At the end of the second meeting of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria, which was concluded today, 26th March 2019, the Committee decided, in perhaps the last MPC communique of Governor Godwin Emefiele, on a vote of 6 to 5 to reduce policy rate by 50bps (13.5%) after having held the rate at 14.0% since July 2016. The Committee in an unexpected twist, cited the need to shift policy focus to supporting growth amongst other considerations.
The second meeting of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria will hold between 25th and 26th March 2019. Since the last meeting, global and domestic economic conditions have remained favourable. On the global scene, monetary policy is now accommodative, supporting the return of investors into Emerging and Frontier markets. On the domestic scene, growth has improved, inflation is moderating, and external reserves have strengthened due to a surge in capital inflows post-elections.
This week, the National Bureau of Statistics (NBS) published the Consumer Price Index (CPI) for February 2019. The report shows a surprising slowdown in inflation for the second consecutive month to 11.3% Y-o-Y in February 2019 (January: 11.4%). This is significantly below the analysts’ average estimate of 11.5% reported by Bloomberg. We observe that headline inflation was slower than expected due to lower M-o-M inflation at 0.73% in February (January: 0.74%), the lowest since December 2017.
President Muhammadu Buhari has held a special meeting with members of his cabinet where he told them that the new four-year mandate given to his administration would be tough.
He told them that he would pursue his campaign promises of securing the country, transforming the economy and the fight against corruption.
The cabinet ministers were in the State House, Abuja, on Friday to congratulate him on his electoral victory.
The shelves of many supermarkets in Nigeria boast of a large amount imported products, including toothpicks from China, toilet paper and milk from Holland, sugar from France, chocolates from Switzerland and matchboxes from Sweden.
Yet many of these products can be produced in Nigeria or found in much closer African countries with industrial bases, the News Agency of Nigeria reports.
The Registrar, Chartered Institute of Purchasing and Supply Management of Nigeria (CIPSMN), Mohammed Aliyu, has called on President Muhammadu Buhari to closely monitor the activities of the Bureau of Public Procurement (BPP) to avoid economic waste.
Aliyu who made the call in Abuja at the Annual General Meeting (AGM) of the Institute, noted that government can effectively supervise activities of BPP when the National Council on Public Procurement had been inaugurated.
As we expected in our Pre-MPC note, the Monetary Policy Committee (CBN) of the Central Bank of Nigeria (CBN) retained all policy rates during its last meeting for the year which held this week. The eleven members of the MPC in attendance unanimously voted to maintain Monetary Policy Rate (MPR) at 14.0% with the asymmetric corridor of +200bps/-500bps, Cash Reserve Ratio (CRR) at 22.5% and Liquidity Ratio (LR) at 30.0%.
Africa will become the world’s next big growth market, akin to the Asian boom, McKinsey, a management consulting firm said on Tuesday.
“While other geographies are seeing incremental growth, global companies that get in early and join the African champions shaping the right strategies, can sustain double-digit profit growth over the next few decades,’’ it noted.
The report drew the conclusions from a survey of 3,000 McKinsey client engagements, in-depth proprietary research and interviews with 40 of Africa’s most prominent business and development leaders.
After over a year of negotiations, labour unions, the Federal Government and States appear to have come to an agreement to adjust the minimum wage to N30,000/month. This represents an increase of 66.7% over the current minimum wage of N18,000/month. Local media reports state that the proposed wage is yet to receive final approval from President Buhari, but we expect the President to approve it given that the FG and state governments led the negotiations.
Nigeria has replied the African Union Commission and lobbyists that it is not in a hurry to pen the African Free Trade Agreement (AfCFTA).
The decision of the federal government is hinged on the implication signing the agreement would have on the nation’s economy.
The Special Adviser to the President on Economic Matters, Dr Adeyemi Dipeolu, said on Wednesday in Ibadan at the 60th anniversary lecture of the Department of Economics, University of Ibadan.