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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)
Seriake Dickson, senator representing Bayelsa west, has condemned the murder of 16 Kano-bound travellers in Edo state.
Describing the incident as “deeply painful”, the former Bayelsa governor warned that those who engage in ethnic profiling are risking a Rwanda-like tragedy in Nigeria.
The travellers were attacked and lynched after members of a vigilance group in Uromi suspected that they were kidnappers.
“There should be no collective criminalization or demonization of any group of Nigerians, ethnic profiling or reprisal attacks,” Dickson wrote on Facebook.
“That was why, when I was governor, even at the height of herdsmen crisis, we insisted on law and order, and made sure that Bayelsa State was safe and free for everyone subject to the laws of the state.
“Those who profile Nigerians according to ethnic group, and criminalize and insult whole tribes are inviting the Rwandan experience which I always preach against. We must isolate and punish criminals wherever they are found and whoever they are.
“In Nigeria, everyone has a right to freedom of movement and should be protected. Everyone has the right to go about their business and feel safe while doing so.
“I call on all leaders to de-escalate tensions and work for unity and mutual coexistence of all Nigerians founded on justice and respect for the rights of all citizens as guaranteed by the Nigerian constitution and laws.”
Commending the “proactive steps taken” by Monday Okpebholo, Edo governor, Dickson called on the state government and security agencies to conduct a thorough investigation into the killings and ensure that perpetrators are brought to justice.
He also demanded compensation for families of the victims.
Residents of Otukpo in Benue south district have staged a protest against the incessant cases of kidnappings and killings by suspected herdsmen.
The Tuesday demonstration saw protesters, mostly youths, occupy the Otukpo-Enugu federal highway, calling on the government to address the growing insecurity in the state.
There has been a surge in cases of killings and kidnappings allegedly carried out by suspected herdsmen in several LGAs in Benue state.
When contacted, Catherine Anene, the police spokesperson in the state, told TheCable that the protest was brought under control by security operatives.
“The protest is under control at the moment; we would let you know as soon as there is further information,” Anene said.
On March 10, 13 people, including women and children, were reportedly killed in an attack by suspected herdsmen on Katsina Ala LGA of the state.
The gunmen were said to have attacked several communities, including Utange council, Kpav, Dikpo, and the Imande Gberihwa area of the state.
The International Air Transport Association (IATA) says passenger demand in Africa increased by 6.7 percent in February 2025.
In its latest report, the IATA said the continent’s air travel capacity also rose by 4 percent from February 2024.
“African airlines saw a 6.7% year-on-year increase in demand. Capacity was up 4.0% year-on-year. The load factor rose to 75.3% (+2.0 ppt compared to February 2024),” the association said.
The group said globally, total demand — measured in revenue passenger kilometers (RPK) — went up by 2.6 percent compared to the same period last year.
“Total capacity, measured in available seat kilometers (ASK), was up 2.0% year-on-year. The February load factor was 81.1% (+0.4 ppt compared to February 2024),” IATA added.
“International demand rose 5.6% compared to February 2024. Capacity was up 4.5% year-on-year, and the load factor was 80.2% (+0.9 ppt compared to February 2024).
“Domestic demand fell 1.9% compared to February 2024. Capacity was down 1.7% year-on-year. The load factor was 82.6% (-0.2 ppt compared to February 2024).”
Willie Walsh, IATA’s director-general, said the traffic growth decrease in February can be explained by factors including the leap year, and lunar new year falling in January compared to February last year.
He said February traffic hit an all-time high, adding that the number of scheduled flights will continue to rise in March and April.
“But we need to keep a close eye on developments in North America, which saw falls in both domestic and international traffic,” Walsh said.
“The recent shut-down of Heathrow reminded us once again that the current passenger rights regime in place in Europe and the UK is not fit for purpose. The annual costs of compensation, care and assistance run into the billions.
“Thankfully, the Polish Presidency of the EU has recognized that this is a drag on European competitiveness and is progressing much-needed and long-anticipated reforms to EU261.”
Walsh said while many of the proposed reforms are sensible, the package falls short of a real solution.
“Even with the reforms, EU261 will still target the airlines with penalties even if the root cause of delays is an infrastructure incident out of their control—like we saw at Heathrow,” the director-general said.
“Over two decades of EU261 have not seen a reduction in delays because infrastructure providers have no incentive to improve their game. Sadly for European travelers, we are likely to see this play out again in this summer’s peak travel season.”
He said genuine reform of European Union regulation (EU261) must ensure that all parties responsible for delays share in the consequences.
According to the report, international RPK growth moderated to 5.6 percent in February year-on-year, down from 12.3 percent in January.
However, the IATA said the growth meant that all regions — except North America — established record February levels of demand.