The Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) has cut the Monetary Policy Rate (MPR) from 12.5 per cent to 11.5 per cent.
At the end of its September meeting on Tuesday, September 22, the MPC said the majority of its members voted to reduce the monetary policy rate (MPR) by 100 basis points, from 12.5 per cent to 11.5 per cent, while adjusting its symmetric corridor around the MPR from +200 and -500 basis points to +100 and -700 basis points.
The aim is to make more money available for lending to critical sectors as the economy braces for a looming recession in the third quarter.
The CBN Governor, Mr. Godwin Emefiele, disclosed this while presenting the decisions of the Monetary Policy Committee, MPC, after its two-day meeting in Abuja on Tuesday September 22.
However, the Committee retained the Cash Reserve Ratio and Liquidity Ratio at 27.5 per cent and 30 per cent, respectively.
Explaining the reasons for the cut, Emefiele said: “After the consideration of the three policy options, members were of the opinion that the option to loose will complement the Bank’s commitment to sustain the trajectory of the economic recovery and reduce the negative impact of COVID-19.
“In addition, the liquidity injections are expected to stimulate credit expansion to the critically impacted sectors of the economy and offer impetus for output growth and economic recovery.”
On the rising inflation, Emefiele noted that so far, evidence has not linked the rising inflation to monetary factors but rather, evidence suggested non-monetary factors (structural factors) as the overwhelming reasons accounting for the inflationary pressure.
He said: “Accordingly, the implication is that traditional monetary policy instruments are not helpful in addressing the type of inflationary pressure we are currently confronted with.
“What is useful is the kind of supply side measures currently being implemented. MPC also expects that a downward adjustment in MPR may be necessary to further put pressure on our deposit money banks to lower cost of credit in aid of growth.”
He added that the broad outlook for the global recovery remained uncertain, as the headwinds associated with the COVID-19 pandemic was persisting, especially as new indications of a second spike in the rate of infections, continued to dampen prospects of a near term recovery.
“The persisting volatility in global oil prices which is likely to continue beyond the end of 2020, as indicated by the deliveries in the oil futures market, signposts the likelihood of a disorderly global recovery,” Emefiele, added.
In the face of the global economic challenges, the CBN stressed the urgent need for a combination of broad-based monetary and fiscal policy measures to curb the rise in inflation and contraction in output growth.
“This will involve targeted investment by the fiscal authorities to resuscitate critical infrastructure to improve the ease of doing business across the country.”
He added: “In addition, the MPC believes the fiscal authorities can build on earlier efforts and articulate a clear strategy to attract private sector investment. The Bank will, however, continue to take relevant steps to ensure that the detrimental risk of inflation to the economy is contained.”
Update: Abductors of catholic priest demand ‘N100m ransom’
The Kidnappers of Reverend father Matthew Dajo of the St Anthony Catholic Church in Yangoji village, Kwali Area Council in Abuja suburb, are reportedly demanding for N100 million ransom before the victim will be set free.
The Catholic priest was abducted on Sunday, November 22 around 9:47:pm. It was gathered that the gunmen stormed the catholic priest’s residence with sophisticated weapons and then whisked him away.
A member of his church told Daily Trust that contact was established with the kidnappers on Saturday, and they have demanded N100 million as ransom.
“And you know since he was abducted, his abductors did not call until on Saturday and they are demanding for N100 million, but I don’t know at what figure has the man who is negotiating with them has been able to arrive at,” he said.
The insider said members of the church are facing a major problem on how to raise the large sum as it’s against the rules of the church to pay for ransom. He also stated the church is solely depending on the family members and relatives of the victim to source for ransom.
“And the other thing we are more worried about is that when a reverend father is abducted, it is against the rules of the church to pay for ransom, except the family members, friends or relatives of the victim can take such responsibility,” he said.
Zahra Buhari reacts to the murder of rice farmers in Zabarmari
Zahra Buhari-Indimi has reacted to the murder of 110 rice farmers in Zabarmari village in Borno state.
The daughter of the president of Nigeria shared a newspaper shot of the Zabarmari massacre and wrote: “My heart bleeds”.
Her reaction comes two days after Boko Haram terrorists attacked rice farmers in their farms and slaughtered them. The death toll was initially at 43 but has now been updated to 110.
Disappointed customer shows dress she ordered and what her tailor made
A customer who asked a tailor to make her a dress was left disappointed at what was delivered.
The woman shared a photo of the dress she ordered and what was delivered.
She explained that a friend introduced her to the tailor who then sent her 5 dresses to choose from. She chose one and the tailor charged her 70,000 Naira.
She haggled down to 65,000 Naira and made payment for the dress.
However, the dress was not ready on time for her birthday. When it finally came, it was nothing like what she ordered.
The Twitter user was told that she probably ordered an inferior material but she explained that the tailor handled everything, including sourcing the material for the dress.
She went on to share videos to show how the finishing was.
She added that she asked the tailor to keep 25,000 Naira and make a refund of 40,000 and she’ll return the dress, but the tailor refused.
Below are tweets shared by the disappointed customer alongside videos of the dress delivered.