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Raising interest rate’ll make cost of borrowing higher for productive sector-Ex-ANAN president




Last Updated on July 26, 2023 by Fellow Press

Dr Samuel Nzekwe, a financial analyst, said increasing Monetary Policy Rate (MPR) by the Apex Bank from 18.5 per cent to 18.75 per cent would make cost of borrowing higher for the productive sector.

Nzekwe, who is also the former President, Association of National Accountants of Nigeria (ANAN) stated this to the News Agency of Nigeria (NAN) on Wednesday in Ota, Ogun.

He spoke against the backdrop of the outcome of two-day meeting of Monetary Policy Committee (MPC) of Central Bank of Nigeria (CBN).

NAN reports that the Acting Governor of the CBN, Mr Folashodun Shonubi, announced after the two-day meeting on Tuesday in Abuja, that the MPR had been raised from 18.5 per cent to 18.75.

Cash Reserve Ratio (CRR) and Liquid Ratio were retained at 32.5 per cent and 30 per cent.

The MPR is the baseline interest rate upon which other interest rates are built.

“Increasing interest rate would make borrowing and cost of money, especially for those in the productive sector, costly,” he said.

“In addition, goods produced under this MPR will become costly and contribute to increase in nation’s inflation rate,” he said.

The ex-ANAN president noted that the MPC was trying to moderate inflation rate but it would not work because Nigeria imports most of the goods consumed and exports less out of the country.

Nzekwe urged the Federal Government to encourage productivity by creating enabling environment so that the country could have sufficient goods.

He stressed the need to leverage on area where the country had comparative advantage in order to produce and import less.


AMCOSS, PEDI partner for 3-day management training



A leading personnel consultancy, AMCOSS, is organizing “a 3-day leadership and management development retreat” for PEDI management staff.

The retreat which is scheduled to hold between Thursday 20th June and Saturday 22nd June 2024, will feature trending, emerging and solution-focused presentations, as well as interactive sessions by the participants.

The programmes of the event lined up are as follows:

Opening day, June 20 will start by 9:00am, and by 10:00am, the Managing Director/CEO will give a welcome address, which will be followed by a brief remark from the Managing Director of PEDI, Ilesa. An highlight of the event is a guided tour of places of historical importance in Ilorin.

By 2:30pm, there will be a presentations titled “Effective Leadership and Leadership Skills”, followed by the interactive session of questions and answers.

There will be three presentations on the second day June 21, tagged: “Managerial Skills and Personal Effectiveness”; Performance Management System” and “Health and Well-being”.

Likewise on the last day of the programmes, there will be two presentations: “Team Building and Effective Communication” and “Organisational Continuity, Sustainability and Succession Planning”.

The training starts each day by 9am, with provision for interactive sessions after each presentation and lecture, tea break/lunch, and ends approximately 4:30pm.

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Dangote to venture into steel production



Last Updated on June 14, 2024 by Fellow Press

Africa’s richest man, Alhaji Aliko Dangote has mooted plans to delve into steel production in the near future stating that he wants to ensure that every steel used in West Africa comes from Nigeria.

The industrial mogul stated this during an interview at the ongoing Afreximbank Afro-Caribbean Trade & Investment Forum in Nassau, The Bahamas.

When asked if he is taking a break after the refinery, he noted that the next venture after the refinery project would be in Steel manufacturing and ensure that all Steel products used in West Africa comes from Nigeria.

He also encouraged African leaders to take agriculture and solid mineral development seriously lamenting the fact that food imports cost the continent dearly by increasing unemployment and poverty.

He said, “What we need to do that is missing is actually to concentrate and pay more attention to agriculture and solid minerals.
I don’t like people coming to take our solid minerals to process and bring the finished product.
We should try and industrialise our continent and take it to the next level.”

“I told somebody we are not going to take any break. What we are trying to do is to make sure at least in West Africa, we want to make sure that every single steel that we use will come from Nigeria”

Nigeria has tried unsuccessfully to become a leader in the steel manufacturing industry with a handful of failed projects like the Ajaokuta steel plant, Delta Steel Company, Osogbo and Jos rolling mills even under government and private ownership.

Like the oil refineries, the federal government under different administrations has spent billions trying to put the local steel plants to work but has been unsuccessful.
The administration of President Bola Tinubu had promised during the campaigns to ensure steel production starts in the multi-billion-dollar Ajaokuta steel complex.

The federal government in the 2024 appropriation act budgeted around N4.45 billion for the plant but hopes to raise around N35 billion from private investors to bring the plant to life for the first time in its history.

However, the Minister of Steel Development, Shuaibu Audu has also stated that reviving the plant could cost around $2 billion to $5 billion.

According to the National Steel Raw Materials Exploration Agency (NSRMEA), total steel consumption in the country averages around 10 million metric tonnes of which 70% is imported.
The current Minister of Steel Development had earlier stated that Nigeria spends around $4 billion on steel imports annually despite having around 74 steel plants and fabricators across the country.

Nigeria is home to significant iron-ore deposit- a critical raw material in steel production found in Kogi state.

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