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

Private Sector Unveils Agribusiness Investment Fund To Boost Food Security

Published

6 hours ago

March 17, 2025

The Gleamer

In a groundbreaking move, the private sector has unveiled a pioneering investment fund to revolutionize Nigeria’s agricultural landscape and drive food security.

This initiative takes the form of a private sector-led Large-Scale Agribusiness Financing Programme, presented to the Federal Government as a collaborative effort to drive food sovereignty through large-scale investment in industrial agriculture.

At a high-level meeting with the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, and the CEO of Ministry of Finance Incorporated (MOFI), Dr Armstrong Takang, held in his office in Abuja, KPMG and private sector operators outlined an investment fund model designed to mobilise large-scale financing for the production and processing of critical crops, including oil palm, rice, maize, cassava, sugar, and soybean.

The proposal aligns with the administration’s vision to reduce Nigeria’s £3 billion annual food import bill by expanding mechanised farming, strengthening local refining capacity, and enhancing food security. It emphasises private sector participation, transparency, and scalability.

HM Edun and Dr Takang welcomed the initiative, reaffirming the government’s commitment to working with the private sector to unlock investment and drive sustainable agricultural transformation.

As Nigeria takes bold strides towards achieving food sovereignty, this innovative partnership between the private sector and the government marks a significant milestone in the country’s journey towards a more sustainable, self-sufficient, and prosperous future.

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