MPC Meeting Begins In Abuja

MPC Meeting, MPC, CBN, Anchor Borrowers Scheme, 683 FarmersThe Central Bank of Nigeria’s Monetary Policy Committee 2-day rate setting meeting begins on Monday in the nation’s capital city, Abuja.

It is the most anticipated meeting as it comes at a time the country is deep in recession following disappointing data from the National Bureau of Statistics.

The committee is expected to focus on the state of the Nigerian economy, and decide on key monetary policy parameters.

When the committee held its last meeting in July, headline inflation was at 16.5 percent but that has since increased to 17.6 percent in August.

In the light of severe and growing macroeconomic headwinds, the committee would once again be required to make tough decisions amidst limited policy options.

The CBN Governor, Mr Godwin Emefiele is expected to announce the outcome of the meeting on Tuesday, September 20.

Nigeria’s Economy Should Be Built To Adapt To Current Trends – Osinbajo

Yemi Osinbajo on NigeriaNigeria’s Vice President, Yemi Osinbajo, says there is need to ensure that the economy of the nation is built to adapt to the physical, social and technological trends of the present generation.

Professor Osinbajo made the statement on Friday during a two-day economic and investment summit in Delta State, south-south Nigeria.

He further stressed the need for Nigerian leaders to build relationships based on trust with the citizenry.

“Truth on the part of a leader, plays a critical role in the development and prosperity of Nigeria,” he stated.

The summit was organised by the Delta State government, as part of the activities to mark the 25th anniversary since Delta State was created.

Speaking to delegates at the event, the Delta State Governor, Dr. Ifeanyi Okowa, emphasised the need to build a strong, robust and resilient economy.

Present at the summit are the Minister of State for Petroleum, Dr. Ibe Kachikwu, the Minister of Finance, Mrs Kemi Adeosun and a former Governor of the Central Bank of Nigeria, Professor Charles Soludo among others.

CBN Governor Tasks Youths On Local Production

CBN, Godwin Emefiele, Youths
CBN Governor, Mr Godwin Emefiele

Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, has appealed to Nigeria youths to channel their energies towards the production of goods and services locally.

Mr Emefiele was speaking on Thursday at a meeting to kick start the pilot phase of the Youths Entrepreneurship Programme in Abuja, Nigeria’s capital.

As over 1,000 members of the National Youth Service Corps (NYSC) are expected to benefit from the scheme, he said the programme would reduce the pressure on the nation’s foreign exchange.

The CBN Governor noted that the the National Bureau of Statistics put the recent unemployment rate in the first quarter of 2016 at 42%.

He expressed optimism that reverse could be the case if more youths gain financing that would help boost their businesses.

The Director General of the NYSC, Brigadier General Sule Kazaure, commended the development.

He explained that the CBN and the NYSC were seeking to address the inability of the young population to access knowledge on finance schemes that could help them develop and grow their businesses.

CBN Resolves To Clear All Backlog of Forex Demand In The Country

forex, CBNThe Central Bank of Nigeria has resolved to clear all the backlog of forex demand of about 5 billion dollars in the country through spot and forward settlements.

According to a statement released by the Acting Director, Corporate Communications of the Central Bank, Mr Issac Okoroafor, the move is to engender confidence, ensure credible price formation and sustain the integrity of the Nigerian inter-bank FX market.

This comes as the new flexible forex trading begins on Monday.

The Central Bank of Nigeria (CBN) had released the highlights of the much awaited flexible foreign exchange market policy on Wednesday, June 15, weeks after the Monetary Policy Committee announced the introduction of the policy.

After its meeting of May 24, the CBN said the policy would allow the bank retain a small portion of foreign exchange for critical transactions.

Key notes released stated that the market would operate as a single market structure via the interbank market and authorised dealers and that it would be purely an exchange rate market managed via Thompson Reuters platform.

Part of the key notes is that the CBN would participate via periodic intervention and would introduce primary dealers that deal with the CBN on a two way quote basis.

The primary dealers are also expected to deal with other players in the interbank market.

Interbank Trading Of Foreign Exchange Expected To Begin In Nigeria

forexInterbank trading of foreign exchange is expected to begin on Monday in Nigeria, as contained in the highlights of the new flexible foreign exchange market policy released by the Central Bank.

Tenors and rates for Over The Counter (OTC) settled forex feature is also expected to be announced later in the day by the apex bank.

Highlights Of The Policy 

The Central Bank of Nigeria (CBN) released the highlights of the much awaited flexible foreign exchange market policy on Wednesday, weeks after the Monetary Policy Committee announced the introduction of the policy.

After its meeting of May 24, the CBN said the policy would allow the bank retain a small portion of foreign exchange for critical transactions.

Key notes released stated that the market would operate as a single market structure via the interbank market and authorised dealers and that it would be purely an exchange rate market managed via Thompson Reuters platform.

Part of the key notes is that the CBN would participate via periodic intervention and would introduce primary dealers that deal with the CBN on a two way quote basis.

The primary dealers are also expected to deal with other players in the interbank market.

Other aspects of the key notes are that there shall be no pre-determined spreads on forex transactions and all forex purchases shall be transferable while 41 items shall remain inadmissible in the forex market for forex transactions.

The CBN will also offer long term forex futures and sales of forex forwards for end users must be trade-backed.

The non-deliverable OTC forex settled trades will help moderate volatility. The OTC settled forex feature shall be on non-standardised amounts, the apex bank said.

Another aspect of the key notes states that proceeds of forex shall be purchased by authorised dealers at the daily interbank rates.

The new police which the CBN said was a market-driven trading system, is expected to end the central bank’s 16 month fixed exchange rate policy.

After the highlights were released, Nigeria’s capital market made remarkable gains, with most stocks appreciating in price.

No Need To Panic

One of the leading global rating agencies, Fitch Ratings had welcomed the decision of the apex bank, saying that the shift to a more flexible foreign-exchange regime could aid Nigeria to adjust to lower oil prices and support growth.

It however, warned that the implementation of the new forex policy may present challenges if not properly managed.

Fitch explained that establishing the new framework’s credibility would be key to its effectiveness in attracting portfolio flows and Foreign Direct Investments (FDIs) to make up for lower oil export receipts.

Meanwhile, the CBN Governor, Godwin Emefiele, has reiterated that there was no need for businesses and investors to panic over the new forex policy, saying it will help address the imbalance in the economy.

FX Market: Naira May Trade At N350 To Dollar

Naira, Market, dollarThe Nigerian currency is expected to trade around 350 Naira to the dollar in the coming days as uncertainty over the implementation of the Central Bank of Nigeria’s planned new flexible exchange rate policy persists.

A meeting between the CBN Governor and local currency traders over the policy has failed to yield desired results.

Dealers say the financial market dealers association initiated the meeting with Mr Godwin Emefiele to discuss the policy which seeks to abandon the naira’s 15-month peg to the dollar.

The CBN says it would issue the guidelines for the flexible exchange rate policy at the appropriate time.

The local currency retreated to 350 to the dollar on the parallel market on Thursday from 360 Naira to the dollar last week.

Monetary Policy Committee Leaves Rates Unchanged

MPC, Central Bank, monetary policy, exchange rateThe Central Bank of Nigeria has decided to introduce a flexible exchange rate policy as it continues to monitor developments in the economy.

This announcement was made on Tuesday by the CBN Governor, Godwin Emefiele at the end of the two day rate setting meeting by the Monetary Policy Committee in Abuja, the nation’s capital which has been described as the most anticipated meeting.

According to Mr Emefiele, the Monetary Policy Rate will maintain status quo at 12%, Cash Reserve Requirement at 22.5%, Liquidity Ratio at 30% and maintain asymmetric corridor of +200/–500 basis points around the midpoint of the MPR.

FG Disagrees With Negative Perception Of Reforms

Negative PerceptionThe Minister of Finance, Mrs Kemi Adeosun, has disagreed with the perception of Nigeria by most international bodies particularly the World Bank and the IMF.

The Finance Minister told a panel discussion in Washington where she is attending the spring meetings of the IMF and World Bank that Nigeria has resolved to build resilience into the country’s economy to hedge against future oil shocks.

She added that the nation is seeking a combination loan support from the World Bank and the African Development Bank to help diversify its economy.

Reacting to Nigeria’s rejection of IMF offer, she said that the memory of the last experience still resonates among the citizenry.

Meanwhile, major economies at the World Bank-IMF spring meetings believe that global growth remains slow, and there is need for nations to diversify their economy.

The message seems more directed towards oil exporting countries, which have been weaning off their dependence on oil over the years.

CBN Governor, Godwin Emefiele, who is attending the meetings, says Nigeria has already begun measures towards diversification, despite the challenges.

CBN Cuts Interest Rate

CBNNigeria’s Central Bank on Tuesday cut policy interest rate for the first time in almost four years.

At the end of its two-day rate setting meeting, the CBN Chief, Godwin Emefiele announced a 200 points cut to 11% in headline interest rate from 13% previously.

The financial regulator also shaves-off the Cash Reserve Ratio (CRR) sharply from 25% to 20%, the deepest cut in the harmonised rate following a smaller easing done by the CBN last September.

The decision to cut both the policy rate and the harmonised cash reserve ratio, the CBN Governor said, was to engineer growth by increasing the flow of lending to critical sectors of the economy like agriculture, solid minerals, critical social infrastructure and manufacturing.

 

I Am Not Surprised At Alison-Madueke’s Travails – Oshiomhole

Oshiomhole Not Surprised At Alison-Madueke's TravailsEdo State Governor, Adams Oshiomhole, on Wednesday said he is not surprised at what is happening to former Minister of Petroleum Resources, Mrs Diezani Alison-Madueke, with the Metro Police in the United Kingdom (UK).

Governor Oshiomhole made this known in a session with State House correspondents in Abuja, Nigeria’s capital after a meeting with President Muhammadu Buhari.

He said despite the media hype by the administration of former President Goodluck Jonathan that it re-based the economy, he did not see anybody that said average Nigerians did better under the Jonathan administration.

The immediate past Minister of Petroleum Resources was arrested along with four other persons in relation to corruption allegations being investigated by the UK National Crime Agency.

Under her watch the then Governor of the Central Bank of Nigeria (CBN), Sanusi Lamido Sanusi, alleged missing funds in the Nigerian National Petroleum Commission (NNPC), amounting to 20 billion dollars.

It was alleged earlier in the year that the former Petroleum Minister, who was one of the closest to the administration of former President Jonathan, would flee the country, to avoid being prosecuted over allegations of fraud, especially in the NNPC.

Mrs Alison-Madueke, at the time, denied seeking asylum in any part of the world, stating that the Jonathan administration had done a lot in the Oil and Gas industry that cannot be rubbished by malicious claims.