Business

Apprehension In Markets As CBN Holds First 2021 MPC Meeting

Published

4 years ago

January 25, 2021

The Central Bank of Nigeria (CBN) begins its first meeting in 2021 today with the apex bank’s monetary policy decision-makers expected to consider its monetary tools and make crucial decisions on benchmark interest and other monetary rates.

The Monetary Policy Committee (MPC) of the CBN is expected to decide on the Monetary Policy Rate (MPR), which was retained at 11.50 per cent at the last meeting in November, last year.

The decisions of the apex bank, which are expected to be announced at the end of the two-day meeting tomorrow, Tuesday, January 26, 2021, are expected to have ripple effects across the markets. A decision to hold rates may retain the current market trend in favour of equities, but a hike in rates could moderate quoted equities’ rally in favour of fixed-income market.

The MPC traditionally reviews the developments in the domestic and global economies and the state of the financial markets, especially the domestic market, while making possible projections on the outlook as guidance for its decisions.

Cordros Group, a major investment banking group, said it expected the apex bank to hold the MPR unchanged.

According to analysts at Cordros, although rising inflationary pressures alongside fragilities in the balance of payments present a strong case for monetary tightening, it is rather too early for such a stance given the need to support economic recovery.

Analysts noted that monetary tightening would contradict previous heterodox policies targeted towards improving the flow of credit to the real sector of the economy and prolong the recovery phase.

“Monetary policy tightening will also create severe financial market turbulence and amplify deficit financing pressures for the government. On a balance of factors, we believe the Committee will keep policy rates unchanged and affirm the use of unorthodox measures such as CRR debits, Loan-to-Deposit Ratio (LDR), and direct intervention in employment-stimulating sectors to influence macroeconomic outcomes and ultimately attain macroeconomic stability,” Cordros stated.

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Business

RMAFC Chairman, Champions New Revenue Optimization Initiative in Collaboration with NASDRA

Published

6 days ago

January 30, 2025

The Gleamer

Joel Ajayi

The Chairman, Revenue Mobilization Allocation and Fiscal Commission (RMAFC), Dr. Muhammed Bello Shehu, OFR, has reaffirmed the Commission’s commitment to modernizing Nigeria’s revenue generation in collaboration with the National Space Research and Development Agency (NASDRA) and other key stakeholders.

The Chairman made this reaffirmation on
Thursday, at the Commission’s Headquarter in Abuja, during the launching of the implementation of the Presidential initiative on revenue optimisation and digitalisation via space technology.

The Chairman recalled that during his inaugural speech, His Excellency, President Bola Ahmed Tinubu, GCFR, emphasized the importance of economic recovery through enhanced revenue generation, which can primarily be achieved through the discovery of new revenue streams.

He emphasized that the Renewed Hope Agenda of this Administration can only be realized through the implementation of efficient revenue generation methods, with the creation of new revenue streams through the use of modern technology.

Dr. M.B. Shehu, OFR said, “We stand at the threshold of a new era, where innovation, creativity and collaboration drive economic growth and progress. It is indeed not an overstatement to say that the traditional sources and methods of revenue generation, apart from the fact that they are no more in vogue, are, most importantly, not sufficient to meet the evolving needs of our great Nation. Therefore, as key stakeholders, we must think innovatively and collaboratively to unlock new opportunities for economic growth and development in the interest of our beloved country.”

Dr. Shehu, therefore, emphasized the need for a strategic, technology-driven approach to revenue mobilization, pointing out that effective collection, accountability, and proper utilization of revenues are essential for national development. He posited that optimizing revenue sources is not just a necessity but a responsibility that must be shared by all stakeholders. “We are at the verge of writing a new chapter in Nigeria’s leadership. The collective determination of stakeholders here today is key to optimizing revenue collection and utilization. This is a task that must be achieved for our dear country.” He said.

The Director General of NASDRA, Dr. Matthew Olumide Adepoju, highlighted the potentials of space technology in revenue mobilization, noting that with AI, robotics, and space innovation, Nigeria can generate up to $50 billion annually while also strengthening national security.

Earlier in his Welcome Address, the federal commissioner representing Bauchi State in the Commission and Ag. Chairman of the Mobilization and Diversification Committee, Engr. Muhammed Sani Baba acknowledged the importance of the initiative and called for the support of all stakeholders to ensure its successful implementation.

He disclosed that the occasion was organised as a step towards the implementation of the directive of Mr President that the generation, collection and subsequent utilization of revenue should be modernized for the growth of the country and its exciting future.

A technical session featured a NASDRA-led presentation on leveraging space science and technology to block revenue leakages and create new revenue streams.

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