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CBN Does Not Have A Magic Wand To Solve Current Economic Challenges, Cardoso Tells Nigerians

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The Governor of the Central Bank of Nigeria (CBN) has stated the bank does not have a magic wand to solve Nigeria’s current economic challenges.

The apex bank’s chief said this in an emailed speech on Tuesday according to reports from Reuters.

He said, “The CBN does not have a magic wand that can be waved at the current economic challenges,”
Nigeria currently battles a depreciating naira, double-digit inflation poised to reach 30% according to KPMG analysis and an N87 trillion debt.

However, he explained that the central bank can bring growth through various means.

These include helping institutions and financial products to bolster emerging sectors of the economy, broadening financial inclusion, and uniting multilateral stakeholders to endorse government and private sector initiatives.

Speaking on the apex bank’s intervention in development financing, Mr Cardoso explained that the bank will withdraw from directly funding these initiatives to more advisory roles in support of the government’s economic agenda.

In his words, “There is a need to pull the central bank back from direct development finance interventions into more limited advisory roles that support economic growth,”

Cardoso explained further that the present strategy deployed by the bank has erased the lines between monetary and fiscal policy, thereby reducing the bank’s ability to control inflation and foreign reserves.

The initiative goes contrary to the actions of Mr. Cardoso’s predecessor Godwin Emefiele who had kept the naira artificially strong and pursued unorthodox monetary policy by providing liquidity to money markets through interventions. He also provided loans to the federal government above the constitutional threshold.

Mr. Emefiele directly funded the government’s intervention in various sectors notably agriculture and provided loans to the federal government via the Ways and Means Act to the tune of N23 trillion.

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Customers To Win N200m As UBA Begins 75th Anniversary Promo

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In line with its usual custom of rewarding loyalty, Africa’s Global Bank, United Bank for Africa Plc, is set to launch the “UBA Legacy Promo” as part of activities to mark its 75th year anniversary.

This campaign has been specially designed by the bank to celebrate UBA’s rich legacy spanning over 75 years, as well as the bank’s longstanding commitment towards rewarding its loyal customers in a grand style.

According to a statement, the UBA Legacy Promo which will run for a period of six months beginning from July 2024, will see the bank doling out of N200m in cash prizes as well as other consolidation prizes to its teeming customers from various categories.

The lender said, “This promo is open to several categories of account holders including Bumper Account holders, Savings account, Kiddies & Teens Account holders as well as Nextgen account holders.


“Specifically, 75 customers will win the star prize of N1 million each during the promo, while 75 other customers will each win N500,000. 75 customers will win N250,000 each, while another 75 customers will each win N100,000.”

It added, “In the promo, 75 Kiddies, Teens, and NextGen customers will receive N200,000 in scholarship rewards and N180,000 in pocket money rewards respectively, just as many more customers will win N10,000 monthly cash prizes. Other consolidation prizes including shopping vouchers, loaded prepaid cards, and additional exciting rewards.”

To qualify for the promo, Bumper customers are expected to have a minimum of N 5,000 operating balance and multiples of N5,000 will give the customers a higher chance of winning. Customers under the savings category are expected to save a minimum of N 100,000 monthly, while multiples of N100,000 will give them more chances of winning.

Kiddies & Teens Account holders will however need to maintain a standing instruction of N10,000 monthly to qualify for the scholarship reward, while NextGen customers, are expected to maintain a minimum of N5,000 and get a debit card to qualify for the N180,000 pocket money reward.

UBA’s Group Head, Retail & Digital Banking, Shamsideen Fashola, expressed his excitement about the promo and said the bank is always excited to reward loyalty while encouraging the savings culture amongst its customers.

He said, “The UBA Legacy Promo is a testament to our enduring commitment to our customers. For 75 years, UBA has been at the forefront of banking innovation, and this promo is another way we are showing our appreciation and continuing to build on our legacy of trust and excellence.”

UBA’s Group Head, Marketing & Corporate Communications, Alero Ladipo, who emphasised the significance of the campaign, said, “As we mark this monumental anniversary, the UBA Legacy Promo not only celebrates our rich history but also reinforces our dedication to enriching the lives of our customers. We are thrilled to offer these fantastic rewards as a thank you for their unwavering loyalty.”

She invited customers to participate in the exciting promo and take advantage of the incredible rewards on offer.

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Nigeria’s Inflation Rate Hits 34.19 % Amid Rising Food Cost

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Nigeria’s inflation figure has reached a new high, hitting 34.19 % for June 2024, according to the latest data from the National Bureau of State Statistics (NBS).

This is an increase of 0.24% points when compared to the inflation figure for May 2024 released by the NBS.

“In June 2024, the headline inflation rate increased to 34.19% relative to the May 2024 headline inflation rate which was 33.95%. Looking at the movement, the June 2024 headline inflation rate showed an increase of 0.24% points when compared to the May 2024 headline inflation rate,” the NBS said in its Consumer Price Index (CPI) – which measures the average change over time in the prices of goods and services consumed by people for day-to-day living – released on Monday.

“On a year-on-year basis, the headline inflation rate was 11.40% points higher compared to the rate recorded in June 2023, which was 22.79%.”

According to the NBS, the headline inflation rate, year-on-year basis, jumped in June 2024 when compared to the same month in the last year.

It said on a month-on-month basis, the headline inflation rate in June 2024 was 2.31%, 0.17% higher than the rate recorded in May 2024 (2.14%).

“This means that in the month of June 2024, the rate of increase in the average price level is higher than the rate of increase in the average price level in May 2024,” the agency said.

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Nigeria’s Forex Reserves Exceed $35bn — CBN

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According to data from the Central Bank of Nigeria, Nigeria’s external reserves have reached $35.05bn as of July 8, 2024.

This is the first time it has crossed the $35bn ceiling under the administration of President Bola Tinubu.

According to CBN’s data on external reserves, as of May 30 2023, the reserves were $35.09bn, about 14 days before the introduction of the foreign exchange (FX) unification policy in June 2023.

However, when the CBN announced the FX unification policy, the external reserves dropped to $34.66bn.

From July to December 2023, the reserves fluctuated within the $33bn range.

This year, the reserves plunged to a low of $32.11bn on April 19, 2024, according to the data.

While addressing the reason behind the drop, the central bank Governor blamed the decreasing reserves primarily due to debt repayments and other standard financial obligations, rather than efforts to defend the naira.

Analysed CBN’s data, revealed a surge in exchange rate in the last few weeks ending the month of June above $34bn for the first time since April. The reserves have continued to grow in July, reaching the highest reserve in the last one year.

Since the lowest level of $32.11bn under Tinubu in April, the external reserves have surged by $2.94bn in less than three months, according to the CBN data.

The CBN had said it plans to double the diasporas’ remittance inflow this year through a steady flow of foreign exchange into the country.

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