Business
COVID-19: How CBN policies helped prevent the collapse of the Nigerian economy – Oscar Onyema
The NSE CEO has highlighted some of the measures the CBN took to save the Nigerian economy from collapse.
The Chief Executive Officer of the Nigerian Stock Exchange (NSE), Mr. Oscar Onyema has revealed how various initiatives and policies of CBN prevented the Nigerian economy from major setbacks before, during, and after the peak of the COVID-19 pandemic.
Speaking recently in a conference organized by the NSE, Mr. Onyema revealed that the Nigerian economy, like every other economy was severely hit by the impact of the pandemic, which was evident by the volatility in different markets. Therefore, in response to these harsh economic consequences, the CBN designed a lot of policies to help mitigate the effect of the pandemic.
Commenting further, he opined that investors are generally reacting to policy changes as economies open up and world economies enter a recovery mode. Some of the policy changes he referred to, include; CBN policy that domestic institutional investors should stop participating in the OMO market. This policy has driven significant funds into the Nigerian Treasury Bills market, some of the funds have also trickled down to the equity market.
Cut in interest rate: This policy is a significant move in support of equities as an “asset class” because most investors are driven by yield. Due to the fact that the Nigerian economy has shifted into a negative real interest rate environment, these types of cuts will tilt investment preference to assets class that will generate higher yields and returns.
(READ MORE: Despite billions on agriculture, food inflation up by 108% since 2015)
What they are saying
Mr. Oscar noted that: “Given the record dividend yields that are available in the Nigerian market and given a strong fundamental of a number of companies listed on the Nigerian Stock Exchange, it makes sense, as investors try to balance, and rebalance their portfolios that they will look at equities.”
Mr. Onyema concluded by stating that, there were also some fiscal policies that are supportive of the market. He appreciated the Central Bank of Nigeria governor for his leadership in tackling the pandemic and taking adequate measures.
Why this matters
Recall that IMF predicted that Nigeria’s economy as measured by GDP will decline by 5.4% due to the impact of the pandemic, up from 3.4% it had earlier predicted. This decline is most likely to widen the inequality accompanied by other harsh socio-economic consequences. Hence, the justification for the combinations of fiscal and monetary policy mix adopted to mitigate the effects of the pandemic.
Backstory
Nairametrics had earlier reported CBN’s initial policy response to COVID-19 ranging, from granting of a further moratorium of one year on all principal repayments to the reduction of interest rates, the establishment of N500 billion targeted credit facilities among others.
Business
BREAKING: Suspected hoodlums looting Palms Mall, Shoprite in Ilorin
Hoodlums have invaded Palms Mall and Shoprite in Ilorin, looting stores and carting away items.
Some suspected hoodlums are allegedly looting the Palms Mall on Fate road, Ilorin, Kwara State capital. The mall hosts stores of Shoprite, and Lifemate Furniture among other stores including Mobile phones retailers.
This was revealed by findings conducted by a Nairametrics analyst who is presently in Ilorin.
He said, “They allegedly stole iPhone 11 mobile sets, other mobile sets brands, Refrigerators, and households items among others.”
According to the analyst, the suspected hoodlums forced their way into the Mall after they have stormed and allegedly looted Kwara Agro Hall, an agro resettlement centre, where they carted away Aluminium roofing sheets, mattresses, bags of cement and bags of flour among others.
Details soon …
Business
#EndSARS: President Buhari reaffirms commitment to protecting the rights of all citizens
President Buhari has reassured that the rights of all citizens will be protected.
President Muhammadu Buhari has restated his commitment to improving good governance and ensuring that the rights of all citizens are protected, in a bid to preserving the unity of Nigeria. He made this known during a virtual meeting with all living former Heads of State and Presidents of Nigeria.
According to a statement by the Presidency via its official Twitter handle, the meeting was well attended by former Presidents Olusegun Obasanjo, Goodluck Jonathan, Chief Ernest Shonekan; former Heads of State, Gen. Yakubu Gowon, Gen. Ibrahim Babangida, and Gen. Abdulsalami Abubakar.
The meeting comes less than 24 hours after President Buhari’s state of the nation address, where he called for an end to the #EndSARS protests as their voices have been heard.
Backstory
Nairametrics had earlier reported that President Buhari would be presiding over a National Security Council meeting with former Heads of State and Presidents.
According to the information contained in the tweets, President Buhari stressed that his administration will continue to improve good governance through the defined democratic process and sustained engagement.
During the meeting, the President recounted the initial concessions made by his administration on the demands of youths protesting against the excesses of some SARS members.
Buhari said that all the demands are accepted and that he has proceeded immediately to scrap SARS and commence the process of addressing the other demands made.
Business
Instagram tenders apology for flagging #EndSARS posts as fake
Instagram has apologized for its algorithm malfunction that led to the flagging of #EndSARS posts as fake.
Social media is not just changing the way we communicate, it’s changing the way we are governed and the way we live in society.
Instagram apologizes for its algorithm malfunction that leads to the dismay of its users.
Backstory:
Instagram on the 21st of October flagged a series of posts in support of #EndSARS protest killings, as false information.
Users received messages of, “False: The same false information was reviewed in another post by fact-checkers. There may be small differences. Independent fact-checkers say this information has no basis in fact.”
This came as a huge disappointment to some of its users as the company refused to be of help in a critical time.
The social networking service apologizes, saying that its algorithm incorrectly flagged the posts, “Yesterday our systems were incorrectly flagging content in support of #EndSARS and marking posts as false. We are deeply sorry for this. The issue has now been resolved, and we apologize for letting our community down in such a time of need,” they stated
Yesterday our systems were incorrectly flagging content in support of #EndSARS, and marking posts as false. We are deeply sorry for this. The issue has now been resolved, and we apologize for letting our community down in such a time of need.
— Instagram Comms (@InstagramComms) October 22, 2020
(READ MORE:#EndSARS: Nigerian Army set to commence Exercise Crocodile Smile VI)
The incident of October 20th took place at the Lekki toll plaza where the Nigerian military shot at several of the youths who were on a peaceful protest seeking an end to police brutality amongst other demands. Amnesty International confirmed that about 12 of the protesters were killed while hundreds of them sustained injures.
What you need to know:
The #EndSARS movement was first introduced in 2017. Its most recent protest started on the 7th of October, youths initiated back the protest to call for the disbandment of the Special Anti-Robbery Squad (SARS) unit of the Nigeria Police Force.
BREAKING: Suspected hoodlums looting Palms Mall, Shoprite in Ilorin
#EndSARS: Coca-Cola donates N20 million to cover medical bills of victims
BREAKING: Lagos to support owners of looted, vandalised stores
NB Plc to raise additional N20 billion from its N100 billion Commercial Paper
#EndSARS: President Buhari reaffirms commitment to protecting the rights of all citizens
COVID-19 Update in Nigeria
Daily Parallel Market Exchange Rate – ₦461/$1
Covid-19: US FDA grants full approval to remdesivir as first vaccine to treat coronavirus
CBN reviews appointment requirements for CCOs in Banks
#ENDSARS: Insurance firms brace up for claims
