• MPC holds interest rate at 14%

• Emefiele optimistic over $8.1bn MTN transfer dispute

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has urged the Federal Government to faithfully commence implementation of the 2018 budget to avert danger of the economy sliding back to recession, even as it kept its main interest rate at 14 per cent yesterday.
This came just as CBN Governor, Mr. Godwin Emefiele, said he was optimistic the apex bank would resolve a dispute linked to allegations that South African telecommunications firm, MTN, moved funds out of the country illegally.
The CBN policy think tank, whose split decision reflected the bank’s need to contend with both sluggish growth and accelerating inflation, said three of the 10 members of the MPC who met voted to tighten by 25 basis points.
The rate has been at a record high 14 per cent since July 2016.
Nigeria emerged from its first recession in 25 years in 2017, but continues to suffer from sluggish growth and high inflation.
Emefiele said the MPC left Cash Reserves Ratio (CRR) at 22.5 per cent; liquidity at 30 per cent and Asymmetric corridor at +200 and -500 basis points around the MPR.
“There is need to maintain the current monetary policy stance and await a clearer understanding of the quantum and timing of liquidity injections into the economy before deciding on possible adjustments,” Emefiele said.
Commenting on underpinning developments that informed its decision, he said: “The committee appraised the macro-economic environment and noted that at its July meeting, modest stability has been achieved in key indicators, including inflation, exchange rate and reserves.

“In particular, relative stability has returned to the foreign exchange market, going by a robust level of external reserves with inflation trending downward for the 18th consecutive month.”
However, the governor said these gains so far achieved appear to be under threat of reversal following the new data, which provides evidence of weakening fundamentals.

The governor said MPC listed measures, which include implementing capital component of 2018 budget, implementing provisions contained in Economic Recovery and Growth Plan (ERGP) that government could take to sustain economic growth.
“In this regard, the committee urged government to take advantage of the current rising trend in the oil prices to rebuild fiscal buffers, strengthen government finances in the medium term and reverse the current trend of decline in output growth.
“MPC also called on the fiscal authority to intensify the implementation of ERGP to stimulate economic activities, bridge the output gap and create employment,” he said.

Emefiele said the committee expressed concern on rising inflation, which he said could rise in the wake of electioneering spending, coupled with distribution from Federation Account Allocation Committee (FAAC).

He said: “The MPC expressed concern over the potential impact of liquidity injection from the election related spending, and increase in FAAC distribution which is rising in tandem with increase in oil receipt.”

Other areas of committee’s concern include rising level of non-performing loans in the banking system, which he said was stressed mainly by exposure to the oil sector, urging the banks to closely monitor and address the situation.
Meanwhile, Emefiele said he was optimistic that CBN would resolve a dispute linked to allegations that MTN moved funds out of the country illegally.

The banking watchdog, last month, ordered MTN and its lenders to bring $8.134 billion back into Nigeria, which CBN alleged the company had sent abroad in breach of foreign exchange regulations.
MTN’s lenders, Standard Chartered, Stanbic IBTC Bank, Citibank and Diamond Bank were also fined in connection to the money transfer.
He confirmed that MTN and the four banks have written to CBN and provided documents on the matter.

“We understand that there was some interpretation in some quarters that, aside from the naira penalty, there was some conclusion that those dollars attributed to have been remitted by these banks on behalf of MTN were indeed the liabilities of the bank,” he said.
“That is why we provided a clarification to the banks when they called us that the liability is that of MTN and not theirs and that CBN was not in any position or in any way going to debit the bank for the dollar because it was not their liability. It’s important to note that this was an investigation that started about two years ago.”

Meanwhile, Emefiele explained the wisdom behind the adoption of a new name – Polaris – for Skyebank, which it handed over to Assets Management Company of Nigeria (AMCON).
He also affirmed that strategic health of Nigerian banking system remains strong and sound, dispelling insinuation of distress.

At a question and answer session at Tuesday’s MPC meeting in Abuja, Emefiele said: “Let me repeat that the strategic health of the Nigerian banking system remains sound. In every chain, there will always be strong point and weak points, but what we will continue to do is to make sure that that chain remains strong in all aspects of it.

“Notwithstanding, as we see areas where there are weaknesses, we will do everything possible to make sure that we keep the chain linked together and that is what we did with Skye Bank.”
He said Polaris Bank was duly registered with the Corporate Affairs Commission (CAC), adding that the new name was part of requirement for a company going through such peculiar situation experienced by the bank.
“The name had to be changed for legal reasons, having got to the point where CBN has invested close to N800 billion in this bank, at some point, it must be seen to be owned by CBN until we find investors that can pay a fair price for the bank. That is the reason why the name had to change from Skye Bank to Polaris Bank,” he said.

https://newtelegraphonline.com/2018/09/cbn-recession-looms-if-2018-budget-isnt-executed/

[quote][/quote]

Not new. Buhari is a recessionist

He's done it before and can still do it again. Actually that's the only thing he's good at!

On the brink. Oh Nigeria.

Buhari has never been known to execute any Budget to even up to 30 percent

Buharia won't act now ooooooo

Recession has been here since 29th May 2015 till date......so kini big deal

Jisos! By last quarter of 2018 and budget yet to be implemented... Odiegwu oooooi!

When it happens Zombies will blame past administrations. Being Zombies they will be too dull to see that the poor policy implementation of bubu government is the remote cause of all these recessions hitting us repeatedly.

Is Nigeria not still in recession? Una think everybody dey as dull and lifeless as the lifeless one?

what's d need of u reading a budget if u don't want to implement it... or abi rat don chop d budget again

No Plans, No Blue print. There were alone interested in clinching power. a govt that took 6month to set up her team and we expect magic

Bubu the snail..
Later he'd blame it on the past administration

The recession is certain with or without the budget. This govt have consciously worked the economy aground. If Buhari ever wins 2019, Dollar will exchange for over 500 Naira.

Pmb, this inhuman o!

But we are still in recession now. Abi na descending recession we want enter so?
Naija na die.

God, please favour me to leave for greener pasture. Can't continue to stay in a country where greedy people are further edging out the little hope left.

They will soon say Saraki refused to pass budget.

Sarrki

Flets:
The recession is certain with or without the budget. This govt have consciously worked the economy aground. If Buhari ever wins 2019, Dollar will exchange for over 500 Naira.

what's 500 naira? Didn't it exchange for more than it before? We're looking at an exchange of 1,000 naira, you there expecting what has already happened.

Just watch!!!

They won't listen!!! All of them na dunce,big idiots.....

Do Buhari have ears.?

Millenniumlady:
Buharia won't act now ooooooo

...



And Since When Did You Become A Politician

IamPlato:
...



And Since When Did You Become A Politician

Forget politician Where have you been

Millenniumlady:
Forget politician Where have you been

...


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I Have Been Around. Some Nairaland Lions Have Been Fighting Me Because Of Woman...

IamPlato:
...


I Should Be Askin You That.


I Have Been Around. Some Nairaland Lions Have Been Fighting Me Because Of Woman...

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Millenniumlady:
Who are they don't they know you have a tiger as a side chick

...



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IamPlato:
...



Hahahahaha...



Just Forget Them Abeg.


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Millenniumlady:
Been around jare Awwww same way your height is making me blush

...


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I'm Obviously Taller Than You

IamPlato:
...


Hahahahaha. Wicked Girl...


I'm Not Short o.

I'm Obviously Taller Than You

I didn't say you're short it's just a compliment if you know what i mean

Millenniumlady:
I didn't say you're short it's just a compliment if you know what i mean

...


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IamPlato:
...

Funny Girl... If I Catch You, the Kiss No Go Be Here...



You Feeling This Rain This Morning

E cho ka preashy po mu oku




It looks like it's raining everywhere in Lagos