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MPC: Expert Predicts Rise In Lending Rate

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The Chief Executive Officer
of Time Economics, Dr Ogho Okiti, has predicted that the Monetary Policy Committee (MPC) would tighten the Monetary Policy Rate (MPR) from 12 to 15 per cent.
Okiti made the prediction in an interview with newsmen on Sunday in Abuja.
He expressed the firm’s prediction ahead of the Monetary Policy Committee Meeting scheduled to hold between Monday and Tuesday.
At the last MPC meeting in March, the MPC raised MPR by 100 basis points from 11 per cent to 12 per cent and raised the Cash Reserve Ratio by 250 basis points from 20 to 22.50 per cent.
The Liquidity Ratio was retained at 30 per cent and the asymmetric corridor was narrowed from +200 and -700 basis points to +200 and -500 basis points.
“Following the decisions made at the last meeting along with the committee bias towards price stability, we anticipate that the committee will move toward further rate tightening by raising the Monetary Policy Rate.
“However, we expect they will make little or no adjustment to the Cash Reserve Requirements and the Liquidity Ratio, following very poor growth figures.
“In summary, we anticipate MPR to be increased by 200 basis points to 15 per cent, maintain asymmetric corridor of +200/–500 basis points around the midpoint of the MPR and maintain CRR at 22.5 per cent.
“Also, the Liquidity Ratio will be maintained at 30 per cent,” he said.
Okiti said it was unlikely that the committee would make changes on the exchange rate, given that there was already an expectation of devaluation.
He said the expectation was responsible for the further widening of the gap between the official and the parallel rates, adding that the committee was unlikely to bow to market pressures.
Okiti explained that the slowing economic growth, continued rise in inflation and fuel price would play a key role in the decisions the committee would take at its meeting.
“The meeting will hold amidst what is probably the most severe combination of shocks in the economy since the start of the century.
“The pace of economic growth in the first quarter of 2016 fell by -0.4 per cent from the 2.11 per cent and 3.96 per cent recorded in the fourth quarter, 2015 and the first quarter of 2016.
“Headline inflation index continued its northward movement for the third consecutive month to advance to 13.7 per cent in the month of April.
“The upward advancement in general price levels by 90 basis points were driven by marked increase in both food and core sub-index.
“This increased by 13.2 per cent and 13.4 per cent respectively, compared to 12.74 per cent and 12.17 per cent recorded in March.
“These developments were largely driven by the worsening fuel scarcity which has had crippling effects on business operations and transport costs across the country,’’ he said.
Okiti said the foreign exchange situation, which continues to negatively impact on costs of imported goods, need to be improved and a strong fiscal policy blueprint should be provided to stimulate growth.

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CBN Releases N756bn To Over 3m Farmers To Boost Food Security

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The Central Bank of Nigeria (CBN), says it has released the sum of N756.51 billion to 3,734,938 small holder farmers, cultivating 4.6 million hectares of land, to boost the Federal Government’s food security initiative.
Mr Godwin Emefiele, the CBN Governor, made this known while presenting a communiqué from the bank’s recently held, 280th meeting of its Monetary Policy Committee (MPC).
Emefiele said that N120.24 billion of the sum was extended for the 2021 wet season to 627,051 farmers for 847,484 hectares of land, under the Anchor Borrowers’ Programme (ABP).
“The sum of N121.57 billion was disbursed to 32,617 beneficiaries.
“For the Targeted Credit Facility (TCF), N318.17 billion was released to 679,422 beneficiaries, comprising 572,189 households and 107,233 Small and Medium Scale Enterprises (SMEs),’’ he said.
Emefiele revealed that the apex bank also expended huge sums in its youth investment scheme, to empower Nigerian youths, and to reduce unemployment by providing to the creative sector and Information Technology.
“Under the National Youth Investment Fund (NYIF), the Bank released N3.0 billion to 7,057 beneficiaries, of which 4,411 were individuals and 2,646 SMEs.
“Under the Creative Industry Financing Initiative (CIFI), N3.22 billion was disbursed to 356 5 beneficiaries across movie production, movie distribution, software development, fashion, and IT verticals,’’ he said.
The CBN Governor also revealed that the apex bank had invested close to N1trillion to boost the real sector of the economy, covering 251 real sector projects.
He said that the bank’s intervention also spanned health sector support initiatives and electricity distribution.
“Under the N1.0 trillion Real Sector Facility, the Bank released N923.41 billion to 251 real sector projects, of which 87 were in light manufacturing, 40 in agro-based industry, 32 in services and 11 in mining.
“On the N100 billion, Healthcare Sector Intervention Facility (HSIF), N98.41 billion was disbursed for 103 health care projects, of which, 26 are pharmaceuticals and 77 are in the hospital services.
“Similarly, the sum of N232.54 million was disbursed to five beneficiaries under the CBN Healthcare Sector Research and Development Intervention (Grant) Scheme (HSRDIS) for the development of testing kits and devices for COVID-19 and Lassa Fever.
“On the National Mass Metering Programme (NMMP), N36.04 billion was disbursed to 17 Meter Asset Providers to nine Distribution Companies (DisCos), for the procurement and installation of 657,562 electricity meters,’’ Emefiele said.

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Siat Assures Host Communities Of Fair Deal … Offers 15 Varsity Students Scholarships

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As part of its Corporate Social Responsibility to its host communities, an agro-allied company located in Rivers State, Siat Nigeria Limited, has assured that it would continue to cater for the wellbeing and needs of the indigenes of the communities where it is doing business even as it has offered undergraduate scholarship awards to 15 students from the areas.
The company, which gave the assurance during the presentation of scholarship awards to the students at its corporate headquarters in Ubima Community in Ikwerre Local Government Area recently, said it would continue to promote a harmonious working relationship with its host communities and strive as much as possible to contribute to their growth and development.
The Managing Director of the company, Mr Felix Nwabuko, who gave the indication in an address during the company’s this year’s undergraduate scholarship programme, said the scholarship initiative is just one of the corporate social responsibility lined up by the company for its host communities.
According to him, the university scholarship award is intended to assist and encourage students of the host communities in the areas of Agriculture, Agricultural Economics, Accounting and Engineering.
While congratulating the beneficiary students on their success during the scholarship examination, Nwabuko noted that they are by this award, ambassadors of not only their communities but Siat Nigeria Limited, and urged them to exhibit good behaviour throughout the duration of their university education.
“It is our fervent belief that the beneficiaries will avail themselves of this singular opportunity and study hard to become good citizens of not only the communities they came from but the society at large”, he said.
Nwabuko commended the government at both the state and local levels for providing the enabling environment for the company’s operations as well as the peace the firm has enjoyed from the host communities.
He noted with delight that despite the Covid-19 pandemic, and its associated harsh economic effects, Siat Nigeria Limited did not lay off its workers like other companies including banks, stressing that it was because the company took into consideration the excellent relationship and goodwill it has with the host communities.
The beneficiaries of the scholarship were drawn from the company’s Ubima and Elele estates.
The first round of the scholarship programme took place in 2016 and the beneficiaries, according to the company, have all graduated.

By: Donatus Ebi

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AKK Project Will Enhance Gas Utilisation For Industrialisation – Buhari

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President Muhammadu Buhari says successful completion of the Ajaokuta-Kaduna-Kano, AKK Project in 2023 would enhance domestic gas utilisation as the mainstay for national industrialisation.
Buhari stated this at the opening ceremony of the 2021 Gas Sector Stakeholders (AKK) Forum organised by the Gas Aggregation Company Nigeria (GACN) yesterday in Kano.
He was represented by the Minister of State for Petroleum, Timipre Sylva.
“Today’s event reinforces our commitments to realizing the inherent potentials of gas usage as a national catalyst for achieving economic diversification from crude oil and as transition period to the renewable energy,” he said.
He revealed that the project would also increase government revenue and create more jobs opportunities for the unemployed Nigerians.
The President said that many companies had been shut down due to power supply problem across the country.
He explained that it would take two to three years to reactivate those industries to their optimal performance.
Buhari also said that the Federal Government has reduced the price of gas from 2 dollars 50 cents to 2 dollars 18 Cents.
“Let me use this medium to announce that following successful negotiations between Federal Government of Nigeria and organized unions, the price of gas has been reduced from $2.50 Cents to $2.18 Cents, with immediate effects,” he said.
He said that all the relevant stakeholders had been communicated on the issue.
Also speaking, the Group Managing Director of NNPC, Mr Mele Kyari, said that the AKK project had been on the drawing board for the past 30 years.
Kyari said when completed, it would provide enough gas for both domestic and export purposes.
“Nigeria has huge gas resources, gas means prosperity and delivering gas is an opportunity creation,” he said.
He pointed out that the project would revive about 232 industries along AKK corridor.
In his remarks, the Emir of Kano, Alhaji Aminu Ado-Bayero, commended the Federal Government for the project, which he said, would also assist to enhance socioeconomic activities in the state.

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