The Delta State House of Assembly has reversed the termination of Emmanuel Emenetie by the Post Primary Education Board, 24 years ago.

Emenetie had written a petition to the Assembly on February 17, 2000, claiming that the Post Primary Education Board had unlawfully terminated his employment.

In the petition, Emenetie prayed for his reinstatement as Permanent Secretary to be on par with his colleagues in service and for all financial benefits to take effect from the termination date.

He also requested the sum of N4,800,000.00 as compensation for the number of years he was out of employment.

However, in a unanimous decision during Tuesday’s sitting, presided over by the Speaker, Hon Emomotimi Guwor, the lawmakers stated that the sack was in clear violation of the law and should be set aside.

While recommending that Emenetie be paid all his salaries/emoluments, lawmakers directed that all benefits be paid from the date of his unlawful termination of employment.

While commending the Public Petitions Committee report, the Speaker directed the Clerk of the House to inform the appropriate authorities of the House’s decision and mandated the Deputy Speaker to do a follow-up for compliance.

The lawmakers said, “He should be paid other benefits he is entitled to from the date of the unlawful termination of his employment through the rank to the position of Director, which is supposed to be at least his present rank, and through to the date of his supposed retirement.

“That Mr Emmanuel Emenetie be made to retire at the grade level of a Director. That the Chairman of the Post Primary Education Board and Head of Service of Delta State be directed that the recommendations/directives of the house as contained in paragraphs 1-3 above are complied with forthwith.”

A married man, Ernest Okporu, who was accused of having unlawful carnal knowledge of his landlord's 11-year-old daughter in Osubi town, Okpe Local Government Area of Delta State, has been arrested.

Human rights activist, Kelvin Ejumudo, who disclosed this on Tuesday, March 26, 2024, said the 39-year-old suspect is currently cooling off in detention at the Orerokpe police station.
 
According to Mr. Ejumudo, the incident happened on Saturday 23rd March 2024, after the suspect told the victim to bring his charger to his apartment and then defiled her.
 
"One Mr Ernest Okporu, 39 years of age and married has allegedly r*ped and defile the daughter of his landlord on Saturday 23rd March 2024 in the Osubi area of Delta state," he wrote.

"I got a distress call from the mother of the little girl and well meaning Deltans that a minor has been r*ped and defiled. The little girl said Mr Ernest asked her to go bring his charger from his apartment at the back of his fridge and little did she know he followed her and grabbed her from the back, tied her hands to the back and forcefully had carnal knowledge of her

"Thereafter he threatened to kill her if she told anyone and then forced her to wash her bloodstained pants.
     
"The medical reports show that the hymen has been broken, there was penetration and presence of semen.
     
"Mr Ernest okporu admitted to the crime and was pleading for forgiveness from the father of the little girl. He’s currently cooling off in detention at the Orerokpe police station in okpe local Government council area of Delta state and will be arraigned in court before the end of the week.
     
"I especially want to appreciate the DPO Orerokpe Division of the Nigeria police force Delta State Command CSP Paul Oboware for his stand on this case to ensure justice is served and will not be swept under the carpet."

Three sisters who were abducted in Egbudu-Akah, Aniocha South Local Government Area of Delta State have been rescued by the police.

The command’s Public Relations Officer, SP Bright Edafe, disclosed this in a post on his X handle on Tuesday, March 26.

The sisters have now been reunited with their families after they were rescued.

He wrote: “The command yesterday, March 24, 2024, rescued three sisters who were allegedly kidnapped in Egbudu-Akah, in Aniocha South LGA, and arrested one of the suspected kidnappers.

“The sisters have since been reunited with their families. This feat was achieved when a concerned resident of the community sighted the kidnappers dragging the girls to the bush.”

He added that in a stop-and-search duty on the same day, the operatives of the command also apprehended a suspected cultist and recovered a locally made cut-to-size double barrel gun.

He wrote, “On the same date in Agbor, a suspected cultist was intercepted during w stop-and-search duty. When searching, a locally made cut-to-size double barrel gun was recovered.

“CP Abaniwonda Olufemi has directed that the suspects be transferred to SCID for further investigation.”

Operatives of the Osun State Police have started investigating the circumstances leading to the discovery of the headless body of a woman in Osogbo.

DAILY POST had reported that a headless body of a woman was discovered opposite the Osogbo local government secretariat, Oke-Baale, Osogbo, on Tuesday.

The command’s spokesperson, Yemisi Opalola, confirming the presence of the corpse, stated that relevant authorities have been contacted to evacuate the body.

Opalola further stated that the operatives have begun an investigation into the incident to unravel the mystery surrounding how the body came to be in the spot where it was found.

“Concerning the dead body of a headless and armless woman that was found opposite Osogbo LG secretariat, Oke Baale, I want to inform you that the police are aware.

“The necessary authority has been contacted for the immediate evacuation of the corpse, while discreet investigation is ongoing,” she said.

Amid the continued appreciation of the Naira in the foreign exchange market, President Bola Ahmed Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga, has said Binance speculators wishing the Naira dropped to N2,500 have been proven wrong by the Central Bank of Nigeria under Governor Olayemi Cardoso.

Onanuga disclosed this on Tuesday through his official X handle while reacting to the sustained appreciation of the Naira at both the official and the parallel foreign exchange markets.

According to him, the Naira appreciation against USD is good news for Nigeria and should be appreciated by patriots.

He condemned the doomsday prediction of Nigeria’s currency as clearly off the mark.

“…This is good news for our country and should be appreciated by patriots. The doomsday prediction for our national currency is clearly off the mark, like the comparisons of our economy with Argentina and Zimbabwe’s.

“Those currency speculators on Binance, wishing that the Naira would fall to N2,500, have also been proven wrong by Cardoso’s CBN. The economic measures are working. The Naira will continue to wax stronger and stronger, and our people will soon start enjoying great relief as prices for goods fall”, he wrote.

DAILY POST recalls that the Naira has maintained its appreciation drive against the USD for weeks.

On Tuesday, N1,290 and N1,382.95 per USD were exchanged at both parallel and official foreign exchange markets, respectively.

The development comes as CBN sold $10,000 to each BDC at N1,251 per US dollar on Monday.

Transfer speculations swirling around Nigeria International striker Victor Osimhen has yet assumed another dimension after each of the trio, Arsenal, Chelsea and PSG, are reportedly ready to table a staggering €90m (about N138,974,356,080.00) for the Napoli star striker.

Several Italian outlets claim Napoli President, Aurelio De Laurentiis, could accept a bid below the striker’s release clause, said to be around £113 million ($143m) when the Nigerian ace signed a one-year extension last December.

But citing a report in Il Mattino newspaper, Football Italia has reported that Napoli are prepared to part company with Osimhen at the end of the season with Chelsea, Arsenal and PSG each ready to offer €90m for the Nigeria international.

According to the report, Osimhen is ‘fed up’ with Serie A and is looking forward to leaving the Stadio Maradona.

Intermediaries are already working with the striker’s agent, Roberto Calenda, to find a new club for the ex-Lille striker, who has scored 72 goals in 125 appearances with the Partenopei since 2020.

The 25-year-old recently signed a contract extension until June 2026 and the new deal includes a release clause of €120-130m.

However, Il Mattino claim De Laurentiis could accept an offer below the release clause, given that Osimhen has already decided to leave the club with words rife that his next destination is Chelsea.

In fact, Italian journalist Rudy Galetti was quoted as saying that Osimhen has agreed to personal terms with Chelsea, signalling a potential move to the London club in the upcoming summer transfer window.

Galetti, via his X account (formerly Twitter), disclosed that Chelsea are prepared to activate Osimhen’s release clause once the 2023/24 season ends.

”Victor Osimhen is always a main target for Chelsea to strengthen their attack,” Galetti said.

The former representative of Kogi West in the Red Chamber of the Nation’s Assembly, Senator Dino Melaye, has called on the Senate to save the nation from massive corruption bedevilling the economy.

Melaye stressed in a statement that “this will be the highest-ever budgetary allocation to the National Assembly, whose initial allocation in the 2024 budget proposal was pegged at N197.93bn.

According to the Senator, “On an x-ray of some of the budget, it appears that they have no national significance but an avenue to syphon public funds.”

He said, “Some years ago, I called the attention of well-meaning Nigerians to the most unfortunate and poignant situation we Nigerians have found ourselves in, where our collective wealth has been consistently looted under the guise of budget padding.

“I also recalled stating that more than 60% of corruption issues in Nigeria are built into and legalized in the budget. It’s impossible to argue the veracity when, out of 115 countries globally, Nigeria is ranked 90th on budget transparency, according to the Open Budget Index (OBI). With Nigeria’s annual budgets laced with fake items running into billions, budget fraud would be nothing but the real foundation of all corrupt practices in Nigeria.

“Lately, the news of an increase in the budget that was passed by the National Assembly. On November 29, 2023, President Bola Tinubu presented the N27.5 trillion budget to the joint session of the National Assembly. The budget has a recurrent expenditure profile of N9.92 trillion and a capital expenditure component of N8.7 trillion, while N8.25 trillion was set aside for debt servicing. Within 30 days, the lawmakers passed the budget, increasing it by N1.2 trillion and bringing the total figure to N28.7 trillion.

“Obviously, the lawmakers sacrificed diligence on the altar of speed, and so did the Commander-in-Chief, President Tinubu, who signed the bill into law within 48 hours after it was transmitted to him. The Premium Times reported on December 30, 2023, that the budget was passed after considering a report presented by the Chairman of the Senate Committee on Appropriations, Adeola Olamilekan (APC, Ogun West).

“The lawmaker explained that the increase in the appropriation was a result of a request for additional funding for items that were not listed in the Appropriation Bill as submitted by President Tinubu. He said the joint National Assembly Committee on Appropriation observed inadequate funding in the budgetary allocation of some ministries, departments, and agencies (MDAs) of the federal government.

“It was on the basis above that the National Assembly raised its 2024 budgetary allocation by 74.23 per cent to N344.85 billion. May I humbly remind Nigerians that this will be the highest-ever budgetary allocation to the National Assembly, whose initial allocation in the 2024 budget proposal was pegged at N197.93bn? On an x-ray of some of the budget, it appears that they have no national significance but are an avenue to syphon public funds.

“The new legislative budget is more than what NASS got between 2011 and 2014. The increase in allocation to the Senate and House of Representatives is happening amidst a cost-of-living crisis in the country, with the government telling citizens that the country is facing tough times.

“The same cost applies for the Senate car park (109 members) and the Reps car park (360 members). In other words, a 109-car capacity car park costs the same as a 360-car capacity car park. N15 billion for the NASS hospital (a project for 500 people). This project is enough to build one primary health care centre in every local government area in Nigeria. This applies to all the projects listed above.

“Sadly, it is the same story through all the ministries, departments, agencies, parastatals, and even the presidency. Our budgeting system is now an avenue to cheat, defraud the country, and enrich a few elected principal officers through manipulation of budget numbers, yet we still try to legalise the act.

“The complicity is jaw-dropping, especially when one discovers that the Executive is now defending the actions of the National Assembly. Could it be because the National Assembly is their alma mater? No wonder at the presentation of the budget, Senate President Godswill Akpabio declared: “Our old boys are running the executive.”

What Nigerians have witnessed so far in this administration is the over-pampering of the lawmakers by President Bola Tinubu’s led administration at a time when ordinary Nigerians are enduring the pains of the reform initiatives of his administration, like fuel subsidy removal and the merger of the exchange rates of the Naira.

“The National Assembly has failed in its primary assignment of checking the excesses of the executive arm of government. The National Assembly has turned a blind eye to a huge sum of money budgeted for imaginary projects. Both now work in partnership to perpetrate this miasma. It has become the case of chop-make I -chop. Things have fallen apart.”

The naira yesterday appreciated to N1,350 per dollar in the parallel market from N1,430 per dollar on Monday.

Similarly, the naira yesterday appreciated to N1,382.95 per dollar in the Nigerian Foreign Exchange Market (NAFEM). Data from FMDQ showed that the indicative exchange rate for NAFEM fell to N1,382.95 per dollar from N1,408.04 per dollar on Monday, indicating N25.09 appreciation for the naira.

Consequently, the margin between the parallel market rate and NAFEM widened to N32.95 per dollar from N21.96 per dollar on Monday.

Over the past month, the Nigerian naira has surged by 18.28 percent to reach N1,408.04 on Monday, up from its low of N1,665.50 recorded on February 23, 2024, as per data compiled from the FMDQ Securities Exchange.

The recent appreciation of the naira against the dollar can be attributed to foreign exchange reforms implemented by the Central Bank of Nigeria (CBN).

Key reforms include the consolidation of exchange rate windows, liberalization of the FX market, resolution of FX backlog obligations for banks and airlines, implementation of a Price Verification System (PVS), imposition of limits on banks’ Net Open Position, removal of the daily cap on remunerable Standing Deposit Facility (SDF) to N2 billion, and restructuring of the Bureau De Change (BDC) segment.

The additional measures implemented are aimed at promoting a market where both the buyer and seller are willing participants. These measures include the removal of margin limits for International Money Transfer Operator (IMTO) remittances, the introduction of a two-way quote system, and comprehensive reforms within the BDC segment to bolster stability, transparency, supply, and price discovery in the Nigeria Autonomous Foreign Exchange Market.

The Central Bank of Nigeria (CBN) sold dollars to Bureau De Change (BDC) Operators at a rate of N1,251.

In a circular issued by the CBN, the BDCs were directed to sell to eligible customers at a rate that does not exceed 1.5 percent above the purchase price.

The hike in Nigeria’s Monetary Policy Rate, also known as interest rate, from 22.75 per cent to 24.75 per cent by the Central Bank of Nigeria will further accelerate the country’s inflation and lead to massive job cuts across the country, private sector operators stated on Tuesday.

The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, and the Nigerian Association of Small Scale Industrialists explained that the increase in MPR would worsen he private sector’s ability to access affordable credit.

While they described the interest rate hike as a move that would come with unintended negative consequences, the Lagos Chamber of Commerce and Industry said the MPR hike was a price that businesses would have to pay, given the current state of the economy.

The CBN again increased the MPR to 24.75 per cent from 22.75 per cent despite concerns about economic hardship.

The CBN Governor, Yemi Cardoso, announced this after the second Monetary Policy Committee meeting for the year in Abuja on Tuesday.

He said the new rate was focused on reducing current inflationary pressures and ensuring sustained exchange rate stability.

“All 12 members of the committee decided to further tighten monetary policy by raising the MPR by 200 basis points to 24.75 per cent from 22.75 per cent. Adjust the asymmetric corridor around the MPR to +100 to -300 from plus 100 to -700 basis points,” he noted.

With inflation at 31.70 per cent, Cardoso declared that the new MPR was part of moves to tackle the country’s inflation.

The bank had, during its previous meeting, raised the MPR significantly by 400 basis points to 22.75 per cent from 18.75 per cent.

It also made changes to the asymmetric corridor around the MPR, setting it at +100/-700 basis points from +100/-300 basis points

The CBN increased the Cash Reserve Requirement to 45 per cent from 32.5 per cent, and maintained the Liquidity Ratio at 30 per cent.

Although the apex bank said it took the decision to fight inflation, the benchmark interest rate had been 22.75 per cent since the last MPC meeting that was held on February 26 and 27, 2024.

Briefing journalists on Tuesday, Cardoso, who chaired the MPC, also stated that the Cash Reserve Ratio of Deposit Money Banks was retained at 45 per cent, while the CRR of merchant banks was reviewed upward from 10 per cent to 14 per cent.

He disclosed that the liquidity ratio was left unchanged at 30 per cent.

Cardoso said the MPC noted the increase in food inflation from 35.41 per cent to 37.9 per cent as part of the consideration of the committee for revealing the interest rate.

“From our perspective, the key thing is to be fully focused on our core mandate to fight inflation and stablise the economy. The purchasing power of the average person should be restored to the level it should be,” he said.

The apex bank’s governor added that the economy would be stabilised by the end of the year.

“Things should moderate from May and the inflation rate should come down by the end of the year,” he stated.

Justifying the reasons for the hike, the former Lagos State Commissioner for Finance explained that the MPC was faced with the option of either progressing with its tightening cycle or holding to observe the impact of the previous rate hike and adjustment of the Cash Reserve Requirement.

He added that the MPC’s decision to tighten the economy was based on economic data and market analysis to fulfil its price stability mandate.

“With respect to growth, yes, there appears to be a trade-off of some sort. We expect the tightening to be short term, not long term. The right response to the policy will influence MPC’s decision to take growth into consideration

“Consequently, at this meeting, the MPC was faced with the option of either progressing with its tightening cycle or hold, to observe the impact of the previous rate hike and adjustment of the Cash Reserve Requirement. After reviewing the balance of risks and the near-term inflation outlook, members were convinced of the need to progress with the tightening cycle,” he stated.

Cardoso, allaying fears of a continuous rate hike, assured that the current spate of monetary policy tightening measures by the CBN would not be long drawn and would be relaxed once there were substantial improvements in the economy in terms of inflation and exchange rate.

According to the CBN governor, the committee does not expect a long-drawn interest rate tightening and as the reforms being implemented take effect, there will be relaxation in MPR.

He said, “While the increase in interest rate may have tendencies toward strangulating the economy, with the foreign exchange rate coming down, that also helps to moderate it overall.

“And as I said earlier, you would expect that this would not be too long drawn; at least I would hope so. We are getting towards a situation where the exchange rate is moderating, and we are expecting it to moderate and then it finds a level that, quite frankly, is sustainable. This would involve huge collaboration with the fiscal side because a lot of that cannot just rely on the monetary side alone.”

The CBN boss stated that the considerations of the committee at the meeting focused on the current inflationary pressures and the need to anchor inflation expectations as well as ensure sustained exchange rate stability.

“These considerations underscore the importance of the CBN’s commitment to the price stability mandate and the need to urgently bring inflation under control to ensure that the purchasing power of ordinary Nigerians is restored in the short to medium term,” he said.

The apex bank governor mentioned that members of the MPC noted the continued rise in headline inflation, driven largely by food prices because of supply shortages and the high cost of logistics and distribution.

He added that they called for immediate action against insecurity in the country while commending the government for its resolve to address the increasing hunger level in Nigeria.

“The committee, therefore, was of the view that addressing food insecurity is key to containing current inflationary pressures. On this note, members commended the ongoing efforts of the Federal Government towards addressing food insecurity.

“Some of these measures include the provision of various palliatives, the release of grains from the strategic reserves, the distribution of seeds and fertilisers, as well as farm implements for dry season farming.

“The committee, therefore, called for the full implementation of the Federal Government’s agricultural policies and programmes to improve food supply and further advised for broader fiscal consolidation, particularly in the improvement of tax collection and tax-to-GDP ratio.

“The committee noted with satisfaction the level of stability achieved in the foreign exchange market in the last few weeks. This, in the view of members, reflects the impact of the bank’s recent policy actions and reforms, as well as increased transparency in the market.”

According to Cardoso, the committee noted the efforts of the bank in offsetting verified foreign currency obligations, an action that will greatly enhance investor confidence and attract foreign investments to Nigeria.

The MPC also reviewed developments in the banking system and noted that the industry remained safe, sound and stable.

The committee, thus, called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macroprudential guidelines.

It also enjoined the bank to expedite action on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.

Cardoso noted that the key drivers of inflationary pressures remained the strong exchange rate pass-through to domestic prices; rising cost of transportation; high cost of energy and other production inputs; lingering insecurity, especially in food-producing areas; and legacy infrastructure deficits.

Data from the National Bureau of Statistics showed that real GDP grew by 3.46 per cent in the fourth quarter of 2023, compared with 2.54 per cent in the previous quarter.

The apex bank governor hinted that disruptions to the global supply chain, associated with pockets of geopolitical tensions, continued to pose a key concern to monetary policy.

“Global inflation has, however, continued to decelerate in 2024 but is expected to remain above the long-run objectives of major central banks. The interest rates of advanced economy central banks are, thus, expected to remain high in the short to medium term before commencing a descent.

“Consequently, global financial conditions may remain tight through 2024. Accordingly, the committee will continue to monitor developments in the global and domestic economies to ensure that inflationary expectations are anchored to restore and sustain macroeconomic stability,” Cardoso said.

The CBN stated that the next MPC meeting would be held on May 20-21, 2024.

NACCIMA raises concern

The National President, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, Dele Oye, said the group was deeply concerned with the manner in which the apex bank had continued to raise interest rates.

“The NACCIMA, representing the collective voice of Nigerian businesses across commercial, industrial, and agricultural sectors, is deeply concerned by the central bank’s approach to curbing inflation and managing excess liquidity through broad-based policy tools that inadvertently impose constraints on the private sector’s ability to access affordable credit.

“Our position, as detailed in our previous communication (Ref: NACC/NP22/23/1249 dated March 13, 2024), remains that the focus of the CBN’s policies should be recalibrated towards addressing the excess liquidity primarily stemming from the public sector’s borrowing habits and expenditure.

“The private sector, which has been effectively sidelined in the bank lending market due to the crowding-out effect, now faces even more severe repercussions,” he stated.

Oye noted that the recent rate hikes, while aimed at controlling inflation, were likely to have many negative consequences.

He outlined them to include an increase in the cost of borrowing, adding that “existing loans will incur higher interest rates, raising the cost of capital for businesses. This scenario discourages entrepreneurial activities and expansion plans, which are vital for economic growth and job creation”.

Oye averred, “Restricted credit availability: With the increase in the CRR, banks’ ability to lend is further curtailed. This exacerbates the challenges faced by the private sector, which is already grappling with limited access to finance.

“Pass-through effects on inflation: As businesses incur higher interest costs, they are left with no option but to pass these costs on to consumers through increased prices for goods and services, which can contribute to inflation rather than curb it.

“Stifling economic growth: Tightened monetary conditions may lead to a reduction in investment and consumption, which are essential drivers of economic growth. This could potentially stifle the economic recovery and dampen the prospects for prosperity.”

He recommended that the CBN should pursue a more nuanced and targeted approach, focusing on mechanisms that specifically address liquidity issues in the public sector without placing undue burden on the private sector.

“Additionally, policy directions should be clear and communicated on a quarterly basis, with a robust stakeholder engagement strategy to ensure that the views and concerns of the private sector are considered in policy formulation.

“In summary, while NACCIMA acknowledges the CBN’s mandate to maintain price stability, we urge a re-evaluation of the current policy measures to foster a more conducive environment for private sector-led economic growth.

“We remain committed to engaging with the CBN and the Ministry of Finance to find sustainable solutions that will ensure the economic well-being and prosperity of all Nigerians,” he noted.

Also speaking, the Director-General of NACCIMA, Sola Obadimu, remarked that the hike in MPR had put a strain on the inventory of businesses.

“Goods can no longer go out because people are buying less. Inventories are building up and there is nothing anybody can do. A distributor can’t take stock from you when the ones he has taken have not been bought.

“This move would naturally increase the cost of doing business and if the cost of doing business is increased because you can’t sell below your production cost, your stock would move slower and then your inventory will grow. Consumers are overwhelmed; they don’t have money to buy things anymore.

“Their wages are declining daily because there are other charges like the cost of utility and others. So, it is going to have an adverse effect on the real sector,” Obadimu stated.

LCCI reacts

Speaking with The PUNCH, the President of the Lagos Chamber of Commerce and Industry, Gabriel Idahosa, described the rate hike as a price that businesses would have to pay, given the current state of the economy.

He described the economy as ‘a house on fire’ owing to several policy missteps on the part of erstwhile CBN Governor, Godwin Emefiele.

Asked if the increase in interest rate would have a negative effect on the borrowing capacity of organised businesses, Idahosa said, “It is a no-brainer. Of course, it will. But this is a CBN that has been trying to put out fires caused by Emefiele and the rest.

“So, they have to first of all reduce the rate of the burning. It is a high price to pay. Once it is raining, either you have a lot of umbrellas or you take an aircraft and fly above the clouds, but if you don’t have a jet, then your option is limited to using an umbrella.”

Negative consequences

On his part, the National Vice Chairman of the Nigerian Association of Small Scale Industrialists, Segun Kuti-George, worried that the interest rate hike would come with unintended negative consequences.

According to Kuti-George, when businesses are forced to borrow at higher rates, the cost of production will consequently increase. This, he said, will inevitably trigger an increase in the price of products.

Kuti-George said, “This is why it is said in economics—other things being equal, because things are usually not equal. As you are trying to solve a problem, you are creating another. So, what you are left to do is consider the cause and effect and see which one is more tolerable.

“As the CBN is raising interest rates, what they have at the back of their mind is to stimulate investments and draw more money from circulation into the investment net. But, as they are trying to solve that, the interest rate at which people borrow money will also go up.

“This will be unattractive for businesses. That means the cost of funds will go up on the part of the entrepreneurs. It means the cost of production is going higher, and so will the price of goods and services. Already, inflation is over 30 per cent. It is bound to go higher.”

The Chief Economist of SPM Professionals, Paul Alaje, explained that the implication of the raised benchmark interest rate from 22.75 per cent to 24.75 per cent was that the money supply would further reduce and the lending rate was expected to go up.

He said, “The central bank is hoping that with these policies, inflation would nose dive; however, I do not think these policies would have an effect on inflation in the short run because the real driver of inflation is food inflation, as reported by the Nigerian Bureau of Statistics.

“So, if inflation does not reduce in the short run, what are the other factors that can make it come down? The rebound of the naira in the parallel and official markets is what will account for the immediate reversal of inflation from where it is to where we want it to be.

“So, I am expecting inflation to come down by June to about 25 per cent. We could manage to take the naira back to about N1,100 and stabilise between April and the end of June, coming down from 31 per cent to about 25 to 26 per cent, which would be an improvement.”

Alaje noted that due to the increase in monetary policy, more businesses would find it very challenging to borrow money.

He added, “If this increase is not properly managed, it is going to have a negative impact on investment, and if investment is bad, businesses won’t be able to borrow money from banks to stabilise or to create new jobs or render services.

“So, by implication, unemployment is expected to increase. If unemployment increases and the fiscal side is not able to respond, this is another kettle to fish.”

In the same vein, the Managing Director of Cowry Asset Management Limited, Johnson Chukwu, said that with the interest rate increase, the lending rate would further increase.

He stated, “This increase also means that liquidity in the private sector will be constrained and tightened. The tightening of liquidity, inasmuch as it has a positive impact on the exchange rate, is likely going to have an adverse effect on productive activities.”

On his part, a professor of capital markets at Nasarawa State University, Uche Uwaleke, said, “Much as tightening is necessary at this time given elevated inflation, MPC should tighten policy incrementally and in a measured manner that optimises the CBN’s policy toolkit without undue reliance on the monetary policy rate.

“The decision by the MPC to increase the MPR by 200 bps makes it a total of 600 bps in just one month if one adds the 400 bps delivered in February. This is in addition to a very high CRR of 45 per cent representing sterilised bank deposits.

“This development is now driving undue pressure by banks on the CBN’s standing lending facility and increasing the cost of funds generally. The CBN should recognise that the challenge currently facing the Nigerian economy is not just inflation but stagflation and to this end, it should equally have regard to growth concerns in future meetings of the MPC.”

‘MPR hike ineffective’

Speaking with The PUNCH, an economist at the Nigerian Economic Summit Group, Faith Iyoha, described the frequent rate hikes by the MPC as an ineffective tool to combat the country’s inflation.

She said the increase in MPR would have a negative impact on productivity, a development that would consequently cause a decline in Nigeria’s gross domestic product.

She reasoned, “They have not rejiggered the Monetary Policy Rate to be effective in curbing inflation or signaling direction. Inflation will continue to go up. They are only putting pressure on the market because interest rates will increase.

“It means productivity will become difficult. GDP growth will be constrained because the interest rate will be high. That will further put pressure on the market. It means productivity will be low. Prices will go up. It’s like going around in circles.

“It may lead to overheating of the economy. That is to say, the tightening may be too much for productivity and it will lead to a decline in GDP. There is always a relationship between prices and productivity. You cannot say you are tackling inflation without leaning on the side of productivity. You will definitely lose because you are disincentivising business people from producing.”

Former President Olusegun Obasanjo has linked the growing activities of bandits and kidnappers to the unemployment situation in the country.

Obasanjo spoke during his address at the 9th International Trade Exhibition & Conference on Agrofood, Plastics, Printing, and Packaging which was held in Lagos on Tuesday.

The trade fair was jointly organised by FairTrade Messe and the Organisation for Technology Advancement of Cold Chain in West Africa.

“Of course, if we are able to achieve this, it will improve our security. Part of our insecurity are men and women that are not properly engaged. If we are able to give them employment, there will be less of them getting involved in banditry, in kidnapping and in doing various other criminal activities that they get involved in,” Obasanjo noted.

The former president, who described himself as ‘a mad man for agriculture,’ said there was need to promote agribusiness for food security, nutrition security, employment, wealth creation, poverty elimination and income generation, particularly, foreign exchange.

According to him, the drive toward food security in the country must encapsulate food availability, affordability and accessibility.

Obasanjo said, “A friend of mine said to me, you must be a madman. I asked him what he meant, and he said if I was not a mad man I would not have gone into agriculture. So, I am a madman for agriculture. When it has to do with agriculture, you can be sure that when you call me, I will answer.

“Food security starts with availability. We must be able to produce enough. Then there is affordability. We must be able to get everybody who needs food to be able to get the food that they need. Then there is accessibility. We must get food to where it is needed.

“Almost 40 per cent of our food go to waste after cultivation. So, food security and nutrition security makes agribusiness important.”

Speaking further, Obasanjo noted that one of the most potent means of curbing youth emigration, unemployment and insecurity is to get more young people to embrace agriculture.

He regretted that Nigerian youths often prefer to explore opportunities in the entertainment industry, which underscores the need to make agriculture more glamorous.

He also called on policymakers at all levels to ensure policy consistency that would allow farmers to set short and long term targets without worrying about possible policy somersaults which may topple their plans.

A key part of this, he said, involved making single-digit loans available to farmers, as no agribusiness can produce profitably with double digit loans.

He added, “First is employment, with our teeming population and the problem we have with our youths going over the desert and risking their lives at the Mediterranean will stop. What can we do to give them enough employment at home?

“The area that is sure to provide employment for our teeming youth population is agriculture. When you talk about agriculture, not many of them will want to come to the farm, they will rather go into the music that they do now. We have to make agriculture glamorous because these youths, they make money that way (through music), and then you are asking them to come to the farm. They won’t want to.

The Managing Director of Fairtrade Messe, Paul Maerz, said this year’s edition of the event features over 140 exhibitors from across the globe, showcasing tailored products and solutions for the Nigerian market.

He said the exhibition was germane because Nigeria’s investments in food & packaging technology are soaring, positioning the nation as a key player in Africa, which trails only South Africa.

He noted that despite significant investments in local food production, Nigeria remains one of Africa’s foremost food importers and food.

He said, “As we gather here, we embark on a journey fueled by innovation, collaboration, and shared aspirations for the advancement of Nigeria’s agrofood and plastics industries. With each passing edition, our commitment to excellence has only grown stronger, and we are proud to present the elevated standards set for this year’s event.

“As Africa’s largest economy continues to invest in agrofood and plastprintpack solutions, products, and technologies, we stand at the threshold of unprecedented opportunities for all market participants.

“Nigeria’s food production has witnessed a remarkable surge of 40 per cent in recent years, from €26bn in 2016 to €36bn in 2020, projected to rise by 48 per cent between 2021 and 2024, from €42bn to €63bn. Imports are surging further, but Nigeria emerges as a leader in plastics technology investments, with remarkable growth rates.”

On his part, the Minister of Agriculture and Food Security, Abubakar Kyari lamented that post-harvest losses remain a pressing concern in Nigeria, with estimates suggesting that up to 40 per cent of our agricultural produce is lost annually due to inadequate storage and transportation facilities.

This alarming statistic, he said, represents not only a substantial economic loss to our farmers but also poses a grave threat to food security and nutrition in our nation.

Noting that Nigeria, like many other West African nations, grapples with significant post-harvest losses, exacerbated by inadequate cold chain facilities and inefficient supply chain systems, Kyari said it was imperative to underscore the pivotal role that cold chain infrastructure plays in safeguarding the integrity of our agricultural produce and ensuring food security for the populace.

“Cold chain infrastructure, encompassing refrigeration, transportation, and storage facilities, plays a crucial role in preserving the quality and nutritional value of agricultural produce from farm to fork.

“In this regard, the Nigerian government is committed to fostering partnerships and collaborations with both public and private stakeholders to strengthen our cold chain networks,” he said.

The ambassador of the Kingdom of the Netherlands, Wouter Plomp, pledged the commitment of the European nation in strengthening ties with Nigeria to ensure food security in the country.

He noted that agriculture was a key component of the Nigerian economy; hence, it was important to create an environment that allows agriculture to thrive.