Nigerian businesses anticipate CBN to maintain interest rates as MPC convenes
via Punch Nigeria11 min read
Leaders of the Organised Private Sector and economists in Nigeria expect the Central Bank of Nigeria's Monetary Policy Committee MPC to keep the Monetary Policy Rate at 26.5 percent during its meeting on Monday and Tuesday. This projection is largely due to heightened geopolitical tensions and their potential impact on inflation. While Nigerian businesses would prefer a rate cut to reduce borrowing costs and stimulate investment, particularly in the manufacturing sector, experts like Dr. Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise, believe it is too soon for monetary easing given global uncertainties, including the conflict involving the United States and Iran. The President of the Lagos Chamber of Commerce and Industry, Leye Kupoluyi, echoed the desire for lower interest rates to alleviate business costs. Similarly, Professor Akpan Ekpo of the University of Uyo and Dr. Ayo Teriba of Economic Associates also anticipate a hold on rates, citing the ongoing geopolitical situation and the need for the MPC to act on comprehensive data. A recent CBN Inflation Expectations Survey indicated that 61.1 percent of Nigerians desire a reduction in interest rates.
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This summary was AI-generated from a story originally published by Punch Nigeria.
President Bola Tinubu has approved the appointment of 26 individuals to the boards and leadership of 10 federal government agencies and commissions. These appointments, which are effective immediately, were announced by the President’s Special Adviser on Information and Strategy, Bayo Onanuga. Among the key appointments, former Ekiti State Governor, Ayo Fayose, has been named Chairman of the Rural Electrification Agency REA. Major General Junaid Bindawa will serve as Chairman of the National Salary and Wages Commission, with eight additional appointments made to this commission, including Olajumoke Okoya-Thomas as Secretary. Other notable appointments include Dr Abuh Mohammed as Director-General of the National Population Commission, Dr Akinola Odeyemi as Managing Director of the Nigerian Bulk Electricity Trading Plc, and Dr Anthony Inalegwu Godwin as Chairman and Chief Executive Officer of the Nigeria Atomic Energy Commission. Engineer Julius Oloro is the new Chief Executive Officer of the National Centre for Agricultural Mechanisation. The board of the Fiscal Responsibility Commission has also been constituted with Dr Abdullahi Maikano Saidu as chairman. Additionally, Shuni Muhammad Dahiru has been appointed Executive Secretary of the National Commission for Mass Literacy, Adult and Non-Formal Education, and Gisaor Vincent Iorja is the new Executive Director Finance of the Federal Housing Authority.
Must ReadNigeria's Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, addressed the Senate Committee on Finance regarding the federal government's borrowing under President Bola Tinubu. Oyedele explained that the perceived increase in Nigeria's debt stock, from approximately ₦75 trillion to a higher figure, is largely due to the revaluation of foreign loans following naira depreciation, which added over ₦40 trillion. Additionally, the securitisation of ₦33 trillion in Ways and Means advances from the previous administration contributed to the debt stock without representing new borrowing. The Minister stated that the administration's borrowing strategy is responsible, focusing on infrastructure development and debt sustainability, and that much of the domestic borrowing is for refinancing existing debt rather than new obligations. Some lawmakers, including Senate Chief Whip Tahir Monguno and Senator Adamu Aliero, expressed concerns about the slow implementation of the capital component of the 2026 budget. The committee chairman, Senator Sani Musa, assured that capital project implementation would improve, and discussions are underway to introduce a performance- and priority-based budgeting system.
Must ReadFormer President Goodluck Jonathan shared details of his efforts to stabilize Nigeria’s oil-producing Niger Delta region, including entering a militant camp without armed security to negotiate peace. He made these remarks at the De Mangrove Conversation in Yenagoa, an event organized in collaboration with the Bayelsa State Government, the Niger Delta Development Commission, the Nigerian Content Development and Monitoring Board, Renaissance Africa Energy, and the Goodluck Jonathan Foundation. Jonathan stated his connection to the oil industry began in childhood, witnessing oil facility development near his community in Bayelsa State. His career progressed from academia to environmental management, where he studied the impact of oil exploration in the Niger Delta. He emphasized that his experience as a scientist, governor, vice president, and president provided him with a unique understanding of the region's challenges. As vice president, he personally led negotiations with militants, insisting on visiting a camp without armed escorts despite security objections. He recounted instructing his CSO and ADC to surrender their weapons before entering the camp. This decision, he explained, fostered trust and facilitated dialogue, leading to the peace process and the Niger Delta Amnesty Programme. Jonathan stressed that addressing environmental degradation and historical neglect in the Niger Delta must remain a national priority for lasting peace.