Business News
Brace for impact as CBN expects inflation to rise to 12%
If or when the inflation rate rises, it may trigger an increase in the cost of living. This is because hike in prices influences inflation rate.
Governor of the Central Bank of Nigeria, Mr Godwin Emefiele, has disclosed that the country’s inflation rate could rise to 12 percent. However, this will not have any effect on the current monetary policy stance of the Apex bank, he said
As a matter of fact, the CBN insists on maintaining the monetary policy because of the projected inflation rate. The inflation rate stood at 11.31 percent in February 2019, according to statistics by the CBN and the National Bureau of Statistics (NBS).
Emefiele made the disclosure during his presentation at the Businessday post-election economic agenda conference which held in Lagos on Thursday.
“The CBN has set the post-election agenda for the nation’s monetary policy, projecting that the current monetary policy stance of the bank is expected to continue while inflation is estimated to rise to 12 per cent and moderate thereafter.”
How does this affect you: The possible rise in inflation rate is coming at a time the Federal Government and the legislature have agreed to a minimum wage of N30, 000 for Nigerian labour workers. If or when the inflation rate rises, it may trigger an increase in the cost of living. This is because hike in prices influences inflation rate.
Recall that Nairametrics had also reported that the Federal Inland Revenue Services is considering raising the Value Added Tax (VAT); although FIRS has since denied the report. If these rises in Inflation rate and VAT eventually occur, then the value of the proposed minimum wage increment becomes ineffectual.
CBN considering adjustment in policy rates
While the projected 12 percent rise in inflation rate would encourage the CBN to maintain its monetary policy, unfolding conditions and outlooks will influence the apex bank to make changes in the policy, Emefiele said.
Building on 2018 policy framework: The Central Bank intends to continue from where it left off in 2018. Emefiele said the goal is to ensure that the policy interest rate is set to balance the objectives of price stability with output stabilisation.
Factor that triggered the inflationary projection is productivity gains in the agricultural and manufacturing sectors. He also said Gross Domestic Product is expected to pick up in the first half of the current year, owing largely to the continued efforts at driving indigenous production in high-impact real sector activities.
Meanwhile, CBN will maintain its stable exchange rate over the next year despite expected pressures from the volatility in the crude oil markets.
“Gross stability is projected in the foreign exchange market, given increased oil production and contained import bill.”
Also, the country’s Balance of Payments would remain positive in the short-term, while Nigeria’s current account balance could improve further if oil prices continued to recover.
“This will be supported by improved non-oil performance as diversification efforts begin to yield results to reduce undue imports.”
Emefiele warns recession still hovering on Nigeria
According to Emefiele, the factors that led to the economic crisis are still very much visible. On how to overcome the possibility of another recession: Emefiele suggested that there’s a need to;
- Increase the country’s policy buffers, including fiscal measure, to increase its external reserve.
- Also, diversifying the revenue structure of the Federal Government is of the utmost importance in order to reduce dependence on direct proceeds from the sale of crude oil.
- Cheap financing would be provided to boost local production of priority goods in critical sectors of the economy in order to reduce reliance on foreign imports.
Energy
NNPC signs gas development and commercialization deal with SEEPCO
NNPC and SEEPCO have signed a gas development and commercialization deal.
The state oil giant, Nigerian National Petroleum Corporation (NNPC) has signed a gas development deal with Sterling Exploration and Energy Production Company (SEEPCO).
The agreement between the 2 oil firm is for the development and commercialization of gas from Oil Mining Lease (OML) 143 that could help reduce gas flaring in the country.
The disclosure was contained in a press statement that was issued by the Group General Manager, Group Public Affairs Division of NNPC, Dr Kennie Obateru, on Saturday, September 26, 2020, in Abuja.
According to the statement, the Group Managing Director of NNPC, Malam Mele Kyari, while speaking at the agreement-signing ceremony which held at the NNPC Towers, described the execution of the deal as a great milestone as well as a testament to NNPC’s commitment to facilitating the nation’s transformation into a gas-powered economy.
Kyari disclosed that the deal would not only help reduce gas flaring and its environmental hazards but would also promote gas production and utilization in the domestic market.
The NNPC boss also commended SEEPCO for its unwavering commitment to gas development and commercialization in the country which has led to the establishment of a Special Purpose Vehicle that will help expand gas utilization in the country as a cleaner, cheaper and more reliable alternative form of energy.
On his part, the Chairman of SEEPCO, Mr Tony Chukwueke, described the deal as an essential partnership that would help the company fulfil the pledge it made to support the efforts of the Nigerian government to eliminate gas flaring by monetizing it.
He commended NNPC and the Group Managing Director for ensuring the execution of the agreement which he described central to the achievement of the company’s cardinal objective of boosting the production of Liquefied Petroleum Gas (LPG), condensate and dry gas for the Nigerian market, adding that the company has invested about $600 million for that purpose.
This is coming at a time when the Federal Government is shifting focus to gas utilization as an alternative source of energy especially with the increase in the retail pump price of petrol. This is one of the various initiatives by the government as represented by the NNPC towards providing alternative sources of energy.
Energy
Buhari reappoints 3 Chief Executives of agencies under Federal Ministry of Petroleum
3 Chief Executive Officers of agencies under the Federal Ministry of Petroleum Resources have been reappointed.
President Muhammadu Buhari has renewed the appointment of 3 Chief Executive Officers of parastatals under the Federal Ministry of Petroleum Resources with immediate effect.
The appointments that were renewed by the president include that of Dr Bello Aliyu Gusau as the Executive Secretary of Petroleum Technology Development Fund (PTDF), Ahmed Bobboi as the Executive Secretary/Chief Executive Officer of Petroleum Equalization Fund (PEF) and Simbi Wabote as Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB).
The disclosure was made through a series of tweet posts by the presidency on its official Twitter handle on Friday, September 25, 2020.
The statement disclosed that the renewal of the appointments followed recommendations to the President by the Minister of State Petroleum Resources, Timipre Syla.
It stated that Dr Aliyu Gusau was credited to have run the PTDF successfully in the past four years, keeping faith with the Seven Strategic Priorities he had introduced in January 2017.
These are Domestication, Cost cutting, Sustainable funding, Efficient internal processes, Linkages with the industry, Utilization of centres of excellence, and Pursuit of home-grown research.
It also stated that Bobboi got his reappointment for having run PEF in a way that made it a key and strategic player in the administration’s oil and gas reforms, especially in stabilizing the supply and distribution of petroleum products across the country, among others.
Going further, it stated that the NCDMB boss, Wabote, won his pips for managing the NCDMB and completing its headquarters building. Wabote was also credited to have initiated many landmark projects that were widely commended by industry players.
STATE HOUSE PRESS RELEASE
PRESIDENT BUHARI RENEWS APPOINTMENTS OF PTDF, PEF, NCDMB BOSSES
President @MBuhari has renewed the appointments of Chief Executive Officers of agencies under the Ministry of Petroleum Resources.
— Presidency Nigeria (@NGRPresident) September 25, 2020
Corporate Press Releases
UBA launches new online entertainment platform, ‘RED Radio’ with Wizkid interview
UBA’s RED Radio launches with an exclusive interview with its brand ambassador, Wizkid.
Pan- African financial institution, United Bank for Africa, (UBA Plc), continues to lead in innovation with the launch of its dynamic and creative Online Radio channel – RED Radio.
RED Radio, powered by UBA is a lifestyle web platform that has been set up to inform, educate, entertain and to bring to the fore, the best of Africa. Much like its sister platform, REDTV, RED Radio is expected to showcase the best in lifestyle, entertainment, music, news, comedy and fashion.
Speaking on the launch of RED Radio, Group Chairman of UBA, Tony O. Elumelu applauded the creative initiative, emphasising that UBA is a financial institution always ready to support creativity and entrepreneurship. The 2020 Time 100 most influential person in the world who has committed USD100 million to empowering young entrepreneurs across Africa said about RED Radio, “Creativity and innovation are a powerful combination and every detail in an art piece is important and meaningful. This applies to growing businesses and budding entrepreneurs. You will encounter challenges, like I did, but each experience is a lesson that brings you closer to your goal. That is the beauty of creativity.”
Continuing, Elumelu remarked, “There are many ways to make something beautiful, to make a sound interesting or to bring a story to life. You can define your expression, and today, as UBA’s RED Radio launches, I wish Bola Atta and her enterprising team many successes through this beautiful medium of expression.”
In appreciation of the support of UBA Group Chairman for the exciting creative initiative, UBA’s Group Head, Corporate Communications, Bola Atta, said ‘just like, REDTV which is Africa’s leading online entertainment network, RED Radio is positioned to fast become the foremost online radio platform in Africa’.
Also expressing his delight, UBA’s Brand Ambassador and star boy, Wizkid, said, “I am never too busy for my UBA family,” as he granted an exclusive interview on one of the station’s flagship shows ‘On the Street’ where he spoke extensively about his upcoming album and what his fans should expect from him in the coming weeks.
RED Radio promises to bring rich and engaging content that will keep its audience coming back constantly for vibrant and robust entertainment. Listeners can tune in to www.itsredio.com 24/7.
NNPC signs gas development and commercialization deal with SEEPCO
Buhari reappoints 3 Chief Executives of agencies under Federal Ministry of Petroleum
Report any employer without Group Life Insurance for employees – PenCom
UBA launches new online entertainment platform, ‘RED Radio’ with Wizkid interview
Logistics became more essential during COVID-19 – Moses Enenwali, CEO and Co-founder, Topship
COVID-19 Update in Nigeria
Forex trading during COVID-19 era in Nigeria
Paga Group relocates to the UK
Best Mutual Funds in August, judging by their performance
It would be difficult to find loans to finance rail to Niger Republic – Cheta Nwanze
Gbenga Oludipe
March 22, 2019 at 10:42 am
I think the news topic is misleading and should be corrected.
CBN projects 12% rise in inflation rate is different from
Mr Godwin Emefiele, has announced that the country’s inflation rate will rise to 12 percent
Emmanuel Abara Benson
March 22, 2019 at 10:55 am
It is not misleading, Mr Ogudipe.
The CBN made the projection, and Mr Emefiele is the CBN Governor. He speaks on behalf of the CBN.
Gbenga Oludipe
March 22, 2019 at 11:41 am
What I meant is that a 12% rise is not the same as ‘rise to 12%’. The former indicates an additional 12% while the latter says grow to 12%. I still believe it is misleading. Please review
Emmanuel Abara Benson
March 22, 2019 at 12:03 pm
Okay, Sir. I now understand what you mean. Thanks a lot for the observation. The correction will be made right away.
Brian
March 23, 2019 at 2:35 pm
Excellent observation Mr. Gbenga.
Well done, Emmanuel.