Nigerian Newspapers
Interest rate: Experts divided on Monetary Policy Committee stance
As Central Bank of Nigeria (CBN), retains the Monetary Policy Rate (MPR), at 12 per cent for 11th consecutive time, economic stakeholders are divided on appropriateness of making tight monetary policy. UDO ONYEKA
Again, last week, the Central Bank of Nigeria’s (CBN), Monetary Policy Committee (MPC), retained the Monetary Policy Rate at 12 per cent with a corridor of +/- 200 basis points by a majority vote of 9 of its Monetary Policy Committee members to 3, who voted against the retention of the old rate. The decision at the last meeting is making it ten consecutively time, since October 2011, the MPR has remained unchanged.
The apex bank’s decision was contrary to experts’ projections and expectation for a reduction of the old rate.
Managing Director/Chief Executive Officer, Financial Derivatives Company Limited (FDC), Mr. Bismarck Rewane, had predicted a gradual easing of monetary policy. Rewane predicted that the MPC would either reduce the Monetary Policy Rate to 11 per cent, from 12 per cent or cut the Cash Reserve Ratio (CRR) by one per cent to 11 per cent at its March meeting.
Rewane said this in his monthly economic news and views for March, made available to National Mirror had urged the CBN to “balance its mandate of price stability with public outcry for a rate cut as pressure on the CBN to shift its policy stance intensifies.”
The argument of FDC was that the Nigerian market was no longer as vulnerable to market contagion as other frontier markets, saying that there was limited impact from slowdown in Asian economies. According to FDC, there were increased opportunities in the Nigerian market as more companies look to break into the market. He pointed out that Nigeria’s share of world trade is currently 0.49 per cent, just as the country’s share of Foreign Direct Investment (FDI), is 0.45 per cent.
“There is a strong correlation between fiscal discipline and macroeconomic success. Fiscal discipline will increase domestic and international investors’ confidence.”
In the same vein, the Lagos Chamber of Commerce and Industry (LCCI) called for a relaxed rate .LCCI had outlined outline the detrimental impact of sustained monetary tightening on the private sector. It called on the CBN to commence monetary easing and focus on stimulation of economic growth and job creation.
“We expect to see the commencement of monetary easing on the back of supportive economic realities. The latest inflation rate for the month of January 2013 stood at 9 per cent, lower than 12 per cent recorded in December 2012. Year-on-year core inflation (all items less farm produce) stood at 11.3 per cent in January from 13.7 per cent in December 2012. The headline inflation rate is now in single digit, which is an appropriate condition for the cessation of the tightening cycle,” the body had said before the MPC meeting.
The LCCI statement, signed by its president, Mr. Goodie Ibru, stressed that as at March 16, 2013 the country’s external reserves stood at $ 48.17 billion.
This level of reserves, it noted, was enough to cover over 11 months of imports, above the critical level of 3 months, “adding that the reserves should support stable exchange rate in the short-to medium term. It added that favourable oil pricing, improved foreign capital inflows and lower demand from oil marketers have all contributed to the accretion to the reserves position making monetary easing at this time desirable”.
“The foreign exchange rate has remained relatively stable since the beginning of the year. The exchange rate stood at N155.76/$ 1 as at March 13, 2013, representing a year till date marginal appreciation of 0.01 per cent.
“The short to medium term outlook of the exchange rate will be influenced by the global oil price, foreign capital inflows and fiscal approach of the federal government to fund the 2013 budget. Having successfully achieved a single digit inflation rate, the next focus of the MPC should be to ensure a modest commencement of monetary easing to boost real sector growth and stimulate the economy generally.
“We expect to see the monetary policy tools – MPR, Liquidity Ratio and the Cash Reserve Requirements (CRR) adjusted appropriately by the MPC to create the conditions that would stimulate growth, boost economic activities and create jobs,” the chamber explained.
The LCCI also faulted MPC’s stance on rate the outcome of the March meeting, the organisation in an email to National Mirror signed by its Director General, Mr Muda Yusuf bemoaned the retention of the monetary policy tightening by the CBN. The decision is a cause for concern because of its implications for operating cost and competitiveness, especially of domestic firms.
The LCCI said as a result of the unchanged rate, “the following business and economic conditions would persist; high interest rate, poor credit access, weak competitiveness of domestic firms, weak industrial capacity utilisation and weak capacity to create jobs”. The Lagos Chamber said even though it appreciates the value of macroeconomic stability which has been the main policy focus of the CBN, stimulating growth through better funding is paramount at this time.
“The Nigerian market is the largest in Africa, yet most domestic firms cannot take advantage of this because of weak financial capacity. Domestic and indigenous firms are being progressively relegated in the economy because of these conditions. This underscores the need to review the current fixation on macroeconomic stability.
Unemployment has reached a frightening proportion and unless domestic firms are empowered, the situation would continue to worsen with scary social consequences,” the statement said Chief Consultant, Nesbet Consult, Dr Alaba Olusemore, said that success of economic reforms depend on how it impact o he citizens.
He said that economic reforms should be wholistic not only about interest rate. He said this at workshop on Financial Regulation and Strategy organised by Monbasab Ventures Inc., penultimate week.
“The liquidity tightening was at odds with the reality of an uncertain global economic environment and the actions of regulatory banks of most emerging markets.
The central banks of most emerging economies pursued more accommodative policies in order to support domestic growth.” Corroborating Olusemore, Lecturer, Department of Finance, University of Lagos, Mr Samson Ogege, said one of the major solution to Nigeria’s economic problem was to diversify. “ Nigeria economy is highly dependent on oil clear.
The non-oil economy lacks competitiveness especially the agriculture and manufacturing sectors. This is why experts have called for diversifications of the economy.” However, some analysts have said that the CBN is on the right track, as its monetary policy has helped to increase the country’s foreign exchange reserves.
According the analysts, part of the measures that boost the reserves was the 12 per cent Monetary Policy Rate, otherwise known as benchmark lending rate. CBN, Governor, Sanusi Lamido, had noted that the policies of the bank were tailored at curtailing inflation and tightening liquidity.
The analysts said the upward review of the oil price benchmark to $ 79 per barrel as contained in the recently passed 2013 budget, provides additional room for increased government spending and therefore poses a direct upside threat to inflation and this was a justification for MPC to keep the MPR on hold at the old rate.
“In order to adjust monetary policy however, the MPC will need to be more certain that lower inflation can be achieved on a sustainable basis. With the threat of a higher benchmark crude price being adopted in the 2013 budget, we’re not certain that can be taken for granted for the moment.
On this basis, we forecast unchanged monetary policy ”, said Razia Khan, Head of Regional Research, Africa, Standard Chartered Bank, Razia Khan had said before the last MPC meeting. Sanusi, who briefed the media on the decisions taken during the twoday meeting, said the committee was faced with three options but decided to retain the MPR at its current rate in order to sustain the gains of monetary policy while utilising the existing space in the corridor to influence yields and exchange rates in the short term.
He explained: “Having achieved a reasonable degree of moderation in the rate of inflation, there were compelling arguments to consider easing monetary policy, at least from the perspective of stimulating growth in the real sector given the slowdown in overall GDP and agricultural GDP growth, inability of the SMEs to borrow at the current lending rates.
“The committee carefully weighed the option of relaxing monetary policy against the likely risks in the nearto- medium term, noting that reversing the current stance of monetary policy was not likely to produce a neutral outcome, as it may signal the preference for a higher inflation rate on the part of the CBN”, Sanusi said.
Sanusi said the committee was satisfied with the level of accretion into the external reserves which stands at $ 49.38 billion as at March 14, 2013, representing an increase of $ 5.5 billion or 12.68 per cent over the level of $ 43.83 billion as at December 2012, a development which was attributed largely to proceeds from crude oil and gas sales and crude oil related taxes as well as reviewed funding of WDAs.
Similarly, he disclosed that the committee was comfortable with the macroeconomic stability in the economy despite shocks from both external and domestic environments a development which informed the tightening stance of the third quarter, even as the committee urged the regulatory financial institution to continue monitoring the portfolio of direct investment flows while being conscious of the financial risk and of hot money in the event of a shock.
He explained: “Having achieved a reasonable degree of moderation in the rate of inflation, there were compelling arguments to consider easing monetary policy, at least from the perspective of stimulating growth in the real sector given the slowdown in overall GDP and agricultural GDP growth, inability of the SMEs to borrow at the current lending rates, and crowding out effects that may require monetary easing.
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Posted in Nigerian Newspapers. A DisNaija.Com network.
Source: National Mirror Newspaper
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•Deploy more personnel as army chief vows to wipe out terror group
•Security beefed up at N’Assembly
Deji Elumoye and Kingsley Nwezeh in Abuja
Abuja, Nigeria’s seat of power, is under a massive security cordon following threats of attacks by insurgents and the increasing wave of banditry in the contiguous states of Kaduna, Kogi, Nasarawa and Niger States, THISDAY’s investigation has revealed.
There has been a wave of kidnappings in the outskirts of the federal capital, notably Pegi, Tuganmaje and Kuje among others, which the police have battled in recent times.
The security situation in and around the Federal Capital Territory (FCT) was heightened by the pronouncement of the Niger State Governor, Mr. Sani Bello, that Boko Haram fighters who he said sacked 50 villages in the state and hoisted the terror group’s flag, were about two hours drive away from the FCT.
Security has also been beefed up at the National Assembly as operatives, yesterday, thoroughly screened every vehicle approaching the National Assembly complex in Abuja.
The deteriorating security situation nationwide prompted the National Chairman of the Peoples Democratic Party (PDP), Prince Uche Secondus, to warn that the 2023 general election may not hold, demanding the declaration of a state of emergency as well as the convocation of a national conference.
However, the Chief of Army Staff, Lt. Gen. Ibrahim Attahiru, yesterday restated the Nigerian Army’s determination to annihilate Boko Haram.
But the Governor of Katsina State, Hon. Bello Masari, cautioned against declaring a state of emergency, saying doing so isn’t the solution to combat the security challenges facing the country.
The security of the nation’s airports was also in focus yesterday as the Office of the National Security Adviser (ONSA) said there was no threat to them.
THISDAY’s investigations showed increased presence of troops, police, Nigerian Security and Civil Defence Corps (NSCDC) personnel and intelligence operatives at the three strategic entrances to the city notably, Keffi, Zuba and Gwagwalada.
More checkpoints were also mounted around Gwagwalada and Keffi.
THISDAY also observed increased intelligence deployment at the entrance and the borders of FCT with contiguous states.
Beyond the borders, there were more deployments and police patrols inside the city and increased intelligence deployments as well.
Security sources told THISDAY: “There are deployments here and there but they are routine. Alertness is key to a secure environment.”
It was also learnt that security agencies were involved in frenzied meetings throughout yesterday.
The meetings, coordinated by the office of the Chief of Defence Staff under the new joint operational strategy of the armed forces, were aimed at coordinating a joint response to possible threats of attack to the FCT.
“I understand the security teams have been meeting for some days now and if you look around you, you will notice that there are increasing patrols and numbers of security personnel. The threats are not been taken lightly,” a source said.
National Assembly workers, lawmakers and visitors also had a harrowing experience accessing the legislative complex due to heightened security in the area.
Security operatives thoroughly screened every vehicle approaching the National Assembly complex in Abuja, impeding both human and vehicular traffic.
The Sergeant-at-arm of the National Assembly and other security agencies supervised the operations, leading to huge traffic build-up inside the complex.
Legislative staff, visitors and lawmakers were seen patiently waiting for their cars to be searched so that they could go ahead with the business of the day.
Some staff and visitors at some point got tired of waiting and were seen alighting from their cars to trek from the gate to the complex.
Meanwhile, the ONSA has said there is no threat to the nation’s airports.
A statement by the Head of Strategic Communication, Mr. Zachari Usman, said the reports of threats to the airports were an internal correspondence of security threat assessment misconstrued as security threat to the airports.
PDP Demands State of Emergency
In a related development, the PDP National Chairman, Prince Uche Secondus, yesterday demanded the declaration of a state of emergency, warning that the 2023 general election might not hold if the federal government failed to tackle insecurity.
He called on the federal government to summon a national conference to address the spike in insecurity.
Secondus added that the national caucus of the party will meet today to discuss the state of the nation.
Addressing members of the National Executive Committee (NEC) in Abuja, Secondus said: “We are worried Abuja is not even safe. It is no longer politics. We got alert of plots to bomb and burn down our airports.
“We urge the federal government to declare a national state of emergency in security. There is the need to call a national conference to discuss the insecurity in the country.
“There may not be any election in 2023 in Nigeria due to insecurity. This government must listen to the people. The Buhari government should call a national confab to discuss security and state of the nation. It is no longer politics. This time we are not playing politics. Let’s keep politics aside and move the nation forward.”
He said the country had been grounded, regretting that there had been no matching response from the federal government.
Secondus said in the past, terrorism in the North was confined to the North-east, but with the report of Boko Haram occupying villages in Niger State, terrorism had spread to the North-central
“Herdsmen are also menacing in the West; gunmen causing havoc in the East; and the militants in the South; all killing, looting, raping, maiming and burning down homes. The situation is bad; Nigerians all over are living in fear,” he said.
The Senate Minority Leader, Senator Enyinnaya Abaribe, said the problem of Nigeria was outside of the PDP headquarters, while pledging the support of the Senate to the declaration of state of emergency in security.
Abaribe said he deliberately decided not to speak on the floor of the Senate but to allow the APC senators to speak so as to avoid being accused of giving a partisan colouration to the issue of insecurity.
He stated that only electoral reforms would give victory to the opposition party in the 2023 general election and ensure a democratic defeat of the APC-led federal government.
Also, the Minority Leader of the House of Representatives, Hon. Ndudi Elumelu, commended the NEC and the PDP leadership for their collective efforts at resolving the House leadership crisis.
The NEC meeting adopted the position of Secondus, calling on the federal government to convoke a national conference to discuss the state of insecurity in the country, according to a communiqué read by the National Publicity Secretary, Mr. Kola Ologbondiyan.
Army Chief Vows to Wipe Out Boko Haram
The army yesterday reiterated its commitment to wipe out Boko Haram.
Chief of Army Staff (COAS), Lt. Gen. Ibrahim Attahiru, told reporters in Maiduguri, Borno State that Boko Haram had been defeated in many encounters and would continue to be defeated until it’s annihilated from Nigeria.
“We will take on Boko Haram decisively, and we are committed to the focus of the operations, which is the total annihilation of Boko Haram from Nigeria,” he said.
The COAS, who was visiting the headquarters of Operation Lafiya Dole in Maiduguri for the fifth time since his appointment four months ago, said the visit was to boost the morale of the troops, reassure them and listen to any issues affecting them.
Earlier, the Theatre Commander of Operation Lafiya Dole, Maj. Gen. Farouq Yahaya, lauded the visit, which he said had continued to boost the morale of the troops.
“We are honoured, we are grateful, we are encouraged by those visits. You provided us guidance, logistics and other things we required. We are most grateful for those visits,” Yahaya said.
State of Emergency Won’t Solve Security Challenges, Says Masari
Katsina State Governor, Hon. Aminu Masari, has, however, said declaration of a state of emergency won’t solve the security challenges facing the nation.
Masari, who spoke yesterday with journalists after meeting with the Chief of Staff to the President, Prof. Ibrahim Gambari at the State House, Abuja stated that he was against the recent call by the House of Representatives for the declaration of a state of emergency in the security sector as it would not solve the problem.
According to him, declaring a state of emergency will not achieve the desired effect as the security structure and personnel to be used to execute the emergency are already overstretched in a bid to safeguard lives and property.
Sourced From: THISDAYLIVE
Tribune Online
Nigeria records 55 new COVID-19 infections, total now 165,110
The Nigeria Centre for Disease Control (NCDC) has recorded 62 new cases of COVID-19, bringing the total number of infections in the country to 165,110. The NCDC disclosed this on its official Twitter handle on Friday. “55 new cases of #COVID19Nigeria; Lagos-21, Yobe-19, Ogun-6, Akwa Ibom-3, Kaduna-2, Plateau-2, FCT-1, Rivers-1.” YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE COVID-19: Nigeria Recorded […]
Nigeria records 55 new COVID-19 infections, total now 165,110
Tribune Online
Sourced From: Tribune Online
By Olasunkanmi Akoni
The people of the South East region have been urged to explore the power of negotiation and mutual settlement in the face of ongoing killings and security challenges in the zone because the east can not afford another war at present.
Stakeholders from the South-East geo-political zone made the remark on Thursday, at the unveiling of the book, “Igbo, 50 years after Biafra,” written by Special Adviser to Lagos State Governor Babajide Sanwo-Olu on Drainage Services, Joe Igbokwe, held at Ikeja G.R.A.
Speaking at the unveiling of the book, the chairman of the occasion, Mr. Cutis Adigba,
urged the people of the South-East to learn to build bridges across the country, so that they can realise their ambition of producing the next president of Nigeria.
Adigba urged leaders from the zone to discourage the move and agitation by some youths in the South East to go to war and secede out of Nigeria.
Also read: Banditry: Disregard viral video, Niger State gov’t urges residents
He said that Igbo have always found it difficult to rule Nigeria because they refused to build bridges across the six geo-political zones that made up Nigeria.
While describing the agitation as uncalled for, Adigba noted that after two decades that Nigeria returned to civil rule, the Igbo has predominantly identified with only one political party.
He maintained that remaining in one party can not advance the cause of the people of South East and cannot make them realise their objective of producing an Igbo man as president.
He maintained that the publisher of the book, Igbokwe played politics outside his state, so that the Igbo race can be integrated with one another race.
Adigba said the failure of the Igbo to reintegrate with other ethnic nationalities politically was responsible for the retrogression of the race in Nigerian politics.
Igbokwe, also addressing guests on the occasion, maintained that the Igbo are not advancing politically because they refused to be integrated into National politics, lamenting that, despite their success in business, they are not successful in playing politics at the national level.
Corroborating Dimgba, Igbokwe noted that there was the need for the Igbo people to stand up and build bridges so that their objective of producing the next president of Nigeria could be realised.
According to him: “I have decided to raise my voice, I hope my people will hear me while trying to quell the effect of the war, our people are spoiling for another war, mayhem is being unleashed in Igbo land, and there is palpable fear.
“Those who could speak have lost their voice, mindful of the consequences of their actions, I am calling on all Igbo leaders to speak up because all actions carry consequences, consequences of the silence will be too dastardly to sustain.
“Those silently supporting the wild wind should be careful or else they hand over to their children,” he said.
Igbokwe urged those spoiling for war to jettison their plan and embrace dialogue, urging them to learn from the South West region that despite the challenges faced after the annulment of the June 12, 1993, election, they did not go to war, and the region had the opportunity of producing two of her sons for presidential position in 1999.
“You have to build bridges to become president of Nigeria, but it is unfortunate the Igbo are burning bridges.”
Speaking at the event, Chief Uche Dimgba who is the coordinator of Igbo in All Progressives Congress, APC in Lagos, described Igbokwe as “a Frank, fearless and reliable leader, who based his views on issues and stand by his opinions, and we the Igbo have confidence in him and believe he can lead us aright.”
“He is a leader we Igbo believe in and we will follow him. If he can serve all the governors produced in Lagos State since 1999, he is a better man to follow because he possesses all the experience that can be of benefit to Igbo both at home and in the diaspora.”
The post Attacks on S’East: We must explore all options of negotiation — Stakeholders urge Igbo appeared first on Vanguard News.
Sourced From: Vanguard News
The government said that no worker should stay back beyond 6:00 p.m. within premises of buildings undergoing construction.
The post Insecurity: Lagos bans occupation of abandoned buildings appeared first on Premium Times Nigeria.
Sourced From: Premium Times Nigeria
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Nigeria records 55 new COVID-19 infections, total now 165,110
Military, Police Ring Abuja to Forestall Boko Haram Attack
UFC: Usman gets N584m after beating Masvidal
Insecurity: Lagos bans occupation of abandoned buildings
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