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

Published

2 months ago

July 26, 2023

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.

Steel manufacturers hail Tinubu over $14bn deal

Published

2 weeks ago

September 11, 2023

Olakunle Adeniyi

The Basic Metal, Iron and Steel Products Manufacturer, a sectoral arm of the Manufacturer Association of Nigeria, (MAN) has commended President Ahmed Bola Tinubu for his overwhelming performances and efforts towards the nation’s economic growth at the just concluded Nigeria-India economic roundtable meeting in India.

The group also commended the president for attracting the sum of $14 billion investment to boost the nation’s economy adding that the feats recorded by the Bola Tinubu-led government within 100 days of its inauguration will no doubt accelerate economic recovery and business growth in the steel sector.

This is contained in a statement issued on Sunday by the Chairman of the group, Dr. Kamoru Yusuf MON, stressing that, “Iron and Steel sector, if given the required attention and necessary support, is capable of ensuring accelerated growth of the nation’s economy.

Dr. Yusuf, who is also the Group Managing Director of KAM Holding Limited, a wholly owned indigenous Iron and Steel Industry in Nigeria added that, “President Tinubu has by all standards demonstrated his love and readiness to support industrialists. We, in the Iron and Steel sector of the Manufacturers Association of Nigeria, (MAN) are ready to support his administration with data, workable templates and roadmaps that will support Mr. President in his endeavour to succeed in his mandates to Nigerian citizens.

“As major stakeholders in Nigeria’s Project, we received this news with huge excitement and sense of fulfillment and hope that the breakthrough will further change the game of operations as ‘Risk Takers’ in the nation’s business environment. We pledge our unalloyed support to your administration towards ensuring and providing enabling atmospheres for industrialists to continue to thrive.”

The statement also emphasised that, “President Tinubu’s exceptional efforts in attracting such a substantial investment for Nigeria’s steel sector deserves standing ovation and applause.”

The group therefore promised to continue to support the Minister for Steel Development, Alhaji Shuaibu Audu, in the discharge of his duties at all times.

Business

Ex-CBN director urges FG to reduce cost of governance

Published

1 month ago

August 17, 2023

Desmond Ukafor

Dr Titus Okunrounmu, Former Director of CBN

Dr Titus Okunrounmu, former Director, Budgetary Department at the Central Bank of Nigeria (CBN), has advised the Federal Government to reduce the cost of governance in order to stem the country’s debt profile.

Okunrounmu, who gave the advice while speaking with the News Agency of Nigeria (NAN) on Thursday in Ota, Ogun, described the list of ministerial portfolio on Wednesday as over bloated for a country with huge debt profile.

According to him, funding the nation’s recurrent budget with borrowing does not need these large number of ministers and bloated special assistants, which inevitably must allow for allowances and official vehicles.

“These excess baggage was not projected for in the 2023 Federal Budget and the revenue estimates could not cover the recurrent budget.

“In addition, the federal government needs financial discipline to curb corruption in the Ministries, Departments and Agencies (MDAs) to reduce debt profile in the country,” he said.

Okunrounmu advised the federal government to redouble its efforts and work against policy somersault to encourage influx of foreign investors into the country.