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CBN Predicts 9 Percent Inflation By 2020

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  • CBN Predicts 9 Percent Inflation By 2020

The Central Bank of Nigeria (CBN) has predicted that for the rest of 2019 and towards mid-2020, the nation’s inflation rate would fall to 9 percent or less.

The apex bank Governor, Godwin Emefiele stated this during a presentation at the second Nigeria-Canada Investment Summit, on Monday, in Abuja.

“Though we do not expect a single-digit outcome by end-2019, due to inherent inertia, it would traverse towards the bank’s 6 – 9 percent tolerance range by 2020,” he said.

The National Bureau of Statistics (NBS) had reported that the Consumer Price Index (CPI), which measures the inflation rate, increased from 11.02 percent year-on-year in August to 11.24 percent in September.

This can, however, be attributed to the border that has been shut by the Federal Government.

Speaking on the border closure, he stressed the need to support the banning of importation before it wrecks the nation’s economy, saying “if we do not kill unnecessary imports, imports will kill us all.”

Emefiele explained that the much-needed jobs in the country are exported, due to excessive imports. He pointed out that “without jobs, we promote crime, kidnapping and terrorism.”

He further said that the apex bank would continue to work closely with the fiscal authorities to target double-digit growth by the next five years.

“The CBN under my watch will use monetary policy to rebalance our imports, promote job creation and lay a solid foundation for double-digit growth in Nigeria,” he assured.

Emefiele added that the restriction of access to forex supply on 43 items that could be produced locally, has supported the improved productivity of the manufacturing sector, as the CBN Purchasing Managers’ Index remained in positive territory for 31 months.

The apex bank governor noted that: “We have been able to keep real GDP growth positive and have avoided a double-dip recession in contrast to some other emerging markets economies.

He added: “Monetary policy will remain proactive, appropriate and research-driven with robust forward guidance elements. The bank will continue to creatively accommodate the needs of the various end-users, particularly, manufacturers and other priority stakeholders in support of the macroeconomic objectives of creating employment, making the economy competitive and promoting growth.

“Development finance initiatives designed to raise domestic production, stimulate non-oil export and increase foreign exchange earnings will also continue.

“Most importantly, we will continue to compel banks to undertake their statutory licensed roles of financial intermediation. In this regard, the recently announced policy to raise the domestic loan-deposit ratio from 57 percent to 60 percent by end-September and to 65 percent by end-December 2019 would be sustained, intensified and resolutely implemented.

“This we believe will help to support greater growth and improved investment into the Nigerian economy.”

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Access Bank in Talks to Acquire Cavmont Bank

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Access Bank to Acquire Cavmont Bank in Zambia

Access Bank Plc on Wednesday announced that its wholly-owned subsidiary in Zambia, Access Bank Zambia Limited (Access Bank Zambia) is in talks to acquire Cavmont Bank Limited, a subsidiary of Cavmont Capital.

According to the statement signed by Mr. Sunday Ekwochi, Company Secretary, Access Bank and released on the Nigerian Stock Exchange website on Wednesday, the ongoing discussions is to acquire 100 percent of Cavmont Capital’s interest in Cavmont Bank.

However, the lender said “there can be no certainty that a transaction will be agreed, nor as to the terms of any such agreement.

“The completion of a transaction would be subject to formal regulatory approvals. Access Bank will be updating the market as appropriate and in accordance with its disclosure obligations.”

The lender, therefore, advised shareholders to exercise caution when dealing in Access Bank’s securities.

Investors King Ltd note: This announcement further threw more lights on the recent purchases of Access Bank’s shares by Herbert Wigwe, the Chief Executive Officer and Managing Director, Access Bank.

The CEO/MD purchased 7.532 million of Access Bank‘s shares in the last one month.

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Mohammed Umar is the New Acting Chairman of EFCC

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Buhari Appoints Mohammed Umar as EFCC Acting Chairman

President Muhammadu Buhari has appointed, Mohammed Umar, the director of operations at the Economic and Financial Crimes Commission (EFCC), as the new Acting Chairman of the agency, according to the NAN.

A top official of the commission confirmed to NAN that Umar has taken charge of the agency following the suspension of Ibrahim Magu, the former acting Chairman.

Ibrahim Magu was suspended by the President on Tuesday following series of allegations bordering on frauds, financial misappropriations and abuse of power.

 

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CBN Spends $11.5bn in Q1 2020 to Support the Economy and Dwindling Naira

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CBN Injects $11.5bn Into the Economy in the First Quarter

The Central Bank of Nigeria (CBN) injected a combined $11.5 billion into the nation’s foreign exchange market to stabilise the economy and support the Naira value in the first quarter of the year.

According to the latest report from the apex bank, the central bank injected $2.96 billion into the nation’s forex market in the month of January. Another $3.39 billion was used to support the economy in February while $4.7 billion was supplied in the month of March, the very month the economy was locked and all operations grounded to curb the spread of COVID-19.

A further breakdown of the report revealed that the Investors and Exporters’ foreign exchange window, Small and Medium enterprises and Invisible segments received a total of $7.23 billion of the $11.5 billion, the Bureau De Change segment received $3.6 billion while the Interbank and WDAS/RDAS got the rest in the first quarter.

The report noted that the apex bank injected a total sum of $14.72 billion and $28.55 billion into the economy in 2018 and 2019, respectively.

Meanwhile, the central bank is yet to commence the sales of forex to the bureau de change following the March suspension.

But has commenced partial sales to all commercial banks for onward sales to parents and small businesses across the country.

Mr Isaac Okorafor, the Director, Corporate Communications, CBN, had said, “The CBN has also made complete arrangements to resume foreign exchange sales to the BDC segment of the market for business travels, personal travels and other designated retail uses, as soon as international flights resume.”

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