<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AIFLZ6H3FJJ7LBTWCWOBKCFBCM-820x547.jpg" alt="" class="wp-image-428991" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AIFLZ6H3FJJ7LBTWCWOBKCFBCM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AIFLZ6H3FJJ7LBTWCWOBKCFBCM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AIFLZ6H3FJJ7LBTWCWOBKCFBCM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AIFLZ6H3FJJ7LBTWCWOBKCFBCM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AIFLZ6H3FJJ7LBTWCWOBKCFBCM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AIFLZ6H3FJJ7LBTWCWOBKCFBCM-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigeria&#8217;s President Bola Tinubu looks on after his swearing-in ceremony in Abuja, Nigeria May 29, 2023. REUTERS/Temilade Adelaja/File Photo</figcaption></figure>



ABUJA, Feb 15 (Reuters)&nbsp;&#8211;&nbsp;Nigeria is considering the introduction of state police in its 36 states to bolster its national police force as it struggles to contain widespread violence and insecurity, the information minister said on Thursday.



An Islamist insurgency in the northeast, kidnappings for ransom, deadly farmer-herder clashes in the central belt and separatist and gang violence in the southeast are some of the challenges faced by Nigeria&#8217;s police force.



President Bola Tinubu met the country&#8217;s state governors to discuss insecurity, which is hurting farmers and contributing to high food prices and inflation.



The federal government and the state governments agreed that a state police force was necessary, marking &#8220;a significant shift&#8221; in approach, Information Minister Mohammed Idris told reporters after the meeting.



This is the first time that Nigeria&#8217;s federal and state governments have agreed on the need to set up state police to reinforce the more than 300,000-strong national police force in Africa&#8217;s most populous nation.



Nigerian Police Inspector General Kayode Egbetokun said last year at least 190,000 more officers were needed to secure the country adequately. He said the force was well below the United Nations&#8217; recommended ratio of one police officer to about 450 citizens.



Some states, like Lagos, have annual budgets the size of small African countries, and have long advocated for their own state police, saying this would help combat insecurity.



Ikemesit Effiong of risk consultancy SBM Intelligence said establishing state police would not solve the whole problem.



&#8220;Expanding the police force is one thing, fundamentally reframing the architecture and focus of policing from retribution and state control to investigation and crime prevention is quite another,&#8221; Effiong said.



(Reporting by Felix Onuah; Editing by Ros Russell)

FILE PHOTO: Nigeria’s President Bola Tinubu looks on after his swearing-in ceremony in Abuja

Nigeria mulls state policing to combat growing insecurity

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-820x547.jpg" alt="" class="wp-image-427563" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



ACCRA, Feb 15 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s new finance minister, Mohammed Amin Adam, pledged on Thursday to keep its $3 billion International Monetary Fund (IMF) programme on track as it aims to finish restructuring its overseas debt before an election in December.



President Nana Akufo-Addo replaced Ken Ofori-Atta with Adam, a petroleum economist who was minister of state at the finance ministry, in a cabinet reshuffle after criticism of the ex-banker&#8217;s leadership during the West African country&#8217;s worst economic crisis in a generation.



Ofori-Atta negotiated the IMF bailout loan to address the crisis, which saw inflation and debt servicing costs spiral upwards in 2022. He was, alongside Adam, seeking relief on about $13 billion owed to private bondholders when he was removed.



&#8220;There will not be any delays in the ongoing debt negotiations with bondholders because I have been part of the process,&#8221; Adam, once deputy minister of energy in charge of petroleum, said in a telephone interview.



&#8220;The advisers remain the same and the targets have not changed,&#8221; he said, noting that he was involved in talks from the start.



With national elections approaching in December, some analysts fear the new minister could relax fiscal consolidation to bolster the electoral fortunes of the ruling party.



&#8220;There will be no reversal on the IMF programme of fiscal consolidation. Revenue mobilization will be aggressive, backed by new reforms at the Ghana Revenue Authority,&#8221; Adam said.



He also said spending would be efficient and directly benefit Ghanaians.



&#8220;I am a pro-reform person,&#8221; Adam said. &#8220;And therefore strongly support the structural benchmarks under the IMF programme&#8221;.



The IMF has expressed its support for the new minister.



The World Bank board last month approved $300 million for Ghana, after it reached a deal to restructure $5.4 billion of loans with its official creditors.



Ghana is entitled to a three-part, $900 million Development Policy Operation loan from the World Bank and Adam told a local radio station earlier on Thursday that negotiations for the next disbursement were about to start.



(Reporting by Maxwell Akalaare Adombila, Editing by Rachel Savage, Alison Williams and Alex Richardson)

FILE PHOTO: The IMF logo is seen outside the headquarters building in Washington

Ghana’s new finance minister pledges to keep IMF programme on track

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-820x462.jpeg" alt="" class="wp-image-420118" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico.jpeg 929w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The new economic measures laid out by the U.K. government “will likely increase inequality”, according to a spokesperson from the International Monetary Fund.
Yuri Gripas | Reuters</figcaption></figure>



JOHANNESBURG, Feb 15 (Reuters)&nbsp;&#8211;&nbsp;Senegal&#8217;s diversified funding sources mean it could be better placed than some countries to navigate investor concerns sparked by political uncertainty, after President Macky Sall delayed a presidential election, the International Monetary Fund said.



A significant portion of Senegal&#8217;s funding is on concessional terms, and a planned reduction in issuing more expensive syndicated loans will minimise its dependence on volatile private debt, a spokesperson for the fund said in emailed comments.



The abrupt postponement of the Feb. 25 vote until December plunged the once-stable country into crisis, intensifying a backlash against what many see as a bid to extend Sall&#8217;s mandate and undermine one of the remaining democracies in coup-hit west Africa.



Three people were killed and around 270 reportedly detained during the protests that swept the capital Dakar and several other Senegalese cities late last week, raising fears of protracted unrest.



&#8220;Recent political developments in Senegal have created some uncertainty, potentially impacting investor confidence and economic activity,&#8221; the IMF spokesperson said.



&#8220;While potential investor caution could lead to higher interest rates and tighter financial conditions, &#8230; Senegal may be better positioned than some to navigate potential investor concerns due to its diversified and less volatile funding sources.&#8221;



In a December report, the IMF noted that Senegal had borrowed more in 2023 to cover its 2024 financing needs, &#8220;in order to avoid interest rate spikes as the 2024 presidential elections approach&#8221;.



That caution could pay dividends.



&#8220;Senegal does not plan further debt issuance in 2024, a move that would require parliamentary approval,&#8221; the IMF spokesperson said.



Nonetheless, Senegal needs to stay on track with planned economic reforms in order to maintain debt sustainability, the IMF said.



Senegal&#8217;s public debt-to-GDP ratio climbed to an estimated 79.6% last year but was forecast to fall to 72.5% this year, the IMF said in December.



Senegal secured a three-year loan of about $1.9 billion from the IMF in June last year.



(Reporting by Rachel Savage; Editing by Alexander Winning and Michael Perry)

107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico

Senegal ‘better positioned than some’ to navigate investor concern, says IMF

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/7KVHJR6UA5PHZGXNL4DBLFNXXE-1-820x547.jpg" alt="" class="wp-image-428233" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/7KVHJR6UA5PHZGXNL4DBLFNXXE-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/7KVHJR6UA5PHZGXNL4DBLFNXXE-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/7KVHJR6UA5PHZGXNL4DBLFNXXE-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/7KVHJR6UA5PHZGXNL4DBLFNXXE-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/7KVHJR6UA5PHZGXNL4DBLFNXXE-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/7KVHJR6UA5PHZGXNL4DBLFNXXE-1-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: People buy and sell vegetables at Mile 12 International Market in Lagos, Nigeria May 13, 2022. REUTERS/Temilade Adelaja</figcaption></figure>



ABUJA, Feb 14 (Reuters)&nbsp;&#8211;&nbsp;Nigeria is planning to set up a national commodity board to regulate the price of grains and other items, as rising food costs stoke double-digit inflation in a country where smallholder farmers dominate production.



Nigeria&#8217;s annual inflation hit a nearly three-decade high of 28.92% in December as food prices surged, adding to a worsening cost of living crisis. Inflation data for January is due on Thursday.



Vice President Kashim Shettima said on Tuesday that the National Commodity Board would maintain a strategic food reserve that could be used to reduce volatility and stabilise prices and tackle escalating food inflation in Africa&#8217;s most populous nation.



Food inflation, which accounts for the bulk of Nigeria&#8217;s inflation basket, rose to 33.93% in December from 32.84% a month earlier, with higher prices across a broad range of items including bread, fish, meat, fruit and eggs.



Shettima said the government will revitalise food supply in the short-term through measures such as the distribution of fertiliser and grain to farmers and households, to counter the effect of removing a costly but popular fuel subsidy.



President Bola Tinubu last May embarked on Nigeria&#8217;s boldest reforms in decades by scrapping the fuel subsidy and devaluing the currency to try to revive economic growth.



But growth is yet to pick up while inflation has worsened.



Widespread kidnapping and banditry in farming areas has also pushed up food prices.



Shettima said the government will engage its &#8220;security architecture&#8221; to protect both farms and farmers, so they can return and work without fear of attack.



He added that concessionary funds will be granted to farmers while the government will drive irrigation to ensure year-round food production.



Nigeria scrapped marketing boards that guaranteed farmers minimum prices in the 1980s as part of reforms to end subsidies, promote exports and stabilise markets after prices rose on informal channels.



(Reporting by Felix Onuah; Writing by Chijioke Ohuocha; Editing by Kirsten Donovan)

People buy and sell vegetables at Mile 12 International Market in Lagos

Nigeria plans commodity board to regulate food prices as inflation soars

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="484" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/U7GSX2DBZNPOLFHLJ3TVW2S62E.jpg" alt="" class="wp-image-422637" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/U7GSX2DBZNPOLFHLJ3TVW2S62E.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/U7GSX2DBZNPOLFHLJ3TVW2S62E-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/U7GSX2DBZNPOLFHLJ3TVW2S62E-135x90.jpg 135w" sizes="(max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">Ghana&#8217;s Finance Minister Ken Ofori-Atta speaks during a news conference in Accra, Ghana December 13, 2022. REUTERS/Cooper Inveen</figcaption></figure>



ACCRA, Feb 14 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s President Nana Akufo-Addo has replaced the finance minister in a cabinet reshuffle amid criticism of his handling of the country&#8217;s economic&nbsp;problems.



The move, announced on Wednesday by the president&#8217;s office, comes ahead of an election in December.



Outgoing finance minister Ken Ofori-Atta has been overseeing the government&#8217;s debt restructuring efforts as the West African country tries to emerge from its worst economic crisis in a generation.



Akufo-Addo&#8217;s office said Ofori-Atta would be replaced by Mohammed Amin Adam, currently the minister of state at the finance ministry.



Amin Adam previously served as the deputy energy minister responsible for the petroleum sector.



Akufo-Addo chose Ofori-Atta as his finance minister when he became head of state in 2017, pledging to create jobs, fight poverty and boost economic growth by cutting taxes and red tape.



Ofori-Atta has been heavily criticised by protesters and lawmakers from the opposition and his own party for his handling of&nbsp;Ghana&#8217;s&nbsp;economic woes.



(Reporting by Christian Akorlie and Maxwell Akalaare Adombila; Writing by Anait Miridzhanian and Nellie Peyton; Editing by Alexander Winning and Angus MacSwan)

Ghana’s Finance Minister Ken Ofori-Atta speaks during a news conference in Accra

Ghana president replaces finance minister in reshuffle

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="548" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SASCQ4QDRBPHVFIDDQZIJW3XRM-820x548.jpg" alt="" class="wp-image-455760" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SASCQ4QDRBPHVFIDDQZIJW3XRM-820x548.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SASCQ4QDRBPHVFIDDQZIJW3XRM-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SASCQ4QDRBPHVFIDDQZIJW3XRM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SASCQ4QDRBPHVFIDDQZIJW3XRM-768x514.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SASCQ4QDRBPHVFIDDQZIJW3XRM-1536x1027.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SASCQ4QDRBPHVFIDDQZIJW3XRM-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: President of Senegal Macky Sall delivers a national statement at the World Climate Action Summit during the United Nations Climate Change Conference (COP28) in Dubai, United Arab Emirates, December 1, 2023. REUTERS/Amr Alfiky</figcaption></figure>



DAKAR, Feb 13 (Reuters) &#8211; Senegal&#8217;s communications ministry told mobile operators to suspend internet access on Tuesday, ahead of a planned silent march by activist groups, which was banned by authorities, over the abrupt postponement of a presidential election.



The announcement just weeks ahead of the planned Feb. 25 vote that it would be postponed, triggered violent clashes last week that resulted in the death of three young people and multiple arrests.



Parliament has voted to hold the election on Dec. 15.



The delay spurred opposition members&#8217; concerns as it extended President Macky Sall&#8217;s mandate in an unprecedented break with Senegal&#8217;s democratic tradition.



It was unclear whether the march would take place after authorities on Monday banned it, citing logistical concerns.



The civil society and religious groups that called the demonstration will hold a press conference later on Tuesday to announce next steps, spokesman Amadou Samb told Reuters.



The vote&#8217;s postponement dismayed many in Senegal, one of West Africa&#8217;s more stable democracies, in a region where military takeovers and constitutional manoeuvring have forced democracy into retreat in many countries in recent years.



In a statement, the ministry blamed hateful online messages for the deaths and material damage incurred during the recent demonstrations.



In the capital Dakar, police in riot gear on Friday fired tear gas, stun grenades and what appeared to be rubber bullets at protesters who were burning tyres and throwing stones, a Reuters reporter said.



Amnesty International and the U.N. human rights office called on the Senegalese government to investigate the killings and police brutality against protesters.



At least 266 people have been arrested across the country, including journalists, spokesperson for the U.N. High Commissioner for Human Rights Liz Throssell said.



West Africa&#8217;s regional bloc ECOWAS on Monday sent a parliamentary diplomatic mission to Senegal to discuss the political situation in the country.



(Reporting by Bate Felix, Alessandra Prentice, Emma Farge and Portia Crowe; Writing by Anait Miridzhanian; Editing by Bernadette Baum)

FILE PHOTO: Senegal President Macky Sall

Ahead of planned march over vote delay, Senegal suspends internet access

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/THZQRJPZIFI3JPNGWNL6YVEHR4-820x547.jpg" alt="" class="wp-image-455675" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/THZQRJPZIFI3JPNGWNL6YVEHR4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/THZQRJPZIFI3JPNGWNL6YVEHR4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/THZQRJPZIFI3JPNGWNL6YVEHR4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/THZQRJPZIFI3JPNGWNL6YVEHR4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/THZQRJPZIFI3JPNGWNL6YVEHR4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/THZQRJPZIFI3JPNGWNL6YVEHR4-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Burkina Faso&#8217;s interim President Ibrahim Traore attends a meeting with Russia&#8217;s President Vladimir Putin following the Russia-Africa summit in Saint Petersburg, Russia, July 29, 2023. Alexander Ryumin/TASS Host Photo Agency via REUTERS/File Photo</figcaption></figure>



JOHANNESBURG/NIAMEY, Feb 13 (Reuters)&nbsp;&#8211;&nbsp;Days after Burkina Faso, Mali and Niger announced last month they were quitting the West Africa political union ECOWAS, Burkina Faso&#8217;s military ruler Ibrahim Traore was already naming his next target: the region&#8217;s CFA franc currency.



&#8220;It&#8217;s not just the currency. Anything that maintains us in slavery, we&#8217;ll break those bonds,&#8221; the 35-year-old army captain turned coup leader said in an interview, posted on YouTube.



The three countries jointly announced on Jan. 28 they were pulling out of the Economic Community of West African States (ECOWAS) after it pressured them to restore constitutional order following a string of coups.



Having already kicked out French soldiers and rolled back a U.N. mission in Mali, these states have consistently shown they value sovereignty over expediency.



Their attitude towards the euro-pegged CFA franc appears no different, although economists and experts say dumping the CFA franc would be riskier and significantly more complicated than withdrawing from ECOWAS, a move seen as a bold, if potentially ill-advised, act of defiance.



Last November, the finance ministers of Burkina Faso, Mali and Niger said they would weigh the option of setting up a monetary union and top officials from all three countries have, to varying degrees, voiced support for abandoning the currency.



The head of the Niger junta, Abdourahamane Tiani, said in an interview on state television on Sunday that abandoning the CFA franc would be a sign of sovereignty and a necessary step in moving away from French &#8220;colonisation&#8221;.



To do so, however, would mean much more than simply printing new banknotes.



A newly created central bank would need to manage a delicate transition away from the CFA franc, formulate monetary policy, and decide what to do about more than $4.6 billion in outstanding CFA-denominated regional bonds.



<h2 class="wp-block-heading" id="h-the-french-robbed-us">&#8216;THE FRENCH ROBBED US&#8217;</h2>



The CFA franc currencies &#8211; one West African and another for Central Africa &#8211; sit at the heart of an emotional debate over sovereignty and development in French-speaking Africa.



Proponents hail the CFA franc&#8217;s peg to the euro as a guarantee of macroeconomic stability in one of the world&#8217;s most volatile regions.



Critics denounce it as a brake on growth and an outdated vestige of French colonial rule: until a 2019 reform, countries were required to hold a portion of their foreign reserves with the French Treasury.



But never since its inception in 1945 has there been the prospect of such a mass exodus.



&#8220;The French have robbed us with the CFA franc. African countries must definitively break with this currency,&#8221; said Omar Issoufou, a 25-year-old Nigerien who is studying electrical engineering in the capital Niamey.



The military takeovers that have swept across the arid Sahel region were driven by anger over Islamist violence, which Mali&#8217;s U.N. mission and a sprawling French anti-militant operation had failed to snuff out.



Punishment for the putsches &#8211; the imposition of economic sanctions by ECOWAS, including freezing of some of Mali and Niger&#8217;s assets held by the regional central bank &#8211; fuelled tensions between the new regimes and the West African Economic and Monetary Union, known by its French acronym UEMOA.



&#8220;The moment UEMOA became a weapon of war &#8230; I can understand why these three countries moved to clearly free themselves from their engagements towards the Union,&#8221; Hamma Hamadou, a former head of Niger&#8217;s tax authority, told Reuters.



Beyond ideological issues of sovereignty and practical concerns related to sanctions, some view moving away from the CFA franc as an opportunity.



&#8220;The CFA franc has been very detrimental to these countries over the long run,&#8221; said Ndongo Samba Sylla of International Development Economics Associates, a network of economists focused on the Global South. &#8220;They have lower inflation and extra exchange rate stability, but they&#8217;ve suffered from an over-valued currency.&#8221;



All three countries have largely agricultural economies. But their inability to set monetary policy has left their exports uncompetitive, he said, and hindered industrial development.



The peg to the euro, meanwhile, makes little sense when the bulk of West Africa&#8217;s external trade is done in dollars, he added.



<h2 class="wp-block-heading" id="h-great-depression">&#8216;GREAT DEPRESSION&#8217;</h2>



Withdrawing from ECOWAS is already looking easier said than done. Disentangling their economies and finances from UEMOA will be even more delicate.



UEMOA&#8217;s eight members deposit their foreign exchange reserves with the Dakar-based regional central bank. Those reserves are mutualised as are liabilities, making a determination of how much each country would be able to walk away with a difficult calculation.



Then there&#8217;s the question of CFA-denominated debt. Burkina Faso has over 1.2 trillion CFA francs ($1.99 billion) in outstanding bonds. Mali has slightly over 1 trillion CFA francs, while it&#8217;s 498 billion CFA francs for Niger.



&#8220;We will enter into a zone of turbulence if these countries pull out,&#8221; said one financial expert involved in regional debt issuances, who asked not to be named due to market sensitivity.



There was no clarity, he said, on where the bonds would be listed, whether they would remain in CFA francs or even if the new currency would be convertible.



&#8220;There would be a lot of problems for the holders of these sovereign bonds,&#8221; he said.



The turmoil would likely leave the three states cut off from future financing from regional and international capital markets, experts said. Burkina Faso already called off a bond auction in the wake of its ECOWAS withdrawal announcement due to a lack of interest.



Uncertainty could provoke capital flight and an immediate depreciation of a new currency. Imports could become prohibitively expensive, fuelling run-away inflation.



&#8220;I think you&#8217;re taking 10% to 20% off your GDP,&#8221; said Charlie Robertson, head of macro strategy at London-based FIM Partners. &#8220;Leaving the single currency is bringing on the Great Depression,&#8221; he said, adding it would be the worst policy mistake the countries could make.



In light of these risks, the juntas are approaching the currency question more carefully than their ECOWAS withdrawal.



Two government officials from the countries told Reuters that the committee charged with studying a new monetary union, while still planned, had not yet met.



Prime Minister Choguel Maiga of Mali &#8211; the only one of the three to have ever issued its own currency &#8211; has urged patience.



When Mali exited UEMOA in 1962 in the wake of independence, its new currency was at parity with the CFA franc, but upon its return to the union in 1984 was worth only half as much.



To ensure lessons have been learned, Maiga says the committee needs time to assess all the implications before the country draws up plans for a new currency with its two neighbours.



&#8220;This is what I say to the Malians,&#8221; Maiga told business leaders last month. &#8220;Sure, you have this passion. You want it. But this is strategic.&#8221;



($1 = 604.0000 CFA francs)



(Reporting by Joe Bavier and Boureima Balima; Additional reporting by Loucoumane Coulibaly in Abidjan, Moussa Aksar in Niamey, Giulia Paravicini in Nairobi and Leigh Thomas in Paris; Editing by Susan Fenton)

FILE PHOTO: Russia’s President Putin and Burkina Faso’s interim President Traore meet in St Petersburg

For West African juntas, CFA franc pits sovereignty against expediency

<figure class="wp-block-image size-large"><img decoding="async" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/05/Herbert-Wigwe-Group-CEO-Access-Bank-Plc1-781x800.jpg" alt="" class="wp-image-417434"/></figure>



Feb 10 (Reuters)&nbsp;&#8211;&nbsp;Six people, including the group chief executive of one of Nigeria&#8217;s largest banks, were killed in a helicopter crash in Southern California on Friday, authorities and the banking group said.



Six people were on board the helicopter when it crashed around 10 p.m. Friday (0600 GMT Saturday) near Nipton, California, the U.S. Federal Aviation Administration said in a statement.



Access Holdings said its CEO&nbsp;Herbert&nbsp;Wigwe, his wife and son were among those who died in the crash.



&#8220;We extend our deep and sincere sympathies to his family and loved ones,&#8221; Access Holdings Chairman Abubakar Jimoh said in a statement on Sunday, adding that the company will soon appoint an acting CEO.



Local media reported that the Nigerian Exchange Group&#8217;s former Chairman Abimbola Ogunbanjo also died in the crash.



The San Bernardino County Sheriff’s Department said the scene of the crash was determined to be east of the 15-Freeway, near Halloran Springs Road, adding that no survivors had been located as of Saturday.



The FAA identified the helicopter as a Eurocopter EC 130 and said it would investigate along with the National Transportation Safety Board.



The helicopter was headed to Las Vegas when it crashed near a border city between Nevada and California, according to multiple reports.



(Reporting by Surbhi Misra, Jyoti Narayan in Bengaluru and MacDonald Dzirutwe in Lagos; Editing by Andrea Ricci and Sharon Singleton)

Herbert-Wigwe-Group-CEO-Access-Bank-Plc1

Nigeria’s Access Bank Group CEO among six dead in California helicopter crash

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LJZJUTAQVRMTHACAA5HPVNQF5I-820x573.jpg" alt="" class="wp-image-453236" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LJZJUTAQVRMTHACAA5HPVNQF5I-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LJZJUTAQVRMTHACAA5HPVNQF5I-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LJZJUTAQVRMTHACAA5HPVNQF5I-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LJZJUTAQVRMTHACAA5HPVNQF5I-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LJZJUTAQVRMTHACAA5HPVNQF5I-1536x1074.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LJZJUTAQVRMTHACAA5HPVNQF5I-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man counts Nigerian naira notes in a market place as people struggle with the economic hardship and cashflow problems ahead of Nigeria&#8217;s Presidential elections, in Yola, Nigeria, February 22, 2023. REUTERS/Esa Alexander/File Photo</figcaption></figure>



LAGOS, Feb 5 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s second currency devaluation in less than a year and new forex rules suggest the central bank is gearing up to let the naira float freely, but a huge backlog of orders for dollars and low liquidity may stall reform momentum, investors and analysts said.



Foreign investors in particular will need more convincing that Africa&#8217;s biggest economy is finally ditching the controls that have for long distorted its currency market, making the country of 200 million people less attractive to foreign capital.



The official naira exchange rate last week plunged to as low as 1,531 per dollar from 900, well below black market levels, after the market regulator changed its closing rate calculation methodology, in a de facto devaluation. The official rate had been drifting towards parallel market levels as forex shortages funnelled demand to unofficial sources.



Also last week, the Central Bank of Nigeria (CBN) announced limits on how much banks can hold in foreign currencies and eased rules on international money transfer operators, allowing them to quote the naira at prevailing market rates.



&#8220;You could call this a turning point,&#8221; said Kyle Chapman, FX markets analyst at London-based Ballinger &amp; Co.



&#8220;Now that there is no longer a more favourable (exchange) rate, the lack of incentives to take part in the official markets may turn into a tipping point that sees a true free float emerge if the central bank does not intervene,&#8221; Chapman added.



Nigeria is struggling with a record amount of government debt, high unemployment and power shortages that have contributed to years of anaemic economic growth. Oil output is shrinking, and rampant insecurity means swathes of the countryside are outside government control.



In his first days in office last year, President Bola Tinubu scrapped a costly fuel subsidy and lifted some forex controls.



But the reform drive appeared to lose steam as the naira continued to weaken without central bank intervention.



Andrew Matheny, senior economist with Goldman Sachs, said the latest devaluation made the naira look &#8220;cheap.&#8221;



&#8220;This makes foreign portfolio inflows potentially appear attractive, however only in the circumstance that other aspects of monetary policy come together,&#8221; said Matheny.



These include ending financing the budget deficit through central bank overdrafts, which increases the money supply and helped propel inflation to 28.92% in December, the highest level in nearly three decades.



<h2 class="wp-block-heading" id="h-forex-backlog">FOREX BACKLOG</h2>



Years of forex controls have created pent-up demand for dollars while the country struggles to raise its production of oil, its single largest export earner.



Foreign currency shortages have created a large backlog of unpaid dollar transactions, which the CBN last year put at nearly $7 billion.



On Monday, CBN governor Yemi Cardoso told broadcaster Arise TV that $2.2 billion remained outstanding and that $2.4 billion would not be honoured after an audit found irregularities.



Goldman put the backlog at $12 billion, which has kept foreign investors away due to worries they will not be able to take their money out.



&#8220;The economy is severely starved of dollars. The (forex)injections so far appear to have not made a dent,&#8221; said David Omojomolo, Africa economic at Capital Economics.



&#8220;The FX backlog to my knowledge is still large, and the pronouncements that it will be cleared &#8216;soon&#8217; made for months now appear to encourage speculation rather than stabilisation.&#8221;



The CBN will later this month hold its first monetary policy meeting since last July and it is under pressure to deliver a big hike in its benchmark interest rate from the current 18.75%.



&#8220;For us to take a more active position in the local currency market we would still need greater clarity on the direction&#8230; and exactly how they&#8217;re going to support the operations on the forex side with &#8230; the monetary policy side,&#8221; said Yvette Babb, a hard and local currency debt portfolio manager at William Blair.



The central bank&#8217;s one-year treasury bill, for example, was selling at 17% while the government&#8217;s bill sold at 11% as the government seeks to keep its borrowing costs low.



As long as big downside risks to local bond prices remain due to the unanchored nature of short-term yields with regard to the policy rate &#8211; reflected in the significant gap between the two &#8211; foreign investors will avoid local debt, said Gergely Urmossy, emerging markets strategist at Societe Generale.



&#8220;To restore the anchoring role of the policy rate, the CBN will have to deliver money market reforms,&#8221; Urmossy said.



(Reporting by MacDonald Dzirutwe in Lagos, Chijioke Ohuocha in Abuja, Rachel Savage in Johannesburg and Karin Strohecker in London; Editing by Hugh Lawson)

FILE PHOTO: Man counts Nigerian naira notes in a market place ahead of Nigeria’s Presidential elections in Yola

Nigeria’s latest devaluation may be ‘turning point’ in currency reform drive

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/MRZTA6S36JOK3F7VXZRUYJE4XE-820x615.jpg" alt="" class="wp-image-452045" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/MRZTA6S36JOK3F7VXZRUYJE4XE-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/MRZTA6S36JOK3F7VXZRUYJE4XE-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/MRZTA6S36JOK3F7VXZRUYJE4XE-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/MRZTA6S36JOK3F7VXZRUYJE4XE-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/MRZTA6S36JOK3F7VXZRUYJE4XE-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/MRZTA6S36JOK3F7VXZRUYJE4XE-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: West African leaders gather for Economic Community of West African States (ECOWAS) Head of States and Government meeting in Abuja, Nigeria August 10, 2023. REUTERS/Abraham Achirga/File Photo</figcaption></figure>



DAKAR, Jan 31 (Reuters)&nbsp;&#8211;&nbsp;Mali&nbsp;said on Wednesday it was not planning to leave West Africa&#8217;s currency zone while Burkino Faso indicated it would do so after they and Niger announced their withdrawal from the region&#8217;s political bloc in protest.



In a blow to hard-fought regional integration, the three military-led nations, among the world&#8217;s poorest, are planning to quit the 15-member Economic Community of West African states (ECOWAS) after being criticised for their respective coups.



That has left uncertain their future in the eight-nation West African Economic and Monetary Union (UEMOA or WAEMU) which uses a common currency, the CFA franc, pegged to the euro.



Asked whether Mali planned to leave UEMOA, Foreign Minister Abdoulaye Diop told Reuters: &#8220;Mali is withdrawing from ECOWAS but remains a member of UEMOA.&#8221;



Speaking separately about their decision to leave ECOWAS, Burkina Faso&#8217;s military leader Ibrahim Traore said a departure from the monetary union was on the cards.



&#8220;This means that in some time you will tackle the currency, which is the CFA?&#8221; journalist Alain Foka asked Traore in a video posted on his YouTube channel. &#8220;Probably,&#8221; Traore replied.



Mali, Burkina Faso and Niger are all ruled by military officers who seized power in coups since 2020 and have resisted ECOWAS&#8217; and other outside pressure to restore democracy.



The three countries, battling insurgencies from militants linked to al Qaeda and Islamic State, have created a new pact known as the Alliance of Sahel States and declared their intention to strengthen political, economic and monetary union.



Critics of the CFA franc see it as a relic of French colonialism while proponents say it has provided financial stability in a turbulent region.



Moody&#8217;s ratings agency said economic growth was at risk.



&#8220;While not our baseline expectation, an exit from WAEMU would be much more detrimental to sovereigns leaving the monetary union because of the credit support that WAEMU membership provides in terms of macroeconomic stability and reduced external vulnerability,&#8221; it added.



The ECOWAS region&#8217;s trade and services flows are worth nearly $150 billion a year.



(Reporting by Giulia Paravicini and Bate Felix; Writing by Bhargav Acharya and Nellie Peyton; Editing by Tom Hogue and Andrew Cawthorne)

Burkina may quit West African currency union, but not Mali

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/HU3MKIDLCRMEBMPYFQ4XMM6YFM-820x547.jpg" alt="" class="wp-image-451804" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/HU3MKIDLCRMEBMPYFQ4XMM6YFM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/HU3MKIDLCRMEBMPYFQ4XMM6YFM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/HU3MKIDLCRMEBMPYFQ4XMM6YFM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/HU3MKIDLCRMEBMPYFQ4XMM6YFM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/HU3MKIDLCRMEBMPYFQ4XMM6YFM-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/HU3MKIDLCRMEBMPYFQ4XMM6YFM-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Signage is seen outside the Moody&#8217;s Corporation headquarters in Manhattan, New York, U.S., November 12, 2021. REUTERS/Andrew Kelly</figcaption></figure>



JOHANNESBURG, Jan 31 (Reuters) &#8211; The decision of Burkina Faso, Mali and Niger to exit the Economic Community of West African States (ECOWAS) could hinder the bloc&#8217;s economic growth, Moody&#8217;s ratings agency said on Wednesday.



It would be much more detrimental if they also decided to leave the West African Economic and Monetary Union (WAEMU), though that was not expected, the agency added.



The three junta-led countries announced on Sunday that they were planning to leave ECOWAS, the region&#8217;s main economic and political bloc. Their position on also leaving the monetary union has not been made clear.



&#8220;The three countries&#8217; departures would disrupt the economic integration that is ECOWAS&#8217; raison d&#8217;etre and weigh on business confidence, potentially hindering the bloc&#8217;s economic growth,&#8221; said Moody&#8217;s in a statement.



&#8220;While not our baseline expectation, an exit from WAEMU would be much more detrimental to sovereigns leaving the monetary union because of the credit support that WAEMU membership provides in terms of macroeconomic stability and reduced external vulnerability,&#8221; it added.



Mali&#8217;s foreign minister on Wednesday told Reuters that Mali would remain a member of the eight-nation monetary union, which uses the West Africa CFA franc currency pegged to the euro.



However, in an interview shared by the three Sahel states information service on Wednesday, Burkina Faso&#8217;s military leader Ibrahim Traore said that they would &#8220;probably&#8221; leave the currency zone.



Such an exit would be credit negative for the West African Development Bank, the monetary union&#8217;s development bank, because Burkina Faso, Mali and Niger accounted for 17% of its paid-in capital and 35% of its loan portfolio at the end of 2022, said Moody&#8217;s.



(Reporting by Rachel Savage; Writing by Nellie Peyton; Editing by Andrew Heavens and Emelia Sithole-Matarise)

Signage is seen outside the Moody’s Corporation headquarters in Manhattan, New York

Moody’s: West African countries’ exit from regional bloc could hinder growth

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-820x547.jpg" alt="" class="wp-image-428778" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigerian naira banknotes are seen in this picture illustration, September 10, 2018. Picture taken September 10, 2018. REUTERS/Afolabi Sotunde/Illustration/File Photo</figcaption></figure>



ABUJA, Jan 31 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s naira dropped to a record low against the dollar on the official market on Tuesday, FMDQ Exchange data showed on Wednesday, slipping below rates on the unofficial parallel market in intra-day trades.



The naira fell as low as 1,531 to the dollar during trading on Tuesday, FMDQ data showed, compared with 1,460 naira quoted on the parallel market. The currency later closed at 1,482.57 naira on the official market, according to FMDQ.



The latest fall occurred after market regulator FMDQ OTC Securities Exchange said its methodology for calculating closing rates on the currency was revised last Friday to include more data, and that the levels on its computation had changed.



The naira has lost around 40% since the start of the year. Its official exchange rate has been drifting towards the parallel market level as foreign currency shortages in the West African nation funnel demand to unofficial sources.



The central bank has warned lenders about underreporting transactions on the financial market, leading to misinformation, attempts to create price distortions and market manipulation, and said such activity would be sanctioned.



On Wednesday the currency eased on the forwards market, with traders quoting the dollar as low as 1,650 in a year&#8217;s time.



(Reporting by Chijioke Ohuocha; Editing by Jan Harvey)

FILE PHOTO: Nigerian naira banknotes are seen in this picture illustration

Nigerian naira hits record low of 1,531 to dollar on official market – FMDQ

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FQSWANA64BMHTLLIX6FC6NZVV4-820x547.jpg" alt="" class="wp-image-451490" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FQSWANA64BMHTLLIX6FC6NZVV4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FQSWANA64BMHTLLIX6FC6NZVV4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FQSWANA64BMHTLLIX6FC6NZVV4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FQSWANA64BMHTLLIX6FC6NZVV4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FQSWANA64BMHTLLIX6FC6NZVV4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FQSWANA64BMHTLLIX6FC6NZVV4-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A backdrop is prepared for a group photo session as West African leaders meet to discuss transitional roadmap for Mali, Burkina Faso and Guinea, in Accra, Ghana, July 3, 2022. REUTERS/Francis Kokoroko/File Photo</figcaption></figure>



DAKAR, Jan 30 (Reuters) &#8211; A decision by Mali, Burkina Faso and Niger to quit West Africa&#8217;s economic and political bloc reverses decades of regional integration, leaving millions of people in limbo, and is likely to deepen the three junta-led countries&#8217; ties with Russia.



The move to withdraw from the 15-member Economic Community of West African States (ECOWAS) could yet take time to implement, opening a door for negotiations.



But, if carried through, it is set to disrupt the region&#8217;s trade and services flows, worth nearly $150 billion a year.



It also raises questions over millions of nationals from the three poor and landlocked nations who settled in neighbouring states as the bloc allows visa-free travel and right to work.



Ivory Coast alone is home to more than 5 million people from Burkina Faso, Mali and Niger.



Niger shares 1,500 km of border with Nigeria and 80% of its trade is done with its richer neighbour, said Seidik Abba, president of the Paris-based CIRES think tank.



Ghana, Togo and Benin also have a big diaspora from Niger.



&#8220;If they decide to go ahead and leave, it will become a very big problem, economically and politically, and the stakes are the highest for the people from these three countries,&#8221; he said.



More than a dozen analysts and Africa diplomats consulted by Reuters agreed the trio&#8217;s stance on ECOWAS underscored tumult across a region where armies have struggled to contain Islamist militants since seizing power in several countries.



Meanwhile, Russia has been extending its influence at the expense of former colonial power France, regional heavyweight Nigeria and the United States.



Earlier this month, Russia and Niger, ruled by a junta since a coup last year, agreed to develop military ties. Russian military personnel flew into Burkina Faso&#8217;s capital Ouagadougou last week to ensure the safety of the country&#8217;s military leader. Russia&#8217;s Wagner mercenary group also has 1,000 fighters in Mali.



The three military-ruled countries jointly announced their departure on Sunday, accusing ECOWAS of abandoning its founding ideals and falling under the influence of foreign powers.



They said the bloc had offered little support against Islamic insurgencies that have killed thousands and displaced over 2 million.



<h2 class="wp-block-heading" id="h-empty-threat">EMPTY THREAT</h2>



ECOWAS has responded to a wave of coups in the region since 2020 with sanctions that the juntas have called &#8220;illegal and inhumane.&#8221; The bloc also threatened to use force to restore constitutional rule in Niger, but did not follow through.



On Monday, ECOWAS chair Nigeria said the &#8220;unelected&#8221; military authorities of the three countries were letting their people down, but added it remained willing to engage with them.



Established in 1975, ECOWAS has sought to promote economic and political cooperation within the fragmented region, home to a mix of former French and British colonies.



Mucahid Durmaz, senior West Africa analyst at risk intelligence company Verisk Maplecroft, said he now expects increased tariffs and new restrictions on the movement of people, goods and money.



The move by the trio is likely the &#8220;silliest own goal since the United Kingdom voted for Brexit,&#8221; said Charlie Robertson, head of macro strategy at London-based investment management company FIM Partners, referring to Britain&#8217;s departure from the European Union.



&#8220;The three countries were already among the poorest in ECOWAS, and indeed the world – and leaving won&#8217;t help,&#8221; he said, adding the trio account for just 8% of the bloc&#8217;s gross domestic product.



Under ECOWAS rules, leaving the bloc takes at least a year, so those living outside their home countries should not face immediate consequences.



But in a worst-case scenario, &#8220;we could see one of the major movements of people that we have seen in decades &#8211; citizens across the subregion packing their things and heading back home,&#8221; said Kwesi Aning, a Ghana-based security analyst.



Gilles Yabi, founder of West African think tank WATHI, said the trio had stopped short of announcing their withdrawal from the regional monetary and economic union that uses the CFA franc, something that would have an even bigger impact.



&#8220;I think Mali, Niger and Burkina Faso know that it&#8217;s not easy – it&#8217;s not possible actually – to withdraw from the monetary union, when you don&#8217;t have your own system in place, a new currency in place, for example,&#8221; he said.



<h2 class="wp-block-heading" id="h-embargo-on-ourselves">&#8216;EMBARGO ON OURSELVES&#8217;</h2>



In Mali&#8217;s capital, Bamako, tailor Adama Coulibaly welcomed the juntas&#8217; decision, saying it was normal for the countries to take matters into their own hands because ECOWAS had failed.



But health worker Nagnouma Keita was apprehensive. &#8220;Our three states cannot survive on their own, especially since they have no access to the sea. I believe that, in reality, we are imposing an embargo on ourselves,&#8221; she said.



Some analysts said ECOWAS had been too swift to punish the juntas, having previously failed to call out civilian leaders, in Ivory Coast and Guinea among others, who extended their rule through problematic elections or referendums.



Threatening military intervention against the juntas but failing to act also reduced the bloc&#8217;s credibility, they said.



For years, security experts have said countries in the region must work closer – sharing more intelligence – to tackle the spreading insurgencies that are feeding off poverty, neglect and abuse as much as ideology.



Instead, the latest crisis at ECOWAS highlights the growing rift between the Western-allied elected governments and military-run countries increasingly relying on Russia and China.



&#8220;The departure from ECOWAS will have catastrophic consequences for the ability to respond to the many security challenges facing this region,&#8221; said Abba.



(Reporting by Bate Felix, David Lewis and Giulia ParaviciniAdditional reporting by Tiemoko Diallo and Boureima Balima, editing by Silvia Aloisi and Andrew Cawthorne)

FILE PHOTO: West African leaders hold summit to discuss roadmap for Mali, Burkina Faso and Guinea

West Africa’s ‘Brexit’ moment spells trouble for the region

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-820x547.jpg" alt="" class="wp-image-424605" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man counts Nigerian naira notes in a market place as people struggle with the economic hardship and cashflow problems ahead of Nigeria&#8217;s Presidential elections, in Yola, Nigeria, February 22, 2023. REUTERS/Esa Alexander/File Photo</figcaption></figure>



ABUJA, Jan 30 (Reuters)&nbsp;&#8211;&nbsp;Nigerian non-deliverable currency forwards fell sharply to record lows against the U.S. dollar on Tuesday, mirroring falls on the official spot market, LSEG data showed.



Non-deliverable currency forwards, derivative products used to hedge against future exchange rate moves, indicated markets expected the naira&#8217;s exchange rate at 1,427.50 to the dollar in one month&#8217;s time&nbsp;NGNNDFOR=.



FMDQ Exchange data on Monday showed the naira had fallen to a record low of 1,421 per dollar on Friday on the thinly traded official market, below levels seen on the unofficial parallel market, where the currency trades freely.



On Monday, Nigeria&#8217;s central bank warned lenders about under reporting transactions on the financial market, leading to misinformation, attempts to create price distortions and market manipulation, and said such activity would be sanctioned.



The naira&#8217;s official exchange rate had been drifting towards the parallel market level as the central bank is yet to clear outstanding amounts owed in forward deals, worsening a shortage of foreign currency in Africa&#8217;s biggest economy.



The central bank still has about $5 billion in forwards that have matured, after it paid $2.5 billion to manufacturers and importers. The backlog has been a major concern for investors despite assurances by the Central Bank of Nigeria (CBN) that it would clear them.



Other maturities on the forwards market on Tuesday also fell, with traders quoting the currency as low as 1,626.18 naira per dollar in a year&#8217;s time.



(Reporting by Chijioke Ohuocha; Editing by Ed Osmond and Mark Potter)

Nigeria’s naira hits new lows vs dollar on forwards market – LSEG data

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="562" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FTDTXBVVGNK4ROM6N5ELSNCWHI-820x562.jpg" alt="" class="wp-image-451375" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FTDTXBVVGNK4ROM6N5ELSNCWHI-820x562.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FTDTXBVVGNK4ROM6N5ELSNCWHI-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FTDTXBVVGNK4ROM6N5ELSNCWHI-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FTDTXBVVGNK4ROM6N5ELSNCWHI-768x526.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FTDTXBVVGNK4ROM6N5ELSNCWHI-1536x1053.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FTDTXBVVGNK4ROM6N5ELSNCWHI-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The Economic Community of West African States (ECOWAS) court signage and logo is pictured in Abuja, Nigeria February 16, 2022. REUTERS/Afolabi Sotunde</figcaption></figure>



ABUJA, Jan 29 (Reuters)&nbsp;&#8211;&nbsp;Nigeria on Monday said the &#8220;unelected&#8221; military authorities in Niger, Mali, and Burkina Faso were letting their people down with their joint decision to leave the Economic Community of West African States (ECOWAS).



Nigeria, which is the current chair of the political and economic bloc, was commenting for the first time on the three junta-led countries&#8217; Sunday announcement that they were immediately quitting the nearly 50-year-old regional alliance.



The Nigerian foreign ministry in a statement said those seeking to leave ECOWAS were not acting in good faith.



&#8220;Instead, unelected leaders engage in a public posturing to deny their people the sovereign right to make fundamental choices over their freedom of movement, freedom to trade and freedom to choose their own leaders,&#8221; it said.



ECOWAS has so far declined to comment on the move, which could further weaken the bloc as it struggles to contain a democratic retreat in the West Africa region.



Mali and Niger&#8217;s foreign ministries earlier informed the ECOWAS Commission of their decision in written notices dated on Monday, which were seen by Reuters.



Nigeria said it remained willing to engage with the three nations.



Their exit decision, announced in a simultaneous joint statement on national television channels, is a blow to the bloc&#8217;s regional integration efforts after it suspended the three following coups.



(Reporting by Felix Onuah in Abuja, Fadimata Kontao in Bamako, Boureima Balima in Niamey; Writing by Nellie Peyton and Alessandra Prentice; Editing by Chris Reese and Sandra Maler)

Ecowas court hearing on whether Nigeria’s Twitter ban violated rights, in Abuja

ECOWAS chair Nigeria slams juntas’ move to quit bloc

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="539" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-820x539.jpg" alt="" class="wp-image-428505" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-820x539.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-768x505.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-1536x1009.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A view shows Nigeria&#8217;s Central Bank headquarters in Abuja, Nigeria November 22, 2020. REUTERS/Afolabi Sotunde/File Photo</figcaption></figure>



ABUJA, Jan 29 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s central bank has injected $500 million to clear outstanding foreign exchange demand backlog, it said in a statement on Monday.



Africa&#8217;s biggest economy has about $7 billion in forex forwards that have matured, a major concern for investors as foreign currency shortages continue to weigh down the naira currency, despite assurances by the Central Bank of Nigeria (CBN) that it would clear the backlog.



Earlier this month, it paid about $2 billion of the backlog across sectors such as manufacturing, aviation, and petroleum, CBN spokesperson Hakama Sidi Ali said.



This is a developing story&#8230;



(Reporting by Camillus Eboh; Writing by Chijioke Ohuocha; Editing by Jon Boyle)

FILE PHOTO: A view shows Nigeria’s Central Bank headquarters in Abuja

Nigeria’s central bank injects $500 million to clear FX backlog -statement

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="756" height="426" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/ecowas-3.jpg" alt="" class="wp-image-417686" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/ecowas-3.jpg 756w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/ecowas-3-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/ecowas-3-160x90.jpg 160w" sizes="(max-width: 756px) 100vw, 756px" /><figcaption class="wp-element-caption">Economic Community of West African States (ECOWAS) flag is pictured during an extraordinary summit of ECOWAS to hear reports from recent missions to Mali, Burkina Faso and Guinea following military coups in those countries, in Accra, Ghana March 25, 2022. REUTERS/Francis Kokoroko</figcaption></figure>



NIAMEY/BAMAKO, Jan 28 (Reuters)&nbsp;&#8211;&nbsp;Niger, Mali and Burkina Faso, three West African states led by the military, said on Sunday they are immediately leaving the Economic Community of West African States (ECOWAS), a regional economic bloc that has been urging them to return to democratic rule.



The decision by the three, announced in a simultaneous joint statement on their national television channels, is a blow to the bloc&#8217;s regional integration efforts after it suspended the three following coups.



The move could further weaken ECOWAS which has struggled to contain a democratic retreat in the West Africa region.



In response to the withdrawal ECOWAS said it is yet to receive any formal notification about the withdrawal and declined further comment.



The bloc had previously said it does not recognise the military-led governments, vowing that coups would no longer be tolerated after the military takeovers in Mali, Burkina Faso and Guinea and an attempted coup in Guinea-Bissau.



Since the coups &#8211; and despite sanctions, negotiations and threats of military intervention &#8211; the military leaders have failed to provide a clear timetable for a return to constitutional rule.



Instead, they have hardened their rhetoric against the bloc and accused it of being influenced by external powers. The three have also cut military and other ties with former colonial master France, and turned to Russia for security support.



<h2 class="wp-block-heading" id="h-existential-fight">EXISTENTIAL FIGHT</h2>



The military leaders have argued they want to restore security before organising elections, as the three Sahel nations struggle contain insurgencies linked to al Qaeda and Islamic State.



&#8220;After 49 years, the valiant peoples of Burkina Faso, Mali, and Niger regretfully and with great disappointment observe that the (ECOWAS) organization has drifted from the ideals of its founding fathers and the spirit of Pan-Africanism,&#8221; Colonel Amadou Abdramane, Niger junta spokesman, said in the statement.



&#8220;The organization notably failed to assist these states in their existential fight against terrorism and insecurity,&#8221; Abdramane added.



Bakary Sambe, regional director of the Timbuktu Institute think tank, said there were clear signs that the junta-led states were moving towards a split from the bloc, as they strengthen ties between themselves and created a new alliance.



It is unclear for now how the decision by the landlocked junta states, will impact the 15-member regional bloc where goods and citizens move freely.



According to the bloc&#8217;s treaty, member states wishing to withdraw must give a written one-year notice. It is unclear for now if the three states have done so. The treaty say they must continue to abide by its provisions during the year-long period.



The three are also members of the eight-nation West African Monetary Union (UEMOA) which uses the West Africa CFA franc currency pegged to the Euro.



The monetary union, following decisions by ECOWAS leaders after the coups in Mali and Niger, had cut off their access to the regional financial market, and the regional central bank. It later restored Mali&#8217;s access but Niger remains suspended.



(Reporting by Tiemoko Diallo, Boureima Balima, Felix Onuah and MacDonald Dzirutwe; Writing by Bate Felix; Editing by William Maclean and David Holmes)

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West Africa

Nigeria mulls state policing to combat growing insecurity

Ghana’s new finance minister pledges to keep IMF programme on track

Senegal ‘better positioned than some’ to navigate investor concern, says IMF

Nigeria plans commodity board to regulate food prices as inflation soars

Ghana president replaces finance minister in reshuffle

Ahead of planned march over vote delay, Senegal suspends internet access

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Nigeria’s latest devaluation may be ‘turning point’ in currency reform drive

Burkina may quit West African currency union, but not Mali

Moody’s: West African countries’ exit from regional bloc could hinder growth

Nigerian naira hits record low of 1,531 to dollar on official market – FMDQ

West Africa’s ‘Brexit’ moment spells trouble for the region

Nigeria’s naira hits new lows vs dollar on forwards market – LSEG data

ECOWAS chair Nigeria slams juntas’ move to quit bloc

Nigeria’s central bank injects $500 million to clear FX backlog -statement

Three West African junta-led states quit ECOWAS regional block

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