Dear Subscriber,

Global recession in 2023 — to be or not?

The news that US inflation has fallen to 6.5%, the sixth consecutive monthly decline, soothed market nerves the world over. The decline is a signal that the record-high global inflation is now beginning to ebb. This notwithstanding, according to the IMF, one-third of the global economy will slide into recession this year, with developed countries feeling the greatest impact. Many African countries will be unable to withstand the spillover effect of the storm, leading to a slowdown and fiscal distress in some of them.

With inflation hitting 50.4%, Ghana is facing its worst financial crisis in decades. While Nigeria is to spend 80% of its revenue for debt servicing as the total debt stock hit N77 trillion.

From waste to wealth — economic opportunities in plastic waste management

With Nigeria suffering from revenue shortfalls, the search for alternative sources of income for the government has become imminent, including waste management (garbage). Nigeria generates approximately 32 million metric tons of waste per year. Of these, 7.8% (2.5 million metric tons) is plastic waste. Plastic waste is a scourge in our environment, and though these challenges grow every day, so do the opportunities through recycling. Recycling is becoming the most effective approach to managing plastic waste, and it has numerous advantages across a range of industries, including clothing and construction. At this juncture, the government needs to seize the opportunity to reduce waste in society, whilst simultaneously spurring job creation, boosting revenue, and economic growth.

2023 likely to witness higher oil output

For the first time in the last five months, Nigeria’s crude oil production averaged 1.35 million barrels per day in December 2022. With an intensification of the war against oil theft and the reopening of shutdown terminals, we are expecting increased and sustained levels of oil output. The increase in oil output contributed to a rise in external reserves since the second half of December 2022 to $37.2bn from $36.9bn at the end of the first half of the same month. Although, oil theft and vandalism, as well as underinvestment in the sector linger, and Nigeria is still unable to meet its OPEC-allocated quota, the fact that production is creeping up is a bright spot for the economy in 2023.

In this edition of the FDC bimonthly publication, we explore and analyze in detail the economic opportunities in plastic waste management, food sustainability, and other topical global and domestic issues.

Enjoy your reading!