The maximum lending rate in the banking sector hit 29.13 per cent, while savings deposit rates stood at 4.13 per cent as of December 2022.
On Monday, figures from the Central Bank of Nigeria on money market indicators were revealed.
According to the report, the prime lending rate was 13.85 per cent, while the inter-bank call rate was 12 per cent.
The Treasury bill rate was 4.35 per cent, one monthly deposit rate was 8.15 per cent, three months deposit rate was 3.79 per cent, six months deposit rate was 8.68 per cent, while 12 monthly deposit rate was 8.22 per cent.
Monetary Policy Rate stood at 16.5 per cent in the period under review.
The National Institute of Credit Administration, in its report for the growth, development and sustainability of micro, small, medium size enterprise sectors in Nigeria, said the government needs to support SMEs to drive economic growth.
It stated, “The higher the Monetary Policy Rate, the higher the interest rate charged on loans and lines of credit offered to MSMEs in the country. High-interest rate is an albatross to any MSME.”
Nigerians Need Cash Now, Osinbajo Laments Naira Scarcity
Vice President Yemi Osinbajo, SAN, has expressed concern over difficulty experienced by Nigerians in getting the new naira notes.
The VP on Friday in Abuja met with some players in the FinTech space to explore possible ways of mitigating the hardship.
Osinbajo urged the Central Bank of Nigeria (CBN) and banks to deploy more FinTechs and money agents to the hinterlands to address the worrying situation.
The Vice President stated that Nigerians need cash to pay for transport, food, and other needs.
“In Abuja how do you take ‘drop or along’ or use a Keke NAPEP without cash, or buy foodstuff on the road or in canteens, or even buy recharge cards?
“Parents with kids in public schools give money daily to their children for lunch, most commerce is informal, so you need cash for most things”, he said.
Osinbajo said it was disturbing that after depositing old notes, there are no new notes: “People everywhere in the urban areas and rural areas simply have no money.”
The nation’s second-in-command observed some FinTechs have mobile money licenses and should be engaged immediately.
He said many of them have micro-finance bank licenses and already have a network of mobile money agents or human banks or human ATMs, as they are sometimes.
“They can supervise by themselves. They can do currency swaps and open bank accounts.”
Also on Friday, President Muhammadu Buhari met with some All Progressives Congress (APC) governors at the Presidential Villa over the nara scarcity.
Nigeria’s External Reserves Fell By $63.62m In January
External reserves fell by $63.62 million in January, latest figures from the Central Bank of Nigeria, CBN, have revealed.
The CBN revealed in its data on the movement of foreign reserves that the external reserves, which ended December 30, 2022, at $37.08 billion, fell to $37.01 billion at the end of January 30, 2023.
Nigeria’s external reserves fell by $3.43 billion in 2022 after dropping from $40.52 billion at the end of December 31, 2021.
Earlier, Cordros Securities, in its January report, stated that the country, through its policy, has continued to sideline foreign investors at the expense of foreign earnings.
“CBN’s FX supply to the foreign exchange market segments remained significantly below before the COVUD-19 pandemic period. Meanwhile, the demand for the greenback has increased as market players continue to source for FX to fulfil and clear their outstanding obligations,” the report said.
Emefiele’s Cashless Policy Disastrous – Shehu Sani
Civil rights activist and former Senator representing Kaduna Senatorial District, Shehu Sani has described the cashless policy introduced by the Central Bank of Nigeria, CBN, governor, Godwin Emefiele as disastrous and poisonous.
Sani was reacting amid hardship being experienced in withdrawal of money by bank customers leading to queues across the country.
In a statement he issued on Friday and sent to DAILY POST, Sani wondered how public policy should be a catastrophe to people rather than being a succour.
He said: “The redesigning of the National currency and the cash withdrawal policy introduced by Godwin Emefiele is an economic disaster and a poisonous idea aimed at unleashing hardships on the masses of Nigerians.
“If the Buhari administration really wants to target the few corrupt, it doesn’t have to wait this long and it doesn’t have to impoverished punish the poor. Emefiele set a forest on fire in the name of catching a few rats.”
The ex-lawmaker posited that the apex bank has become a political institution, stating that as a developing nation, economic policies such as this would have taken the status of Nigerians into cognisance.
“The CBN has become a political institution and a home for serpentine and delirious economic ideas.
“The CBN under Emefiele has become a shrine for misery and a breeding ground for penury. It has become a republic within a republic,” he said.
He queried reasons Buhari allowed the policy at the twilight of his administration, particularly in 2019 when he recontested to stop vote buying.
“Why didn’t the Buhari administration introduce the change of currency in 2019 and waited until 2023 if the CBN policy is about curbing vote buying?
READ ALSO: JUST IN: Buhari Meets APC Governors At Villa
“Nigeria has been turned into a vast refugee camp where people queue for cash ration. Nigerians have subjected to the multiple tragedies of struggling for money, searching for money, looking for money and scratching for money.
“Nigerians used to buy Dollars at the black market, now they are also buying Naira at the black market.
“The Ahmed Lawan led Senate has failed to checkmate the excesses and autocracy of the CBN because the leadership is in bed with it. The House of Reps have a clear and principled position on the matter”, he concluded.
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