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Food prices exacerbating inflationary pressure – CBN

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3 months ago

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The Central Bank of Nigeria (CBN), has said the rising food prices is partly responsible for worsening headline inflation in the country.

The Governor of  CBN, Mr Yemi Cardoso, said this on Tuesday in Abuja, while presenting the communique from the 298th meeting of the apex bank’s Monetary Policy Committee (MPC).

According to Cardoso, the MPC meeting held on the backdrop of renewed inflationary pressures, as the headline, food and core measures rose year-on-year in October.

He said that the Committee was particularly concerned that all three measures also inched up on a month-on-month basis.

He said that it suggested the persistence of price pressures, with attendant adverse impacts on income and welfare of citizens.

” Members, therefore, agreed unanimously to remain focused in addressing price developments.

“Food prices remain a key contributor to the uptick, members commended the efforts of the Federal Government for the improved security, especially in the North-East of the country, which would likely improve food production ” he said.

The CBN governor said that rising energy cost also played a role in the general price level due to its impact on factors of production.

“The recent increase in the price of Premium Motor Spirit (PMS) has also impacted the cost of production and distribution of food items and manufactured goods.

“The committee is optimistic that the full deregulation of the downstream sub-sector of the petroleum industry will eliminate scarcity and stabilise price levels in the short to medium term.

“Members, thus, reiterated the need to strongly forge ahead with the deepening collaboration between the monetary and fiscal authorities.

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“This is to ensure the achievement of our synchronised objectives of price stability and sustainable growth,” Cardoso said.

He, however, said that there was an improvement in the external sector, reflected by the increase in the current account surplus, enhanced remittance and capital inflows.

He said that they had impacted the external reserves positively.

“This, therefore, suggests that key policy measures by both thmonetary and fiscal authorities are yielding the desired outcomes.

” Members, however, expressed concern over persisting exchange rate pressure, reflecting continued high demand in the market.

” Consequently, the MPC urged the apex bank to explore measures to boost market liquidity,” he said.

The News Agency of Nigeria (NAN) reports that the MPC continued its inflation targeting measure by further hiking the Monetary Policy Rate (MPR), which is the baseline interest rate.

It, however, retained all other monetary policy parameters.

The committee raised the MPR by 25 basis points to 27.50 per cent from 27.25 per cent, and retained the asymmetric corridor around the MPR at +500/-100 basis points.

It also retained the Cash Reserve Ratio (CRR) of Deposit Money Banks at 50.00 per cent and Merchant Banks at 16 per cent, and retained the Liquidity Ratio at 30.00 per cent.(NAN)

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Business

Stock market gains N52bn on cautious trading

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10 hours ago

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March 11, 2025

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The stock market opened the week positively, with investors gaining N52 billion and performance indices rising by 0.08 per cent on Monday.

Specifically, the Nigerian Exchange Ltd. (NGX) market capitalisation increased by 0.08 per cent to N66.769 trillion from an opening of N66.717 trillion recorded on Friday.

The All-Share Index also rose by 0.08 per cent, or 83 points, to close at 106,621.91, up from 106,538.72 posted on Friday.

The positive performance, in spite of cautious trading, was driven by gains in some banking and consumer goods stocks such as First City Monument Bank, Access Corporation and Dangote Sugar.

The market breadth closed positive, with 32 gainers and 27 losers.

On the gainers’ chart, Eterna increased by 9.96 per cent, to close at N37.55, while Transnational Corporation gained by 9.91 per cent, to close at N51.55 per share.

Also, First City Monument Bank soared by 9.89 per cent, to close at N10 and Africa Prudential gained by 9.85 per cent, to close at N36.25 per share.

ABC Transport increased by 8.67 per cent, to close at N1.63 per share.

Conversely, VFD Group led the losers’ chart with a 9.92 per cent decline, closing at N47.20, followed by International Energy Insurance, which lost 8.72 per cent, closing at N1.78 per share.

Also, Cadbury Nigeria declined by eight per cent, closing at N23, while Cornerstone Insurance dropped by 7.89 per cent, closing at N2.92 per share.

Honeywell Flour Mill lost 7.06 per cent, closing at N12.50 per share.

A total of 364.97 million shares, worth N17.628 billion, were exchanged across 14,565 transactions.

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This is compared with 349.18 million shares, worth N9.74 billion, exchanged across 11,911 transactions last Friday.

Transactions in Fidelity Bank shares topped the activity chart, with 56.4 million shares worth N970.85 million.

Access Corporation followed with 30.422 million shares valued at N725.48 million, while Zenith Bank sold 27.64 million shares worth N1.33 billion.

Africa Prudential transacted 23.316 million shares valued at N834.19 million, and United Bank for Africa sold 13.102 million shares worth N495.98 million.

Analysts at Vetiva Securities Ltd. said that in spite the modest gain, sentiment remained cautious due to persisting pressures from high fixed income yields.

“Investors continue to selectively engage fundamentally sound equities, but sustained bullish momentum appears unlikely without significant economic catalysts.

“Consequently, we anticipate another mixed session, with continued selective buying countered by profit-taking,” they noted. (NAN)

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NNPC, Dangote Refinery Negotiating New Naira-For-Crude Deal

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12 hours ago

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March 11, 2025

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The Nigerian National Petroleum Company (NNPC) Limited says negotiation is ongoing for a new naira-for-crude deal with Dangote Petroleum Refinery.

NNPC announced in a statement on Monday after TheCable reported earlier that the government-owned oil company had reportedly suspended the naira-for-crude deal until 2030, as it has forward-sold all its crude oil.

The discontinuation will force refiners to rely on international suppliers for crude oil, gulping huge costs in dollars and triggering an uptick in the pump price of petrol.

However, Olufemi Soneye, the chief corporate communications officer of NNPC, said the current deal will expire at the end of March.

“NNPC Limited has noted recent reports circulating on social media regarding the alleged unilateral termination of the crude oil sales agreement in Naira between NNPC and Dangote Refinery,” Soneye said.

“To clarify, the contract for the sale of crude oil in Naira was structured as a six-month agreement, subject to availability, and expires at the end of March 2025. Discussions are currently ongoing towards emplacing a new contract.”

Under the current arrangement, Soneye said NNPC has made over 48 million barrels of crude oil available to Dangote refinery since October 2024.

“In aggregate, NNPC has made over 84 million barrels of crude oil available to the Refinery since its commencement of operations in 2023,” he said.

“NNPC Limited remains committed to supplying crude oil for local refining based on mutually agreed terms and conditions.”

The sale of crude oil and refined petroleum products in naira to local refineries commenced on October 1, 2024, to improve supply, save the country millions of dollars in petroleum products imports, and ultimately reduce pump prices.

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Uba Sani Introduces New Policies For Kaduna Scholarship Board

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1 day ago

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March 10, 2025

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Uba Sani, governor of Kaduna, has introduced policies at the state scholarship and loans board to enable students from less-privileged backgrounds to obtain sponsorships with ease.

Yahya Saleh Ibrahim, executive secretary of the board, announced the policies on Sunday while speaking to journalists.

He said the governor has ordered the removal of tax clearance as a requirement for accessing scholarship.

Ibrahim also said although the writing of essays is still a requirement to access scholarship, it is however done “to determine areas of students’ weakness that require support”.

He said Sani has also created seven scholarship awards zonal units to make it easier for students in rural areas to be screened, easing the burden of coming to the board’s headquarters in Kaduna.

The units are Zaria, Kafanchan, Kachia, Pambegua, Makarfi, Kaduna-north and Kaduna south zones.

He said the governor has provided 30 computers to the various units to simplify the application process.

He also said the board now conducts on-the-spot scholarships for indigenous citizens across tertiary institutions, adding that this effort has “enlisted over 4330 potential beneficiaries awaiting disbursement”.

“A total of 3,397 students have been awarded local scholarships from May 2023 to date. Thirty students have benefitted from the third-party tertiary education loans,” he said.

“The board has also secured 50 scholarships for secondary school students, in collaboration with the ministry of education, for indigent students from the Indomie Noodles DOFIL Company Kaduna.

“The inclusion of government special scholarship intervention programs for innovation, aviation, meritorious, underprivileged, and People with Special needs (PLWD) students, in the state is in the heart of His Excellency’s agenda.”

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