The Monetary Policy Committee meeting for January which is already in progress according to Economist Paul Alaje is not expected to reduce Rates to ensure that Inflation and Other factors are reigned in.
Paul Alaje who is an Economist and Senior Partner at SPM Professionals, disclosed this while speaking on TVC News Business Nigeria Programme with Tolulope Ogunjobi on Monday Afternoon.
He described the current inflation figures as rather too high making it difficult for the Monetary Policy Committee meeting to countenance a reduction in the Interest rates as announced in December after its last meeting.
He added that the Monetary Policy Committee meeting will also be deciding on whether to hold the rates or increase it based on current realities.
He said if the Inflation figures released by the Nigerian Bureau of Statistics happens to be the deflection point, holding the rate where they currently are will be a very good decision.
He however said the Monetary Policy Committee meeting will need to be careful so as not to make a hasty decision either way.
He added that this is essential to ensure that the rising inflation across the Country is tamed properly.
He disclosed that the chances of a rate increase by the Monetary Policy Committee meeting are very high.
He added that a rates increase also has implication especially for the Government’s Ways and Means which he said will be come a bit more expensive for government to wiggle through as the rate of borrowing increases.
He said the rate at which government will borrow using the ways and means will increase to about 19.5% which is the cost of MPR plus 3, if their is a rate increase based on available statistics.
He said the current challenges facing the Federal Government in terms of finances has been facing the private Sector who have been borrowing to finance projects and production at over 23 percent per annum.
He said the Federal Government has the National Assembly which it can always run to to restructure its debts something the private Sector does not have.
He however said this is an unsustainable situation for the government and especially the private sector.
He said the Economic Theory shows that once Inflation grows, unemployment should go down but added its not the case in Nigeria.
NOA, CBN Takes Awareness Campaign To Zamfara Markets, Motor Park,on New Naira Notes
In Zamfara, the National Orientation Agency in collaboration with the Central Bank of Nigeria has taken its awareness Campaign on the redesigned Naira notes and dateline for the old currency to cease circulation to Markets and Motor Parks
The National Orientation Agency says it has deployed two thousand Persons to rural communities across the State to sensitize locals on the new currency notes
The Nigeria’s Apex Bank insists the 31st January dateline stands, and there is no plan to extend as it has been circulated
With barely eleven days to the dateline for the old currency notes to cease circulation as directed by the Central Bank of Nigeria, the National Orientation Agency is taking an awareness Campaign to motor parks, markets and some major roads in Gusau, the capital of Zamfara State
The sensitization Campaign is in collaboration with the Central Bank of Nigeria, Gusau Branch
The National Orientation Agency says it has deployed two thousand Persons to rural communities across the 14 LGA’s to create awareness on the redesigned Naira notes and deadline for the cessation in circulation of the old naira notes
Mr. Aminu Ibrahim also denied stories making the round that the dateline for circulation of the old naira notes has been extended
The NOA says rejecting the old currency notes before the end of the dateline is a punishable offence
The old currency that will cease being legal tender by January 31st Includes the N1,000, N500 and N200 notes
But, this Zamfara based meat Seller insists that the federal government should extend the dateline by five months for the people in rural areas
Though the old notes are expected to be out of circulation by January 31st, there is a scarcity of the new notes in circulation as banks keep dispensing old notes to their customers across the country.