₦airaland Forum

THE Monetary Policy Committee of the Central Bank of Nigeria has raised the benchmark Monetary Policy Rate by 50 basis points to 27.25 per cent from 26.25 per cent. This is the fifth consecutive hike this year, totalling 850 basis points since February. It is the 12th time the MPC has raised rates in two years as the monetary authorities battle high inflation and stabilise the economy.

At its latest meeting, it retained the asymmetric corridor at +500 and -100 basis points around the MPR. It increased the cash reserve ratio for banks from 45 per cent to 50 per cent while retaining the liquidity rate at 30 per cent.

The CBN’s persistent monetary tightening stance means businesses must cope with higher borrowing costs. Increasing the CRR for banks means more loanable funds have been sterilised. This further impairs the financial intermediation capabilities of banks.

It has grave implications in an economy where businesses are already reeling from high energy, logistics, and operating costs compounded by declining purchasing power that has forced some multinationals to abandon Nigeria.

The organised private sector insists businesses need stimulus to drive recovery and growth. With effective lending rates hovering around 35 per cent, further rate hikes will have a crippling effect on manufacturers and other economic players.

SMEs, which account for 90 per cent of businesses and already face huge difficulties accessing credit, are likely to be locked out.

Some commentators argue that the CBN focus is on a metric that has little to do with the problem. The argument is that rising prices in Nigeria are not demand-driven. They are due to increased production costs tied to higher energy costs, the naira devaluation, and the consequent pass-through effect from imported goods and insecurity, which has negatively affected food production.

Inflation jumped from 22.4 per cent in May 2023 to 33.9 per cent in May 2024, driven largely by petrol subsidy removal which has seen a five-fold increase in fuel prices and the devaluation of the naira from N460 in May 2023 to N1,675/$1 on Tuesday. The recent slowdown in inflation for two consecutive months to 32.15 per cent in August, down from a record 34.19 per cent in June, has been attributed to a seasonal drop in food prices.

The CBN Governor, Yemi Cardoso, admitted that the government has been largely responsible for the excess liquidity in the system due to borrowings (about N18 trillion) through Ways and Means for which little can be seen on the ground. Despite the rate hikes, real returns remain negative.

The CBN’s core mandate includes stabilising prices and the exchange rate, but other options can be explored, especially on the fiscal side. A fixation on interest rate hikes ignores the need to develop effective strategies to ensure proper economic management and sustainable growth in the long term.

The Federal Government’s expansionary stance is demonstrated in the widening deficit projected at N14 trillion in 2024 is bound to sustain inflationary pressure no matter the level of interest rate hikes.

IMF economists note that while monetary policy has the tools to subdue inflation, fiscal policy can put the economy on a sounder long-term footing through investment in infrastructure, health care, and education; fair distribution of incomes and opportunities through an equitable tax and transfer system; and provision of basic public services.

Food inflation at 37.52 per cent compared with 29.34 per cent in 2023, is a key driver of the headline numbers and can be dampened by massive investment in the agriculture sector and improving the security situation in the country’s food baskets.

There must be a limit to interest rate hikes.

The Peoples Democratic Party, PDP, in Edo State said they were already celebrating their victory in the last Saturday governorship election before its mandate was allegedly stolen.

DAILY POST reports that the deputy director general of the Asue-Ogie Governorship Campaign Council, Olu Martins, remarked at a press conference on Wednesday in Benin City.

Martins said with the release of 95 per cent results of the election by the Independent National Electoral Commission, INEC, the party was already leading with over 45, 000 votes.

“We were already jubilating because by the time the result of the election got to 95 per cent, you know where you have won or not and even if the remaining five per cent voted for APC, we would have won the election with over 45,000 votes.

“But when we got to the collation centre, things changed as the police said they were on a mission and that whoever can’t stomach it should leave,” he said.

Martins, however, opined that the electoral contest was not between the All Progressives Congress, APC, but between the Nigeria Police and INEC.

He noted that, as a result of the alleged stolen mandate, APC is not celebrating their “illegal mandate.”

He also added that the party cannot congratulate the governor-elect, Senator Monday Okpebholo, because the election was not free and fair, alleging that it was the worst election INEC has ever conducted in Nigeria.

“For us, despite what INEC announced, the governorship election contest was not between the PDP and the APC, who has now been announced as the winner.

“But the contestation is between the PDP and the police and INEC; the two of them collude together to rape democracy and declare who they have declared the winner.

“How do you explain that the whole world followed the result on the IREV and saw the result and if they wanted it to end that way, they wouldn’t have introduced the IReV.

“The form EC8 is the most important document in this election because it is the form where the election that took place in over 4000 polling units was imputed and any other form is from the collation centre and what you saw in IReV were results from polling units.

“By 9 pm on Saturday, 95 per cent of the results of over 4000 units were already posted on the IReV and once it is posted, you can begin your calculation and that was what we did in our situation room.

“When the APC saw that they were losing, they moved to Plan B and my problem is not with the APC or whoever it is that wants to take advantage of the porous system.

“But my problem is that it is impossible to rig an election or subvert the will of the people without the active connivance of the INEC, who is the umpire of the election and the security agents,” he alleged.

He also explained that the party’s does not have any problem with security agencies, not until at the collation centre, where policemen allegedly pointed guns at the party’s agents and ordered them not to enter the collation while allowing the agent of the APC to move into the collation centre.

He said the incident happened in Ikpoba Okha, Egor and Oredo local governments.

“Our director general was denied entry into INEC office but the APC were roaming and dictating how they wanted the election to go. It seems that the president wants a one-party state. The APC captured the INEC and the police.

“We hold the president responsible for the sham that happened in Edo because he said he would give Edo back to APC and he backed it with I am the president and commander-in-chief of the Federal Republic of Nigeria. The police did what they have done in the defence of the president’s statement.

“Many people have said that we should call and congratulate the winner but we will not do that because the election was not free and fair and observers who came to monitor the situation also have this opinion,” he added.

He, however, assured supporters that the party is studying the results to take legal action.

“We know where the Egor and Oredo results were written and the gap between the APC and the PDP is not much and when you do the deductions from the result from EC8, the people voted for Asue Ighodalo.

“The INEC must tell us the result of this election and we want our people to calm down. We are studying the situation and in a few days our leadership will tell us the line of action,” he added.

EmekaBlue:
This court case no dey finish

The customer said he discovered that the bank was deducting more than ₦50 as an electronic levy stipulated by the Finance Act.

A legal practitioner, Junaid Sanusi who is a customer of Access Bank Plc, has sued the bank for ₦100 million for allegedly deducting his money unlawfully.

While arguing his originating summons before the Federal High Court at Ibadan on Monday, Sanusi informed the court that he operated a savings account with Access Bank Plc.

He said that while going through his account he discovered that the bank was deducting more than ₦50 as an electronic levy stipulated by the Finance Act

“What is provided in the Finance Act is that banks should deduct ₦50 one-off for transactions above ₦10,000.

“I noticed that the bank deducts ₦100, ₦250 and so on from my account as FGN electronic levy,” the bank customer said.

Sanusi told the court that any deduction on customers’ accounts must be subjected to the Central Bank of Nigeria (CBN) guidelines 2020, and other Financial Institution Acts. He pointed out that these guidelines remained the only law allowing banks to make deductions from customers’ accounts.

“The court needs to determine whether or not it is lawful for the defendant to make unauthorised deductions from my account in favour of FGN or another third party than the one allowed under the CBN guidelines and Finance Act for bank charges,” Sanusi stated.

He went on to inform the court that he relied on his filed affidavit, nine exhibits and a written address in support of his originating summons.

Sanusi then urged the court to grant all his prayers. He asked it to restrain Access Bank from making further deductions on his account and reverse the monies deducted unlawfully from his account on March 27, 2020.

"This should be until judgment is delivered in the suit.

“Court should also order the bank to pay ₦100 million to me as exemplary damages for wrongful deductions it made in favour of FGN without my authorisation,” Sanusi added.

In his reply, the counsel to Access Bank, Ahmed Adeleke, informed the court that he had filed a counter-affidavit, attached exhibits and a written address to argue his case. He told the court that the bank reviewed the plaintiff’s three-month statement of account between March 1, 2020 and May 29, 2020, to justify the deductions made.

Adeleke said the bank never charged more than the amount stipulated by the law going by the plaintiff’s transactions within the months under review. He then urged the court to discount the plaintiff’s case with substantial cost.

Justice Uche Agomog adjourned the case until Novemeber 12 for judgment.

“To this end, the National Assembly should expeditiously amend the Electoral Act to make electronic transmission of results mandatory,” YIAGA stated.

Goodnewsforlife:
it's cos Igbos are d ones doing d wailings..

Edo people no even make noise

Goodnewsforlife:
oga answer my question

Did osun n abia election pass integrity test?

Goodnewsforlife:
anytime election didn't go d Igbos way then it must b rigged

Was abia election rigged?
Did abia election pass integrity test?

APCNGN:
What's with this guy and Peter Obi?

maasoap:
Accusation without evidence! He didn't mention names but was referring to the in charge of the election

blacknp:
But Eyeneck is the one responsible for Gringory Obi’s frustration abi?

Bobodee09:
We should move on?? Who are the prople crying about edo election.

Even edo indigenes are not even crying like you igbos....
If PO is a private citizen and didn't participate in edo election why did he release a statement today saying the election was rigged?? What his business with what happened in edo?? Other private citizens keep shut including atiku but your messiah can never.

You people hypocrisy stinks to the heaven.....you are always in everybody business telling them what to do.

Have you not been seeing your fellow igbos insulting edo people that they will suffer cos they sold there votes.

Move on my foot.....you obedient must practice what you preach in anambra else the shame no go be here.

Bobodee09:
Patiently waiting for anambra governorship election.

Since PO/LP is the only good politician and political party in Nigeria we are waiting for igbos in anambra to vote LP candidate next year.
LP must win anambra......thank God the obident family already hate soludo.

Igbos must show us all they won't allow and fight apga from rigging .....everything they are telling other tribes to do they must show and do it in anambra next year.

We want to learn from them since the rest of us sell votes and will suffer after not voting LP.

LP must win anambra and no anambra person must sell his/her vote during the election.

Cajal:
But their state government is now getting fat monthly allocation due to increased in pump price
So the brother is right 👍
Kidnapp your state governor first

nairalanda1:
He was not a good leader, especially as he

1. Kept Nigeria reliant on oil...or resource dependent (in fairness all Nigerian leaders before and after him are guilty of this one. That is why Ghaddafi was always vulnerable regardless of how much he did. At the end of the day, he who makes the gunpowder wins the war...not about how much gunpowder you got in stock)

2. Was very oppressive....even makes this APC government look like nice people. APC will jail you and your lawyer knows where you are. Abacha would jail you and no one would know where you are. If Abacha jailed someone like MNK for example, he won't even be allowed out of prision at all. He might even be killed on returning to Nigeria...same as Saro-Wiwa and the others were.

3. Had two exchange rates...offical and parallel...which encoruaged round tripping and corruption.

4. Corruption was really bad

5. Started building a personality cult....to the point that by 1997 , one could improve one's chances of getting a job if you wore an abacha badge. (I wish I was joking).

Independence day celebrations became mass events praising the Leader and his wife...., especially from 1996. KInd of makes our civillan leaders look tame.

And you dare not criticse or attack the leader. Jail was yer next stop if you did.

6. At the end, Nigeria was still in a bad state when he died.

stuffs4me:
1) Obi and his horde of Obidients are the biggest ph00ls in the history of Nigeria politics
2) The ignorance and foolishness of Obi and his obidients are beneficial to me and my kind
3) I am a northerner living in the north and I have absolutely nothing to prove to you and your kind

highchief1:
ungrateful soul spotted.tell us the performance Obaseki had.

centurionpapa:
Dey play
You are just pained that Edo people are moving away from Ipobishness because they realize aligning with igbo don't help anyone except igbos.
In 2027, Tinubu will at least get 50% irrespective of his performance

stuffs4me:
IIGB0S are in the habit of claiming everyone is obidients when in reality it is not even nearly so. Edo did not shift anything because they were never obidients as you people make them to be.

Some people sat in their villages in Abia, Imo, Enugu, Anambra and declared Edo as obidient over twitter handles. Any one can post anything on twitter but does that reflect what is happening in reality?

I remember how South East people were declaring that all Nigerian youths are supporting Peter Obi because they felt since Igbo youths are supporting Obi, then all other youths of other tribes must support Obi. I used to laugh at such people because I am a northerner living in the north of Nigeria and I can tell you that northern youths do not even consider Peter Obi as a candidate in any form.

Cc: haffaze777

Charbliss90:
Do you even know what you are saying? Are you in control of your sense at all?