Business

Naira Crunch: CBN Monetary Policies Best For Nigeria Economy – Obaseki

Published

1 year ago

February 6, 2023

Despite criticism, pains and suffering in accessing the naira, Edo State governor, Godwin Obaseki, on Monday insisted that the Central Bank of Nigeria, monetary policies of Godwin Emefiele’s towards a cashless economy remain the right decision for the nation’s economy.

The Governor, however, called for more enlightenment and patience on the path of Nigerians, even as he urged the apex bank to ensure the availability of naira notes for the citizenry whom he said are going through pains in getting money to spend.

The Governor spoke shortly after he summoned a meeting with senior officials of the CBN and senior management staff of banks in Government House Benin on the difficulty of the people in accessing cash.

He also appealed to the people to take advantage of ATMs, POS and bank wallets for transactions.

He said, “I had to invite the Central Bank and senior management of all the banks in Edo state to come and meet with me in the government house because government is very much concern about the plight and suffering of our people who are worried over the inability to get cash from the banking system in Edo state.

“Haven discussed extensively with the CBN and the bankers that the policy of moving the Nigeria economy to one of a cashless system should be encouraged. It is the best thing for our banking system so the Edo state government has no problem with the policy of the federal government to move our economy to a cashless one.

“However, we want to ensure we do this as painlessly as possible; we have to improve on the communication with our people to reduce their fear. When people go to banks to collect cash because they want to spend it on something, we want to help to inform them that they don’t need to collect cash to spend cash.

“We actually have other means to spend cash without going to the bank to collect cash. From Phones, payment can be made to whomever. For those who don’t have sophisticated phones, with USSID codes you can pay for things as small as N500 without spending cash. So when you go to POS terminals, don’t ask for cash, let them do for you what you want to use the cash for via transfer”.

Director, Risk Management of Central Bank, Blaise Ijebor said they are in Edo to ensure there is supply of naira to everyone on Edo state.

“We are also here to encourage people to use alternative means to make their payment. If you are able to use your card, app or USSID to pay, you can even go to an ATM that doesn’t have cash to do your transfer from them.

“We are aware a number of ATMs are not paying. We are going to make sure that there is supply in a day or two, we have supply available through your bank branches to give some cash to use.”

He also added that there are monitoring teams going round working with EFCC and ICPC to check any illegal act or collusion with banks.

Business

JUST IN: CBN Raises Interest Rate to 26.75% Amid Surging Inflation

Published

3 days ago

July 23, 2024

Editor

The Central Bank of Nigeria, CBN, Monetary Policy Committee, MPC, on Tuesday raised the interest by 50 basis points to 26.75 per cent from 26.25 per cent in May 2024.

CBN governor, Olayemi Cardoso, announced this at a press briefing on Tuesday at the end of the two-day 296th MPC in Abuja.

According to him, the decision to further increase the interest rate is to tackle the country’s rising core inflation and food inflation which stood at 34.19 per cent and 40.87 per cent, respectively in June.

READ ALSO: JUST IN: 58 Countries Back Okonjo-Iweala For Second Term As WTO DG
He said members of the MPC are not oblivious of the need to address the rising prices of food in Nigeria, necessitating the interest rate hike.

DAILY POST reports that the implication of the interest rate hike is that businesses, farmers, manufacturers and investors will have to pay more to get loans from banks.

The 296th MPC meeting is the fourth time the interest rate has been increased since the appointment of Cardoso in September last year.

Recall that in May 2023, when President Bola Tinubu was inaugurated, Nigeria’s interest rate stood at 18.75 per cent while inflation rate stood at 22.41 per cent.

Meanwhile, despite CBN’s continued interest rate hikes, the country’s inflation has not cooled off.

Earlier analysts had called for a pause in the hike of the interest rate.

The Director of the Centre for Promotion of Private Enterprise, Muda Yusuf, backed call for a pause in the hike of the interest rate.

According to him, the monetary instruments have been overstretched, hence not productive.

“I think we have overstretched monetary instruments because of inflation. They should put a pause on interest rate hikes,” he said.

Business

CAC To Cancel Certificates Of BDCs With Revoked Licences

Published

2 weeks ago

July 11, 2024

Editor

The Corporate Affairs Commission (CAC) has said it would cancel the certificates of incorporation of Bureaux De Change(BCDs) whose licences have been revoked by the Central Bank of Nigeria( CBN).

The Nation reported in February the CBN revoked the licences of 4,173 Bureau De Change operators over their failure to meet regulatory guidelines.

In a statement by its acting Director, Corporate Communications, Sidi Hakama, CBN explained that the regulatory provisions flouted include nonpayment of all necessary fees within the stipulated period.

CBN said: “The affected institutions failed to observe at least one of the following regulatory provisions: Payment of all necessary fees, including licence renewal, within the stipulated period in line with the guidelines.

“Rendition of returns in line with the guidelines; compliance with guidelines, directives, and circulars of the CBN, particularly Anti-Money Laundering, Countering the Financing of Terrorism and Counter-Proliferation Financing regulations.”

However, in line with the above directive by the CBN, the CAC in a notice on its website on Wednesday, said the certificates would be cancelled within three months if the affected companies do not change the names and objects of such companies.

“The general public is hereby informed that following the revocation of the operational licenses of 4,173 Bureau De Change companies by the Central Bank of Nigeria vide a Federal Republic of Nigeria Official Gazette (Vol. 111) No. 37 of February 27, 2024 for noncompliance with Regulatory Standards, the Corporate Affairs Commission in the exercise of its powers under section 8(1)(e) of the Companies and Allied Matters Act, 2020 advises these companies to within three months from the date of this publication, change the names and objects of such companies.

“Failure to change the names and objects within the stipulated time frame shall result in cancellation of certificate of incorporation and dissolution. It is to be noted that it is unlawful for a company whose certificate has been deemed dissolved to carry on business,” the CAC notice reads.

Business

FG Suspends Taxes On Maize, Wheat, Rice, Others

Published

3 weeks ago

July 8, 2024

Editor

The Federal Government has suspended duties, tariffs and taxes on some essential food items imported through land and sea borders.

Minister of Agriculture and Food Security, Abubakar Kyari, announced this at the National Press Centre, Abuja.

Kyari also said the Federal Government has also inaugurated the Renewed Hope National Livestock Transformation Implementation Committee to develop and implement policies that prioritize livestock development and align with the National Livestock Transformation Plan.

He stated that the listed food items, which include maize, wheat, husked brown rice and cowpeas, will enjoy a 150-day Duty-Free Import Window.

He added that the move is part of the Presidential Accelerated Stabilization and Advancement Plan, which is aimed at achieving food security and economic stability in the country.

According to him: “The Federal Government has announced a 150-day Duty-Free Import Window for Food Commodities, suspension of duties, tariffs and taxes for the importation of certain food commodities (through land and sea borders). These commodities include maize, husked brown rice, wheat and cowpeas.

“Under this arrangement, imported food commodities will be subjected to a Recommended Retail Price (RRP).

“I am glad to reiterate that the Government’s position exemplifies standards that would not compromise the safety of the various food items for consumption.

“In addition to the importation by the private sector, the Federal Government will import 250,000MT of wheat and 250,000MT of maize. The imported food commodities in their semi-processed state will target supplies to the small-scale processors and millers across the country.”