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)
Niger Government has established the state Price Control and Monitoring Board, approved by Gov. Umaru Bago to ensure fair pricing and consumer protection.
Alh. Abubakar Usman, Secretary to the Niger Government (SSG), inaugurated members of the board on Thursday in Minna.
The eight-member board has Alh.
Hussaini Ahmed, a former Permanent Secretary as the chairman.Usman noted that the inauguration of the board marked a significant step in the state’s commitment to ensuring fair pricing and consumer protection.
He said that the board was expected to control and stabilise prices of essential commodities and eradicate or reduce to the barest minimum, hoarding of essential commodities across the state.
He said that board would also handle issues that may arise as a result of enforcement and penalty for contravention of guidelines among several others.
“The board will be responsible for the distribution, monitoring and evaluation of essential commodities and keep price under continuous surveillance.
“They will also interpret price movement and relate them to other development in the State’s economy,” Usman said.
He said the board was expected to interface with relevant stakeholders such as local government chairmen, traditional institutions and councilors and well as market organisations to ensure the success of their mandate.
The SSG enjoined members of board to bring their wealth of experience and expertise in economics, consumer affairs and market dynamics to bear in their assignment.
He said that their appointment underscored the government’s dedication to maintaining economic stability and safeguarding the interests of both consumers and businesses in the state.
In his remarks, the board chairman, Ahmed, assured that the board would interface with relevant stakeholders within and outside the state in order to bring succour to the populace.
Other members of the board include Hamza Bello, Permanent Secretary, Investment, Aliyu Abubakar, Permanent Secretary, Local Government and Chieftaincy Affairs and Garba Abdullahi, from Ministry of Basic Education.
Also on the board are Adamu Maikasuwa, Ministry of Agriculture, DCP Aminu Garba, Nigeria Police, Niger Command, Aminu Ladan, Chairman, Chanchaga Local Government Area and Usman Liman, retired Statistician-General as Secretary of the Board. (NAN)
The Federal Accounts Allocation Committee (FAAC), has shared N1.298 trillion among the Federal Government, states, and the Local Government Councils (LGCs) for September.
This is according to a communique issued at the end of FAAC meeting for October held on Thursday in Abuja.
The communiqué was made available to newsmen by Bawa Mokwa, the Director, Press and Public Relations, Office of the Auditor-General of the Federation (OAGF).
According to the communiqué, N1.
298 trillion total distributable revenue comprised distributable statutory revenue of N124.716 billion, and distributable Value Added Tax (VAT) revenue of N543.518 billion.It also comprised Electronic Money Transfer Levy (EMTL) revenue of N18.
445 billion, Exchange Difference revenue of N462.191 billion and Augmentation of N150.000 billion.It said that a total revenue of N2.258 trillion was available in the month of September.
“Total deduction for cost of collection was N80.993 billion, while total transfers, interventions and refunds was N878.946 billion,” it said.
According to the communiqué, gross statutory revenue of N1.043 trillion was received in September 2024, which was lower than the sum of N1.221 trillion received in August by N177.426 billion.
It said that gross revenue of N583.675 billion was available from VAT in September, higher than the N573.341 billion available in the month of August by N10.334 billion.
“From the N1.298 trillion total distributable revenue, the Federal Government received a total sum of N424.867 billion, and the state governments received a total sum of N453.724 billion.
“The LGCs received a total sum of N329.864 billion and a total sum of N90.415 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue,” it said.
On the N124.716 billion statutory revenue, the communiqué said that the Federal Government received N43.037 billion and the state governments received N21.829 billion, while the LGCs received N16.829 billion.
It said that the sum of N43.021 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue.
“From the N543.518 billion VAT revenue, the Federal Government received N81.528 billion, the state governments received N271.759 billion and the LGCs received N190.231 billion,” it said.
It said that in September, Oil and Gas Royalty, Excise Duty, EMTL and CET Levies increased considerably while VAT and Import Duty increased marginally.
It added that Petroleum Profit Tax (PPT), Companies Income Tax (CIT) and others recorded significant decreases. (NAN)
The Lagos State Traffic Management Authority (LASTMA) has reiterated the importance of strict adherence to traffic laws, emphasising the prohibition of commercial motorcycles on highways and other restricted routes.
Mr Olalekan Bakare-Oki, the General Manager, said this in a statement on Thursday, signed by Mr Taofiq Adebayo, Director, Public Affairs and Enlightenment Department, LASTMA.
Bakare-Oki said that non-compliance with the regulations not only jeopardised the safety of the riders but also endangered the lives of other road users.
The statement came following the death of a motorcycle rider going against traffic on Carter Bridge, due to a collision with a fast-moving vehicle.
Bakare-Oki noted that the deceased, reportedly traveling from Ebute Ero, collided head-on with a fast-moving vehicle as it ascended Carter Bridge from Ilubirin.
“The forceful impact of the collision led to the immediate death of the motorcyclist while the vehicle driver ran away.
“Personnel from the LASTMA promptly arrived at the scene of the accident and swiftly alerted officers from the Central Police Station at Adeniji Adele and Shemo.
“Together, they coordinated efforts to retrieve the lifeless body of the rider, while LASTMA officials handed over the motorcycle to security authorities for further investigation,” he said.
The LASTMA boss extended his heartfelt sympathy to the family of the deceased.
“LASTMA remains committed to upholding public safety and is intensifying its efforts to minimise the occurrence of such tragic incidents on Lagos roads,” he said. (NAN)
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