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Experts highlight why CBN won’t alter rates as MPC holds meeting 

The Monetary Policy Committee (MPC) of the CBN holds its 269th meeting today and tomorrow, September 19 and 20, 2019.

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MPC, MPC to Maintain Accommodative Stance, Experts highlight why CBN won’t alter rates as MPC holds meeting 

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) holds its 269th meeting today and tomorrow, September 19 and 20, 2019. Note that the MPC meeting is the second to be held since the Central Bank’s Governor, Godwin Emefiele officially began another five-year term in office. 

Meanwhile, financial experts and policy analysts have indicated that the “status quo” would be maintained. Basically, experts opined the Monetary Policy Rate (MPR) at 13.50% and other parameters such as Cash Reserve Ratio (CRR), Liquidity ratio, and asymmetric corridor would be held constant. 

(READ MORE: LCCI reacts to CBN’s new cashless policy, says time frame is disruptive)

Highlights of last MPC meeting: At the last MPC meeting, all rates were retained as the committee noted that its decision was informed by the conviction that key macroeconomic indicators were trending in the right direction. At the end of the last meeting, the following decisions were reached: 

  • MPR was kept at 13.50%;
  • the asymmetric corridor of +200/-500 basis points around the MPR was retained;
  • CRR was held at 22.5%; and
  • the Liquidity Ratio was also kept at 30%.

While considering decisions to either alter rates or keep them constant, the Committee noted that there was a need to boost output growth through a sustained increase in consumer credit, mortgage loans and granting loans to Small and Medium Enterprises. 

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Also, MPC emphasised the fact that inflation was moderate, and this means the tightening of monetary policy should not be an option at that time. The MPC further explained that restriction of the capacity of the DMBs to create money could curtail their credit creation capabilities. 

On the contrary, the MPC was of the view that loosening the rates could increase money supply, stimulate aggregate demand and strengthen domestic production.

 

Lastly, MPC observed that given the recent actions of the Bank’s management involving the prescription of minimum lending thresholds by the Deposit Money Banks (DMBs), it was safe to assume that this action, targeted at stimulating credit growth to the real sector would increase credit delivery to the real sector and accelerate investment and economic growth. 

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Why will MPC hold rates? The Chief Economist for BusinessdayNonso Obikili told Nairametrics that, “The committee will maintain the ‘Status quo’. They just did a symbolic cut a few meetings ago. They can’t cut further due to balance of payments problems and they can’t raise due to politics.”

Commenting on recent inflation decline, Nonso disclosed that the impact of border closure should start to be felt from September.

(READ ALSO: New CBN circular on merchant collection surreptitiously targets increased stamp duty revenue)

 

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Appointments

TCN MD, Sule Abdulaziz appointed Chairman of West Africa Power Pool

The acting Managing Director of TCN, Sule Abdulaziz, has been appointed the new Chairman of WAPP.

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TCN MD Abdulaziz, four other directors receive appointment letters

The acting Managing Director of Transmission Company of Nigeria (TCN), Sule Abdulaziz, has been appointed the new Chairman of the Executive Board of West African Power Pool (WAPP). Abdulaziz was nominated by the former Managing Director of Power Holding Company of Nigeria (PHCN), Joe Makoju, who is an honorary member of WAPP.

This disclosure was made by TCN’s General Manager, Public Affairs, Mrs Ndidi Mbah, through a public statement in Abuja on Thursday, October 22, 2020.

In her statement, Mbah revealed that the West African Power Pool was created by Decision A/DEC.5/12/99 of the 22nd Summit of the ECOWAS Authority of Heads of State and Government, and adopted during the 29th Summit of the ECOWAS Authority of Heads of State and Government held in Niamey, Niger.

The appointment was made during the 46th meeting of the WAPP Executive Board which was chaired by the Secretary-General of ECOWAS, Ki Sengui, and held through video conference on October 21.

The statement from Mba partly reads, “While making the nomination, Makoju noted that Abdulaziz is an expert in engineering with vast experience in the electricity sector and therefore will perform creditably as the new WAPP Executive Board Chairman.

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“His proposal was endorsed by MDs and Director Generals and other members of the board,” she said.

According to the statement, Abdulaziz in his acceptance speech thanked the board members and the honourary members for his nomination as the Chairman of the board and assured them of his total commitment to the overall objective of the regional electricity body.

He also expressed the need to move the pool to the next level of operational efficiency and solicited the support of member utilities, especially members of the executive board in this regard.

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He urged members to ensure prompt payment of their contributions to the pool and also continue to collaborate actively with the secretariat to ensure effective and efficient coordination and implementation of all WAPP programmes.

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ENDSARS

President Buhari to address Nigerians on Lekki toll plaza shootings after investigation 

Minister of Sports says President Buhari will address Nigerians on the Lekki Toll Plaza shootings at the completion of investigations.

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Youth Investment Fund:  Ministry of Finance and CBN to launch provision of funds- Minister

President Buhari will address Nigerians on the Lekki toll Plaza shootings, as he awaits the outcome of the investigations into the shootings of unarmed #EndSARS protesters by soldiers.  

This disclosure was made by Mr. Sunday Dare, the Minister of Youth and Sports Development, during an interview with Arise TV on the unrest and uncertainties gripping Nigeria following the protests over police brutality. 

The Minister emphasized that the President during the National Security Meeting yesterday has ordered an investigation into the Lekki Toll Plaza shooting, and thereafter he would speak on the incident. 

What they are saying 

When asked by Charles Aniagolu of Arise TV why the President hasn’t made an official statement on the unfortunate event at the Toll Plaza, Mr. Dare explained in his response that President Buhari hasn’t made a statement on the tragedy because he wants to have all the facts, which will absolutely be made public.  

“It is important to get all the facts right before we go forward. In this case, it’s going to be difficult to hide these facts because we live in a multimedia world and we have pieces of evidence and corroboration and I think it is important to get the facts right.

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“I think that’s the part the President has towed and I am sure that when the facts are made available, this President – because he has integrity – will level with the Nigerian people about what happened on Tuesday in Lekki.” 

Mr. Sunday Dare said the present administration’s commitment to protecting the rights of all citizens is unshaken. He reiterated that in line with this core mandate, a presidential pronouncement was made by the Presidency to permanently dissolve the notorious SARS group. 

He disclosed that the level of responsiveness and concrete steps that the President has taken to stem down civil unrest in the country is commendable, as the #5 of 5 demands are fully accepted by the President. 

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ENDSARS

Just-in: Again, Osun declares 24-hour curfew

Osun State Governor, Gboyega Oyetola has again, re-imposed the earlier suspended 24-hour curfew in the state.

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Ekiti, Osun, Delta, Imo, 9 others raise over N500 billion bonds in 10 years , #EndSARS protest: Osun State Government Suspends Curfew

Osun State has imposed a 24-hour curfew in the state. The decision is coming barely 24 hours after the initial curfew, which was suspended.

The announcement was made by Governor Gboyega Oyetola in a statement shared via the Twitter handle of the state on Saturday.

According to him, the curfew takes immediate effect and it is indefinite.

According to him, the curfew was reintroduced to “prevent the current state of anarchy from degenerating into a large-scale breakdown of law and order.”

He said, “Government notes with huge disappointment, the abuse of the suspension, a day ago, of the 24-hour curfew earlier declared in the State to forestall the breakdown of law and order and protect the lives and property of citizens and residents.

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“It is unfortunate that hoodlums and criminals have taken advantage of government’s action to wantonly loot government and private property, including private business premises and homes in several parts of the State this morning. This is unacceptable and it stands condemned.

“After an Emergency Security Meeting this afternoon, where the whole situation was reviewed and assessed, we came to the inevitable conclusion to declare a curfew. Consequently, I hereby declare a 24-hour curfew across the whole State with immediate effect.

“This inevitable conclusion was reached to avert the continuation of this irresponsible act, especially now that the genuine protesters have suspended their protest earlier today.”

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