Current Inflation is Out of CBN's Control - Economic Expert

CBN Governor, Godwin Emefiele 

Olusegun Omisakin, the Head of Research, Nigerian Economic Summit Group (NESG), says rising inflation rate in the country has gone beyond the control of Central Bank of Nigeria (CBN).

Omisakin made the observation in an interview with the News Agency of Nigeria (NAN) on Monday in Lagos.

NAN reports that data released by the National Bureau of Statistics (NBS) on Jan.13 showed that December 2016 inflation rate stood at 18.55 per cent from 18.48 per cent in November. Inflation targeting is a major economic policy objective of CBN and this has been the focus of its Monetary Policy Committee (MPC).

The apex bank, on July 26, 2016, increased the Monetary Policy Rate (MPR) by 200 basis points from 12 per cent to 14 per cent to check inflation. The CBN retained all key indicators at its September and November MPC meetings to keep MPR at 14 per cent, Cash Reserve Ratio at 22.50 per cent and the Liquidity Ratio at 30 per cent, all aimed at controlling inflation.

Omisakin said that the rising inflation had defied CBN’s monetary policy measures, adding that policy tools adopted by the apex bank were only effective in taming inflation arising from demand-supply imbalances.

“In this case, inflation is cost-push. Production cost is high because producers who want to import intermediate goods for production do not have access to foreign exchange. “Most of them go to the black market and definitely the product from this would be expensive, thereby increasing inflation.

“The CBN cannot do anything through the monetary policy rate to arrest this inflation even if CBN increases the MPR to 20 per cent. Inflation would not come down. “The inflation we are experiencing now is out of the control of CBN. CBN can only address issues that have to do with availability and circulation of money and credit control.

“CBN cannot address cost-push inflation because it cannot provide energy, roads, transport. There are fiscal issues,” Omisakin said.

The economist urged the CBN to formulate policies that would boost industrial production and economic growth in view of the current economic recession.

Omisakin called for coordination of fiscal and monetary policies to check the rising inflationary trend in the country.

“The rising cost of food, transport and energy will reduce if the Federal Government creates concrete fiscal policies with effective implementation to address the situation through increased investment in infrastructure and agriculture,” he said.

The expert said that speedy passage and effective implementation of the 2017 budget would stimulate economic activities.

CBN Governor, Godwin Emefiele  Olusegun Omisakin, the Head of Research, Nigerian Economic Summit...

Yahya Jammeh Of Gambia Speaks With Liberian President on Phone, Pleads on His Case (Watch Video)

President Yahya Jammeh 

President Yahaya Jammeh of the Gambia has begged Liberian President Ellen Johnson-Sirleaf who is the chairperson of Economic Community of West African States to allow judges from other countries come to The Gambia and hear his case against the election results he rejected.

The Supreme Court in Gambia couldn't hear the case filed in court by Jammeh because judges in the country could not sit following the political tormoil.

He pleaded with President Sirleaf to help him facilitate the process according to the constitution, as he said it is the constitution that would determine whether he will step down or not.

President-elect, Adama Barrow has insisted that Jammeh listen to the voice of wisdom and step down after losing the Presidential election in December.

Watch video below: 

President Yahya Jammeh  President Yahaya Jammeh of the Gambia has begged Liberian President Ellen...

Director-General of Voice of Nigeria Tells Buhari Not to Allow Ekweremadu to Defect to APC

Deputy Senate President, Ike Ekweremadu 

Director General of Voice of Nigeria, Mr. Osita Okechukwu, on Monday insisted that Deputy Senate President, Ike Ekweremadu, was not needed in the All Progressives Congress, Punch reports.

It would be recalled that senator Kabiru Marafa, an APC senator from Zamfara State, had advised Ekweremadu of the Peoples Democratic Party representing Enugu West Senatorial Zone in the Senate, to defect to the APC if he must keep his seat as the Deputy Senate President.

But the Enugu State Chapter of the APC has disagreed with Marafa, stating that the party doesn't want Ekweremadu in the party. This was restated by Okechukwu, an APC chieftain in Enugu State while speaking with some party leaders in Enugu on Monday.

According to him, Ekweremadu must not become an APC member before Igbos accept President Muhammadu Buhari. Okechukwu said, “Whereas, I agree with Chief Ben Nwoye (Chairman, APC, Enugu State) that we open our doors to everybody, however, as a democrat I do subscribe to the earlier statement of the chapter of our great party that distinguished Senator Ike Ekweremadu should remain in the Peoples Democratic Party to clear the mess.

“To be honest I am happy with the surge of eminent Igbo sons and daughters into our great party, but we cannot because we want new members, open our party too wide, we must sieve the wheat from the chaff.

“Luckily with President Muhammadu Buhari’s commitment to revamp federal roads, N14bn already released for Second Niger Bridge, plan to mine Enugu coal fields to generate electricity and other critical infrastructure in our region, naturally Ndigbo will embrace Mr. President.

“Therefore we do not need my brother Ekweremadu and his excess baggage.”

Deputy Senate President, Ike Ekweremadu  Director General of Voice of Nigeria, Mr. Osita Okechukw...

JUST IN: See the 12-year-old Female Suicide Bomber Gunned Down by the Military in Maiduguri (Photos)

the suicide bomber 

In the aftermath of the bombing of the University of Maiduguri, another suicide bomber has been killed in what seems the day of visitation on the terrorists.

The third in a series of interception of the terrorists, the latest suicide bomber has been confirmed to be a 12-year-old girl.

According to a release by the spokesman of the Nigerian Police Force in Maiduguri, Victor Isuku: “At about 08:000hrs, a third suicide bomber, female, of about 12 years with IED strapped to her body, was intercepted at Bara Karaya village behind University of Maiduguri, in Muna Garage general area.

“The suicide bomber was sighted by villagers who promptly alerted the military. She was gunned down, while the EOD personnel of the command secured and rendered safe her unexploded IED vest.”

Photo credit: Sumner Shagari Sambo for TVC News.

the suicide bomber  In the aftermath of the bombing of the University of Maiduguri, another sui...


The sister of the victims wrote: “Yesterday my brothers and I went to Mami market, Abacha Barracks. While awaiting the gate opening, this Highlander jeep, number place umber 110 CD 06, overtakes us from behind and bashes our car.
Everyone in view saw this including the soldiers, they tried to flag them down but they zoomed off to everyone’s dismay. The soldiers were shouting that we should chase them. We caught up with them and blocked them with our car. .
We found 4 Polish inside the Jeep. Even after we parked right in front of them, they still drove right into us, my brother had to open their car and put the car’s hand break on and remove the car key from the ignition to stop them.
Police gathered to ask what happened, we explained it all to them. The white man driving ran into us, intentionally, the second time, so that people would think we were trying to overtake wrongly.
They stepped out and the first thing they said was “we’re diplomats”.. At this point I’m beyond flabbergasted. They turned the whole thing around saying we bashed them.
My brother decided to go to the Barack and bring 2 army witnesses. We insisted that damages be paid for since ‘sorry’ wasn’t forthcoming from them. You will not believe that the police let these white men go.
And took us to the police station for statement, just because they were white and claimed to be diplomats. As I speak now, my brother is being held at Asokoro police station, the DPO of the station now claims we were trying to kidnap the white men.
He has been detained even though the soldiers came in as witness, two lawyers are on standby, yet the DPO is adamant. This is a clear case of man know man or highest bidder wins.
I have lived abroad and there is nowhere hit and run cases aren’t charged, this cannot happen in Poland, they wouldn’t even try it, but Nigeria is a lawless and the police are ever ready to participate and cooperate with them. .
Nigerian police would see the truth and rather be bribed by white men. They’re chilling at their embassy while my brother is being detained by the police.”

The sister of the victims wrote: “Yesterday my brothers and I went  to Mami market, Abacha Barracks. While awaiting the gate opening, thi...

Bisi Akande, One of the Pillars that Sent Jonathan Packing - Buhari Showers Encomium on APC leader

Bisi Akande in handshcke with Buhari as Tinubu smiles 

President Muhammadu Buhari has described Chief Bisi Akande as an epitome of wisdom and one of the pillars of the ruling APC that unseated former President Goodluck Jonathan in 2015 presidential election.


President Muhammadu Buhari warmly congratulates elder statesman and founding Interim Chairman of the All Progressives Congress (APC), Chief Abdukareem Adebisi Bamidele Akande, as he turns 78 years on January 16, 2017.

President Buhari joins all members of the APC, friends and immediate family of the eminent leader in celebrating the former Governor of Osun State, 1999-2003, who had meritoriously served as Deputy Governor of Oyo State, 1979-1983.

As one of the pillars of the opposition party that successfully ensured a round victory and smooth transition to unseat an incumbent president in 2015, the President believes Chief Akande's wisdom, sacrifices, patriotism and commitment to the unity and development of Nigeria will always be remembered by posterity.

President Buhari affirms that Chief Akande's present role in the APC as a strong, visionary leader, a reconciling voice, strategist and stabilizer has paid up substantially in the enormous challenge of healing the ruling party, and the country.

The President extols the passionate and relentless efforts of the statesman in ensuring the entrenchment of democracy in Nigeria, and sustenance of the rule of law.

He prays that the almighty God will grant Chief Akande longer life, more strength and wisdom to continue serving the country he loves, and humanity.

Femi Adesina
Special Adviser to the President
(Media & Publicity)
January 15, 2017

Bisi Akande in handshcke with Buhari as Tinubu smiles  President Muhammadu Buhari has described ...

Oh No! Pretty Little Girl Declared Missing in Kaduna State (See Photo)

Nusaiba has been missing for some days now 

A little girl identified simply as Nusaiba has been missing for days now in Kaduna State. Her loved ones have asked the general public to help with information that could lead to her whereabouts.

Anyone with useful information that will lead to her recovery should contact 08165507996 or the appropriate authorities.

Nusaiba has been missing for some days now  A little girl identified simply as Nusaiba has been ...

Naira Crashes Further at the Parallel Market...See Latest Value

*Photo used for illustrative purpose* 

Expectations are high that the naira which depreciated at the parallel market on Friday as dollar scarcity worsened, may be seeing some respite as the Central Bank of Nigeria (CBN) resumes dollar sales to Bureau De Change (BDC), operators this week.

The Nigerian currency exchanged for N497 to a dollar at the parallel market, losing two points from Thursdays posting; while the Pound Sterling and the Euro traded at N597 and 515 respectively.

“Plans by the CBN to resume dollar sales to BDC operators may offset some of the pressure on exchange rates at the parallel market,” one dealer wrote in a note to investors.

At the BDC window, the Naira was sold at N399 to a dollar, while the Pound Sterling and the Euro closed at N600 and N515, respectively. Trading at the interbank market window saw the Naira close at N305.00 to a dollar.

Aminu Gwadabe, President, Association of Bureau De Change Operators of Nigeria, expressed the hope that the Naira would bounce back this week. Mr. Gwadabe said that the CBN would be selling about $25 million to BDCs this week and this would definitely help in reducing liquidity challenge in the Market.

He urged Nigerians not to panic as the CBN was working closely with the BDCs to ensure that the Naira recovers quickly. Heritage Bank to deepen support for agric value chain. Heritage Bank Plc has disclosed plans to revolutionise the agricultural value-chain field.

This is particularly in the rice farming that will enhance agribusiness and aid economic development byits direct participation in the much lauded Anchor Borrowers’ Programme (ABP) of the Central Bank of Nigeria. Group Head, Agriculture Finance, Heritage Bank, Olugbenga Awe, in a speech delivered at 3rd edition of Rice Investment Summit in Abuja in collaboration with New Partnership for Africa Development (NEPAD), said the bank’s drive to support rice production was borne out of the conviction that agribusiness is profitable and act of patriotism to achieve food security and sufficiency in the country.

He, however, noted that the challenges facing rice production were subset of myriads of constraints facing agriculture in general, as most farmlands are located in the rural areas with poor road network and electricity supply, majority are financially excluded with no access to banking services.

He hinted that Heritage Bank is effectively tackling the bottlenecks, since it has long identified the opportunities in agribusiness before the collapse of crude oil prices through its various programmes, which will contribute to the projection for year 2020 in the production of 7.7million metric tons of milled rice or 10.8 million metric tons of paddy rice at milling recovery ratio of 62 per cent.

On the Heritage Bank’s involvement in ABP, Awe noted that the bank has strategically put in place measures to ensure fidelity to contract agreements and adherence to fair trade in making sure that farmers earn decent profit for their efforts, which is critical to the sustainability of the programmes.

According to him, the bank’s participation in the programme has paid off as we currently have a rich pool of farmers’ data to support grains production.

“The registered farmers in our database can easily be identified and trained with the support of extension services to plant any grains as the season demands. This flexibility provides continuous cash flows to the famers and ensure that more farmers are enlisted to join the programme,” he said.

The group head, further disclosed, “In our quest to participate in the rice value-chain through the ABP, we supported hundreds of small holder farmers in various communities in Kaduna and Zamfara State.”

Awe stressed that the prospect for rice production and agriculture was very bright, according to him, “the sector is driving the next set of entrepreneurs and we are committed to the development of the sector using appropriate technology and modern farm practices. We walk the talk in Heritage Bank as demonstrated in our portfolio allocation to agribusiness.”

He affirmed that Heritage Bank would continuously create opportunities for people to see agriculture as a business that can lift them out of poverty into a prosperous future.

*Photo used for illustrative purpose*  Expectations are high that the naira which depreciated at ...

President Buhari Reacts to University of Maiduguri Bomb Blast that Killed Professor, Others

Professor of Veterinary Medicine, Mr. Mani was killed in the blast 

President Muhammadu Buhari has strongly condemned the terrorist attack Monday morning at a mosque in the University of Maiduguri (UNIMAID).

A professor of veterinary medicine and four others were killed by the suicide bomber. Fifteen other people were injured.

The President expressed sympathy and heartfelt condolences to the University Community, families of the victims and the government and people of Borno State.

President Buhari Said the appalling attack on a revered place of worship and Ivory Tower shows that the perpetrators have no true understanding of Islam. He said their despicable acts of terrorism are cowardly, criminal, unjustifiable and punishable before God Almighty and the laws of the land.

The President reassured communities in Borno and others in the North eastern part of the country that his administration will continue to ensure that terrorism never triumphs over peace-loving Nigerians.

He reaffirmed the need for Nigerians to remain more vigilant even as the security agencies continue to use all means at their disposal to combat the remnants of insurgents and their sponsors.

President Buhari wished those injured in the attack a speedy and full recovery, and comforted families of the dead.


Professor of Veterinary Medicine, Mr. Mani was killed in the blast   President Muhammadu Buhari ...

Trump tells Germany to buy American automobiles, Germany to Trump: 'Build better cars'

Incoming US President Donald Trump's threat to slap a German automaker with a 35 percent import tax has triggered a strong response from Berlin.

Trump threatened to impose the tariff on US-bound BMW automobiles produced at plant in Mexico, scheduled to open in 2019.

"They can build cars for the US, but they'll pay 35 percent taxes on every car that comes to the US," said Trump in an interview with German newspaper Bild.

Trump suggested BMW should build a factory in the US, not in Mexico. “It would be much better for them and for our efforts," he said, translated into German.

The plant is scheduled to open in 2019 to produce the BMW 3 Series sedan. The carmaker said production is destined for the world market, not exclusively for America. The plant in Mexico will complement existing sites in Germany and China.

Germany's Vice Chancellor and Economy Minister Sigmar Gabriel told Bild that imposing such tariffs would make "the American auto industry worse, weaker and more expensive."

Trump also accused German cars producers of unfair behavior. There is a Mercedes-Benz in front of every house on some American streets, he said.

"How many Chevrolets do you see in Germany? Not too many, maybe none, you can see nothing over there, it's a one-way street,” Trump said. The US president-elect added he is pro-free trade, but not at all costs. “It must be a clever trade for me,” he said.

To this, Gabriel replied that "the US needs to build better cars."

The German minister also called for a harder position in trade talks with Trump. "We're not weak and inferior," Gabriel said.

In Frankfurt, BMW shares fell 1.42 percent after Trump’s interview, while shares in Daimler AG slid 1.31 percent. Volkswagen was 1.27 percent down.

After Trump’s threats of tariffs, Ford has given up a plan to build a $1.6 billion plant in Mexico and instead promised to create 2,000 jobs in the US. General Motors has no plans to move small car production to the US from Mexico because of Trump’s criticism of the company, said CEO Mary Barra.

Incoming US President Donald Trump's threat to slap a German automaker with a 35 percent impor...