Udo Udoma States Steps FG Is Taking To Stabilise The Economy

udo-udoma, foreign currency shortage, recessionThe Minister of Budget and Planning, Mr Udo Udoma, on Friday stated steps being taken by the federal government to restabilise the economy.

 

Mr. Udoma, who was a guest on Channels Television’s breakfast programme, Sunrise Daily, noted that “foreign currency shortage, is responsible for where we are today”.

He further explained that the country is in need of money, which is needed to raise more money.

He then opined that “what we need to recharge the economy, is foreign currency”.

The Minister said that the ministry had a fiscal stimulus plan which they have been developing over the last month.

He stated other plans by the ministry to stabilise the economy to include “asset sales, concessioning, advance payment from licensing rounds”, all aimed at raising between 10-15 billion dollars.

Mr Udoma also used the medium to solicit the understanding of Nigerians, saying everything is being done to ease their pains.

“I want Nigerians to be patient, we are on top of the Job, we know what to do but it takes time”.

Change Begins At The Individual Level

As economic and financial experts continue to offer suggestions to help re-inflate the Nigerian economy, the government in turn, has urged citizens to embrace change on an individual level, through the ‘Change Begins With Me’ initiative.

Further more, at a time like this, the onus is now upon the private sector and business owners to begin to think creatively of ways by which the economy can be boosted.

With the recession hitting almost every sector, some have also said that the only way to address this challenge is through the adoption of policies that will enhance local production and reduce pressure on the nation’s reserves.

Sales Managers Index: Nigeria Continues To Drop

Sales Managers IndexNigeria’s inflationary pressures intensified in the month of March, pushing all five parameters of the Sales Managers Index to a 12-month low.

A new set of data released on Monday by the London-based World Economics shows Nigeria’s Business Confidence Index down for the seventh consecutive month, reaching the lowest level in a year.

Businesses in the survey commented on poor consumer demand, rising unemployment, high inflation, lower oil prices and difficult exchange rate conditions.

The Market Growth Index measured by the report also shows fifth consecutive decline and the lowest since March 2015.

The Product Sales Index falls first time in 12 months as managers point to general rise in prices charged for products and services.

At the employment level in the first quarter of 2016, the staffing index fell below the 50.0 no-change mark for the first time, as companies comment on staff rationing as part of cost-cutting measures at lower level of employment.

MPC Raises Monetary Policy Rate To 12%

MPCThe Monetary Policy Committee (MPC) of the Central Bank of Nigeria has raised the Monetary Policy Rate (MPR) to 12% from 11%.

This is an outcome of its 2-day meeting which started on Monday in Abuja, the nation’s capital; the second for the year 2016.

At the last meeting in January, the MPC maintained the monetary policy rate, the cash reserve requirement, and the liquidity ratio at 11%, 20% and 30% respectively.

The Governor of the central bank said that the key decisions taking by the regulator were part of measures for achieving fiscal and financial stability.

Access Bank Releases Outlook On MPC Meeting

Access BankOne of Nigeria’s tier-one listed commercial lender, Access Bank has released its outlook on the two-day monetary policy meeting of the Central Bank.

The bank expects the committee to retain the headline interest rate at 11% and leave the lending corridor of plus 200 basis points and minus 700 basis points unchanged.

Analysts at Access Bank believe the financial regulator will continue to tolerate above 9% inflation target in a bid to keep monetary conditions relatively loose in support of the economy.

Access Bank sees the cash reserve ratio and liquidity ratio left unchanged and anticipates no change in the foreign exchange policy position of the Central Bank.

The 249th meeting of the Monetary Policy Committee kicks off on Monday in Abuja, the nation’s capital.

Economic and financial analysts believe the volatility of the Naira at the foreign exchange market and the double-digit inflation recorded in February would top the agenda at the two-day meeting.

At the last meeting in January, the MPC maintained the monetary policy rate, the cash reserve requirement, and the liquidity ratio at 11%, 20%, and 30% respectively.

The outcome of the meeting will be announced on Tuesday, March 22,2016.

 

Naira Hits N206/$, CBN, Bankers Meet

NairaElectronic trading in the naira was halted for the second day on Thursday as the local currency was quoted at a new record low of 206.60 Naira to the dollar.

This would be amongst the issues discussed by the Central Bank of Nigeria Governor, Mr Godwin Emefiele, as he meets with the bankers’ committee in the nation’s commercial centre, Lagos.

Apart from its renewed effort to stabilise the naira, the bankers committee might consider issues around a possible devaluation of the local currency ahead the Monetary Policy Committee meeting next month, depleting foreign exchange reserves and the effect of polls shift on the financial market.

He was also expected to visit the Nigerian equities market after the meeting.