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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.

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.

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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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Security guard kidnaps employer’s two children, demands ransom

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The abducted children
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A private security guard has escaped with two kids from his employer in Minna, with the police suspecting abduction.

The security guard, named Sani Abdulrahaman, a Fulani by tribe, on Sunday, reportedly took Umaru and Anas, both six years old, on Sallah picnic without the knowledge of their father, Alhaji Danjuma, a businessman, and failed to bring them back home.

The father of the children raised the alarm asking the public and security agencies to help him locate the fleeing security guard and his children.

Danjuma said someone called him on Sunday evening and said he was in Erena forest in Shiroro Local Government Area with the children.

According to him, the caller asked for undisclosed ransom before his children who were in their custody would be released.

When contacted, Niger State Command Police Public Relations Officer, SP Wasiu Abiodun, confirmed the incident, which he said occurred about one o’clock on Sunday, May 31.

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Abiodun explained that the security man pretended that he was taking the children for Sallah celebration in the town, but did not return.

He said the police suspected abduction but disclosed that “investigation has commenced and efforts to locate the children are ongoing.”

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Police arrest suspect behind AI-generated Tinubu voice note

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Ifechukwu Dennis, the suspect
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The Nigerian Police Force has arrested Ifechukwu Dennis, the man identified as the originator of an AI-generated voice note that was widely circulated online as a leaked recording of President Bola Tinubu.

Presidential Special Adviser on Information and Strategy, Bayo Onanuga, announced the arrest on Thursday in a post on his official X account.

“The IGP crack team has arrested Ifechukwu Dennis who originated the fake voice that he passed on to his gullible targets as President Tinubu’s voice,” he said.

The arrest closes a week-long controversy that began on May 27, 2026, when a video of social media activist Martins Vincent Otse, popularly known as VeryDarkMan, went viral.

In the clip, an AI-generated voice resembling Tinubu’s was heard making inflammatory statements — including that insecurity in the South-East was deliberate, that he had pressured Peter Obi to step down ahead of the 2023 election, and that he was indifferent to Nigerians’ suffering.

Investigations by multiple news organisations, however, established that VDM had not posted the doctored audio.

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An unidentified individual had extracted footage from VDM’s original Instagram video and superimposed the AI-generated voice notes before recirculating the manipulated version online.

Despite this, the Presidency had initially called for VDM’s prosecution.

Onanuga had described the incident as “a clear case of egregious abuse of the social media platform,” drawing criticism after fact-checkers confirmed VDM’s original video contained none of the fabricated audio.

Further details on the circumstances of Dennis’s arrest and the charges he may face were not immediately available at the time of filing this report.

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Five abducted Kwara worshippers killed, one escapes, others still held

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Terrorists have killed five out of the eight worshippers abducted at ECWA Church Omugo in Ifelodun local government area of Kwara state, says one escaped abductees.

Rev Sunday Omole had urged federal government to expedite action on the release of the abductees from the captivity of the terrorists.

The clergyman said government intervention had become necessary after the community paid the terrorists N20 million and provided additional items worth more than N300,000, yet the abductors refused to release the worshippers and instead demanded an additional N300 million ransom.

He added that from the action of the terrorists it was clear that they just wanted to be exploiting the community.

Recall that eight of the worshippers including the Pastor’s wife were kidnapped in the morning of March 22,2026 during a Sunday service.

The death of the five worshippers including the Pastor’s wife was disclosed in a statement issued by the Pastor of the church, Rev Sunday Omole, Wednesday evening.

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The statement reads:

“It is with deep pain in my heart that I inform the church, families and individual concerned in regard to the 8 people that were abducted from ECWA OMUGO on 22nd of March, 2026.

“We received one of our son’s, Mr Sunday Bakare also abducted over a month ago, he escaped and brought the following news that only 3 out of 8 of our people are remaining with the kidnappers. The remaining 5 have gone to be with the Lord.

“They are; Elder Chief David Omopariola,
Chief Joseph Ibitoye Afariogun,
Mrs Iyabo Aniyi,
Elder Joshua Akanbi Adeyemi and
Mrs. Rachel Oluwaremilekun Omole(his wife).

“Brethren, let’s know that God knows why He allows this to happen. The great comforter will comfort us in Jesus name, amen.

“The prayers of the saints in the beginning of the church also worked and answered still they had martyrs. John 16:33 says (NIV) “I have told you these things, so that in me you may have peace . In this world you will have trouble . But take heart! I have overcome the world.”
Heaven is our home and Gain. Let’s reason as child of God as we navigate this moment. God bless you, and comfort you all in Jesus name, amen.”concluded the statement.

It was also gathered that the three remaining worshipers are in terrible health condition, while a member of church who escaped from the terrorists captivity is currently receiving an urgent medical attention in a private hospital in OmuAran.

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