News
CBN’s financing of the fiscal deficit fueling rising inflation in Nigeria- World Bank
The World Bank has said the Central Bank of Nigeria (CBN) financing of the fiscal deficit has continued to fuel inflation by increasing liquidity in the money market.
The Bank also noted that interest payments on the Nigerian government’s borrowing from the CBN will gulp over 62 percent of its total revenue by 2027.
The Brittonwoods institution made this known in the latest edition of its Nigeria Development Update (NDU) titled, ‘Nigeria’s choice’.
With the Nigeria’s government borrowing from the apex bank through its Ways and Means advances, to finance budget deficits, there hacve been concerns that its stock of loans may be heading to unsustainable levels if left unchecked .
In its latest report, the World Bank said interest payments on such advances will increase by 2.4 percent points of the gross domestic products (GDP) between 2018 and 2027.
READ ALSO:
- Anger, agony as banks stick to old notes 20 days after the release of redesigned naira notes
- SGF decorates Corps Marshal Biu, says FG employs 8,000 personnel, buys 958 vehicles for FRSC
- Delta doctor killed by cultists, not patient’s relatives – Police
Just last year, some economic experts had warned that Nigeria’s advances to the Federal Government in the seven years of the Muhammadu Buhari administration grew to over N23.8 trillion, in a trend seen as a violation of the fiscal responsibility law, triggering inflation and aggravating the country’s debt burden.
In a similar vein, the International Monetary Fund (IMF) had last November, warned that the CBN’s continued financing of the country’s deficit through Ways and Means will complicate government’s effort to contain inflation. The global institution added that financing of the fiscal deficit through Ways and Means continues to fuel inflation by increasing liquidity in the money market.
The report added that at least five million Nigerians were pushed into poverty as a result of rising inflation between January and September 2022.
The World Bank estimates that between 2020 and 2021, inflation left about eight million more Nigerians below the poverty line by increasing the total number of poor people to about 90 million.
But higher inflation in 2022 is estimated to have pushed an additional five million Nigerians into poverty between January and September 2022, largely through higher prices of foods especially in urban areas.
The report said that inflation is partly the result of monetary, exchange rate and fiscal policy decisions.
“After loosening monetary policy through September 2020 to help combat the economic impact of the pandemic, the CBN left its monetary policy rate unaltered until May 2022, making it one of the last emerging economies to begin tightening policy,” the report said.“CBN has implemented measures to curtail inflation, raising the monetary policy rate by 500 bps and the cash reserve ratio by 500 bps.
News
Edo Gov Okpebholo freezes govt accounts, reverses ministry’s name
Edo Gov Okpebholo freezes govt accounts, reverses ministry’s name
Edo State Governor, Monday Okpebholo, has directed the immediate freezing of all state-owned bank accounts.
In a statement issued on Thursday by his Chief Press Secretary, Fred Itua, the governor stated that the accounts would remain frozen until further notice.
He instructed commercial banks, ministries, departments, and agencies (MDAs) to comply with the order immediately or face severe consequences.
The statement reads: “All state bank accounts with commercial banks have been frozen. Commercial banks must comply with this order and ensure that not a single naira is withdrawn from government coffers until further notice.
READ ALSO:
- Wike claims Adeyanju became activist after he rejected request to be PDP Publicity Secretary
- VeryDarkMan to Falana: I won’t apologise to anybody
- Court adjourns Falana’s suit against VeryDarkMan to January 2025
“Heads of Ministries, Departments, and Agencies must ensure full compliance without delay.
“Following necessary investigations and reconciliations, the governor will take appropriate action and decide on the way forward. For now, this order remains in effect.”
Okpebholo also directed relevant agencies to revert the name of the Ministry of Roads and Bridges to its previous title, the Ministry of Works, a change made during the Godwin Obaseki administration.
“It is odd to name a government institution the Ministry of Roads and Bridges, especially when not a single bridge was built by the previous administration — not even a pedestrian bridge.
“In the coming days, we will examine further actions taken by the previous administration and make decisions that serve the best interests of the state,” the statement added.
Edo Gov Okpebholo freezes govt accounts, reverses ministry’s name
News
Israel-Palestinian conflict: Two-state solution is a deception, says Gumi
Israel-Palestinian conflict: Two-state solution is a deception, says Gumi
Prominent Islamic scholar Dr. Ahmad Mahmud Gumi has criticized the widely discussed two-state solution for the Israel-Palestine conflict, calling it a “deception.”
His remarks followed a recent summit of the Organisation of Islamic Cooperation (OIC) in Riyadh, where President Bola Tinubu and other leaders condemned Israel’s actions in Gaza and urged an end to hostilities.
In an interview with Daily Trust at his Kaduna residence, Gumi argued, “This Two-State Solution is a deception. No Israeli will allow a Palestinian to survive, and Palestinians will never allow Israel to survive.
READ ALSO:
- Court sacks Ondo LP candidate, two days to governorship poll
- FBI raids home of crypto platform Polymarket CEO, after accurate prediction of Trump win
- 24-hour power supply: FG seeks private sector support for $10bn funding gap
The only solution is to dissolve the two states and create a democratically electable region.”
Gumi commended the OIC’s support for Palestine, noting that Muslims and Arabs worldwide increasingly see the treatment of Palestinians as “genocide” and accuse Israel of human rights abuses.
He also called for a return to the pre-1948 structure, where Palestinians, Jews, and Christians lived together, suggesting a single, inclusive state that allows peaceful coexistence.
“When I hear people talking about Two-State Solutions, I know they are just deceiving themselves,” Gumi added, advocating for a unified region where people of all faiths can live together, similar to the multi-faith coexistence seen in countries like the United States.
Israel-Palestinian conflict: Two-state solution is a deception, says Gumi
News
Court sacks Ondo LP candidate, two days to governorship poll
Court sacks Ondo LP candidate, two days to governorship poll
The Labour Party candidature of Olusola Ebiseni for the upcoming gubernatorial election in Ondo State has been nullified.
The nullification follows the sacking of Ebiseni by the Court of Appeal, sitting in Abuja, on Wednesday.
The governorship election of the southwest State will hold on Saturday, 16 November 2024.
The judgement disqualifying Ebiseni was unanimously delivered by the three members of the panel and read out by the chairman of the panel, Justice Adebukola Banjoko.
The judgment granted the prayer of the Labour Party who preferred the case against Ebiseni.
READ ALSO:
- 12-yr-old Nigerian girl invents air filter, gets $11.5m funding
- Gunmen kill two soldiers in Abia checkpoint attack
- 94 arrested as task force raids Lagos rail corridor squatters
Justice Banjoko held that, “the appeal marked CA/ABJ/CV/1172/2024 brought by the Labour Party against Chief Olusola Ebiseni and two others is allowed.”
Justice Banjoko further stated that the Certified True Copy of the judgment would be provided to the parties involved in the appeal as soon as possible for their review.
Recall that Justice Emeka Nwite of the Federal High Court in Abuja had ordered the Independent National Electoral Commission to accept and recognize Olusola Ebiseni and Ezekiel Awude as the Labour Party’s governorship and deputy governorship candidates for the November 16 Ondo State governorship elections.
Justice Nwite confirmed that the second primary election conducted by the Labour Party, which resulted in Ebiseni and Awude being selected as candidates, was valid and should be upheld by INEC.
However, the appellate court has now overturned the judgment of the trial court’s judgment.
Court sacks Ondo LP candidate, two days to governorship poll
-
International3 days agoBelgium University offers scholarship up to €12,000 for Master’s students
-
Sports3 hours agoBREAKING: Super Eagles qualify for AFCON 2025
-
Railway2 days agoNigerian railway adds extra train to Friday, Saturday trips on Lagos-Ibadan route
-
International2 days agoUK announces 45,000 seasonal worker visas for 2025
-
Aviation5 hours agoDisaster averted as bird strike hits Abuja-Lagos Air Peace flight
-
Education1 day ago12-year-old Nigerian girl Eniola Shokunbi invents air filter to reduce spread of diseases in US schools
-
International3 days agoSaudi crown prince says Israel committing ‘genocide’ in Gaza
-
Business2 days agoTop 5 crypto apps that work with Nigerian Bank accounts