Business

CBN retains MPR at 14%

Published

7 years ago

May 24, 2018

By Joseph INOKOTONG

The Central Bank of Nigeria (CBN) has retained interest rate at 14 percent after a meeting, Tuesday of its Monetary Policy Committee (MPC) in Abuja.
Foreign Reserves have risen to $47. 7 billion, as the Federal Government gears up to build fiscal buffers.
According to the MPC, the decision to retain the interest rate at 14 percent for 11th consecutive time, was due to persistent uncertain economic conditions and high inflation.
Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, at a news conference in Abuja, after the MPC meeting, said out of the nine members at the meeting, eight voted to retain the MPR and other monetary indices, while one person voted to increase the MPR.
The MPR was last changed by 50 basis points in July 2016.
This means that the Cash Reserve Ratio still remains 22.5 per cent and Liquidity Ratio, 30 per cent.
Also, the Asymmetric corridor is fixed at +200 and -500 basis points around the MPR.
He said in arriving at the decision, the committee considered the forecast of high liquidity injection in the second half of 2018 and upward pressure on prices, driven largely by substantial expansion of fiscal policy.
Emefiele explained: “This pressure will arise from the late passage of the 2018 budget, outstanding balance from the 2017 budget and the pre-election expenditure.
“Tightening would ensure the mop up of excess liquidity, accelerate the reduction in the rate of inflation to single digit, boost investor confidence and promote foreign capital flows with complimentary impact on exchange rate stability.
“Conversely, the committee believes that raising the interest rate would depress consumption and increase the cost of borrowing to the real sector.”
According to him, in reviewing the choice of loosening, the committee evaluated the possible impact of stimulating aggregate demand through lower cost of credit.
The CBN governor further said: “Nevertheless, the committee deliberated on the choice at a time when liquidity had been forecast to rise substantially at the second half of the year.
“The outcome would most likely exacerbate inflationary pressures, cost higher pressure on the exchange rate and as demand for foreign exchange increases and return real rate into negative territory.
“Also, the reduction in the MPR may not necessarily transmit to lowering market lending rate, on account of high cost of doing business.”
He said while the committee argued for a hold, it observed that the downside risk to growth and upside risk to inflation appeared balanced as growth was improving, while inflation was moderating.
He pointed out that “Maintaining the current policy stand would sustain gradual improvement in both indices.
“In summary, the predominant argument for a hold at this time is to await more clarity of key indicators, that is, the signing into law and implementation of the 2018 budget, among other fiscal policies.”
Emefiele said the committee expressed satisfaction with the slow but gradual growth in the economy.
He said the MPC also took note of the improved performance of Deposit Money Banks and observed that the relatively high non-performing loans in the industry were reducing.
He said the committee also urged government to promptly settle outstanding arrears to contractors, which accounted for a major part of the non-performing loans in the banking sector.
He noted that “the committee commended the effort of the CBN in achieving positive outlook for the banking industry and advised the bank to intensify efforts to further improve banking sector soundness.
“They also advised the CBN to sustain its monitoring apparatus over DMBs to ensure compliance with existing prudential measures and early detection and management of vulnerabilities in the banking sector.
“They also urged the CBN to make sure that liquidity continues to flow from the Banks to the real sector to further strengthen economic recovery and employment generation.”
Emefiele also announced that the CBN had appointed Standard Chartered Bank and Stanbic IBTC as the corresponding banks for the N720 billion Nigeria-China Swap deal, adding that in the coming week, the CBN would release the framework for the Nigeria-China Swap deal.
According to him, “I am optimistic that Nigerians will reap the positive impact from this and we expect that when the framework is released, Nigeria will end up being the remedy trade hub in the West African sub region.
“This is because there are currently only three countries in Africa that enjoy the currency swap deal between China and themselves; South Africa, Egypt and Nigeria.
“So, Nigerians and the West African sub region will benefit a lot from this arrangement.”

Business

Dangote Refinery Boosts Fuel Exports as Gulf Refineries Shut Down

Published

1 month ago

September 2, 2025

Our Reporter

By: Fabian Apechihin

The Dangote Petroleum Refinery has ramped up fuel exports to international markets amid widespread refinery shutdowns in the Middle East, industry sources confirmed.

A senior official at the $20bn Lagos-based plant told The PUNCH that the facility exported significant volumes of petrol (PMS), diesel (AGO), and aviation fuel (Jet A1) to foreign buyers in August, following earlier shipments in June and July.

The surge comes as Saudi Aramco and other regional producers face heavy maintenance schedules, tightening fuel supply. Aramco has already shut down two plants and plans further closures, including its 460,000 b/d Satorp refinery in Jubail for a 60-day turnaround in November–December. Kuwait and India are also scaling back capacity for maintenance and seasonal demand.

According to Argus Media, these shutdowns are pushing Gulf nations to import record volumes of gasoline, with Saudi Arabia and the UAE sharply increasing purchases from Europe and other markets in recent months.

While some reports pointed to operational constraints at Dangote’s 650,000 b/d facility, the company dismissed such claims, insisting production is on track to reach 700,000 b/d by December. Earlier this year, Aliko Dangote announced the refinery had sold two cargoes of jet fuel to Saudi Aramco and recently achieved exports of about 1 million tonnes of petrol between June and July.

“With Gulf refiners offline, Nigeria has now emerged as a net exporter of refined products,” Dangote said.

Analysts suggest the extended refinery outages in the Middle East will further strengthen demand for Dangote’s output, positioning the Nigerian plant as a key supplier in regional fuel markets.

Would you like me to tighten this further into a 5–6 paragraph wire-style news brief, or keep it as a detailed feature-style report with more context on Gulf refinery shutdowns?

Business

US Oil Exports to Nigeria, Others Fall to 3.3m bpd as Local Output Rises

Published

2 months ago

August 20, 2025

Our Reporter

By: Fabian Apechihin

The United States’ crude oil exports to Nigeria and other African countries fell for the fifth consecutive month in July 2025, averaging 3.3 million barrels per day (bpd), the lowest level since March 2022.

The Organisation of Petroleum Exporting Countries (OPEC) disclosed this in its August 2025 Monthly Oil Market Report (MOMR), attributing the decline to weaker flows to Europe and Africa, particularly Nigeria, but without giving further details.

Industry analysts link the slowdown to the ramp-up of local refining capacity, especially the 650,000 bpd Dangote Refinery, which has reduced Nigeria’s reliance on imported crude, including from the US. Vanguard checks also show that crude importation has slowed further in recent months due to improved domestic production.

According to OPEC data, Nigeria’s crude oil output—excluding condensates—rose by 11 per cent year-on-year to 1.559 million bpd in July 2025, up from 1.386 million bpd in the same period of 2024. This marks the country’s highest monthly production level so far this year.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) corroborated the figures, stating that overall output, including condensates, exceeded 1.8 million bpd in July.

Gbenga Komolafe, Chief Executive of the NUPRC, said the milestone was achieved through the agency’s “Project 1 MMBOPD Incremental” initiative, supported by a multi-stakeholder collaborative framework.

“We are glad to report that we crossed the 1.8 million bpd mark on peak production last month, with average production hovering at 1.78 million bpd,” Komolafe stated.

He added that the Commission is working to sustain production growth by optimising the Maximum Efficient Rate (MER) framework, improving produced water management, and aligning operational shutdowns and maintenance schedules to minimise disruptions.

“With these measures and continued collaboration, the presidential mandate on production increase is well within reach,” he said.

Do you want me to make this rewrite more concise for a newspaper front-page brief or keep it detailed like a full energy market report?

Business

NDYPC Hails Otuaro’s Reforms in Presidential Amnesty Programme

Published

2 months ago

August 10, 2025

Our Reporter

• Lauds transparency, fairness in beneficiary selection and grassroots empowerment

• Says reforms align with Tinubu’s Renewed Hope Agenda, restore trust in Niger Delta

The Niger Delta Youths for Positive Change (NDYPC) has commended the Administrator of the Presidential Amnesty Programme (PAP), Dr. Dennis Otuaro, for what it described as bold, people-focused reforms that are restoring trust and delivering tangible benefits to the Niger Delta.

In a statement signed and issued by Comrade Elliott Yibakeni, after the conclusion of leadership training sessions with ex-agitator leaders in Abuja, the group said the PAP, once in urgent need of renewal, is now undergoing a transformation that reflects transparency, fairness, and accountability.

“At a time when public trust in institutions was waning, Dr. Otuaro has emerged as a symbol of credibility and transformation,” the statement read. “His visionary leadership is restoring integrity, empowering communities, and driving a sustainable development agenda that resonates with the aspirations of the Niger Delta.”

According to NDYPC, under Otuaro’s leadership, beneficiary selection has become fair and merit-based, ending years of favoritism and political interference. The group added that access to education, skills training, and empowerment opportunities, both locally and abroad, is now guided by equity and open competition.

The group highlighted several internal reforms, including improved staff welfare, strengthened professional capacity, and strict adherence to best practices in public procurement. These, it said, have made the PAP more efficient, responsive, and transparent.

NDYPC also praised Otuaro’s inclusive governance style, noting his sustained engagement with traditional rulers, women leaders, civil society organizations, and local communities. This approach, the group said, has strengthened peace-building efforts and deepened trust between the PAP and the people it serves.

In line with President Bola Ahmed Tinubu’s Renewed Hope Agenda, the PAP has maintained consistent payment of stipends to ex-agitators and extended direct support to vulnerable populations. NDYPC also applauded new healthcare interventions for ex-agitators facing health challenges.

The statement further commended the programme’s investments in scholarships, vocational training, and economic empowerment initiatives aimed at preparing Niger Delta youths for leadership, innovation, and sustainable livelihoods.

“Every decision reflects a deep commitment to public trust, responsible stewardship, and long-term development,” NDYPC stated. “Under Dr. Otuaro’s watch, the Niger Delta is rising stronger, united, and filled with renewed hope.”