Business
CBN increases lending interest rate to 17.5%
The Central Bank of Nigeria has raised its benchmark lending rate to 17.5 per cent ostensibly to contain the inflationary pressure in the country.
The CBN Governor, Godwin Emefiele, announced this Tuesday after the apex bank’s Monetary Policy Committee (MPC) meeting that began Monday.
Speaking at the end of the two-day meeting in Abuja, Emefiele said the committee voted to keep the asymmetric corridor at +100 and -700 basis points around the MPR.
He also disclosed that the MPC voted to keep the Cash Reserve Ratio (CRR) at 32.5 per cent, as well as the Liquidity Ratio at 30 per cent.
The CRR is the share of a bank’s total customer deposit that must be kept with the central bank in form of liquid cash, while the bank’s liquidity ratio is the proportion of deposits and other assets they must maintain to be able to meet short-term obligations.
In November, the MPC raised its benchmark lending rate to 16.5 per cent in a sustained push to control inflation and ease pressure on the naira.
In December, the nation’s statistics bureau said Nigeria’s s inflation figure dipped to 21.34 per cent from 21.47 per cent in November after 10 straight monthly increases. In the same month, the statistics bureau said food inflation which is one of the driving forces of Headline Inflation dropped to 23.75 per cent from 24.13 per cent a month earlier.
On Tuesday, Mr Emefiele announced that the committee welcomed the recent deceleration in the nation’s inflation rates, noting that the persistence in the policy rate increase over the last few meetings of the committee has started to yield the expected decline in inflation.
The committee deliberated on either to hike rates further or hold to examine the impact of the last four rate increases, Mr Emefiele said, adding that the options considered were primarily to hold the rate or tighten further to consolidate the previous gains.
However, the MPC noted that loosening the rate will gravely undermine the gains of the last four increases, hence the hike in rate.
Business
Dangote refinery further drops diesel price to N940/litre
Dangote refinery further drops diesel price to N940/litre
Dangote Petroleum Refinery has announced a further reduction in the price of both diesel to N940 per litre.
This is coming a few days after the refinery reduced diesel price to N1,000 per litre.
It also gave a new price for aviation fuel, pegging it at N980 per litre.
It disclosed this in a statement on Tuesday, saying the diesel price change of N940 is applicable to customers buying five million litres or more from the refinery, while those purchasing one million litres or more will pay N970.
It said this marked the third major reduction in diesel price “in less than three weeks when the product sold at N1,700 to N1,200 and also a further reduction to N1,000 and now N940 for diesel and N980 for aviation fuel per litre”.
Speaking on the new development, Anthony Chiejina, head of communication, Dangote Group, said the new price was in tandem with the company’s commitment to alleviating the effect of economic hardship in Nigeria.
“I can confirm to you that Dangote Petroleum Refinery has entered a strategic partnership with MRS Oil and Gas stations, to ensure that consumers get to buy fuel at affordable price, in all their stations, be it Lagos or Maiduguri,” he said.
“You can buy as low as one litre of diesel at N1,050 and aviation fuel at N980 at all major airports where MRS operates.”
He said the partnership would be extended to other major oil marketers.
“The essence of this is to ensure that retail buyers do not buy at exorbitant prices,” he said.
“The Dangote Group is committed to ensuring that Nigerians have a better welfare and as such, we are happy to announce this new prices and hope that it would go a long way to cushion the effect of economic challenges in the country.”
Director-General of the Manufacturers Association of Nigeria (MAN), Ajayi Kadiri, said the decision “to first crash the price from about N1,750/litre to N1,200/litre, N1,000/litre and now N940 is an eloquent demonstration of the capacity of local industries to positively impact the fortunes of the national economy.
“The trickle-down effect of this singular intervention promises to change the dynamics in the energy cost equation of the country, in the midst of inadequate and rising cost of electricity.”
Aviation
Dana Air grounds plane after runway incident, 83 passengers on board
Dana Air grounds plane after runway incident, 83 passengers on board
Dana Air says it has grounded its airplane that skidded off the Lagos airport runway on Tuesday.
The affected aircraft, a McDonald Douglas (MD-83) with registration 5N-BKI, had 83 passengers on board, it added.
Spokesman for the airline, Mr Kingsley Ezenwa, however, said all the 83 passengers and crew onboard the flight disembarked safely without injuries.
He said in a statement that the airline decided to ground the plane to allow for proper investigation into what caused the accident.
The statement read in part, “Dana Air regrets to inform the public of a runway incursion involving one of our aircraft, registration number 5N BKI, which was flying from Abuja to Lagos today, 23/04/24.
“We are relieved to confirm that all 83 passengers and crew onboard the flight disembarked safely without injuries or scare as the crew handled the situation with utmost professionalism.
“We have also updated the Accident Investigation Bureau, AIB, and Nigerian Civil Aviation Authority (NCAA) on the incident, and the aircraft involved has been grounded by our maintenance team for further investigation.
“We wish to thank the airport authorities, our crew for their very swift response in ensuring the safe disembarkation of all passengers following the incident, and our sincere apologies and appreciation to the passengers on the affected flight for their patience and understanding.”
Aviation
Just in: Panic as Dana Air plane skids off Lagos airport runway
Just in: Panic as Dana Air plane skids off Lagos airport runway
Tragedy was averted on Tuesday as a Dana Air plane skidded off the Lagos airport runway.
Although it was not immediately clear why the pilot lost control, causing the plane skid off the runway, Newstrends learnt that the incident led to the diversion of other flights to the international wing of the Murtala Muhammed Airport, Lagos.
In a post by X user, BelemaMhart — who boarded another airline — it was stated that there were no casualties.
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