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CBN Retains 12% Monetary Policy Rate

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14 years ago

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The Monetary Policy Committee has retained the Monetary
Policy (lending) Rate at 12 per cent reports said.

Malam Sanusi Lamido Sanusi, Central Bank Governor, made this
known while briefing newsmen on the outcome of committee’s meeting last week in
Abuja.

“The committee in an unanimous vote, decided to retain the
monetary policy rate at 12 per cent, plus or minus two per cent.

“It also retained the cash reserve requirement at 12 per
cent and the net open position at one per cent,’’ he said.

Reports said that this was the seventh time the committee
had retained the lending rate at 12 per cent.

Sanusi said the committee had identified three major
monetary policy challenges, which include protecting the domestic economy and
building the external reserve buffer, potential large inflow of hot money and
persisting high core inflation rates.

He said the committee was concerned that the lending rate
remained high and enjoined banks to sustain efforts on the interest rate
spread.

On inflation modulation, the CBN Governor said the
year-on-year headline inflation declined to 11.7 per cent in August from 12.8
per cent in July while core inflation decelerated to 14.7 from 15.0 per cent
during the same period.

He added that food inflation declined sharply to 9.9 per
cent in August from 12.1 per cent in July.

“The significant decline in year-on-year food inflation was
attributed to the decrease in prices of both processed foods (from 4.2 to 3.6
per cent) and farm produce (from 7.9 to 6.4 per cent).

“The committee observed that the inflationary pressures from
the partial removal of petroleum subsidy in January appear to have waned in
third quarter of 2012.

“Given the relatively stable exchange rate regime, the
pass-through to domestic prices was low during the period,’’ Sanusi said.

On the domestic economic and financial developments output, he
said that recent macroeconomic data indicated that the economy was performing
better than it was forecast.

He added that this was in spite of the fact that growth in
the first two quarters of 2012 remained consistently below the corresponding
growth rates in 2011.

According to him, the provisional real GDP growth rate from
the National Bureau of Statistics stood at 6.28 per cent in second quarter of
2012, up from 6.17 per cent in the first quarter of 2012 but lower than the
7.61 per cent recorded in the corresponding period of 2011.

He noted that the non-oil sector remained the major driver
of growth recording a 7.50 per cent increase in contrast to the oil sector,
which contracted by 0.73 per cent during the period.

“ Overall GDP growth for fiscal 2012 has been revised
upwards to 6.77 per cent from the earlier projection of 6.50 per cent.

“ The committee welcomed the promising growth performance
although it expressed concern that the overall output growth projection for
2012 is still lower than the 7.45 per cent recorded in 2011,’’ Sanusi said.

He said the growth drivers within the non-oil sector
remained agriculture; wholesale and retail trade and services, which
contributed 1.94 per cent, 1.69 per cent, and 3.16 per cent, respectively.

On the external reserve, he said the committee expressed
satisfaction with the significant accretion in external reserves during the
period.

“Gross external reserves as at Sept, 5, stood at 41.81
billion dollars, representing an increase of 6.40 billion dollars or 18.07 per
cent above the level of 35.41 billion dollars at end-June 2012.

“External reserves increased by 8.88 billion dollars or 27.0
per cent on a year-on-year basis compared with 32.93 billion dollars at end-
August 2011.

“The increase in the reserve level was driven mainly by
proceeds from crude oil and gas sales and crude oil related taxes.

“ The foreign reserves level could finance over seven months
of imports’’, the Governor said.

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Boat Mishap Kills Pastor, Wife And Church Members  In Brass Water

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1 week ago

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May 18, 2026

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A boat accident in Bayelsa state has killed a serving Pastor, Wife and other church members along Brass waterways
The sad incident happened at Odioama in Brass local government area of Bayelsa State when the Pastor, wife and  members of his church were in a programme.
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?Tide confirmed that the lifeless body of the Pastor’s wife has been found and deposited in a mortuary while the remains of her husband ,the Pastor is yet  to be recovered
as search party are still ongoing.
Although the real cause of the boat Mishap is not yet known as at the time of this report,  our Correspondent gathered  that the identities of the Pastor, wife and church members were not disclosed to the public.
The mishap, Tide gathered occurred on Friday morning when the church members were on a boat transit
The Bayelsa State government and the state police command are yet to issue official statement’s  on the sad accident
By: CHINEDU WOSU
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Rivers Workers Seek Scrapping Of Contributory Pension Scheme

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1 week ago

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May 18, 2026

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The Rivers State Council of  Nigeria Civil Service Union has called on the State Government to urgently scrap the contributory pension scheme, describing it as unfavourable to long-serving civil servants in the state.
Chairman of the union, Chukwuka Osuma, said this in an interview with newsmen in Port Harcourt,  recently.
Osuma said the current pension structure has continued to worsen post-retirement hardship for workers.
He noted that  the contributory pension scheme had failed to provide adequate retirement security for workers who had spent many years in service, especially those approaching retirement age.
According to him, civil servants who had served for more than 20 years were among the worst affected under the scheme, insisting that many retirees could no longer cope with prevailing economic realities.
He also  informed that the Union has made moves to showcase their concerns, pleading with Governor Siminalayi Fubara to abolish the pension policy and introduce a more favourable arrangement for affected workers.
“The union was not opposed to pension reforms, the contributory scheme should only apply to newly employed workers or those with fewer years in service”, he said.
Osuma explained that workers who had already spent decades in the civil service ought to remain under a more secure pension structure capable of guaranteeing stability after retirement.
The labour leader further noted that inflation and the rising cost of living had continued to erode the value of retirement savings, thereby increasing the suffering of pensioners across the country.
He also appealed to the state government to consider extending the years of service in the civil service from 35 to 40 years and the retirement age from 60 to 65 years.
Osuma argued that such adjustment had become necessary in view of present-day economic realities and changing conditions in the workplace.
The unionist also reviewed that similar policies had already been adopted in some sectors and jurisdictions, expressing optimism that the State could also implement the reforms for the benefit of workers.
He however, commended Governor Fubara for approving an N85,000 minimum wage for workers in the state, noting that the amount was above the national benchmark of N70,000.
Osuma also acknowledged the government’s efforts in the area of workers’ promotions and bonuses, but insisted that pension reforms and extension of years of service remained critical to the long-term welfare and stability of civil servants in Rivers State.
By: King Onunwor
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FG Begins South-West Tour To Promote New Cooperative Bank

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2 weeks ago

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May 13, 2026

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The Federal Government has launched the South-West zonal engagement and ministerial advocacy tour on the Cooperative Bank of Nigeria share capital mobilisation, sensitisation and cooperative sector digitalisation.
 Reports say the initiative was launched through the Federal Ministry of Agriculture and Food Security.
According to reports, the advocacy tour, organised by the ministry’s Federal Department of Cooperatives, began on Monday in Lagos.
Speaking at the event, the Minister of State for Agriculture and Food Security and Supervising Minister of Cooperative Affairs, Dr Aliyu Abdullahi, said the initiative was part of President Bola Ahmed Tinubu’s Renewed Hope Agenda.
Abdullahi described the exercise as a strategic effort to reposition the cooperative sector as a key driver of inclusive economic growth, financial inclusion, enterprise development, food security and national prosperity.
“Today represents a defining moment in our collective determination to reposition the cooperative sector as a major driver of inclusive economic growth, financial inclusion, enterprise development, food security and national prosperity,” he said.
The minister noted  the modern cooperative movement in Nigeria originated in the South-West following the 1934 Strickland Report, which led to the enactment of the Cooperative Societies Ordinance of 1935.
According to him, the decision to commence the sensitisation and share capital mobilisation tour in the region is symbolic, as it marks a return to the roots of cooperative development in the country.
Abdullahi said the advocacy tour was a direct outcome of resolutions reached at the 8th Regular Meeting of the National Council on Cooperative Affairs held in Abuja in March 2026.
He said the council approved the Renewed Hope Cooperative Reform and Revamp Programme, a comprehensive framework designed to strengthen the cooperative sector and align it with the administration’s goal of building a one-trillion-dollar economy.
“The reform programme focuses on seven strategic pillars, including governance reforms, cooperative financing and the establishment of the Cooperative Bank of Nigeria, digitalisation, capacity building, value chain development, inclusion of youths, women and persons with disabilities, and strategic partnerships,” he said.
He said the establishment of the Cooperative Bank of Nigeria and the digitalisation of the cooperative sector were the two major transformational initiatives under the programme.
“The Cooperative Bank of Nigeria is aimed at rebuilding a strong cooperative financial system capable of supporting cooperators, farmers, artisans, traders, SMEs, youths, women and persons with disabilities with accessible and affordable financial services,” he said.
Abdullahi emphasised that the proposed bank would be government-enabled but not government-funded.
“Government is not establishing the bank as an owner, nor will it rely on Treasury Single Account funds.
“The role of government through the FMAFS is to provide policy support, stakeholder coordination, regulatory facilitation and an enabling environment under the Renewed Hope Cooperative Reform and Revamp Programme,” he said.
Also speaking, the Lagos State Commissioner for Commerce, Cooperatives, Trade and Investment, Mrs Folashade Ambrose-Medebem, reaffirmed the state government’s commitment to cooperative sector transformation.
She described cooperatives as critical tools for promoting inclusive growth, grassroots productivity, food security, financial inclusion and community wealth creation.
Ambrose-Medebem said Lagos State would continue to support reforms and collaborate with stakeholders to ensure the successful implementation of the Renewed Hope Cooperative Reform and Revamp Programme (2025–2030).
“Together, let us build a cooperative ecosystem that is modern, transparent, digitally enabled, financially inclusive and globally competitive.
“Let us build cooperatives that not only mobilise savings, but also mobilise prosperity,” she said.
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