The Monetary Policy Committee (MPC) meeting of the Central Bank of Nigeria (CBN) is likely to hold this month following the approval by the Senate on Tuesday that the nominees for the positions of Deputy Governor of the CBN and members of the MPC are screened for confirmation.
The development is seen as positive by the analysts in the financial services sector who said it would help quell uncertainties in the economy.
“This is a positive development and should further bolster international investor’s confidence on our economy. The approval is timely as the Committee members will be able to meet for the MPC meeting coming up next week,” Ayodeji Ebo, managing director, Afrinvest Securities limited said.
“Although, contrary to popular request for a drop in the monetary policy rate (MPR), I expect the MPC may keep MPR at current levels to achieve positive real return as well as keep the fixed income market attractive to Foreign Portfolio Investors,” Ebo added.
The Nigerian central bank’s Monetary Policy Committee could not hold its meeting as scheduled in January because the new committee members had not been approved.
Those awaiting confirmation include Aisha Ahmad and Edward Lametek Adamu, for Deputy Governor of CBN and four members of the MPC – Adeola Adenikinju, Aliyu Sanusi, Robert Asogwa and Asheikh Maidugu.
Rafiu Ibrahim, Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, on Tuesday raised a point of order at the plenary and urged the lawmakers to lift their embargo on confirmation of MPC members appointed by President Muhammadu Buhari.
“This is good News. It shows the interest of the nation is important to the Senate and the Executive. It means that the MPC may meet very soon, say this month, to announce monetary policy for the country. This will reduce the rising uncertainties in the country,” Ayodele Akinwunmi, head, research FSDH Merchant Bank Limited said.
“We also expect that the Senate will quickly attend to the 2018 budget proposal. In addition, we expect the executive arm of the government to do what they need to do to ensure that the 2018 budget is passed and signed into law in good time,” Akinwunmi added.
Godwin Emefiele had in January allayed fears over the inability of the CBN to hold its scheduled January 2018 MPC meeting due to lack of statutory quorum as specified in the CBN Act 2007.
The MPC has kept the key rate at a record high of 14 percent since July 2016, trying to balance bringing down inflation and boosting an economy that exited recession last year.
The Nigeria’s inflation rate, measured by the Consumer Price Index (CPI), further dropped to 15.13 per cent in January compared with 15.37 per cent recorded in December, 2017, according to the National Bureau of Statistics (NBS).
Ahead of the release of February inflation figures by the NBS today (Wednesday), analysts have come up with their various projections for the month.
FSDH Research expects inflation rate to drop to 14.31 percent in February 2018, saying the drop would be driven mainly by the base effect of the previous year’s Consumer Price Index (CPI).
The Economic Intelligence Group, an arm of Access Bank plc, forecasts inflation rate year-on-year to contract to 15.02 percent in February 2018 from 15.13 percent in January.
HOPE MOSES-ASHIKE
