Business

CBN Raises Monetary Policy Rate to 24.75%

Published

10 months ago

March 26, 2024

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has announced an increase in the Monetary Policy Rate (MPR) from 22.75 percent to 24.75 percent. Olayemi Cardoso, the Governor of the CBN, disclosed this adjustment during a press conference held on Tuesday at the committee’s 294th meeting in Abuja.

The MPR serves as the fundamental interest rate within an economy, with all other interest rates dependent on it. This rate hike marks the second monetary policy decision under Cardoso’s leadership since assuming office on September 26, 2023.

Cardoso explained that the committee opted to raise the MPR by 200 basis points to 24.75 percent while maintaining the asymmetric corridor at +100 basis points and -300 basis points around the MPR. Additionally, the committee retained the Cash Reserve Ratio (CRR) at 45 percent and the liquidity rate at 30 percent.

This recent adjustment underscores the CBN’s assertive approach to monetary policy tightening aimed at addressing inflation concerns. Cardoso highlighted that while managing inflation remains a key objective for the CBN, the bank is cognizant of the broader impacts of interest rate adjustments.

Cardoso further noted that the increase in interest rates has led to increased activity in the foreign exchange market, resulting in a reduction in the exchange rate and associated costs. He emphasized the importance of achieving a sustainable exchange rate level, which would require collaboration between monetary and fiscal policies.

The MPC also reviewed the banking system’s status and affirmed its safety, soundness, and stability. The committee urged the CBN to maintain vigilant oversight and ensure banks’ compliance with existing regulatory guidelines. Additionally, the committee recommended expedited action on bank recapitalization to bolster the system against potential risks in an increasingly globalized environment.

Business

FCMB, Proparco Partner to Boost Women-Led Businesses, Agriculture

Published

2 days ago

January 23, 2025

Samson Adeyanju

By Our Correspondent

First City Monument Bank (FCMB), and Proparco have strengthened their partnership with a $35 million senior credit line and two guarantees—ARIZ (€3 million) and EURIZ (€6 million)—signed on January 20, 2025.

The deal, facilitated under the European Union’s EFSD programme, aims to empower small and medium enterprises (SMEs), with a focus on agriculture (90%) and women-led businesses (10%).

This initiative enhances FCMB’s role as a leading SME bank in Nigeria and aligns with global development goals, such as SDG 2 (Zero Hunger) and SDG 8 (Decent Work and Economic Growth). The funding will support high-impact sectors, including agriculture and renewable energy, fostering job creation and economic progress.

Proparco Deputy CEO Djalal Khimdjee emphasized the partnership’s impact: “This collaboration enables the growth of SMEs, advances gender equality, and strengthens food security in Nigeria, building a sustainable and resilient economy.”

Since 2014, Proparco has supported FCMB in advancing Nigeria’s economic development. This latest collaboration reaffirms both institutions’ commitment to inclusive growth and sustainable economic transformation.

Business

Cardoso Vows to End Buying, Selling of Naira Notes

Published

3 days ago

January 22, 2025

Samson Adeyanju

By Our Correspondent

Governor of the Central Bank of Nigeria (CBN), Dr. Olayemi Cardoso, has pledged decisive action to end the commoditization of the Naira, which has become prevalent across the country.

Speaking at the inaugural Stakeholders’ Conference of the Committee of Heads of Banks Operations (CHBO), in Lagos, themed “Commoditization of Naira: The Way Forward,” Cardoso, represented by his Senior Special Adviser, Fatai Kareem, described the practice as a grave threat to Nigeria’s financial system and economic stability.

He noted that the Naira, beyond being a currency, represents the nation’s identity and its stability is essential for economic growth.

However, the growing trend of treating the Naira as a commodity undermines its role as a medium of exchange.

Cardoso highlighted strategies to combat the issue, including public awareness campaigns on responsible currency use, enhancing cash management systems to ensure fair distribution, enforcing regulations against offenders, and promoting digital payment systems to reduce cash dependency.

Chairman of CHBO, Abraham Aziegbe, attributed the commoditization of the Naira to cash shortages in recent years, which forced Nigerians to pay premiums for transactions.

He emphasized the need for robust measures to address cash scarcity and prevent hoarding by financial institutions.

Business

Abuja BDC Denies Money Laundering, Terrorism Financing Allegations

Published

2 weeks ago

January 13, 2025

Samson Adeyanju

By Emmanuel Ogbodo
Abdullahi Abubakar Dauran, outgoing chairman of the Wuse Zone 4 Bureau de Change (BDC), merchants association, has dismissed allegations that the group is involved in money laundering and terrorism financing.
Dauran described the claims as baseless, emphasizing that the association operates within Nigeria’s financial laws.
He also refuted reports suggesting the formation of a parallel BDC group, calling them fabrications.
He urged the public to disregard the allegations and warned The Nation and The Independent newspapers to retract their reports within 48 hours or face legal action.