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MPC likely to increase lending rate by another 100 basis points-expert
As the Monetary Policy Committee (MPC) meets on Monday, a financial expert, Prof. Uche Uwaleke, says the committee will likely increase the baseline lending rate by another 100 basis points.
Uwaleke, a Professor of Capital Market and the President of Capital Market Academics of Nigeria, said this in an interview with the News Agency of Nigeria (NAN) on Sunday in Abuja.
NAN reports that the MPC, under the leadership of Mr Yemi Cardoso, had increased the Monetary Policy Rate (MPR) by 400 basis points in February and 200 basis points in March,
This led to a cumulative increase of 600 basis points, moving the MPR from 18.75 per cent to 24.75 per cent, in line with aggressive tightening of the CBN to target spiralling inflation.
According to Uwaleke, we should expect another increase of at least one percentage point.
“Inflation rose year-on-year in March in spite the hike in February, and the exchange rate has yet to stabilise.
“So, MPC will still be concerned about the need to narrow the negative interest rate.
“Again, following the IMF/World Bank spring meetings last April, the CBN has received praise from the IMF and some global rating agencies such as Fitch for its monetary policy tightening stance.
“MPC will be mindful of that in order not to create a different impression, especially when the Bretton Woods Institutions are urging the apex bank to do more,” he said.
He, however, urged the committee to retain the prevailing rates to mitigate the impact of its aggressive policy tightening on Nigerians.
“If I were a member of the MPC, I will vote for a hold position as the aggressive policy rate hike is taking a toll on output.
“Production is stiffled because of the very high cost of funds. Moreover, the seeming over reliance on the MPR as a tool to tame inflation does not appear to be making any meaningful impact.
“This is due to the significant non-monetary factors driving inflation in Nigeria, such as high cost of energy, transport as well as insecurity in the food-belt regions of the country,” he said. (NAN)
Want US, International Community to Intervene Over Suspension of Gov Fubara
A group of lawyers, known as Lawyers in Defence of Democracy, has taken to the streets to demand the restoration of democratic governance in Rivers State.
The group is calling on the United States and the international community to pressure the Nigerian government to rescind its decision to suspend Governor Siminalayi Fubara and the Rivers State House of Assembly.
The lawyers, led by their Country Director, Barr. Uche Chukwu Udeh Sylvester argued that the declaration of a state of emergency in Rivers State by President Bola Tinubu is unconstitutional and undermines democracy.
They claim that the president’s action was taken without clear and present danger, and due process was not followed.
In a letter to President Donald Trump, they urged him to intervene and pressure the Nigerian government to restore democratic rule in Rivers State.
They argue that the suspension of Governor Fubara and the state assembly is a brazen attempt to undermine constitutional order.
The lawyers also condemn the National Assembly for ratifying the president’s decision, describing it as an assault on democracy.
They demand that President Tinubu reconsider his stand and allow Governor Fubara to continue his work as democratically elected governor of the state.
“In an era where democracy is supposed to reign supreme giving democracy dividends to the masses, we have found ourselves at a crossroads, a sober moment of reckoning where constitutional order is being tested most brazenly,” the letter said.
“The president, who swore to uphold the Constitution, has taken a most unprecedented and unlawful step with the suspension of a democratically elected governor, deputy governor and an entire state House of Assembly under the guise of Emergency Rule. What emergency? Nigerians and Rivers people did not see or feel any such emergency.
“In our law books and we stand by this, no constitutional provision, statute or any known convention gives the president the powers to single-handedly dissolve the structures of an elected state government.
“This could only have happened during the days of military juntas, but we are not under the firm grip of a military dictatorship. At the moment, the country is being governed under a constitutional democracy that operates a presidential system of government.
“President Bola Tinubu should not have taken the decision because democracy is a learning process, and the judiciary has demonstrated the capability to resolve issues.
“The president should have allowed the various state organs to resolve the issues. It is not worthy that until recently, there was a crisis of local government administration in Osun State, which has not led to a declaration of a state of emergency.”
The Minister of State for Defence, Dr Bello Muhammad Matawalle, has commended the professionalism and dedication of the Ministry of Defence staff while reaffirming his commitment to an open-door policy during a town hall meeting in Abuja.
Speaking at the event held on Tuesday at Ship House, Matawalle urged both senior and junior staff to approach him directly with any concerns, emphasising the importance of fostering open communication within the ministry.
In a statement released by his Personal Assistant for Media, Ahmad Dan-Wudil, the minister praised the workforce for their unwavering commitment to their duties. He also lauded Permanent Secretary Ambassador Gabriel Tanimu Aduda for organising the gathering, describing it as a “laudable opportunity” for direct engagement between the ministry’s leadership and its employees.
Reflecting on his career, Matawalle shared his journey from a junior staff member at the Federal Ministry of Water Resources to his current role, underscoring his understanding of the challenges faced by workers. He expressed hope that such town hall meetings would become a regular feature to strengthen collaboration and mutual understanding.
The meeting was attended by the Permanent Secretary, directors, deputy directors, and a cross-section of senior and junior staff.
By Israel Bulus, Kaduna
The Chairman of the Peoples Democratic Party (PDP) in Kaduna State, Chief Edward Percy Masha, says the party is on course to reclaim power in the state, citing increasing dissatisfaction with the ruling All Progressives Congress (APC) and growing public support for the PDP’s alternative vision.
Masha, in a statement issued to Elanzanews on Wednesday, said since assuming leadership of the party six months ago, his administration has prioritised reconciliation, party cohesion, and grassroots engagement.
He said ongoing consultations with critical stakeholders have helped to reposition the PDP as a viable opposition force and a beacon of hope for citizens.
According to him, the party has recorded significant progress despite challenges, including the alleged attempt by the APC to rig the 2024 local government elections a move he said was thwarted through PDP’s vigilance
Masha also acknowledged the wave of defections that saw some elected officials and stakeholders decamp to the APC but said the PDP remains resolute and united.
He noted that efforts led by Hon. Shuaibu Miqati, the chairman of the Reconciliation Committee, has sparked a healing process among aggrieved members, with many embracing the reconciliation.
“We are focused on consolidating our hold on the National Assembly seats, defending our three senatorial positions, and expanding our representation at both the state and federal levels,” he said.
He accused the APC government of wasteful spending and alleged that funds were being channelled into flamboyant events for projects that were either abandoned or never initiated.
In contrast, he said PDP lawmakers have been providing boreholes, classrooms, laboratories, healthcare facilities, farming inputs, scholarships, and other empowerment programmes to cushion the hardship faced by the masses.
On the party’s legal battle over the local government councils, Masha said PDP is pushing to sack all 23 the chairmen and 255 councillors in the state and restore democratic governance through the courts.
“There’s no debate that our people desire change, and the PDP is committed to ushering in a new dawn. We will continue to expose the government’s inadequacies and provide credible alternatives,” he said.
He expressed optimism that the PDP would build on its 2023 performance and reclaim the governorship seat in 2027.
“Any attempt by the APC to rig the next election will be strongly resisted, stressing the party is prepared to defend the people’s mandate with courage and commitment,” he added.
Masha urged party members and citizens to remain united and hopeful, assuring them that the PDP is ready to lead the charge for the redemption of Kaduna State.