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Inflation Remains a Concern Despite Economic Gains, Says CBN Governor

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Inflation Remains a Concern Despite Economic Gains, Says CBN Governor

Inflation Remains a Concern Despite Economic Gains, Says CBN Governor. Abuja—The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, announced on Wednesday that the country’s foreign reserves increased by 12.74%, reaching $39.12 billion as of October 11, 2024. This marks a significant rise from $34.70 billion in June 2024. Despite this improvement, Cardoso emphasized that inflation, while showing signs of “gradual moderation,” remains a critical issue.

Speaking before the House of Representatives Committee on Banking Regulation in Abuja, Cardoso highlighted the growth in the nation’s foreign exchange reserves, driven by foreign capital inflows and oil-related revenue. He noted that remittance flows now account for 9.4% of total external reserves, which can finance over 12 months of imports for goods and services, or 15 months of goods alone, far exceeding the international benchmark.

“In Q2 2024, we maintained a current account surplus and saw notable improvements in our trade balance,” Cardoso said. “The current reserves provide a robust buffer against external shocks.”

Cardoso also pointed to recent reforms in the foreign exchange market, including the unification of exchange rate windows into a single “willing buyer, willing seller” model, which has enhanced transparency, reduced market distortions, and increased foreign exchange liquidity. The CBN has resumed FX sales at the Nigerian Autonomous Foreign Exchange Market (NAFEM) and Bureau De Change (BDC) segments, supported by an improved supply from foreign portfolio investors.

These efforts have reduced exchange rate disparities, restored market confidence, and increased capital inflows, allowing the CBN to clear existing FX backlogs. This has, in turn, improved Nigeria’s credibility and ratings in the global financial market.

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Inflation Concerns Persist

Despite these achievements, inflation remains a pressing concern. The National Bureau of Statistics (NBS) recently reported that the consumer price index (CPI) rose to 32.7% in September 2024, the first increase in three months after declines in July and August.

Cardoso acknowledged the gradual moderation of inflation, citing the effectiveness of the CBN’s monetary policy measures. “We anticipate steady moderation of inflationary pressures in the last quarter of 2024, supported by our monetary policy and the federal government’s recent initiatives, such as tax incentives for businesses.”

The CBN has fully reverted to an orthodox monetary policy approach, raising the policy rate by 850 basis points to 27.25%, increasing cash reserve ratios, and normalizing open market operations. Cardoso also introduced an inflation-targeting (IT) framework, part of the bank’s 2024-2028 strategy, to combat persistent inflation and stabilize prices.

“The IT framework, widely used globally, has proven effective in managing inflation,” Cardoso said, reaffirming the CBN’s commitment to stabilizing the economy.

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READ ALSO: Rising Petrol Prices Drive Inflation Surge to 32.70%

 


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Music

LadiPoe – EKWE Ft. Adekunle Gold & Kel-P

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LadiPoe EKWE ft Adekunle Gold Kel P 1024x1024 1

LadiPoe – EKWE Ft. – LadiPoe – EKWE Ft….

LadiPoe – EKWE Ft. – LadiPoe – EKWE Ft….

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LadiPoe – EKWE Ft. Adekunle Gold & Kel-P

LadiPoe, a Mavins Record signee and incredibly gifted Nigerian rap artist and musician, has released another captivating song called “EKWE.”

He enlisted the help of award-winning Nigerian singer-songwriter Adekunle Gold and versatile Nigerian music producer and composer Kel-P to add some flair and musical knowledge.

This talented musician never ceases to amaze us with new, sensual music that should be on everyone’s device. Much thought and work went into creating this new tune.

To show your support, please download and listen to the music as much as you can! We sincerely hope you enjoy the music, and thank you for your patience!

You will always remember this song’s wonderful melody. You should play this song over and over again.

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As you listen, kindly drop your comment below.

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Ondo Court dismisses case against Edema’s candidacy for NNPP Governor

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Ondo Court dismisses case – Edema was also the…

Ondo Court dismisses case against Edemas candidacy for NNPP Governor

Edema was also the Chairman of the Ondo State Oil Producing Area Development Commission (OSOPADEC).

An Ondo High Court in Akure on Thursday set aside the suit challenging the candidature of Olugbenga Edema as the flag-bearer of the New Nigeria People’s Party (NNPP) for the November 16 governorship election in the state.

Delivering judgment, Justice Oluyemi Osadabay, held that the court lacked jurisdiction to entertain the suit filed by a factional candidate of the party, Michael Akintan, and his deputy, Kemi Fasua.

They are challenging the emergence of Edema as the candidate of the party. Edema, a former lawmaker, emerged as the candidate of the party on June 5, after the former candidate, Oluwatosin Ayeni stepped down for him. He chose Dr Rotimi Adeyemi as his running mate.

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Ayeni was later made the official spokesperson of the candidate and the Director-General of the Ondo State NNPP Gubernatorial Campaign Council after his resignation as a candidate. However, in an originating summons filed by Akintan, Fasua, Dr Gilbert Agbo, and Comrade Oginni Olaposi, members of the party, questioned the emergence of Edema as the candidate of NNPP and his running mate.

In the suit, plaintiffs through their counsel, Monday Mawah sought the court’s judgment on whether, in light of Sections 77 (2) and 77(3) of the Electoral Act 2022, the party was required to submit the register of members to the Independent National Electoral Commission (INEC) no later than 30 days before the party’s primary. The primary held on April 26.

They also asked whether, based on section 77(3), the defendant, whose name did not appear in the submitted register of the party, could validly claim membership in the party as at the party’s primary date.

The claimants were seeking injunctive and declarative reliefs, including a perpetual injunction to restrain Edema from presenting himself as a member and the candidate of the NNPP in the state for the November 16 governorship election.

But the defendants, through their lawyer, Rotimi Olorunfemi, asked the court to dismiss or strike out the suit for constituting a gross abuse of the court process.

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Olorunfemi said the suit was supposed to be filed at the Federal High Court, being a pre-election matter. He stated that the issue of jurisdiction was a matter that would go to the root and the competence of a court with adjudicatory power on a suit before it.

“Since the court has no jurisdiction, the case should be dismissed with cost against the claimants,” he said.

In her judgment, Justice Osadabay struck out the suit for lack of jurisdiction. She said since the case fell within the pre-election matter, it was only the Federal High Court that could decide to entertain the case. The judge awarded ₦100.000 against the claimants.

Reacting to the judgment, Edema said the judgment had led to rest the issue of whether he was a member or a candidate of NNPP.

“We knew a lot of people who are our adversaries were looking forward to dividing us.

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“But thank God, apart from the judgment of this court, we have come together as a party to be one family.

“So, we are going to walk into this election as one family of NNPP.

“So, to the glory of God, the people of NNPP should rest assured that their candidate of NNPP is now on the ballot in the eye of the law and squarely.

“And come November 16, we will win with the support of the people of NNPP and God,” he added.

Similarly, Akintan said he was ready to accept Edema as the candidate of the party. He said the court had decided the candidate and he would abide by the decision. Edema was also the Chairman of the Ondo State Oil Producing Area Development Commission (OSOPADEC).
#Ondo #Court #dismisses #case #Edemas #candidacy #NNPP #Governor

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MTN Nigeria Warns of Industry Collapse Without Urgent Tariff Reforms

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MTN Nigeria Warns of Industry Collapse Without Urgent Tariff Reforms. MTN Nigeria, the nation’s largest telecom operator, has raised alarms about the urgent need for the telecommunications sector to return to profitability in order to sustain operations. MTN’s CEO, Karl Toriola, highlighted this during a tour with Media Innovation Programme Fellows at MTN’s Ibeju-Lekki facilities in Lagos.

Toriola, who oversees 78 million subscribers, revealed that the sector has been incurring significant losses, operating on accumulated profits from over two decades—a situation he describes as unsustainable. He emphasized the need for tariff adjustments, warning that without these changes, the industry faces potential shutdown due to skyrocketing operational costs, including rising diesel prices for powering base stations.

MTN has reported a staggering N519.1 billion loss in the first half of 2024, largely due to foreign exchange losses and inflation. Toriola also expressed concerns over N250 billion owed by Nigerian banks for USSD services, which may lead to the suspension of banking services unless resolved.

Toriola called on regulators and government officials, including the Central Bank Governor and Nigerian Communications Commission, to act swiftly to prevent further decline in the sector, which is vital to Nigeria’s economy.

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