionised traders and shopkeepers in the capital also closed their businesses last month in a three-day protest over rising living costs.

For factory owner Tekyi the numbers just don’t add up. Production and transport now total 5.8 cedis per water bag. But he can only sell them for five.

“We planned closing our factory because we are not making any profit,” he said.

“But we had a second thought that if we close and we lay off our workers how can they also survive? So for now, we are producing and making a loss.”  (AFP)

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Mammoth Crowd Rallies for Mbah’s Re-election as G-17 Concludes LG Tour in Grand Style

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…Stakeholders, community leaders queue behind Mbah, Tinubu, APC candidates

The tour of the 17 Local Government Areas (LGA) of Enugu State by the G-17 For Peter Mbah, a grassroots political mobilization group, came to a historic and colourful conclusion, weekend, as political leaders, party stakeholders, community leaders and teeming supporters trouped out in their thousands for the grand finale.

The event, which took place at the Nkanu East Local Government headquarters, Amagunze, also marked the conclusion of the inauguration of the movement’s 17 Local Government Executives, 260 Ward Executives and Polling Unit Canvassers across Enugu State.

Speaking at the event, Chairman of Nkanu East Local Government Council, Hon. Okechukwu Edeh, described G-17 as a foremost political support group in Enugu State, commending what he described as the group’s unmatched record of grassroots mobilization and candidates’ delivery.

Hon. Edeh, who doubles as the Chairman of the Association of Local Governments of Nigeria, ALGON, Enugu State, disclosed that all 17 Council Chairmamen in the state had embraced G-17’s model of mobilisation and assured that both himself and his successor would continue working closely with the movement to secure Governor Peter Ndubuisi Mbah’s reelection.

“As ALGON Chairman in Enugu State, I can confidently say G-17 has distinguished itself as a premier grassroots political support group in Enugu State. The structure, discipline and organisation we have witnessed across the 17 LGAs are remarkable.

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“I will hand over office in September, but I will not hand over my commitment to Governor Peter Mbah. Together with my successor, we shall continue working with G-17 to ensure that Nkanu East exceeds the votes recorded in the 2023 election and delivers Governor Peter Ndubuisi Mbah, President Bola Ahmed Tinubu and all APC candidates come 2027,” he declared.

Citing Mbah’s numerous achievements in just three years, Hon. Edeh assured that Nkanu East had already lined up behind their performing governor and son.

“Nkanu East has already been converted. Nobody needs to tell us to vote for our performing son. We are prepared, we are waiting and we shall reward him with overwhelming votes,” he said.

He further revealed that Governor Peter Mbah’s transformational leadership inspired his own administration to embark on landmark projects, including the ongoing 200,000-capacity ultra-modern civic hall, over 13 kilometres of road, the completion of the Ugbawka-Nara Bridge, and several development projects spread across the 14 political wards of the local government.

In his remarks, Member representing Nkanu East State Constituency, Hon. Okey Mbah, described Governor Peter Mbah as the best Governor around and commended the Convener and BOT Chairman of G-17, Chief Chinedu Mbah, and his team for setting up a genuine and organic grassroots mobilisation for the governor’s reelection.

The APC Chairmanship Candidate for Nkanu East LGA, Engr. Mike Ogbuekwe, thanked the Convener for restoring G-17 to its original vision and purpose.

“The movement has returned to the hands of those who understand its purpose. What I have seen today confirms that G-17 is a truly grassroots-based political structure. I assure you that when elected, my administration will work closely with G-17 to ensure total victory for APC in 2027,” he pledged.

Also speaking, the Personal Assistant to the Governor of Enugu State and President of Tomorrow Is Here Movement (THM), Tony Okonkwo, commended G-17’s leadership for what he described as excellent grassroots political engineering.

“What G-17 is doing is commendable. Looking at this structure, I am convinced that the victory of APC candidates in 2027 is already assured.”

The Enugu State APC Chairman, Dr. Martin Chukwunweike, represented by the State Organising Secretary, Engr. Onyi Odibe; Deputy State Chairman, Peace Patrick; State Woman Leader, Mrs. Esther Edeh; and the South-East APC Women Leader, Dr. Oby Ajih, among others, commended leaders of G-17 for the great job done, saying Enugu is now eager to vote Mbah and APC back into power come 2027.

Delivering the keynote address, the Convener, Chief Chinedu Mbah, reminded the newly inaugurated executives that their inauguration represented a call to service rather than a ceremonial event.

“You have accepted responsibility. Your assignment begins immediately. Move from polling unit to polling unit, ward to ward and community to community, informing our people about the achievements of Governor Peter Mbah and President Bola Ahmed Tinubu. Victory is built from the grassroots,” he charged them.

The ceremony climaxed with the inauguration of the Nkanu East Local Government Executives, Ward Executives and Polling Unit Canvassers, who pledged to immediately commence intensive grassroots mobilisation across the 14 political wards of Nkanu East in preparation for the 2027 general election.

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Building collapse: Anambra Govt seals site, vows tougher enforcement

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• One casualty recorded, three hospitalized

The Anambra State Government has sealed the site of the collapsed building at Oko in Orumba North Local Government Area of the state.

‎Commissioner for Physical Planning and Urban Development, Barr. Chijioke Ojukwu announced immediate closure of the site pending comprehensive investigations and structural integrity assessments.

He said preliminary findings indicated structural failure as the likely cause of the collapse.

While reaffirming government commitment to stricter enforcement of physical planning regulations and the elimination of unsafe construction practices, Ojukwu vowed that the incident would mark a turning point in enforcement of building regulations across the state.

He assured that owners and developers of defective or non-compliant structures would face sanctions, while ongoing projects would undergo stricter inspections.

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‎‎On his part, Commissioner for Works, Arc. Okey Ezeobi, said technical investigations were ongoing to determine exact cause of the collapse.

He added that government had engaged a team of professionals to carry out a comprehensive structural evaluation.

‎‎Recommendations will be implemented

He assured residents that government would implement recommendations from the investigation to strengthen the state’s building control system.

Implementation will also prevent future occurrences while ensuring prosecution of culprits in accordance with the law.

‎‎The Commissioner for Health, Dr. Afam Obidike, said government immediately deployed medical personnel and ambulances to the scene to provide emergency care for the injured, while the Ministry of Health worked closely with other emergency response agencies throughout the rescue operation.

‎‎Obidike commended the swift and coordinated response of the Anambra State Government and emergency agencies, describing it as crucial to the rescue efforts and timely medical treatment of victims.

‎‎The Mayor of Orumba North Local Government Area, Rtd. Captain. Casmir Nwafor, praised the rapid intervention of the state government and emergency responders, noting that their coordinated efforts helped contain the situation and minimize further risks.

‎‎Nwafor urged developers, property owners, institutions, and residents to comply strictly with approved building regulations and safety standards, reaffirming the local government’s support for the enforcement of physical planning laws.

‎Running to safety

‎Eyewitnesses, Prince Ifeanyi Ezefunamba said the building, reportedly occupied by students of Federal Polytechnic Oko, collapsed at about 10:00 p.m. after occupants heard cracking sounds and evacuated.

One survivor, Miss Chioma Akabike narrowly escaped moments before the collapse, while rescue operations commenced immediately.

‎‎Also present during the inspection were officials of the National Emergency Management Agency (NEMA) headed by the Enugu State Head of Operations, Mrs. Priscilla Mbaekwe, the Nigeria Police Force, the Nigerian Red Cross Society, and the Anambra State Emergency Management Agency (SEMA).

Others include: the Anambra State Fire Service, and the Council for the Regulation of Engineering in Nigeria (COREN), who participated in rescue, security, and preliminary technical assessments.

‎‎As of the time of filing this report, one fatality had been confirmed, while three injured victims were receiving treatment at Chukwuemeka Odumegwu Ojukwu University Teaching Hospital (COOUTH) and St. Michael’s Hospital, Oko, as rescue operations continued.

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Petroleum Minister lauds NCDMB for Community-focused Interventions

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The Minister of State for Petroleum Resources (Gas), Rt. Hon. Obongemem Ekperikpe Ekpo, on Saturday commended the Nigerian Content Development and Monitoring Board (NCDMB) for demonstrating that Local Content Policy could be a force for transforming lives and creating socio-economic value through community-focused interventions.

Speaking at the commissioning of a state-of-the-art Information and Communication Technology (ICT) Centre at IkaComprehensive High School, Ikot Akpan Anwa, Akwa Ibom State, the Minister said such a strategic investment in the area, with vast possibilities for research and online learning through diverse educational platforms, would bolster human capital development, digital literacy and sustainable community development.

The ICT Centre, built and equipped by the NCDMB, comprises a modern computer laboratory with 50 networked desktop workstations, an interactive smart board, projector, server room and Starlink high-speed Internet connectivity to support digital learning, research and computer-based examinations. Designed to accommodate up to 70 users, the facility also features air-conditioned learning spaces, a staff room, store and separate convenience facilities. Power reliability is supported by a 15kVA generator and a 15kVA solar power system with battery backup, complemented by a dedicated network infrastructure for seamless connectivity.

“This ICT Centre,” according to the Minister, “is far more than a building equipped with computers; it is an investment in the future of our children and a gateway to knowledge, innovation, creativity and opportunity.” Continuing, he noted that, “Nations that invest in the digital education of their young people today are the ones that will lead the world tomorrow.”

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He said the initiative of the Board aligns with the Renewed Hope Agenda of President Bola Ahmed Tinubu by advancing access to quality education, youth empowerment, digital transformation and inclusive economic growth, as young Nigerians in rural communities acquire relevant digital skills and competencies to participate effectively in a technology-driven economy.

Representing the Executive Secretary of the NCDMB, Engr. Felix Omatsola Ogbe, the Director, Corporate Services, Dr. Abdulmalik Halilu, stated that digital literacy and ICT capacity development remain a key component of the Board’s human capital development mandate aimed at building a skilled workforce for the Nigerian oil and gas industry and the broader economy. He noted that the facility would provide students with access to digital learning, research tools, artificial intelligence and global knowledge resources.

“This ICT Centre is more than a building; it is an investment in the future of our young people,” he stated, adding, “It represents our commitment to extending Nigerian Content objectives beyond industry into classrooms, where innovation, technology and skills development can empower the next generation.”

Halilu stressed that the project’s long-term success depends on collaboration among the Board, the school and the host community. He urged the community to take ownership of the facility and ensure its proper maintenance and sustainability for future generations.

“Our expectation is not simply to hand over a facility but to see measurable outcomes in the lives of the students who will use it. We therefore call on the school and the host community to safeguard this centre and ensure it continues to deliver value for many years to come.” He added.

Speaking on behalf of the project delivery team, the Managing Director of Standard Institute of Technology Limited, Engr. Alexander Nsidibe, expressed appreciation to NCDMB for the confidence placed in the company to deliver the project. He described the ICT Centre as a demonstration of the Board’s commitment to quality infrastructure development and human capital advancement. He pledged the company’s continued support for the facility’s maintenance for one year after handover, noting that the Centre would enhance students’ digital competencies and prepare them for productive life in industry.

In her welcome address, the Principal General of IkaComprehensive High School, Mrs. Nkom John Umoette, described the ICT Centre as a transformative intervention that would bridge existing digital access gaps. She noted that the school lacked an ICT facility, which constrained students’ exposure to digital learning and computer-based education.

She expressed appreciation to Rt. Hon. Ekpo and the NCDMB for making the project a reality, stating that the facility would equip students with essential digital skills, improve their preparedness for computer-based examinations, and create greater opportunities for academic excellence and future careers.

 A representative of the community commended the Minister and the NCDMB for the delivery of the ICT Centre, noting that the facility would significantly improve access to digital learning and computer-based examinations. He recalled that students previously travelled to Uyo and neighbouring communities to register for and take examinations such as JAMB, incurring additional costs and facing logistical challenges.

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