On Air Now:
Now Playing:Loading...
site loader
January 11, 2022 Report Says CBN May Increase Interest Rate This Year

Report Says CBN May Increase Interest Rate This Year

A new report has said likely stronger dollar demand will convince the Central Bank of Nigeria of the need to tighten monetary conditions as with the trend across global central banks to manage foreign exchange reserve depletion.

Sigma Pensions said this in the report titled ‘Nigeria 2022 outlook: Consolidating on recovery but persisting large imbalances present headwinds’.

According to the report, the large fiscal borrowing requirements amid less liquid financial system conditions in 2022, relative to the last two years, suggest ample scope for heightened market expectations about higher interest rates.

It said, “We expect the oil sector to exit recession in 2022 as Nigeria’s crude production rebounds from the 1.6mbpd low base in 2021 towards a range of 1.8-1.85mbpd and as most OPEC+ curbs are removed by May 2022.

“Given our price and production expectations, we expect Nigeria’s external balance to improve as oil export receipts normalise to trend levels amid persisting import demand suppression on account of the CBN’s currency policy.

“We expect Nigeria’s economic growth to stabilise around 3.4 per cent in 2022, reflecting improvements across telecoms, trade, manufacturing, and oil.”

According to the report, a large fiscal borrowing plan and higher political risk premiums are expected ahead of the 2023 general elections.

It said, “Furthermore, likely stronger dollar demand will convince the CBN of the need to tighten monetary conditions as with the trend across global central banks to manage FX reserve depletion. Against this backdrop, we think the current bearish trends in the fixed income market will likely persist over 2022.

“For equity markets, we see bearish trends dominating market sentiments as the fixed income optionality becomes available to investors after a two-year hiatus and as political risk premiums on Naira risk assets heighten ahead of the 2023 general elections.”

The company expects the domestic institutional investor support in bellwether names to continue to curtail downside to the overall market.

It said, “Despite the emergence of new variants of the COVID-19 virus, we view higher vaccine coverage and the existence of drugs as supportive of further normalisation in global economic activity in 2022.

“Rising inflation expectations from a mix of supply bottlenecks and stimulus fueled demand is likely to drive a withdrawal of global monetary stimulus and incite interest rate hikes which will underpin higher US dollar interest rates.”

January 11, 2022 Lassa Fever Kills WHO Doctor, Other In Benue

Lassa Fever Kills WHO Doctor, Other In Benue

Two people, one of them a medical doctor identified as Samuel Nyityo, have died of Lassa fever in Benue State.

The other person is said to be in a stable condition.

The medical doctor, who was working with the World Health Organisation, was diagnosed with Lassa fever and was rushed to Irrua in Edo State, where he died on Sunday.

It could not be ascertained how the medical doctor contracted the disease, but a source hinted that two of his neighbours had Lassa fever in December.

The state Commissioner for Health and Human Services, Prof Joseph Ngbea, told our correspondent that only the medical doctor had been confirmed dead from Lassa fever.

The commissioner, who spoke to our correspondent on the telephone said, “The medical doctor was diagnosed with Lassa fever a few days ago and when there was no dialysis at the teaching hospital, we quickly sent him to Irrua in Edo State, where he died on Sunday.”

Ngbea said another patient was in a stable condition, adding that the deceased worked with the WHO in Benue State.

The commissioner stated that the government had begun contact tracing of those who likely had contact with the victims.

“We have also procured drugs worth N600,000; the emergency unit has come out with an action plan and have been mobilised to go into the houses of the two persons to get those who had contact with them as well as to find out whether there are rodents there,” the commissioner said.

He added that the state government would soon organise a workshop on Lassa fever to create more awareness on why people should not keep anything that would attract rodents into their homes.

MORE STORIES

 
January 11, 2022 BREAKING: Former Nigerian Leader Ernest Shonekan Dies At 85

BREAKING: Former Nigerian Leader Ernest Shonekan Dies At 85

Chief Ernest Shonekan, the former head of the Interim National Government that succeeded the military junta of General Ibrahim Babangida, is dead.

Shonekan, a boardroom guru before his selection to head the Interim National Government, died in Lagos at the age of 85, according to TVC.

He was the Chairman of the interim National Government between August 26 and November 17 1993 when he was ousted in a palace coup led by late General Sani Abacha who was Secretary of Defence.

Details later…

MORE STORIES

January 10, 2022 President Buhari’s Meeting With APC Governors For Convention Date Fails To Hold

President Buhari’s Meeting With APC Governors For Convention Date Fails To Hold

The meeting between President Muhammadu Buhari and Governors on the platform of the All Progressives Congress, APC, billed to hold yesterday has failed to hold.

The meeting which was to hold at the Aso Villa, we gathered did not go on as planned, despite an earlier statement by the Chairman of the Northern Governors Forum and Governor of Plateau State, Solomon Lalong, that the Governors would meet the President to brief him on the date for the APC Convention in February.

Inspiration FM recalls that President Buhari had in an interview warned the APC to sort out its internal issues in order not to allow the opposition PDP win the 2023 elections, prompting Governor Lalong to call fort the meeting on January 9 in Aso Rock.

MORE STORIES

Watch Live

x
PHP Code Snippets Powered By : XYZScripts.com
X