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Nigeria’s central bank raises interest rate to 22.75 %

Published

8 months ago

February 28, 2024

The Central Bank of Nigeria (CBN), during its Monetary Policy Committee (MPC) meeting on Tuesday, raised its benchmark interest rate, the Monetary Policy Rate (MPR), by 400 basis points from 18.75 percent to 22.75 percent.

The CBN also increased the cash reserve ratio (CRR) of banks to 45% from 32% and modified the Asymmetric Corridor around the MPR to +100/-700 from +100/-300. Nonetheless, the MPC kept the liquidity ratio at thirty percent.

According to Cardoso, the decision to abruptly increase the MPR was made in order to address the system’s high rate of inflation and substantial liquidity, as the inflation rate surged further in January to hit 29.90% annually and its January 2024 Consumer Price Index (CPI) report, which also noted that food inflation rose to 35.41 percent during that time from 33.93 percent in December 2023.

He said, “The committee’s decisions were centred on inflationary and exchange pressures, projected inflation and rising inflation expectations.

“Members were concerned about the persistent rise in the level of inflation and emphasised their commitment to reverse the trend, as the balance of risks leans towards rising inflation.

“The committee, however, acknowledged the trade-off between the pursuit of output growth and taming inflation but was convinced that an enduring output expansion is possible only in an environment of stable economics.

“The balance of the argument was in favour of a considerable rate hike to drive down inflation substantially.”

Financial commentators have predicted that the MPR’s decision will result in increased foreign investment inflows, an appreciation of the naira, and higher interest rates in the fixed income markets.

There is a chance that the rise in MPR may result in higher borrowing costs and less financing to the real sector, which might lead to slower growth in the industrial and agricultural sectors.

Related Topics:Featured Interest rate Nigeria Olayemi Cardoso

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Fortuna Mining says Burkina Faso won’t scrap permits

Published

2 days ago

October 9, 2024

Ifeoluwa Dada

The Burkina Faso government does not intend to revoke Fortuna Mining’s current mining permits within the nation, the Canadian company said on Monday.

Ibrahim Traoré, the leader of the Junta, stated on Saturday that Burkina Faso intended to remove some mining permissions from international businesses and work towards increasing local gold production. However, he did not specify which permits would be revoked.

The entire index fell on Monday as shares of gold miners with projects in the West African nation plummeted precipitously at the Toronto Stock Exchange.

Fortuna Mining’s stock was down 9% at 3:25 PM ET (19:25 GMT). The owner of the Bombero gold mine, Orezone Gold Corp., had a 9% decrease on the TSX.

In addition to addressing several subjects on Saturday to mark two years as president, gold producer Endeavour Mining said Traor hinted that some mining permits would be cancelled.

Endeavour asserted that it is unaware of any intentions to cancel any of the company’s mining permits and that the government continues to support the business.

Growing insecurity has made things more difficult in West African country despite its rich mineral resources. ACLED, a U.S.-based crisis-monitoring organisation, asserts that in 2023, over 8,000 individuals lost their lives in the nation, even though the junta promised to suppress groups linked to Al Qaeda and the Islamic State.

Burkina Faso has witnessed a boom in the mining sector since the early 2000s, primarily in the gold but also in the zinc and manganese industries. At the moment, the country is Africa’s fifth-largest producer of gold.

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Nigerian govt begins 2025 retirees’ enrollment

Published

2 days ago

October 9, 2024

Ifeoluwa Dada

Nigeria’s National Pension Commission has declared that it has formally begun the process of enrolling potential retirees in 2025, highlighting the significance of early planning.

The commission demanded that ministries, departments, and agencies refrain from any last-minute rush that can interfere with the enrolment process and make it more difficult for retirees to adjust to their new stage of life.

At a workshop held by the National Pension Commission on Monday in Abuja to launch the online enrolment process for pension desk officers of MDAs funded by the Federal government’s Treasury for 2024, Omolola Oloworaran, the acting director-general of the commission, revealed this information.

Currently, 7,348,028 people in Nigeria, or 10.58% of the country’s working population, are registered members of the National Pension Scheme. The commission reported that it paid N1.1tn to 129,435 life annuity applicants in the second quarter of 2024, reflecting advances in pension benefits.

During her speech, the acting director general (DG) said that the purpose of this exercise is to gather precise information so that the federal government may evaluate the Accrued Pension Rights of potential retirees and make the appropriate budgetary adjustments.

The commission, she continued, has advanced significantly by automating the enrolment procedure and launching an online enrolment application that makes retiree enrolment, verification, and registration easy.

Oloworaran said, “At the National Pension Commission, we hold firmly to our statutory responsibility of ensuring a seamless pre-retirement verification and enrolment process for employees of Federal Government Treasury-funded MDAs. Each year, we embark on this exercise to gather accurate data for determining the Accrued Pension Rights of prospective retirees, so that the Federal Government can make the necessary budgetary provisions.

“Today’s session is not just a routine gathering; it is part of PenCom’s commitment to building the capacity of stakeholders, specifically you, the Pension Desk Officers, whose roles are indispensable in this process. Since 2021, we have made significant strides by automating the enrolment process, and introducing an Online Enrolment Application that allows seamless registration, verification, and enrolment of retirees.

“This system, comprising the Retiree, MDA, PFA, and PenCom modules, represents the future of pension administration in Nigeria. As PDOs, you are the linchpin in this process, ensuring that retiree information is properly uploaded and verified. Hence, this workshop aims to equip you with the skills and knowledge needed to effectively use the application and address any challenges that arise during the enrolment process. We are also here to confront the issues of the past head-on.”