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Tag: MPC

  • Stock market gains N396bn on MPC rate decision

    Stock market gains N396bn on MPC rate decision

    The Nigerian stock market continued its upward trajectory, with a gain of N396 billion on Tuesday.

    Market capitalisation rose by N396 billion or 0.47 per cent, closing at N83.789 trillion when compared to the previous day’s N83.393 trillion.

    Similarly, the All-Share Index (ASI) climbed by 624.96 points or 0.47 per cent to reach 132,451.73 as against 131,826.77 recorded on Monday.

    The positive trend was driven by strong buying interest in medium and large-capitalised stocks, like: Dangote Sugar, The Initiates Plc, Sovereign Trust Insurance, Enamelware, University Press and 31 other stocks.

    Also, the market breadth closed positive with 36 gainers and 34 losers.

    Dangote Sugar led the gainers’ chart, rising by 10 per cent, settling at N56.10 while The Initiates Plc increased by 9.97 per cent, ending the session at N12.13 per share.

    Sovereign Trust Insurance gained by 9.84 per cent, finishing at N1.34 and Enamelware rose by 9.83 per cent, closing at N22.35 per share.

    Similarly, University Press soared by 9.82 per cent, settling at N6.15 per share.

    On the flip side, Ellah Lakes fell by 10 per cent, closing at N9.90 while Legend Internet also shed by 10 per cent, finishing at N5.31 per share.

    FTN Cocoa Processors dropped by 9.91 per cent, ending the session at N6.09 and Meyer lost by 9.79 per cent, settling at N17.05 per share.

    Also, Thomas Wyatt Nigeria Plc declined by 9.73 per cent, closing at N3.06 per share.

    A total of 771.65 million shares worth N26.78 were traded across 32,734 transactions.

    This is in contrast with 706.04 million shares worth N21.56 billion that were traded in 30,750 transactions earlier on Monday.

    Transactions in the shares of Access Corporation topped the activity chart with 102.88 million shares worth N2.77 billion.

    Ellah Lakes followed with 56.73 million shares valued at N586.4 million while United Bank for Africa sold 48.28 million shares worth N2.28 billion.

    Guaranty Trust Holding Company transacted 32.75 million shares valued at N3.18 billion and WAPCO traded 30.5 million shares worth N3.87 billion.

    The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held rates steady after its two-day meeting.

    The MPC retained the Monetary Policy Rate (MPR) at 27.50 per cent, also the asymmetric corridor around the MPR at +500bps/-100bps.

    It retained the Cash Reserve Ratio (CRR) for deposit money banks at 50 per cent, the CRR for merchant banks at 16 per cent, and the liquidity ratio at 30 per cent.

  • CBN maintains lending rate at 27.5%

    CBN maintains lending rate at 27.5%

    The Central Bank of Nigeria (CBN) has, once again, kept its key lending rate, known as the Monetary Policy Rate (MPR), at 27.5 per cent.

    The Governor of CBN, Yemi Cardoso, announced the decision on Tuesday in Abuja, following the 301st Monetary Policy Committee (MPC) meeting.

    Cardoso said that all 12 MPC members voted unanimously to hold all key monetary parameters.

    The committee, thus, retained the cash reserve ratio at 50 per cent for deposit money banks and 16 per cent for merchant banks.

    It also retained liquidity ratio at 30 per cent, and the asymmetric corridor was held at +500/-100 basis points around the MPR.

    With this decision, the MPC has retained the rates for three consecutive meetings.

  • CBN retains all monetary policy parameters in first MPC meeting for 2025

    CBN retains all monetary policy parameters in first MPC meeting for 2025

    The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) on Thursday voted unanimously to retain the Monetary Policy Rate (MPR), which is the baseline lending rate, at 27.50 per cent.

    The MPC took the decision at the end of its 299th meeting and the first for 2025.

    The committee also voted to retain the Cash Reserve Ratio (CRR) at 50 per cent for Deposit Money Banks and 16 per cent for Merchant Banks.

    The MPC equally retained the Liquidity Ratio (LR) at 30 per cent and the Asymmetric Corridor at +500/-100 basis points around the MPR.

  • BREAKING: CBN increases interest rate to 26.25 % amid soaring inflation

    BREAKING: CBN increases interest rate to 26.25 % amid soaring inflation

    The Central Bank of Nigeria (CBN) has raised the interest rate by 150 basis points from 24.75 per cent to 26. 25 per cent.

    Following a two-day meeting, the bank’s Monetary Policy Committee (MPC) agreed to increase the Monetary Policy Rate(MPR) for the third straight time to rein in the country’s soaring inflation levels pegged at 33.69% in April 2024.

    The chairman of the MPC Yemi Cardoso who is also the CBN governor however said the Cash Reserve Ratio (CRR) of Deposit Money Banks (DMBS) at 45 per cent. It also put the Asymmetric Corridor around the MPR at +100 and –300 basis points.

    Details later…

     

     

  • MPC: Continuous increasing of MPR will not grow Nigeria’s economy – Ex-CBN director

    MPC: Continuous increasing of MPR will not grow Nigeria’s economy – Ex-CBN director

    Former Director of Research, Central Bank of Nigeria (CBN), Dr Titus Okunrounmu, says the continuous increasing of Monetary Policy Rate (MPR) by the bank’s Monetary Policy Committee (MPC) will not help the economy to grow.

    Okunrounmu said this to NAN on Wednesday in Ota.

    He spoke while reacting to CBN Gov. Olayemi Cardoso’s announcement of the increase of MPR from 22.75 per cent to 24.75 after its two-day Monetary  Policy Committee (MPC) Meeting on Tuesday in Abuja.

    MPR is a short-term, often overnight rate that banks charge one another to borrow funds.

    Cardoso had announced the rise in a communiqué he read on the 294th meeting of the MPC.

    Cardoso had also on Tuesday in Abuja, announced that the MPC adjusted the Asymmetric Corridor to +100/-300 basis points around the MPR and retained Cash Reserve Ratio at 45 per cent.

    The former CBN director said the MPC of the apex bank was looking at data available to make key decisions but it was not making the economy to grow because no one would be willing to borrow at higher interest rate.

    “The continuous raising of MPC is not helping the economy because everybody is crying and who wants to borrow at 25 per cent.

    “That is the question we should ask ourselves, apart from looking at the data, as lowering the rate would have helped the economy to grow.”

    He appealed to the Federal Government to  effectively use the funds borrowed from the CBN on capital projects as they were also borrowing at a higher interest rate.

    The former CBN director appealed to the government to redouble its efforts towards looking for alternative source  of generating power supply in the country.

    He said that with stable power supply, productive sector would be able to produce sufficient goods for both local consumption and for exported purpose.

    He said  this would in turn generate foreign exchange for the country and reduce pressure on currency.

    Okunrounmu said it would also drastically bring down inflation rate and stabilise the foreign exchange.

  • Tinubu seeks Senate confirmation of Chairman, members of CBN MPC

    Tinubu seeks Senate confirmation of Chairman, members of CBN MPC

    President Bola Tinubu has sought the confirmation of Senate for the appointment of a Chairman and Members for the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC).

    Tinubu’s request was conveyed in a letter addressed to President of Senate, Godswill Akpiabio and read at plenary on Wednesday.

    Tinubu in the letter titled Constitution of Monetary Policy Committee for the Central Bank of Nigeria (CBN) said, “in accordance with the provisions of section 12 of CBN Act 2007.

    “I am pleased to present for confirmation by the Senate the confirmation of the underlisted 12 persons as Chairman and members of the Monetary Policy Committee of the Central Bank of Nigeria.”

    Tinubu in the letter listed the 12 persons to include: Olayemi Cardoso, CBN Governor (Chairman), Muhammad Abdullahi CBN Deputy Governor (Member), Bala Bello CBN Deputy Governor (Member), Emem Usoro CBN Deputy Governor (Member), Philip Ikeazor CBN Deputy Governor (Member).

    Others include, Lamido Yuguda, Director General, Security and Exchange Commission (SEC) (Member), Jafia Lydia Shehu, Permanent Secretary Federal Ministry of Finance (Member), Muritala Sabo CBN Director (Member), Aloysius Uche (Member), Agu Paulin (Member), Mustapha Akinwumi (Member), Bamidele Amon (Member),

    “While hoping that the request will receive the expeditious consideration of the Senate, please accept the distinguished Senate President, the assurance of my highest regards,” Tinubu said.

    Akpabio thereafter referred the request to Committees on Finance Banking, Insurance and other Financial Institutions for further legislative inputs and report back to plenary in one week.

  • CBN postpones September MPC meeting indefinitely

    CBN postpones September MPC meeting indefinitely

    The Central Bank of Nigeria (CBN), on Thursday, announced the indefinite postponement of the September version of its bi-monthly Monetary Policy Committee (MPC) meeting.

    CBN Director of Corporate Communications, Isa AbdulMumin, announced the postponement in a statement in Abuja.

    The meeting was earlier scheduled to hold on Sept. 25 and Sept. 26.

    “The MPC of the CBN has deferred its 293rd meeting scheduled for Monday and Tuesday.

    “A new date will be communicated in due course,” AbdulMumin said.

    He did not offer any reasons for the postponement.

    Meanwhile, a Financial Expert, Mr Okechukwu Unegbu, said that the postponement might not be unconnected with the ongoing probe of the apex bank under the leadership of its suspended governor, Godwin Emefiele.

    Unegbu, a past President of the Chattered Institute of Bankers of Nigeria (CIBN), said that the appointment of a new management team for the apex bank, while Emefiele and his team were yet to be officially removed might also be responsible for the indefinite postponement.

    He, however, said that it had no serious negative implications on the country’s economy.

    “The status quo just has to be retained until the new CBN governor takes over and begins to implement his own policies, ” he said.

    Recall that the last MPC meeting in July, the apex bank had increased the benchmark interest rate (MPR) by 25 basis points to 18.75 per cent from 18.5 per cent, representing the highest interest rate in 22 years.

    President Bola Tinubu recently approved the nomination of Mr Olayemi Cardoso as the new governor of the CBN.

    Tinubu also approved the nomination of four new Deputy Governors for the apex bank.

    The newly nominated deputy governors are Emem Usoro, Abdullahi Dattijo, Philip Ikeazor, and Bala Bello.

    NAN

  • CBN raises baseline lending rate to 18.5%

    CBN raises baseline lending rate to 18.5%

    The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has increased the Monetary Policy Rate (MPR) to 18.5 per cent from 18 per cent.

    The CBN Governor, Mr Godwin Emefiele, made this known on Wednesday in Abuja, after presenting the communique from the 291st meeting of the MPC.

    The MPR is the baseline interest rate in an economy, on which every other interest rate used within an economy is built.

    The committee had raised the MPR from 17.5 per cent to 18 per cent at its last meeting in March.

    According to Emefiele, the 11 MPC members at the meeting were faced with the dilemma of whether to hold or to hike the policy rates to offset the moderate increase in headline inflation.

    “Considering the option of a hold-policy, the committee reiterated the empirical counterfactual evidence and believe that the rate hikes have indeed helped moderate continued rising inflation.

    “In addition, the evidence revealed that the rate hikes also helped moderate growth in new credit and reduced a pent-up aggregate demand, which had continued to heighten inflationary pressure.

    “Members were unanimous in their conclusion that the current policy stance is, indeed, impacting targeted parameters and yielding the expected outcome, albeit, somewhat slowly, ” he said.

    Emefiele said that the MPC members were also convinced that the current uptrend in inflationary pressure was driven by a combination of both demand and supply side issues.

    “The MPC observed the continued risk to price development driven primarily by expectation of rising energy and food prices, unabating security challenges in food producing areas, as well as persisting exchange rate pressure.

    “The committee, thus, felt it expedient to continue to address the demand side issues falling within the ambit of its policy tools,” he said.

    According to him, the balance of argument thus leaned significantly in favour of a further hike, albeit less aggressively, considering the adverse impact of rising inflation on real income.

    “The MPC considered that the current policy stance is moderating the rising inflation, and sustaining the stance would consolidate the gains made so far,” he said.

    The CBN governor said that tightening would also support efforts toward moderating the demand-pool inflation as cost of funds increased.

    “Members, therefore, resolved by unanimous decision to raise the MPR moderately.

    “10 members voted to raise the MPR by 50 basis points and one member, by 25 basis. All members voted to hold all other parameters constant.

    “Members voted to raise MPR to 18.5 per cent; to retain the Assymetric Corridor of +100/-700 basis points around the MPR, retain the Cash Reserve Ratio (CRR) of 32.5 per cent and retain the Liquidity Ratio of 30 per cent,” he said.

  • CBN disbursed N12.65bn as agriculture intervention since January – Emefiele

    CBN disbursed N12.65bn as agriculture intervention since January – Emefiele

    The Central Bank of Nigeria (CBN), has disbursed N12.65 billion to the Anchor Borrowers Programme (ABP), its flagship agriculture intervention scheme from January till date.

    The CBN Governor, Mr Godwin Emefiele said this on Tuesday in Abuja, when he read the communique issued at the end of the 290th meeting of the apex bank’s Monetary Policy Committee (MPC).

    According to Emefiele, the total sum that has been disbursed under the ABP since inception in 2015 is N1.09 trillion.

    “Between January and February 2023, the bank disbursed N12.65 billion to three agricultural projects under the ABP.

    “It brings the cumulative disbursement under the programme to N1.09 trillion to more than 4.6 million smallholder farmers cultivating or rearing 21 agricultural commodities on an approved 6.02 million hectares of farmland,” Emefiele said.

    He said that the CBN had also disbursed huge sums as intervention to various other sectors of the economy.

    “The CBN also released the sum of N23.70 billion under the N1.0 trillion Real Sector Facility to eight new real sector projects in agriculture, manufacturing, and services.

    “Cumulative disbursements under the Real Sector Facility currently stands at N2.43 trillion disbursed to 462 projects across the country, comprising 257 manufacturing, 95 agriculture, 97 services and 13 mining sector projects,” he said.

    He said that the apex bank also released N3.01 billion under the Nigerian Electricity Market Stabilisation Facility (NEMSF-2) for capital and operational expenditure of electricity distribution companies
    (Discos).

    He said that the facility was aimed at improving liquidity status of the Discos, and aiding their recovery of legacy debt.

    “This brings the cumulative disbursement under the facility to N254.39 billion,” he said.

  • CBN jerks up interest rate to 18%

    The Central Bank of Nigeria Monetary Policy Committee (MPC) has agreed to jerk up the benchmark interest rate by 50 basis points to 18. per cent.

    This was made known by the CBN Governor, Godwin Emefiele through a communique of the second MPC meeting of the year on Tuesday.

    In his address to pressmen, Emefiele  made it known that the committee has voted to keep the asymmetric corridor at +100 and -500 basis points around the MPR.

    .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.”