Nigerians have indicated that they prefer interest rates to fall, while the inflation rate rises if given the chance to choose between inflation and interest rates.
This was contained in the Central Bank of Nigeria (CBN) Inflation Attitude Survey (IAS) report for the third quarter of 2018. The survey was conducted a few weeks ago from a sample size of 1,770 Households randomly selected from 207 Enumeration Areas (EAs) across the country, with a response rate of 96.9 per cent.
Inflation – Nigerians Support Price Stability
According to the CBN report, 48.4% of the respondents believed that the Nigerian economy would end up weaker if prices start rising faster than they do now while 12.1% stated that it would be stronger. Also, 17.7% of the respondents believed it would make a little difference in the economy. The survey shows more Nigerians are in support of price stability, as almost half (48.4%) of the respondents believed that the economy will end up weaker if prices begin rising faster than they are doing now.
Similarly, More Nigerians believe that prices have risen in the last one year when asked how prices have changed over the past one year, as 56.5% of total respondents believed prices have risen by at least 3.0%. Also, out of the total respondents, 23.4% were of the opinion that prices have since gone down in the past 12 months while 13.5% felt prices had moved up by more than 1% but not up to 3%.
Meanwhile, when asked whether prices will change in the next 12 months, the majority of respondents (40.8%) were sure prices would still increase by at least 3% while 36.9% expected prices to either drop or remain constant in the next one year. Also, 12.5% of them believed prices would definitely rise more than 1%, but not up to 3%.
Economy Will Grow, If Interest Rates Fall
Also, 23.5% of the respondents expected the interest rates on bank loans and savings to rise in the next one year while 14.6% thought the interest rates would fall during the period and 61.8% had no idea whether interest rate would rise or fall.
Meanwhile, when asked whether it would be best for the economy if interest rates rise or drop, 34.4% were of the opinion that it would be best if the interest rates could fall while 15.6% were of the view that interest rates must rise, for the economy to grow. The report survey shows 11.1% of the respondents believed there would be no difference in the economy.
Interest Rate – Inflation Tradeoff
Responses from the survey showed more Nigerians prefers higher interest rates to higher inflation. When asked to choose between raising the interest rates up in order to keep down inflation and raising inflation in order to keep interest rates down, 23.9% preferred interest rates to rise for inflation to go down. Also, 28.2% wanted prices to rise for interest rates to drop.
Inflation Rate is Rising Gradually
After eighteenth consecutive months of disinflation, since January 2017, head on inflation increased by 11.23% year-on-year in August 2018; which is 0.09% higher than the recorded rate in July 2018 (11.14%). The rise in inflation continued in September when it increased by 11.28% year-on-year, which is 0.05% higher than the recorded rate in August 2018 (11.23%).
Core inflation stood at 9.8% and decreased by 0.2% in the month of September from the 10.00% recorded in August while Composite Food Index rose by 13.31%, during the same period, compared to 13.16% in August 2018.
Buhari nominates Okonjo-Iweala as DG World Trade Organization
President Muhammadu Buhari nominated the former Minister of Finance and Coordinating Minister of the economy, Ngozi Okonjo Iweala, as the Director-General of the World Trade Organization (WTO).
President Muhammadu Buhari has nominated the former Minister of Finance and Coordinating Minister of the Economy, Ngozi Okonjo Iweala, as the Director-General of the World Trade Organization (WTO).
This was seen in a tweet posted by the Presidential aide on Digital and New Media, Tolu Ogunlesi, in the early hours of Friday, June 5, 2020.
In the statement, Ogunlesi said that the current Director-General of the intergovernmental organization, Roberto Azevedo, is stepping down from his position on August 2020, a year ahead of the end of his tenure.
Azevedo, who has been the head of the WTO since 2013, is stepping down at this critical period of global economic crisis and the trade war between the United States of America and China.
This means that the election that was earlier scheduled for 2021 when his tenure was supposed to expire might be coming up much earlier for a new four-year term.
Tolu Ogunlesi in his statement said, ”President Muhammadu Buhari has nominated Okonji-Iweala as Nigeria’s candidate for the position of the Director-General of World Trade Organization. DG Azevedo is stepping down in August 2020, a year earlier, so the election of the new DG, originally scheduled for 2021, may take place much earlier”.
DG Azevedo is stepping down in August 2020, a year early, so the election of a new DG, originally scheduled for 2021, may take place much earlier.
— tolu ogunlesi (@toluogunlesi) June 4, 2020
Just-in: AfDB board agrees to an independent probe of Akinwumi Adesina
The independent review shall be conducted by a neutral high calibre individual with unquestionable experience, high international reputation and integrity within a short time period of not more than two to four weeks maximum, taking the Bank group’s electoral calendar into account.
The Bureau of the Board of Governors of the African Development Bank (AfDB), has agreed to authorize an independent review of the report of the ethics committee of the bank’s board of directors on the allegations levied against the President of the Bank, Akinwumi Adesina.
This was contained in a communique which was released and signed by the Chairperson of the Bureau of Board of Governors, Ms Niale Kaba, after the meeting of the bureau board of governors on June 4, 2020, with respect to the complaints against the President of the bank.
In taking the decision, the Bureau agreed that the ethics committee performed its role on this matter in accordance with the applicable rule under resolution B/BG/2008/11 of the board of governors and that the Chairperson of the Bureau of Board of Governors performed her role in accepting the findings of the ethics committee in accordance with the said resolution.
The bank’s board of governors in its statement said, ‘’Based on the views of some Governors on the matter and the need to carry every Governor along in resolving it, the Bureau agrees to authorize an independent review of the report of the ethics committee of the board of governors relative to the allegations considered by the ethics committee and the submissions made by the President of the Bank Group thereto in the interest of due process.
‘’The independent review shall be conducted by a neutral high calibre individual with unquestionable experience, high international reputation and integrity within a short time period of not more than two to four weeks maximum, taking the Bank group’s electoral calendar into account.
‘’The Bureau agrees that, within a three to six months period and following the independent review of the ethics committee report, an independent comprehensive review of the implementation of the bank’s group whistleblowing and complaints handling policy should be conducted with a view to ensuring that the policy is properly implemented, and revising it where necessary, to avoid situations of this nature in the future.’’
Following the allegations of unethical conducts, questionable appointments and contract awards by a group of whistleblowers and the subsequent clearance of all charges by the bank’s ethics committee, the United States Government, who is the largest shareholder outside Africa, asked for an independent probe of those allegations.
The US treasury secretary questioned the integrity of the committee’s process as well as the internal processes of the bank.
Adesina, a few days ago, met with President Muhammadu Buhari, where he assured of the country’s support towards his travails and his second term bid for the Presidency of the multilateral institution.
FG removes cap on petrol price, allows marketers to fix price
The price cap per liter in respect of Premium Motor Spirit (PMS) is removed from the commencement of these Regulations.
The Federal Government has removed the cap on Premium Motor Spirit (PMS) price, popularly known as petrol.
This was disclosed by the Petroleum Products Pricing Regulatory Agency (PPPRA) via a memo, which was dated March 30, 2020, but realised on May 4, 2020, titled ‘Market Based Pricing Regime for Premium Motor Spirit (PMS) Regulations, 2020.
What it means: With the new development, marketers now have the freedom to fix the price of the commodity and sell above the price given by the agency.
Executive Secretary, PPPRA, Abdulkadir Saidu, explained that the agency would continue to monitor trends in the crude oil market and advise the Nigerian National Petroleum Corporation (NNPC) and oil marketers on the monthly guiding price for the commodity.
“The price cap per litre in respect of Premium Motor Spirit (PMS) is removed from the commencement of these Regulations. From the commencement of these Regulations, a market-based pricing regime for PMS shall take effect,” he said.
Meanwhile, Nairametrics had reported that the agency announced a new retail price band for oil marketers.
In a circular dated May 31st, as seen by Nairametrics, the downstream regulator said oil marketers are now expected to sell petrol within the price range of N121.50 and N123.50. Part of the circular said:
“Please recall the recently approved pricing regime which became effective March 19, 2020, and the provision for the establishment of a monthly price band within which petroleum marketers are expected to sell PMS at the retail stations.”