NEWS
CBN Raises Interest Rate by 150 Basis Points to 26.25% from 24.75%
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN), has raised the country’s baseline interest rate by 150 basis points to 26.25 per cent from 24.75 per cent.
Mr Yemi Cardoso, the Governor of CBN, said this on Tuesday in Abuja, while reading the communique from the 295th meeting of the MPC.
Cardoso, however, said that the committee decided to hold all other parameters constant.
The Cash Reserve Ratio (CRR) was thus, retained at 45 per cent, the Liquidity Ratio of 30 per cent was retained and Asymmetric Corridor of +100/-300 basis points around the MPR was also retained.
Cardoso said that all 12 members of the committee were present at the meeting.
According to him, the key focus of the committee at the meeting remained to achieve price stability by effectively using tools available to the monetary authority to reign in inflation.
He said that members observed that while year-on-year headline inflation in April rose moderately, the month-on-month measures of headline, food, and core inflation all declined significantly.
“This follows a decline month-on-month of headline and food measures in March, suggesting that the recent tight monetary policy stance of the CBN is beginning to yield the desired outcome,” he said.
He said that the MPC, however, noted that inflationary pressure continues to be driven largely by food inflation.
“The committee, thus, reiterated several challenges confronting the effective moderation of food inflation.
“They include rising cost of transportation of farm produce, infrastructure related constraints along the line of distribution network, and security challenges in some food producing areas,” he said.
Cardoso said that “exchange rate pass-through” to domestic prices for imported food items was also an impediment to taming food inflation.
According to him, the MPC urged that more be done to improve the security of farming communities to guarantee improved food production in these areas,” he said.
Reports says that this is the third consecutive tightening of the baseline interest rate, known as the Monetary Policy Rate (MPR) by the MPC under Cardoso.
At its 293rd meeting in February, the committee increased the MPR by 400 basis points from 18.75 per cent to 22.85 per cent, and also increased it by 200 basis points, to 24.75 per cent from 22.75 per cent in March.
Meanwhile, an economist, Dr Chijioke Ekechukwu, reacting to the decision of the MPC, urged stakeholders to give the committee the benefit of the doubt.
” Although, a continuous increase of MPR in my opinion, is not going to control inflation. It is rather going to continue to increase it, as the cost of funds will rise.
“This will ultimately be borne by consumers through higher prices of goods and services.
“There are other drivers of inflation, which are not within the control of the monetary policy.
” If a sickness needs a combined doses of two drugs to heal, and you use only one drug, that sickness will remain with the patient,” Ekechukwu said.
Uche Uwaleke, a professor of Capital Market and the president of the Association of Capital Markets Academics of Nigeria, said that the hike in the MPR by a further 150 basis points would most likely have an adverse consequence on the equities market.
According to Uwaleke, this is given the inverse relationship between interest rates and equities market returns.
“It has the potential of triggering portfolio rebalancing in favour of fixed income securities.
“If I were a member of the MPC, I would have voted for a hold position as the aggressive policy rate hike is taking a toll on output.
” Production is stiffled because of very high cost of funds.
“Moreover, the seeming over reliance on the MPR as a tool to tame inflation does not appear to be making any meaningful impact due to the significant non-monetary factors driving inflation in Nigeria,” he said.
He listed such factors to include high cost of energy, transport as well as insecurity in the food-belt regions of the country. (NAN)
NEWS
Eight Students Die, Three Injure in Jos Road Crash
From Jude Dangwam, Jos
The Vice Chancellor of the University of Jos, Prof. Ishaya Tanko has confirmed the sad death of 8 students of the University to a road crash involving their Toyota bus with a truck in the metropolitan city of Jos.
He disclosed that one of the students was being prepared for surgery in the early hours of Thursday at the Jos University Teaching Hospital while others were receiving medication at the Bingham Teaching Hospital.
The Federal Road Safety Corps (FRSC) Plateau State Command disclosed that the accident occurred opposite Unity Bank Zaria Road, Jos, at around 2:30 am.
The Plateau State Sector Commander of the Corps, Olajide Mogaji explained that seven people lost their lives on the spot, while another victim died in hospital, bringing the total number of fatalities to eight.
According to the Command’s statement, the crash involved a trailer and a bus, which was carrying eleven passengers, all male students of the University of Jos, opposite Unity Bank Zaria Road, Jos, at around 2:30 am.
Mogaji said eyewitness accounts revealed to the corps emergency teams that the bus was speeding and engaged in wrongful overtaking, leading to the loss of control and the crash.
The Sector Commander has appealed to drivers to avoid night trips, excessive speed, and dangerous driving, saying, “The government needs you alive, and wants you to live life to the fullest in this festive season and beyond.”
The FRSC noted that the incident is still under investigation, while urging the public to report crashes or road emergencies to their toll-free emergency number 122 at all times for prompt responses.
The victims were said to have been coming back from a welcome special party for new students when the unfortunate incident occurred with the vehicle carrying the male students while the other vehicle carrying the female students escaped the tragedy.
UNICEF Hails Bayelsa as Champion of Primary Healthcare Devt in Nigeria
From Mike Tayese, Yenagoa
The United Nations Children’s Fund (UNICEF) has commended the Bayelsa State Government for its deliberate efforts at improving primary healthcare delivery, especially in the area of immunization in recent years.
The Country Representative of UNICEF in Nigeria, Wafaa Saeed, gave the commendation, on Wednesday, when she led a delegation on a courtesy visit to Government House, Yenagoa.
Saeed said what she saw during her visit to some health facilities and her random interactions with some mothers in the state, corroborated the positive reports UNICEF has been receiving about Bayelsa in terms of immunization.
The special UN envoy, who described Bayelsa as champion of healthcare delivery and a shining spot in the country, noted that the state has achieved an impressive performance in its immunization indices from 2021 to date.
She attributed the improvement in the health indicators of the state to purposeful leadership, commitment and accountability being provided by the present administration.
While assuring the Bayelsa of UNICEF’s readiness for collaboration to improve nutrition for children as well as unlock resources for healthcare development in the state, the Country Rep, however, urged the Governor Douye Diri-led administration to sustain its efforts in the health sector.
She said, “We are really impressed with what Bayelsa is doing… Bayelsa State has also committed its financing of immunization campaigns from the state budget, and a special one (immunization) in-between.
“Also there is a monthly allowance and support you have continued to give from GAVI. These are some of the things that have really increased the number of immunized children and improved the performance of the state.
“In 2021, the number of children not immunized in Bayelsa was 71 percent; that means seven out of ten kids were not immunized. But between then and now, there is a big difference due to the leadership, commitment and accountability we are seeing in Bayelsa State.
“You have been a champion of primary healthcare and a champion of immunization. And I really look to have Bayelsa not only a champion of states in Nigeria but in our continent and the globe.”
In a response, Governor Douye Diri represented by his deputy, Senator Lawrence Ewhrudjakpo, reaffirmed the determination of his administration to prioritize investments in the health sector.
He said plans were underway to review the state primary healthcare board law with a view to not only sustaining the extant primary healthcare funding model but also expanding it through effective private sector contributions, especially from corporate organizations operating in the state.
Diri thanked the Country Rep, Ms Wafaa Saeed, for her kind words of encouragement and also acknowledged the support of UNICEF, WHO, Bill Gate, Dangote Foundation and other development partners, noting that Bayelsa could not have recorded its present achievements in the health sector without their collaboration.
His words: “We also want to thank you profusely for supporting our programme. We thank UNICEF, the WHO, Bill Gate Foundation, Dangote Foundation and others for your support. We really appreciate what you have done for our state.
“As a government, we know where we are going. A man who knows where he is going cannot be misled. We are focused and will continue to redouble our efforts in the health sector.
“You talked about sustainability. That is very important to us, and so, we are looking at the principal law, which is the Primary Healthcare Development Board Law. We are looking at some areas of that law to bind the hands of whoever that comes after us.
“That is to ensure that even if the administration after us will not have the motivation and passion to provide leadership for primary healthcare like the present governor is doing, the law will compel them to do so.”
The UNICEF Country Representative was accompanied on the visit by the Chief of Field Service, Judith Leville, UNICEF Health Consultant, Dr. Makio Perekeme, the Chief Field Officer, Anselm Audu and a health specialist, Eghe Abe, among others.
Mutfwang Pledges Support for Minister of Defence in Fight against Insecurity
From Jude Dangwam, Jos
Plateau State Governor, Caleb Mutfwang, has paid a courtesy visit to the newly appointed Minister of Defence, Gen. Christopher Gwabin Musa (Rtd), assuring him of his total and unwavering support in the collective effort to defeat insecurity in Plateau State and across Nigeria.
The Director of Press and Public Affairs to the Governor, Gyang Bere on Thursday disclosed that the Governor has expressed delight over Gen.
Musa’s appointment, describing it as a “strategic and timely decision” in confronting the country’s intricate and evolving security challenges.Mutfwang noted that the Minister’s vast experience and proven professionalism would significantly strengthen ongoing national security interventions.
“We must now focus on finding solutions to the challenges confronting us. Whatever has happened in the past should not deter us. The time has come for all of us to join hands and holistically address our security concerns,” Mutfwang emphasized.
The Governor reiterated his support for the establishment of State Police, acknowledging concerns about possible abuses, but stressing that the nation must collectively develop safeguards and ensure operational efficiency.
Gen. Christopher Musa expressed gratitude for the Governor’s visit, assuring him of a robust and productive collaboration in addressing security concerns in Plateau State and the country at large.
He commended Governor Mutfwang for hosting the Plateau Unity Christmas Carols and Praise Festival, describing it as a unifying initiative.

