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Experts Project Policy Retention as CBN holds First MPC Meeting in 2023

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As the Central Bank of Nigeria (CBN) holds its first Monetary Policy Committee (MPC) meeting on Monday, some financial experts have suggested retention of current policy rates.

Speaking in separate interviews with the newsmen, they said that such policy stance would allow for market stability in the new year.

According Umhe Uwaleke, a Professor of Capital Market at the Nasarawa State University, Keffi, increasing the Monetary Policy Rate (MPR) now could jeopardise economic growth.

Uwaleke said that the MPC is likely to hold all existing parameters for two reasons.

“One, historical evidence suggests that the MPC seldom adjusts policy rates in January due to the need to allow the markets to stabilise in the new year.

“Secondly, inflationary pressure is beginning to reduce as seen in headline inflation numbers for Dec. 2022, not only in Nigeria but also in the United States.

“I do not advise a further hike in MPR, as doing so beyond the current high rate of 16.5 per cent is capable of jeopardising economic growth, ” he said.

An economist, Dr Tope Fasua, urged the CBN to shun temptation to further increase the rates.

Fasua suggested that the rates should be retained and be guided by market trends, adding that constantly increasing interest rate could spur recession.

” I hope they hold rates as is and watch what happens.

“Already inflation trended down 0.14 per cent, they may be tempted to further increase rates to accelerate the fall.

“But they need to now think about the fact that constant raising of interest rates could spur recession as life becomes harder for manufacturers,” he said.

According to Dr Muda Yusuf, Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), Nigeria’s Cash Reserve Ratio (CRR) and MPR are among the highest in the world.

“The CRR of 32.5 per cent and MPR of 16.5 per cent are among the highest globally. High CRR in particular has become a key impediment to financial intermediation by the banks.

“There is need for the CBN to ease up on its tightening stance and cut some slack on some of its liquidity mopping measures,” he said.

Analysts at Financial Derivatives Company (FDC) said that inflation is expected to ease further in January.

The analysts, however, projected that high interest rate would have to be retained if the apex bank intends to continue to tackle inflation.

“As long as the CBN remains committed to tackling inflation, the high interest rate environment will persist in 2023,” they said.

According to analysts at Cowry Assets Limited, the policy committee may be tempted to pedal softly on its tightening stance by a token hike of 25 basis points.

” We believe that a moderate reversal in the headline numbers will skew the voting pattern of the committee members in favour of maintaining a tightening stance.

“Regardless, the lag-effect from the policy tightening may take longer in reality as Nigeria has a weak policy transmission system,” they said.

Newsmen report that the MPC is expected to hold its first meeting in the new year on Monday and Tuesday.

The committee had raised benchmark interest rate (MPR) to record high of 16.5 per cent in its last meeting in Nov. 2022 in an effort to curb the escalating inflation rate.

Inflation rate had risen to 21.47 by Nov. 2022.(NAN)

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China plans Increased Imports in 2024

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China plans to increase imports this year to share the business opportunities arising from its ultra-large market with the world, Commerce Minister Wang Wentao said on Friday.

Wang in a press conference said that China would expand the imports of high-quality consumer goods, advanced technologies, important equipment, key components, energy and other resources, and agricultural products in short supply in the country.

According to him, China will move to diversify import channels and streamline the process of importing.

”The country will continue to host the China Import and Export Fair, the China International Fair for Trade in Services and the China International Import Expo, as well as support Chinese enterprises in attending exhibitions abroad.

”We will further facilitate cross-border trips for businesspeople to create opportunities for face-to-face communication”, he said.

Wang said that in April 2023, the State Council issued a guideline on stabilising the scale of foreign trade and optimising its structure, which had produced positive result.

”While continuing to ensure the implementation of the guideline, the Ministry of Commerce is now considering additional measures in this regard.

“It is also trying to roll them out as soon as possible to complement the existing policies, “Wang added. (Xinhua/NAN)

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FCT-IRS to Deploy Artificial Intelligence in Tax Collection, says Ag Chairman

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The Federal Capital Territory Internal Revenue Service (FCT-IRS) is to deploy artificial intelligence to facilitate voluntary tax compliance in 2024.

The acting Executive Chairman of the service, Mr Haruna Abdullahi, made this known during the FCT-IRS end-of-year media briefing, in Abuja on Wednesday.

Abdullahi added that other technology solutions to be deployed include cloud computing, collaboration tools, business process automation and data analytical tools.

According to him, the goal is to improve performance of routine tasks, aimed at encouraging voluntary compliance and ease of doing business.

He explained that from inception, the emphasis has been on driving the Service using technology, adding that the Service has invested in modern working tools such as hardware and software.

“The Service will further employ the use of technology to enhance operations mainly in compliance, enforcement.

“We will also seek to consolidate the culture of transparency and accountability in order to build trust and cooperation between the service and the taxpayers.

“The processes of registration, payment, receipt, assessment, Tax Clearance Certificate (TCC) issuance, filing of returns, TCC verification, and generation of withholding tax credit notes have all been automated.

“Also, to encourage voluntary compliance and to allow taxpayers perform their tax obligations at the comfort of their homes or offices, the FCT-IRS introduced a Self-Service portal, www.fctirs.gov.ng.

“This enables taxpayers to request for Taxpayer Identification Number (TIN), file annual returns, make payment and request for TCC,” he said.

The acting chairman added that the Service would, in accordance with the tax laws, apply a penalty for non-filing of annual returns by January 31 of every year for employers and March 31 of every year for individuals.

According to him, part of the effort is to ensure compliance with filing of returns.

He added that a comprehensive reassessment of returns would be intensified, which would be followed by constant monitoring and compliance exercises.

He also said that to comply with the ease of doing business initiative, the Service would open more tax offices across the six Area Councils in FCT and at strategic locations.

This, he said, would ensure convenience of the taxpayers and further streamline services, making the tax offices accessible to a broader population and contributing to overall organisational growth.

“Additionally, a state of the art headquarters will be constructed, not only to provide for coordination of operations but also reflect our commitment to excellence.

“To attract and retain young talents, the Service will embark on providing targeted training programmes towards ensuring employees stay updated with industry trends.

“We will also be providing staff with modern working tools to foster efficiency and innovation,” he said.

Abdullahi disclosed that from January 2024, the Service would embark on intensive enforcement exercise in line with the provisions of extant laws.

He added that the Service would not only hesitate to prosecute tax offenders through the instrumentality of the law but would ensure that all tax due to FCT were recovered. (NAN)

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Strike: FG Okays 30 Days Implementation of MoU with Labour

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The Federal Executive Council, FEC, on Wednesday approved a 30 day implementation plan for the Memorandum of Understanding, MoU between the Federal Government and the Organized Labour.

The government also is taking a decision against any external interference in unions activities by external bodies.

This is as the Minister of Labour and Employment, Simon Lalong alongside the Minister of State, Nkeiruka Onyejeocha have met with the factional leaderships of the National Union of Road Transport Workers, NURTW.

Briefing State House correspondents at the end of the Federal Executive Council, FEC, presided over by President Bola Tinubu, at the Council Chamber, Presidential Villa, Abuja, Lalong said a Memorandum was presented to the council on the implementation of the agreement with labour.

He said, “We presented a memo from the Federal Ministry of Labour and Employment and the memo was basically on the agreement between government and the labour. You are already aware that 15 items are parts of the agreement.

“But we went beyond mere agreement, we told them that something different this time is happening because one, part of the agreement is to file it in the court of law which we have set the process already.

“And the other one was the presidential approval. There cannot be any presidential approval more than the Federal Executive Council. So we presented them to the Federal Executive Council. We analyzed each and every aspect of the agreement and to show the genuineness and also provide for harmonious and good industrial relationship and that was why it was presented and it was approved for implementation.

“It was agreed that within 30 days, there must be evidence of implementation and that was the basis of presenting to the Federal Executive Council the memo and the Federal Executive Council also approved it and within this 30 days, we will go on with the implementation of the agreement between labour and government.”

Fielding on the item six of the MoU which was the government alleged interference in the activities of the democratically elected leadership of the National Union of Road Transport Workers, NURTW and the mandate to him (Lalong) to resolve the crisis in the union on or before October 13, the Minister said he had already met with the various factions

He said, “Item six in the MoU is about interference specifically with issues that were about road transport workers. Immediately the next day, we embarked on meetings between the two organisations.

“As of today, they have already reached out and have concluded that of Road Transport Employers Association of Nigeria, RTEAN, today they are making a report to the ministry about their agreement because they went into agreement too and we are also going to get back to their parent association.

“The next one is the NURTW. Last week we were with them. Of course if some of you were there, you knew why we postponed it, I reminded them that we are keeping to the date of the agreement but they said they cannot strictly keep to the date because it is very important to them that we realized the aim. So we shifted the meeting till tomorrow. Today, we are going to get the report, by tomorrow we will fix a meeting.

“The reason why we presented these items to the Federal Executive Council is for them to note and approve that after these things we will not want to be tolerating interference into union activities.”But those that are pending are within the Federal Ministry of Labour and Employment. Our own is to dispense with conflicts and we are going to continue to do that and these two items we have mentioned, were really the particular things they hammered on when we met. By God’s grace in the next few days, those ones are going to be sorted out.”

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