Capital Market: Experts Explain Persistent Lull
Cash Crunch: POS Operators, Others Blame CBN For Citizens’ Suffering
Some Point of Sales (POS) operators, other entrepreneurs in Port Harcourt have blamed the Central Bank of Nigeria (CBN) for the continuous suffering of the masses and their businesses since the inception of the redesign policy of the naira notes (#200, #500 and #1000.00).
The operators, who said CBN exposed them to loses by their stubboness and delay in accepting the court orders on the use of the old notes, stated that after buying naira at a very high rate from cash barons, they were forced to sell at a lose.
One of the operators, who pleaded anonymity, said it was the persistent declarations by CBN Governor that put him in the present loss, adding “I will loss not less than #400 on each #1000.00 transaction.
“If CBN Governor had accepted the court order when it came, the story would have been different. After all the suffering by Nigerians because of his show of muscle. We are back to square 1.
“Even at this point now, we are still suffering because cash (both old and new) is still not made available to Nigerians through the Automated Teller Mechines (ATM). People crowd the bank halls to get little money, as against the usual practice of using your card to withdraw from Mechines.
“I will not blame CBN Governor but myself for believing him. I also know the Apex bank would relax over the new and old notes issue till December, so as to expose the citizens to another set of suffering in December when the extended date would expire. Our leaders enjoy watching us suffer”.
Another Operator, Mr. Monday Asawana, told The Tide that the setback of the policy in businesses would take the next two years to correct due to the lakadaisical attitude of our leaders.
“The exposed us to this level of suffering simply because they want to win election. They do not care about us and however we suffer. Elections are over, yet Nigerians are still suffering the cash crunch”, he said.
Another entrepreneur and POS Operator, Mrs. Ify Onyeoma, said, “I paid high transportation from Iwofe to Waterline (Aba Road) to look for cash for my business. After wasting all the time, l came back with N5,000. This is Nigeria for you.
“The issue is that nobody is telling the real truth of what is happening. I am using this opportunity to plead with the leaders in the financial sector to make our money available for our businesses”.
By: Lilian Peters
CBN Raises Interest Rate To 18%
The Monetary Policy Committee of the Central Bank of Nigeria (CBN) has voted to increase the benchmark interest rate by 50 basis points to 18. per cent.
The Tide’s source reports that the CBN Governor, Godwin Emefiele, disclosed this while reading the communiqué of the second MPC meeting of the year yesterday.
Addressing journalists at the end of the two-day meeting in Abuja, Mr Emefiele, said the committee voted to keep the asymmetric corridor at +100 and -500 basis points around the MPR.
Analysts in the country had predicted the Central Bank of Nigeria and the MPC may not raise the lending rates at the end of the Monetary Policy Committee.
However, the Governor stated the slight increase is to mitigate the effect of inflation and other economic issues.
The MPR has been on the rise since April 2022, when it was 11.50 per cent.
The rate impacts lending and inflation rates, and, when jacked up, consequently affects upward movement of prices of goods and services.
He said, The MPC committee voted to raise the MPR by 50 basis point to 18 per cent, retain asymmetric corridor at +100 and -500 basis points around the MPR.”
No Economic Devt Without Vibrant, Successful SME Sector – Buhari
President Muhammadu Buhari says for any economy to grow and create jobs, an equally vibrant and successful small and medium enterprise sector is also needed.
This, he said, informed his recent signing of the Business Facilitation Bill into law.
The President stated this at State House, Abuja, recently when he received the Governing Council and members of the Institute of Directors led by its President and Chairman, Dr Ije Jidenma.
He said: “I was particularly interested to learn that you not only cater to large corporations, but are aware that for any economy to grow and create jobs, we need an equally vibrant and successful small and medium enterprise sector.
“This administration has, in spite of the difficult times brought upon us by a variety of external shocks, done much to ensure survival and development of SMEs.
”It is also my pleasure to share with you that your visit comes just a month after I signed into law the Business Facilitation Bill which eases various constraints for micro, small and medium sized enterprises.
”I am confident that this act will go some way in improving our business environment especially for the MSME’s”.
While congratulating the Institute on attaining the milestone of 40 years, Buhari noted its commitment to nation building, stressing the values of transparency and good business ethics.
He urged all the stakeholders to recognise the noble roles that the Institute can play in the provision of the support base for the development of the economy.
“Let me congratulate the Institute on attaining this very important milestone of 40 years in existence.
”This is certainly a proud moment not just for the Institute, but for the nation as it signifies your commitment towards the objective of improved corporate governance, ethical business practices, improved corporate governance and transparency.
“These values are not just important pillars in the private sphere. They are also the keys to success in governance in the public sector, where the people have handed to us in trust, the responsibility to lead, guide and protect them.
“As our economy and conversely our private sector continues to grow and evolve, it behooves all stakeholders to recognise that such a resourceful institution exists.
”It is also equipped and capable of providing the necessary support and development for the country”, he said.
In her remarks, Jidenma said the reforms executed in various sectors of the Nigerian economy in the past eight years had increased expectations on the performance of business leaders and boards of public sector organisations.
This, the President of the council added, had made the Institute poised to sustain its leadership role in the orientation and capacity development for these Directors so that they could deliver on the mandates given to them.
Jidenma stated that the Institute had gained insights on areas that needed further action towards being ‘Chartered,’ and had interfaced with the National Assembly and relevant stakeholders.
She, therefore, requested for the president’s kind consideration and assent when the Bill gets transmitted to him.
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