The Manufacturers Association of Nigeria (MAN) and the Lagos Chamber of Commerce and Industry (LCCI) have criticised the Central Bank of Nigeria (CBN) over the interest rate hike.

On Tuesday, the monetary policy committee (MPC) of the CBN raised the monetary policy rate (MPR), which benchmarks interest rates, from 26.75 percent to 27.25 percent.

In a statement on Thursday, Segun Ajayi-Kadir, the director-general (DG) of MAN, expressed concerns over the negative impact the interest rate hike would have on the manufacturing sector.

He said it would further exacerbate the challenges already faced by manufacturers, including rising production costs and declining consumer purchasing power.

“The decision to raise the MPR to 27.25 percent has far-reaching implications for the manufacturing sector in Nigeria,” Ajayi-Kadir said.

“The continued increase in interest rates, which now totals 15.75 percentage points since May 2022, would compound the challenges faced by the sector, including rising production costs in the face of declining consumer purchasing power.”

He said with borrowing costs now exceeding 35 percent, manufacturers are struggling to maintain competitiveness and expand production capacity.

“With the increase in borrowing costs, manufacturers will now pay over 35% on their credit facilities. Clearly, this will lead to an increase in production costs, higher prices of finished goods, lower competitiveness and production capacity expansion,” he said.

“For instance, over the first six months of the year, manufacturers incurred more than N730 billion in capital expenses due to the continuous rise in interest rates imposed by commercial banks.

“This dilemma hampers innovation, productivity and growth. Moreover, the manufacturing sector is grappling with depressed consumer demand, primarily driven by lower purchasing power.”

‘UNSOLD GOODS HAVE INCREASED BY 42.9% DUE TO WEAK MARKET’

The MAN DG said unsold goods in the manufacturing sector surged by 42.93 percent, reaching N1.24 trillion in the first half of 2024.

He said the growing stockpile of unsold products underscores the difficulties manufacturers face in a weakening market.

Ajayi-Kadir said the broader implications of the challenges threaten not only the manufacturing sector but also the Nigerian economy as a whole, as higher borrowing costs lead to poor access to funds, lower capacities and potential business closures.

‘EXPLORE MORE OF MONETARY/FISCAL POLICY OPTION TO CURB INFLATION’

Ajayi-Kadir urged the CBN to stop the rate hike and “explore more of the monetary-fiscal policy handshake option to curb inflation.”

He expressed concern that the CBN increased the MPR despite the modest improvements in inflation, adding that central banks in other countries were either retaining or reducing rates.

Ajayi-Kadir proposed several measures to mitigate the adverse effects on the manufacturing sector, including a comprehensive review of the impact of rate increases, accelerated disbursement of single-digit loans and the introduction of fiscal measures to ease the importation of essential raw materials.

“Conduct a comprehensive review of the effects of continuous rate hikes on inflation and the real sector over the past five years to guide future decisions, focus on promoting domestic production and economic recovery by allowing time for previous rate increases to take effect before implementing further hikes and strengthen the collaboration between the monetary and fiscal authorities to ensure that they are aligned to support growth,” he said.

“Accelerate the disbursement of the N1tn single-digit loan in the accelerated stabilization and advancement plan for the manufacturing sector to cushion the impact of the high MPR on borrowing costs, introduce fiscal measures that support the importation of essential raw materials and technology at concessionary rates to ease the burden on manufacturers and encourage backward integration and local sourcing to minimize dependence on imports and reduce pressure on foreign exchange reserves.”

Ajayi-Kadir recommended promoting renewable energy and improving infrastructure within industrial hubs to reduce operational costs for manufacturers.

‘REASON FOR RAISING INTEREST RATE NOT SUSTAINABLE ARGUMENT’

Chinyere Almona, LCCI’s DG, said the CBN’s inflation control efforts had yielded some marginal gains but had done little to address the root causes of inflation.

“The marginal drop in the August headline inflation rate to 32.15 percent, down from 33.40 percent in July, is on a good note,” Almona said.

“While this represents a month-on-month improvement, the broader year-on-year comparison still highlights a troubling 6.35 percent increase compared to July 2023, and the interest rate raised to 27.25 percent both presenting a tense business environment.

“The marginal drop in inflation reflects some level of policy impact but is insufficient to address the deep-rooted challenges, particularly in food and core inflation categories.”

She said the CBN’s justification for raising the monetary policy rate due to fears of a petrol price hike is not a sustainable argument.

The LCCI boss urged the government to intervene in the controversies about the pricing dynamics of both imported and locally refined petroleum products arising from the lack of resolution between the Nigerian National Petroleum Corporation (NNPC) Limited and the Dangote Petroelum Refinery.

She identified energy and transportation costs as major contributors to inflation, urging the government to accelerate energy reforms, especially in the power sector.

Almona highlighted the need for stable electricity for manufacturers, as well as small and medium enterprises and advocated a transition to renewable energy sources to reduce production costs.

“Accelerate energy reforms to improve electricity generation, reduce reliance on costly diesel and petrol, and ensure stable power supply for manufacturers and SMEs,” she said.

“The transition to renewable energy sources should be prioritised to reduce production costs.”

The LCCI DG also called for investments in transportation infrastructure, particularly rail and road networks, to lower logistics costs and reduce price volatility in consumer markets.

Almona recommended prioritising the adoption of compressed natural gas (CNG) mobility in the country.

She also stressed the need for transparent foreign exchange management to reduce speculation and stabilise the naira.

“A stable exchange rate will help moderate imported inflation, especially in essential commodities and raw materials needed for local production,” Almona added.

She recommended that the CBN should work with the Nigeria Customs Service (NCS) to fix the import duty exchange rate for a certain period to aid business decisions on importation.

Almona called on the government to take a holistic and sustained approach to tackling inflation, combining the tips on boosting local production, stabilising energy and transportation costs, and ensuring alignment between monetary and fiscal policies.

The Central Bank of Nigeria (CBN) has extended the suspension of processing fees on cash deposits for six months.

The development comes six days before the suspension date initially fixed, expires.

On May 1, banks resumed the collection of processing fees on cash deposits.

Six days later, CBN suspended charges on the deposits until September 30.

However, in a circular directed to all banks, other financial institutions and non-financial institutions, dated September 24, 2024, and signed by Adetona Adedeji, CBN’s director of banking supervision, the apex bank extended the date to March 31, 2025.

“Further to our letter dated May 6, 2024, referenced BSD/DIR/PUB/LAB/016/023, the Central Bank of Nigeria (CBN) hereby extends the suspension of processing charges on cash deposits above N500,000 for individuals and N3,000,000 for corporates,” the apex bank said.

“The previous suspension, set to expire on September 30, 2024, has now been extended until March 31, 2025.

“This suspension pertains to the 2% and 3% fees outlined in the ‘Guide to Charges by Banks, Other Financial Institutions and Non-Bank Financial Institutions, issued on December 20, 2019.”

CBN asked all financial institutions to continue accepting cash deposits from the public without any charges during the period.

The Economic and Financial Crimes Commission (EFCC) has arrested Darius Ishaku, former governor of Taraba state, over an alleged N9.3 billion fraud.

Sources told to TheCable that Ishaku is presently in custody of the commission in Abuja.

Although, Dele Oyewale, EFCC spokesperson confirmed the information, he did not give further details.

The EFCC has also filed a 15-count charge against the former governor before a federal high court in Abuja on Thursday.

He will be arraigned alongside Bello Yero, former permanent secretary of bureau for local government and chieftaincy affairs.

Ishaku is accused of criminal breach of trust and misappropriating state funds to the tune of N9.3 billion contrary to Section 315 of the Penal Code Act, Cap 532, Laws of the Federal Capital Territory of Nigeria 2007.

In counts one and two, Ishaku and Yero are alleged to have misappropriated an aggregate of N1.10 billion “which formed part of the 2.5% contingency funds belonging to bureau of local government and chieftaincy affairs, Taraba state between August 25, 2015 and March 21, 2016”.

In counts three and four, the defendants were alleged to have “dishonestly diverted” state funds worth N1.1 billion for their personal use.

Count five involves N193 million allegedly diverted by the defendants between January 2019 and April 2021.

In count six, N650 million was allegedly diverted between January 6, 2019. and April 29, 2021.

In count seven, the defendants were said to have between January 6, 2019 and April 29, 2021, diverted N170 million for their personal use.

The were also alleged to have diverted N201.9 million between January 2019 and April 2021. Another N132.1 million was said to have been diverted by the defendants during the same time frame.

In counts 10 and 11, the accused persons allegedly diverted N3.3 billion and another N639.4 million between July 19, 2019 and February 5, 2021.

Between September 30, 2016 and February 23, 2021, the former governor and Yero allegedly diverted N993 million in count 12.

Between May and December 2015, count 13 alleged that the defendants allegedly diverted N90 million.

Ishaku is the only defendant answering counts 14 and 15 in which he is alleged to have diverted N23 million and N761.3 million between October 2016 and January 2018.

Ishaku was governor of Taraba state between 2015 and 2023.

The EFCC had invited the former governor to question financial issues relating to the eight years of his administration in July 2023. He was later released on bail.

The naira depreciated to N1,700 per dollar at the parallel section of the foreign exchange (FX) market on Friday.

At the end of trading hours, the naira depreciated by 1.49 percent compared to the N1,675/$ traded on Thursday.

The N1,700 per dollar is the lowest the naira has depreciated since February 19, when the naira recorded a low of N1,730/$.

Currency traders, also known as street traders, in Lagos, quoted the buying rate of the local currency at N1,680/$ and the selling rate at N1,700/$ — leaving a profit margin of N20.

At the official window, the local currency appreciated by 2.24 percent from N1,576.1/$ on Thursday to trade at N1,540.78 on Friday.

According to FMDQ Exchange, a platform that oversees the official window, a dollar was sold as high as N1,691 and at a low rate of N1,530. during trading hours.

WEEK-LONG FLUCTUATIONS

At the parallel market on Monday, the naira depreciated to N1,665/$ from N1,663 on September 20.

Maintaining the depreciation streak, the local currency fell further to N1,670 and N1,680 on Tuesday and Wednesday, respectively.

However, the naira rebounded to N1,675 on Thursday.

At the official FX market, the local currency depreciated to N1,562.66 on Monday — from N1,541.52 on September 20.

Subsequently, the naira further depreciated to N1,658.48 on Tuesday and N1,667.72 on Wednesday, before appreciating to N1,576.1 on Thursday.

On January 29, the Central Bank of Nigeria (CBN) said it had begun implementing a comprehensive plan to improve liquidity in the Nigerian FX markets in the short, medium, and long term.

The apex bank said the FX reforms were designed to streamline and harmonise multiple exchange rates, promote transparency, and lessen the likelihood of arbitrage opportunities.

On September 25, Olayemi Cardoso, governor of CBN, said the multiple interest rate hikes have restored confidence in the naira.

A Tunisian presidential aspirant, Ayachi Zammel was on Wednesday, September 25, sentenced to six months imprisonment by a court over charges of falsifying documents, making this the second prison sentence against him in a week.

The sentencing, which comes just days before the presidential election, highlights rising tensions ahead of the election, amid opposition and civil society groups' fears of a rigged election aimed at keeping President Kais Saied in power.

Zammel was sentenced to 20 months in prison last week on charges of falsifying popular endorsements.

"It is another unjust ruling and a farce that clearly aims to weaken him in the election race, but we will defend his right to the last minute," Zammel attorney Abdessattar Massoudi told Reuters.

Zammel was among only three admitted candidates competing for the position of president alongside incumbent Saied and Zouhair Magzhaoui.

Political tensions in the North African country have risen ahead of the October 6 election since an electoral commission named by Saied disqualified three prominent candidates this month amid protests by opposition and civil society groups.

The Federal Government has vowed that nobody involved in the alleged bribery saga involving a crossdresser, Idris Okuneye, aka Bobrisky, will escape punishment.

Minister of Interior, Dr Olubunmi Tunji-Ojo, made the vow at a press briefing to mark his one year in office, on Friday in Abuja.

The minister had earlier ordered a comprehensive investigation into allegations of bribery and corruption within the Nigerian Correctional Service, NCoS.

Tunji-Ojo gave the order following reports that Bobrisky, who was sentenced to prison earlier this year, did not serve his jail term inside the correctional centre.

Amid the ongoing investigation, the Nigerian Government, through the Civil Defence, Correctional, Fire and Immigration Services Board, on Thursday 26th September, 2024, suspended some senior officers of the country’s prisons service.

Those suspended are Michael Anugwa, Deputy Controller of Corrections (DCC), in-charge of Medium Security Custodial Centre (MSCC), Kiri-kiri, Lagos State; and Sikiru Adekunle, Deputy Controller of Corrections (DCC), in-charge of Maximum-Security Custodial Centre (MSCC), Kiri-kiri, Lagos State.

The Board also suspended ASC II Ogbule Samuel Obinna, serving at the Medium Security Custodial Centre (MSCC), Afikpo, Ebonyi State, for allegedly accompanying a convicted inmate out of the custodial centre to a location outside the facility.

Another senior officer, Iloafonsi Kevin Ikechukwu, Deputy Controller of Corrections (DCC), in-charge of Medium Security Custodial Centre (MSCC), Kuje, Abuja, was suspended for allegedly receiving money on behalf of an inmate.

Speaking on the bribery and corruption saga that is currently rocking the country’s correctional service, Tunji-Ojo urged Nigerians to be patient, and wait for the conclusion of the investigation.

But he assured that all those involved will face the music.

“We will not spare anybody no matter how highly placed. Let’s be patient. Investigation is on but let’s be assured that nobody will be shielded and nobody will be protected,” the minister stressed.

He added that the investigation will go beyond the allegations involving Bobrisky.

“It is not just about Bobrisky. Of the four people we suspended only two are linked to Bobrisky. The one in Afikpo took somebody out. This will continue. It is not going to stop here.”

Tunji-Ojo described the persons in the investigation committee as people of integrity.

“Look at the integrity of the people that are involved. Let the integrity of the people in the committee give you confidence,” he added.

The National Bureau of Statistics has revealed that the prices of Beans, Rice, Bread, Egg have continued to rise in Nigeria.

NBS disclosed this in its recently released Selected Food Prices Watch for August. 2024.

The data showed the prices of one Kilogram of Beans rose by 271.55 percent on a year-on-year basis to N2,574.63 in August 2024 from N692.95 recorded in the same period last year.

Also on a month-on-month basis, the price of Beans increased by 5.31 percent to N2,444.81 in July 2024.

It noted that the average price of 1kg local rice sold loose went up by 148.41 percent on a year-on-year basis from N 737.11 in August 2023 to N1,831.05 in August 2024, while there was an increase of 3.65 percent on a month-on-month basis.

This is as the price of medium size eggs (12 pieces) experienced significant price increases year on year by N121.92 percent from N1,031.55 in August of last year (2023) to N2,289.19 in August 2024.

On a month-on-month basis, the average price of this item rose by 5.48 percent from N 2,170.17 in July 2024.

On the price of bread, there was also a notable price increase of bread (sliced) by 113.16 percent on a year-on-year basis from N684.85 in August 2023 to N1,459.85 in August 2024

On a month-on-month basis, it increased by 2.28 percent from N 1,427.25 in July 2024. On the other hand,

Meanwhile, the prices of Tomatoes and Yam declined on a Month-on-month basis but remained high on a year-on-year basis.

This is as tomato 1kg declined by 11.07 percent month-on-month from N1,693.83 in July 2024 to N1,506.35.

Also, the average price of 1kg of Yam tuber increased by 188.31 percent on a year-on-year basis from N576.39 in August 2023 to N1,661.80 in July 2024. On a month-on-month basis, it decreased by -7.82 percent from N1,802.84 in July 2024.

These figures follow August headline and Food inflation data which stood at 32.15 percent and 37.52 percent.

At least 30 members of the Academic Staff Union of Universities, ASUU, have resigned from Sa’adu Zungur University, SAZU in Bauchi State.

Namo Timothy, the Zonal Coordinator of ASUU, Bauchi Zone, made this known at a press conference at Yuli Campus of the university on Friday.

He explained that the Sa’adu Zungur University, SAZU a state government-owned varsity, is in the shadow of death due to poor handling of the affairs of the university and the well-being of its members.

The ASUU coordinator, while calling on the Bauchi government to declare a state of emergency on the university to reverse trends of poor handling of affairs over the years, warned that except that is done, the ASUU branch zone can no longer guarantee industrial harmony between its members and the university administration.

He bemoaned that ASUU members at SAZU do not have a pension nor death benefit scheme as obtained in a structured public service organisations across the country.

He further stated that the SAZU administration owed its members Earned Academic Allowance and Excess Work Load Allowance to the tune of over N650 million from 2012 to date.

He also expressed displeasure at how a HND graduate was appointed Bursar of the university contrary to the provision of service of the university which spelt out that only candidates with a minimum of first degree would be considered for appointment as Bursar.

“The zone has engaged key stakeholders and exchanged several correspondences in an attempt to resolve these issues to no avail.

“This has not only dampened the morale of our members in the university but forced many, including 30 trained PhD holders to resign and migrate to other institutions where their future is secured,” he added.

The Federal High Court sitting in Abuja, on Friday, okayed a suit seeking to compel the Federal Government to investigate alleged link between the Minister of State for Defence, Alhaji Bello Matawalle and the operation of bandits in Zamfara State.

Cited as 1st to 3rd defendants in the suit marked: FHC/ABJ/CS/1434/2024, which was brought before the court by a Zamfara state-based human rights activist, Abubakar Dahiru, are; President Bola Tinubu, the Attorney General of the Federation and Minister of Justice, as well as the Inspector General of Police. 

Specifically, the plaintiff, through his counsel, Mr. Ojonimi Apeh, is praying the court to declare that “it is imperative for the 1st Defendant (Tinubu) herein to give directions to the 3rd Defendant (IGP) to investigate the activities of bandits and kidnappers in Zamfara state and in particular the allegations surrounding the Minister of State for Defence, Hon. Bello Matawalle in relation to banditry and kidnapping in Zamfara state with a view to securing and/or restoring public safety in Zamfara state.”

He further applied for, “an order of court mandating the 1st Defendant herein to direct the 3rd Defendant herein to investigate the activities of bandits and kidnappers in Zamfara State, and in particular the allegations surrounding the Minister of State, Defence Hon. Bello Matawalle in relation to banditry and kidnapping in Zamfara State with a view to securing and/or restoring public safety in Zamfara State.”

As well as, “a declaration that by the provisions of Section 215(3) and (4) of the Constitution of the Federal Republic of Nigeria 1999 as amended, and other relevant laws, the 1st Defendant herein either by himself or through such other Minister of the government of the Federation as he may authorize can give directions to the 3rd Defendant herein with respect to the maintenance and securing of public safety and public order in any part of the federation.”

The plaintiff, in a 22-paragraphed statement of claim he filed before the court, said there is presently high wave of armed banditry and kidnapping in Zamfara state, insisting that activities of hoodlums, “which started like a mustard seed in Zamfara state grew to an alarming and unprecedented proportion during the period between 2019 and 2023 when Hon. Bello Matawalle was the Governor of Zamfara state.”

“The Plaintiff avers that armed banditry and kidnapping have rendered thousands of the people of Zamfara orphans, widows, widowers, homeless, hungry, etc due to the activities of criminals who maim people, extort their monies, kill their loved ones and subject them to all manner of physical and emotional torture.

“The Plaintiff avers that he recently listened to the interview of Governor Dauda Lawal on TVC Television on 18th September 2024, wherein he publicly accused Hon. Bello Matawalle of involvement with kidnappers and bandits in Zamfara State.

“The Plaintiff avers that he has also read an online publication by Umoru Faruk Salifu in the 21st Century Chronicles online Newspaper of 22nd September 2024, where he accused Hon. Bello Matawalle of sponsoring bandits, buying vehicles for bandits, sabotaging efforts of law enforcement agents to curb banditry and kidnapping in North Western Nigeria, granting amnesty to terrorists, etc.

“The Plaintiff avers that he also read an article by Professor Abdussamad Umar Jibia wherein he chronicled series of allegations of Hon. Bello Matawalle’s involvement with banditry and kidnappings in Zamfara state.”

Among other claims, the Plaintiff, “avers that despite the open allegations as to the involvement of Hon. Bello Matawalle with banditry and kidnapping in Zamfara State, no efforts have been made by government to investigate him with a view to coming out with the truth or falsity of these allegations while the spate of banditry and kidnapping continue to reign in Zamfara State to the detriment of citizens.”

Meanwhile, the court is yet to fix a date for the matter to be heard.

The organizers of the scheduled October 1st nationwide protest have written to the Nigerian Police to seek for adequate security for their members.

This is contained in a statement jointly signed by the Education Rights Campaign (ERC), Movement for Fundamental Change (MFC), Youth Rights Campaign (YRC), Joint Action Front (JAF), and Pan-African Consciousness Renaissance (PACOR-Nigeria).

In a press briefing on Thursday, Hassan Soweto, national coordinator of the Education Rights Campaign (ERC), called on Nigerians to engage in peaceful protests against “anti-poor policies”.

The organizers noted that in Lagos, the protest will commence at Ikeja under bridge at 7:30am, with participants marching through various streets to raise awareness.

They also asked Olanrewaju Ishola, Lagos state commissioner of police, to provide adequate security for participants in line with the Police Establishment Act 2020.

“By this announcement, we inform the Commissioner of Police of our planned October action and remind the Police of their obligation under Section 83 (4) of the Police Establishment Act 2020 to provide adequate security for citizens participating in public meetings, rallies, and protests,” they said.

“This action serves as a warning and urgent cry for the Tinubu administration to address our demands immediately. If our demands are not met, more protests will follow the National Day of Survival.”

Giving reasons the protest must hold, the organizers opined: “We invite you on another journey to redeem our nation as we continue to stand against the anti-poor policies of this regime,” the statement reads.

 “As is obvious to everyone, none of the demands of our ten days of rage in August has been met.

“Rather, President Bola Ahmed Tinubu simply went ahead to use our national treasury to procure luxury cars, aircraft, and other luxuries for himself and the first family without caring a hoot about the plea of hungry Nigerians.

“To show the absolute disdain that the Federal Government holds for the people, Tinubu has gone ahead to now unleash on the Nigerian another round of hike in fuel price earlier this month.

“As we speak, the price of fuel hovers between N900 per litre to N1900 per litre depending on which parts of the country you are.

 “Meanwhile, less than two years ago, a liter of fuel did not cost more than N200 per litre. This is outrageous. This is intolerable. As a direct consequence of this increment, life has become unbearable for many Nigerian people.

 “Many are starving as the increase in fuel price has also impacted food prices. Inflation has rendered the N70,000 new National Minimum Wage irrelevant and incapable of bringing any relief to Nigerian workers.

“At the same time, the sharp rise in the cost of imported goods has rendered traders and shopkeepers redundant as shops are overflowing with goods that no one is ready to buy.

“The situation has also affected businesses and industries. Nothing less than ten multinational firms have left the shores of Nigeria between May last year, leading to even more job losses.

“Based on the foregoing, we of the #EndBadGovernance Movement have decided to declare October 1st, 2024, as ‘National Day of Survival.

 “On this day, we call on the Nigerian people, workers, students, youth, the unemployed, traders, and the poor to come out in peaceful protest and demonstrations against the excruciating condition of hardship, poverty, and hunger imposed on us by President Tinubu’s decision to implement IMF/World Bank-inspired anti-poor capitalist policies of fuel price hike, electricity tariff hike, school fees hike, and naira devaluation.

“We also call on the Nigerian people to utilize this day to demand with one voice the immediate and unconditional release of all #EndSARS and #EndBadGovernance protesters in police and prison custody, as well as freedom for detained journalists, whistleblowers, activists, and all victims of state repression.”