Headlines
UK Economy Slips into ‘Technical’ Recession
The United Kingdom slipped into a technical recession in the second half of last year after its economy registered two consecutive quarters of negative economic growth, official figures have shown.
The Office for National Statistics (ONS) announced through a statement on Thursday that Britain’s gross domestic product (GDP) shrank by 0.3 percent in the last three months of 2023, after contracting 0.1 percent in the third quarter.
It meant that the economy entered a technical recession, as defined by two or more quarters in a row of falling GDP.
It marked the first time the UK had entered recession since the first half of 2020 when the initial COVID-19 lockdown sent the country’s economy plunging into reverse.
The figures dealt a blow to Prime Minister Rishi Sunak, who had promised to grow the economy as one of his five priorities.
Chancellor Jeremy Hunt said inflation and high-interest rates were behind the output fall but insisted the economy was turning a corner.
He said: “While interest rates are high so the Bank of England can bring inflation down low growth is not a surprise.
“But there are signs the British economy is turning a corner; forecasters agree that growth will strengthen over the next few years.
“Wages are rising faster than prices; mortgage rates are down and unemployment remains low.
“Although times are still tough for many families, we must stick to the plan of cutting taxes on work and business to build a stronger economy.”
Shadow chancellor Rachel Reeves said the Prime Minister’s promise to grow the economy was in tatters.
“The Prime Minister can no longer claim credibly that his plan is working or that he has turned the corner on more than 14 years of economic decline under the Conservatives that has left Britain worse off.
“This is Rishi Sunak’s recession and the news will be deeply worrying for families and businesses across Britain,’’ he said.
A former President of the Senate, and chairman of the Peoples Democratic Party (PDP) Board of Trustees, Senator Adolphus Wabara, has accused President Bola Tinubu’s administration of pushing Nigerians into poverty.
Wabara said the economic policies of Tinubu’s administration have worsened hardship across Nigeria.
He spoke during the board’s emergency meeting in Abuja on Thursday, saying: “The skyrocketing cost of living, coupled with poorly implemented economic reforms, has pushed millions into deeper poverty.”
Wabara stressed the importance of prioritising party unity and collective progress over personal ambitions.
“We cannot afford to let personal ambitions or differences overshadow our shared vision for a better Nigeria,” he added.
The Federal Government has fired some civil servants with degrees from private tertiary institutions in Benin Republic and Togo, according to The Punch report.
The directive affected federal workers who graduated from the institutions from 2017 to date.
The Director of Information and Public Relations in the Office of the Secretary to the Government of the Federation, Segun Imohiosen, confirmed the development to one of our correspondents on Wednesday.
In August, the Federal Government announced that only eight universities had been accredited to award degrees to Nigerians in Togo and Benin Republic.
This followed an undercover investigation report in which a Daily Nigerian journalist acquired a degree from a university in Benin Republic in two months and used it to participate in the National Youth Service Corps scheme.
Following the report, the government banned the accreditation and evaluation of degrees from tertiary institutions in Benin Republic and Togo.
The Federal Government also set up an Inter-Ministerial Investigative Committee on Degree Certificate Milling to probe the activities of certificate racketeers.
The then Minister of Education, Tahir Mamman, revealed that over 22,500 Nigerians obtained fake degree certificates from Benin Republic and Togo and such certificates would be cancelled.
Mamman explained that the revelation was part of a report submitted to the Federal Executive Council by the investigative committee instituted to probe degree certificate racketeering by foreign and local universities in Nigeria.
He insisted there was no going back on the Federal Government’s decision to cancel the about 22,500 certificates awarded to Nigerians by some “fake” universities in the two francophone countries.
Mamman maintained that the decision to invalidate the certificates was not harsh as Nigerians who obtained degree certificates from such tertiary institutions dent the country’s image.
He said, “Most of those parading the fake certificates didn’t even leave the shores of Nigeria but got their certificates through racketeering in collaboration with government officials at home and abroad.
“The fake universities capitalised on the gullibility of Nigerians patronising such fake schools. The Federal Government, through the offices of the Head of Civil Service and the Secretary to the Government of the Federation, would fish out those in the government’s employment with such fake certificates. I also urge the private sector to follow suit.”
Although the exact number of affected civil servants could not be ascertained, it was gathered that the Office of the Secretary to the Government of the Federation (Cabinet Affairs) had issued a memo to all the Ministries, Departments, and Agencies to implement the order.
A source, who pleaded anonymity because she was not authorised to speak on the matter, told The Punch that the sacking of the affected workers was based on the inter-ministerial committee’s recommendation.
The official stated, “There was a letter from the SGF cabinet affairs directing all ministries, departments and agencies of government to identify and terminate the appointments of workers employed with certificates obtained from the private universities in the Republic of Benin and Togo from 2017 to date.
“The decision is part of the recommendations of the committee set up to investigate the certificates of people who graduated from the universities.”
Our correspondent also gathered that some agencies like the National Youth Services Corps have commenced the implementation of the directive.
The NYSC Director of Information, Caroline Embu, confirmed to our correspondent that five members of staff had been sacked in line with the SGF’s directive.
She said, “Five members of staff were affected by the directive contained in the letter from the office of the SGF. No more.”
