Introduction The Centre for the Promotion of Private Enterprise (CPPE) has expressed support for the Central Bank of Nigeria’s (CBN) recent decision to pause interest rate hikes. Dr. Muda Yusuf, Chief Executive Officer of CPPE, described this move as a step in the right direction and aligned with economic expectations. CPPE’s Call for Future Rate Reductions Dr. Yusuf has recommended that the CBN consider reducing interest rates in the near future while expressing concerns about the high Cash Reserve Ratio (CRR). He highlighted that with the recently rebased inflation rate computation, Nigeria’s inflation has dropped to 24.48%, a level currently lower than the Monetary Policy Rate (MPR). Yusuf emphasized that maintaining the current rate prevents further financial strain on businesses and individuals with loan exposures. He suggested that a gradual easing of the current tightening measures would help stabilize the economic environment. Implications of High Monetary Policy Rate According to Dr. Yusuf, the current MPR exceeding the inflation rate puts excessive pressure on investors and businesses, making credit more expensive. He urged the CBN to gradually lower the MPR and ease the CRR to create a more favorable economic climate. Impact on Commodity Prices and Economic Stability Dr. Yusuf noted that prices of key commodities, such as petroleum motor spirit (PMS), diesel, pharmaceuticals, and other essential goods, are beginning to decline. He emphasized that maintaining exchange rate stability would contribute to further reductions in product prices, easing inflationary pressures on consumers. Concerns Over Nigeria’s High CRR One of the key issues raised by Yusuf is Nigeria’s CRR, which currently stands at an unprecedented 50%—the highest globally. He pointed out that the closest comparison is Turkey, with a CRR of 25%, and argued that Nigeria’s economic conditions do not justify such a high reserve requirement. Yusuf recommended a reduction in the CRR to enable financial institutions to channel more credit into the real economy, thereby fostering economic growth. Wide Asymmetric Corridor and Its Economic Impact The CPPE also raised concerns about the asymmetric corridor of +500/-100 basis points, stating that it is too wide and could disconnect the financial sector from the real economy. If the current trajectory continues, it may stifle economic expansion and limit access to funding for businesses. CBN’s Monetary Policy Decision During its 299th meeting, the Monetary Policy Committee (MPC) opted to maintain the MPR at 27.5%, along with the asymmetric corridor of +500/-100 basis points. Additionally, the CRR was retained at 50% for Deposit Money Banks (DMBs), 16% for Merchant Banks, and the Liquidity Ratio at 30%. Conclusion Dr. Yusuf urged the CBN to reassess its monetary policy stance and adopt a more flexible approach that fosters economic growth. He stressed the need to relax both the MPR and CRR in future MPC meetings to ensure that businesses and investors can access credit at reasonable costs. For more insights on Nigeria’s monetary policy decisions, visit the Central Bank of Nigeria’s official website. READ ALSO Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Channel
UK ministers evaluate closing a “loophole” allowing gender changes on passports. Kemi Badenoch, the leader of the UK’s Conservative Party, recently emphasized the importance of effective governance in her first speech of the year. Speaking at an event hosted by Onward, a British think tank dedicated to economic and social research, Badenoch drew parallels between governance issues in Nigeria and potential risks facing the United Kingdom. Building Trust and Avoiding Governance Pitfalls During her address, Badenoch highlighted the need for trust and leadership within the Conservative Party, positioning it as the answer to Britain’s current challenges. She warned that systemic failures could lead the UK down a path similar to Nigeria’s governance troubles. “And why does this matter so much to me? It’s because I know what it is like to have something and then to lose it,” Badenoch shared passionately. “I don’t want Britain to lose what it has. “I grew up in a poor country and watched my relatively wealthy family become poorer and poorer, despite working harder and harder as their money disappeared with inflation. “I came back to the UK aged 16 with my father’s last £100 in the hope of a better life. “So I have lived with the consequences of terrible governments that destroy lives, and I never, ever want it to happen here.” Controversy in Nigeria Badenoch’s remarks have sparked renewed criticism in Nigeria, her country of origin. Known for her outspoken views, she has often faced backlash for comments perceived as critical of Nigeria. In a recent response, Nigeria’s Vice-President Kashim Shettima accused Badenoch of “constantly denigrating” the nation. Before assuming leadership of the Conservative Party, Badenoch had described Nigeria as a socialist state plagued by corruption and insecurity. She also recalled personal experiences, including an incident where Nigerian police officers allegedly robbed her and stole her brother’s shoes. Despite her family’s relative affluence, she recounted hardships such as walking long distances to fetch water. A Call to Action By sharing her experiences, Badenoch aims to inspire a renewed focus on governance and the preservation of Britain’s stability. Her story is a poignant reminder of the consequences of leadership failures and the importance of safeguarding national prosperity. READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Chanel.
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President Bola Ahmed Tinubu has urged state governors to prioritize development in their local government areas, emphasizing their crucial role in driving progress at the grassroots level. During a meeting with members of the Nigerian Governors’ Forum (NGF) at his residence in Ikoyi, Lagos, on January 1, Tinubu encouraged stronger collaboration between federal and state governments to address pressing challenges. “You own the land, and the responsibility lies in your hands. Focus on developing the local governments. Nobody wants to take them from you, but collaboration is essential,” Tinubu stated. The President highlighted that leadership at the subnational level is central to achieving food security, economic stability, and accelerated national growth. He reaffirmed his commitment to enhancing local government autonomy, a cornerstone for sustainable grassroots development, while dismissing rumors of disagreements with the governors over this issue. “We won’t fight amongst ourselves. I am here to drive change, and you control your local governments. By fulfilling grassroots expectations effectively, we can restore hope,” Tinubu affirmed, adding that cooperation between all levels of government will ensure Nigeria’s progress. Tinubu also called on governors to prioritize agricultural productivity, noting that it holds the key to stabilizing the economy and improving the nation’s currency value. “We must work harder, grow more, and ensure the improvement of our currency. Nigeria will achieve prosperity through consistent effort,” he said. Commending the governors for ongoing progress in their states, Tinubu expressed pride in their developmental strides, stating, “There’s no state we cannot visit and feel proud of. Better allocations are available now—let me handle the criticism while you enjoy the benefits. Together, we’ll build a nation we can all take pride in.” Reflecting on his leadership journey over the past 19 months, Tinubu expressed confidence in the resilience of the nation and the capacity of his administration to lead Nigeria to greater heights. He also announced his planned visit to Enugu State on January 4 as part of his tour across the country. In response, NGF Chairman and Governor of Kwara State, Abdulrahman Abdulrazak, reassured the President of the governors’ unwavering support, particularly in enhancing local security efforts. He also highlighted the impact of increased economic restructuring, noting, “In less than two years, I’ve accomplished more projects than I did in four years of my first term, thanks to improved funding. While inflation persists, we’re making progress.” READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Chanel.
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President Bola Tinubu dispels rumors of conflict with governors over local government autonomy, emphasizing collaboration for Nigeria’s prosperity and development. President Bola Tinubu has refuted claims of disagreements with Nigerian governors regarding local government autonomy, emphasizing the importance of their collaboration in driving national development. Speaking during a New Year homage at his Ikoyi residence in Lagos, President Tinubu addressed Vice President Kashim Shettima and members of the Nigeria Governors Forum (NGF). He highlighted the pivotal role governors play in fostering economic growth, food security, and national prosperity. Governors as the Backbone of National Development President Tinubu stressed that state governors are the most critical link to achieving grassroots development, as the federal government only accounts for 30–35% of allocated revenue. “The agricultural value chain depends on you. You own the land, and the job is in your hands,” he stated. He urged stronger federal-state collaboration to address pressing issues, including local government autonomy, agricultural productivity, and currency stability. Commitment to Local Government Autonomy Dispelling rumors of conflict with the governors, Tinubu reiterated his support for local government development. “We will not fight within us. Nobody wants to take local governments away from you. Let’s collaborate to ensure Nigeria is better off for it,” he said. Focus on Agricultural Growth and Economic Stability Highlighting agriculture as a cornerstone of economic stability, President Tinubu encouraged governors to prioritize agricultural productivity and address currency challenges. “We have to work harder, grow more, and ensure the situation of our currency improves. Nigeria will see prosperity, but it requires consistent effort from all of us,” he noted. Acknowledging Progress and Resilience President Tinubu commended the governors for their achievements across various states, expressing pride in their collective progress. Reflecting on his 19 months in office, he shared optimism about Nigeria’s capacity to thrive under resilient leadership. “I am glad I asked for this job, and Nigerians gave me the mandate. We’ll be on this voyage together,” he said, adding that he plans to visit Enugu State on January 4 as part of his nationwide tour. Tinubu Named “Man of the Year” The President welcomed his recognition by ThisDay newspaper as Man of the Year, calling it an acknowledgment of the administration’s progress. Kwara State Governor and NGF Chairman Abdulrahman Abdulrazak lauded the recognition, citing significant policy successes in agriculture and economic restructuring. “The policies are working. In Jigawa, there was a bumper harvest, and traders exported the produce due to the currency strength,” Abdulrazak explained. He added that governors are working to enhance food security and support national economic policies. Strengthening Security and Development Governor Abdulrazak assured Tinubu of the governors’ unwavering support, particularly in bolstering local security frameworks to improve national safety. “We are getting more funding due to the restructuring of the economy. Yes, there is inflation, but we are overriding it,” he added. President Tinubu concluded by reaffirming his commitment to collaborative governance, ensuring that Nigeria continues on the path of progress and stability. READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Chanel.
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The League of Northern Democrats (LND), led by its Chairman and former Kano State Governor, Senator Ibrahim Shekarau, has outlined specific conditions for supporting President Bola Tinubu’s Tax Reform Bills, which are currently being reviewed in the National Assembly. Speaking at an event in Abuja, Shekarau stressed that the technical committee established to assess the bills had raised critical socio-cultural and governance concerns. He warned that ignoring these issues could lead to significant challenges. According to Shekarau, the LND sees the tax reform initiative as a pivotal opportunity to strengthen Nigeria’s economic framework while addressing broader constitutional and societal challenges. “The League views these tax reforms as a chance to promote economic stability while resolving vital issues related to governance, constitutional inclusivity, and socio-cultural harmony,” Shekarau noted. The group has called for comprehensive amendments to the bills to foster national unity, inclusivity, and equitable distribution of resources. As discussions on the proposed reforms unfold, the recommendations made by the LND are expected to significantly influence the national tax reform debate. READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Chanel.
