Breaking

3rd time in a row CBN raises lending rate to rein in inflammation

Published

2 years ago

September 28, 2022

The Central Bank of Nigeria (CBN) on Tuesday raised its main lending rate by 150 basis points to 15.50%, its highest level yet and more than forecast, forging ahead with efforts to rein in inflation and ease pressure on the currency.

The lending rate decision comes after annual inflation rose for a seventh straight month in August, to 20.52% from 19.64% in July.

The decision by the CBN’s Monetary Policy Committee (MPC) was the third time in a row the Apex bank would raise its interest rate.

With the inflation at its highest in 17 years, the CBN Governor Godwin Emefiele at the end of the meeting said the Committee had to continue with an aggressive stance.

According to the CBN governor, using the interest rate hike is the easiest and most preferred option, stressing that the option has been adopted globally.

“If you want to rein in inflation, the option is to raise the interest rate to a level that is equal or possibly higher than the inflation rate, so that inflation rate must lag policy rate,” Emefiele told a news conference

He further stated that if the inflation rate does not lag the interest rate, it becomes a negative interest rate and a disincentive to investors.

The Apex bank Governor is of the view that as long as inflation keeps rising, not raising interest rates will retard growth and leave the people poorer than they could have been.

“Therefore it is imperative that you must raise interest rate in order to rein in inflation,” Emefiele further said.

He, however, admitted that though raising interest rates may retard growth all the same but the reason for raising interest rates is not to help slow down inflation but compensate for an aggressive rise in inflation.

According to him, if the CBN does not raise the rate, consumption and expenditure would be affected because the purchasing power of individuals would be eroded or dissipated.

He added that the quantity of goods people will be able to buy would also shrink and this will invariably increase the level of poverty.

He, therefore, concluded thus: “You don’t have a choice but to raise interest rates.”

The Apex Bank adjusted Asymmetric Corridor at +100 & -200 basis points around the MPR (interest rate), raised the Liquidity Ratio to 30 per cent and also increased the Cash Reserve Ratio (CRR) of banks to a minimum of 32.5 per cent and stressed that commercial banks will be debited from their reserves by Thursday at the most.

Breaking

Court Sacks APC Governorship Candidate In Bayelsa

Published

1 year ago

October 10, 2023

News Editor

Timipre Sylva

The Federal High Court, Abuja, has disqualified the All Progressives Congress (APC) Governorship candidate, Chief Timipre Sylva, from contesting the November 11 Guber election in Bayelsa state.

The suit number FHC/ABJ/CS/821/2023 was filed on June 13, 2023, by Deme Kolomo, a member of the APC.

Justice Donatus Okorowo ruled that Sylva, having been sworn in twice and ruled for five years as governor of the state, would breach the 1999 constitution as amended if allowed to contest again.

The judge also declared that Sylva was not qualified to run in the November poll because if he wins and is sworn in, he would spend more than eight years in office as governor

Citing the case of Marwa vs Nyako at the Supreme Court, Okorowo noted that the drafters of the country’s constitution stated that nobody should be voted for as governor more than two times and that the parties to the suit agreed that Sylva was voted into office two times.

He further stated that the Supreme Court ruled in the case of Marwa vs Nyako that nobody can expand the constitution or its scope, stressing that if Sylva was allowed to contest the next election, a person could compete as many times as he wanted.

Breaking

Senate stops El-Rufai, 2 Others Confirms Wike, Keyamo, Oyetola, Others As Ministers

Published

1 year ago

August 7, 2023

News Editor

Cross Section of Ministerial Designates

The Senate has put the confirmation of former Governor of Kaduna State, Nasir El-Rufai on hold and confirmed 45 ministerial nominees presented to it for screening and confirmation by President Bola Tinubu.

Two others affected are Stella Okotete (Delta State), and Abubakar Danladi (Taraba State). The Senate said the trio were still undergoing security clearance.

The Senate had spent a week in screening all the ministerial nominees presented to it by the president.

Those confirmed are:

Abubakar Kyari (Borno)

Abubakar Momoh (Edo)

Nyesom Wike – Rivers

Engr Joseph Utserv (Benue)

Senator John Owan Enoh (Cross River)

Hon Bello Mohammad (Sokoto)

Mohammed Badaru Abubakar (Jigawa)

Amb. Yusuf Maitama Tuggar (Bauchi)

Uju Kennedy Ohaneye (Anambra)

Hon. Olubunmi Tunji-Ojo (Ondo)

Nkieruka Onyejeocha (Abia)

Dr Betta Edu (Cross River State)

imaan Sulieman Ibrahim (Nasarawa)

David Umahi (Ebonyi)

Adebayo Olawale Edun (Ogun)

Arch. Ahmed Musa Dangiwa (Katsina)

Chief Uche Geoffrey Nnaji (Enugu)

Mr Dele Alake (Ekiti)

Waheed Adebayo Adelabu (Oyo)

Mohammed Idris (Niger)

Prof Ali Pate (Bauchi)

Dr Doris Anite Uzoka (Imo)

Lateef Fabemi SAN (Kwara)

Rt Hon Ekperikpe Ekpo (Akwa Ibom)

Hannatu Musawa (Katsina)

Ibrahim Geidam (Yobe)

Aliyu Sabi Abdullahi (Niger)

Hieneken Lokpobiri (Bayelsa)

Alkali Ahmed Saidu (Gombe)

Dr Tanko Sununu (Kebbi)

Atiku Bagudu (Kebbi)

Bello Matawalle (Zamfara)

Adegboyega Oyetola (Osun)

Simon Bako Lalong (Plateau)

Abdullahi Tijani Muhammad Gwarzo (Kano)

Bosun Tijani (Ogun)

Dr Mariya Mahmoud Bunkure (Kano)

Dr Iziaq Salako (Ogun)

Dr Tunji Alausa (Lagos)

Lola Ade-John (Lagos)

Prof Tahir Mamman SAN (Adamawa)

Zephaniah Jisalo (FCT)

Uba Maigari Ahmadu (Taraba)

Prince Shuaibu Abubakar Audu (Kogi)

Festus Keyamo SAN (Delta)

Africa News

INFLATION: Strike Action Imminent in Nigeria Office of ICRC Over Poor Staff Remuneration.

Published

1 year ago

August 2, 2023

News Editor

There are indications that workers of International Committee of Red Cross (ICRC) will down tools for the first time since coming to Nigeria over the recent increase in the price of Premium Motor Spirit (PMS) which has brought inflation and economic hardship to medium income earners in Nigeria and neighboring countries. The Authority Newspapers Reports.

This is as Nigeria’s current cost of living is on the increase and the failure of the management of ICRC Nigeria to address the situation.

Findings showed that the trouble started earlier this year, when the organization announced a global funding gap that led to the downsizing of its operations.

Investigation revealed that the situation resulted in a significant reduction of staff and the scaling back of ICRC’s operations.

In March, the Nigeria management made a controversial decision to suddenly remove the Cost of Living Allowance, intended to help the staff cope with the country’s soaring inflation.

“Shockingly, the allowance was canceled for Nigerian staff but was retained for expatriate employees” a source in the intervention agency hinted.

The source who does not want her name mentioned said the situation ignited outraged by the Nigerian staff, which voiced their concerns, eventually leading to the restoration of the allowance. But the divide between expatriate and Nigerian salaries remained a significant point of contention.

According to the source, “Recently, following the unification of the exchange rate and removal of fuel subsidies, Nigerian staff raised a compelling argument. They pointed out that the value of their salaries’ had eroded significantly (up to -76%), while expatriate counterparts enjoyed a substantial increase (+76%) when converted to the local currency.

“To break this down further, the ICRC mission in Nigeria receives the funds for its operations in CHF (Swiss Francs). Expat staff in Nigeria are paid in CHF but the Nigerian staff are paid in NGN. CHF used to convert to Naira at 1CHF to 509NGN as of June 1, 2023. As of Tuesday 25 July 2023, 1CHF exchanged for 913NGN.

“What this means for ICRC’s expatriate staff in Nigeria who get their salaries in CHF is that the value of their salaries in NGN has almost doubled.

“The value of the salaries of the Nigerian staff has been halved because their salaries are pegged at the numerical value of the NGN, independent of the exchange rate. This also means that as of today, when the salaries for Nigerian staff are converted to Naira, the ICRC is making a significant savings on their salaries.

“How are staff of a global humanitarian organisation expected to selflessly carry out their duties if they can barely pay their bills?”