Business
Economist Wants FG To Reduce Interest Rate
An Economist, Dr Bongo Adi has advised the Federal Government to reduce interest rate from 14 per cent to 12 per cent, to stimulate growth in the real sector.
Adi, a senior lecturer at the Lagos Business School (LBS), made the plea in an interview with the The Tide source in Lagos, yesterday.
He said that government was no longer under pressure to retain the Monetary Policy Rate (MPR) at 14 per cent, due to the declining inflation rate.
The Monetary Policy Rate (MPR) is the benchmark rate at which banks can lend to companies and their customers.
Data released by the National Bureau of Statistics (NBS) on November 15 showed that the October inflation rate stood at 15.91 per cent, the ninth consecutive decline in inflation rate since the beginning of the year.
Inflation targeting had been a major economic policy objective of the Central Bank of Nigeria (CBN) and this has been the focus of its Monetary Policy Committee (MPC).
The apex bank had since July 26, 2016 maintained the MPR at 14 per cent, the Cash Reserve Ratio at 22.5 per cent and the Liquidity Ratio at 30 per cent, in its bid to control inflation.
Adi said that inflation declined because of government’s sustained and efficient battle against any surge in the foreign exchange rate, like what was witnessed in the country in the last one or two years.
“Government has been under pressure from the real sector to cut the interest rate because inflation has been on the decline.
“The inflation that we had was cost-push inflation and it arose as a result of the depreciation of the naira and with the sanitation of the foreign exchange market, we have seen inflation dropping.
“I expect government to cut the rate as a palliative measure to boost activities in the manufacturing sector.
“Even though other sectors have bounced out of recession, the manufacturing sector seems to be still suffering, because of the high borrowing rates in the banks. With a rate cut, things would become easier for them,’’ he said.
According to him, the MPR has been at 14 per cent for almost two years.
He proposed that the MPC should be reduced to 12 per cent, to encourage speedy economic growth.
Adi said that the macroeconomic environment, stability in oil price and oil production had increased government’s liquidity and revenue, thereby reducing its financial pressures.
The economist, however, noted that government’s efforts to source money to fund the budget deficit could be a dynamic move that might work against rate cut.
“The Senate just gave approval for the President to borrow 5.5 billion dollars from the market.
“That would tend to push rates, because the reason why interest rate is high till this moment is because of the crowding out effect which arises from the competition of the government also looking for liquidity.
“Because of that, they had to jerk up the rate so that individuals would prefer to invest in government’s assets rather than giving their money to businesses.
“Now that government seems to be getting stability in oil revenue, may be it would reduce the amount of its borrowing in the market.
“We are approaching the political campaign cycle, so I see the rates coming down,’’ he said.
Adi said that maintaining the interest rates at the present level at the forthcoming MPC meeting would imply that the government was not interested in growing the real sector of the economy.
NAN reports that the last MPC meeting of the CBN for the year would hold on Nov. 20 and Nov. 21. (NAN)

L-R: Pakistan Minister of Industry, Mr Ghulam Murtazza Khan Jatoi, Secretary-General, D8 Countries, Dr Seyed Ali Mohammed, Vice President Yemi Osinbajo, Minister of State for Ministry of Industry, Trade and Investment, Aisha Abubakar, Minister of State for Power, Suleiman Hassan and Bangladesh Minister of Industries, Amir Hossain, during the 6th D8 Ministerial meeting on Industrial Cooperation in Abuja, last Tuesday.
Business
Wigwe’s Luxury Yacht Goes For N8.74 Billion After Legal Proceedings
The daughter of late Nigerian banking executive, Herbert Wigwe has sold her father’s luxury yacht for $6.5 million which is the equivalent of N8.74 Billion following legal proceedings involving her, Otutochi Wigwe, and the company holding the vessel, Grosvenor Marine Ventures Limited.
This was contained in an online report obtained by The Tide Source in Port Harcourt recently.
The Source further clarified that $6. 5 Million dollars or N8.74 Billion was the asking price as at March this year but was unable to prove, if the said amount was exactly what the vessel went for.
The yacht, known as Chitochi, is a 2016 Custom Line 108 superyacht measuring approximately 33 metres (108 feet) in length. The transaction was handled by international yacht brokerage firm IYC, with its sales and charter consultant, Mark Elliott, overseeing the sale.
The disposal of the high-value vessel followed legal steps taken to address the corporate status of Grosvenor Marine Ventures Ltd., the company through which the yacht was held.
Otutochi Wigwe reportedly approached a court in the British Virgin Islands (BVI) to secure the restoration of the company to the corporate register, a move that enabled the necessary legal steps towards the sale of the vessel.
The proceedings were central to resolving the corporate issues affecting the company and facilitating the transaction, underscoring the legal complexities that may arise when valuable assets are held through corporate entities in foreign jurisdictions.
The sale is also significant in the context of estate administration, as luxury yachts require substantial financial commitments to maintain, even when they are no longer actively used by their owners or beneficiaries.
Such vessels typically attract considerable expenses, including crew salaries, insurance premiums, berthing charges, routine servicing and other maintenance costs, making their continued ownership a major financial responsibility.
Beyond the recurring expenses, luxury yachts are depreciating assets that may lose value over time. Their disposal can therefore form part of a strategy to preserve estate value, reduce liabilities and convert an expensive asset into liquid funds.
Wigwe, who was the former Group Chief Executive Officer of Access Holdings, died on February 9, 2024, in a helicopter crash in California, United States, alongside his wife, Chizoba; their son, Chizi; and former Nigerian Exchange Group chairman, Abimbola Ogunbanjo.
His death was widely mourned across Nigeria’s banking and business communities, where he was recognised for his contributions to the financial services industry, entrepreneurship and philanthropy.
Wigwe’s passing left behind an estate whose administration involves the management of assets and other financial interests, a process that can require legal and financial decisions to protect the interests of the estate and its beneficiaries.
The sale of Chitochi highlights the challenges associated with managing high-value assets held through corporate structures, particularly where the relevant companies and legal proceedings fall under different jurisdictions.
The $6.5 million transaction brings the yacht’s ownership chapter to a close while illustrating how legal procedures, financial considerations and estate management can intersect in the administration of the assets of a prominent business figure.
‘’We determined to get all our equipments and machinery functioning as we progress. For now we’ve about 105 workers, comprising daily paid harvesters and regular staffs. But aside these 105 staffs we also employ daily slashers who for now are about 100.
“During peak periods, hopefully on or before January 2026 we hope to increase our work force for maximum production”, the firm’s management Stated.
King Onunwor
Business
Firm Mulls Crash Down On Vegetable Oil Price …Targets Revenue Boost, Job Creation
Ariwera Ibibo-Howells, Yenagoa
Business
Traders Decry Continuous Increase In Prices Of Foodstuffs
Some traders at the Rumuwoji Market popularly known as Mile 1 Market have decried the continuous increase in the prices of food stuffs and other items in the ember season.
This was made known by the traders when The Tide visited the market recently.
The traders revealed varying changes in the prices of foodstuffs, with some commodities recording higher increase than others .
A trader Mrs Charity Obinna, at the market, said the price of yam remained the same last week and this week compared to the prices from last month to this month, adding that only a difference of about N100 to N200 was seen.
Another trader, Chukwuebuka Livinus who deals on garri, reported that the prices of some food commodities had been changing frequently.
According to him, the price of a bag of garri increased from N45,000 last week to N58,000 this week, representing an increase of N13,000.
Livinus described the increase as scary and called on the government to do something about it, especially as we get closer to the festive period.
A trader that deals on vegetables, Mrs Joy reported that a significant increase in the prices of pepper rose from N20,000 last week to N40,000 this week.
Similarly, the price of a bag of melon (egusi) increased from N420,000 toN490,000 this week.
In a separate report, Mrs Charity Obinna said that foodstuffs were generally cheaper last month than this month, with price differences ranging from N150 to N200 for some items.
Meanwhile, Giff Okoro reported a decrease in the price of tomatoes. According to her, a quantity of tomatoes that cost N45,000 last month now sells for N25,000, indicating a reduction of N20,000.
Another trader, Usman Ibrahim said the cost of transporting goods from the communities to urban areas where they are sold is one of the major reasons for high cost of goods.
He said transport cost has doubled due to the cost of petroleum products in Nigeria, adding the whole cost is part of the goods because “entrepreneurs must cover their cost and make their gains .
Ibrahim called on the government to help farmers and traders even with little capitals to expand and sustain their business.
Another trader, Mrs Choice Promise a fish retailer said a cartoon which sold at #35,000 last week now sells at #50,000 .
Promise complained that there is no gain or profit because the price has drastically increase and most people cannot afford to buy fish again.
“Mr. President’s Renewed Hope Agenda recognizes that economic ambition requires dependable infrastructure,” Tegbe said.
He added that investments in electricity infrastructure would strengthen the foundations for business expansion, employment and economic growth.
The Kankia substations comprise two 60 MVA, 132/33 kilovolt (kV) facilities designed to strengthen the transmission network serving Katsina State and neighbouring areas.
Tegbe said the infrastructure would improve the network’s ability to distribute available electricity, supporting commercial activities and household welfare.
He also urged residents to protect the facilities against vandalism and other activities that could disrupt electricity infrastructure, asking them to report suspicious activities to TCN or security agencies.
Katsina State Governor, Dikko Umaru Radda, described the project as a significant investment in the state’s electricity infrastructure.
Radda stated that improved electricity supply could support industrial development, economic growth and public service delivery.
He further commended the President, the Federal Ministry of Power and TCN for completing the project.
It would be noted that the latest projects come amid a broader government’s drive to address bottlenecks in Nigeria’s electricity transmission network, which has constrained the amount of electricity that can be delivered to distribution companies and end users.
Wali Chioma, Obasi Chidinma & Amarachi Uche
-
Opinion4 days ago
Ancestorial Worship: My Take (1)
-
Education1 day agoPAMO MEDICAL UNIVERSITY -Nullifies Arrest warrant on VC
-
Niger Delta1 day ago
PANDEF Seeks 50% Oil Derivation Allocation Increase
-
Rivers24 hours ago
Don Seeks Repositioning Of Tech Education For Dev
-
Education1 day agoIAUE MOVES TO END GHOST WORKERS SYNDROME AS 400 NEW NON-TEACHING STAFF UNDERGO MANDATORY ETHICS TRAINING
-
News1 day agoFresh Ebola Scare As NCDC Records Two Cases
-
News1 day ago
Customs Partners EFCC, NDLEA, Others To Tackle Money Laundering, Terrorism Financing
-
News4 days agoFG Must Address Nigerians’ Concerns On Reforms -Shettima …Warns Against Misuse of AI, Social Media
