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Updated: FG worries over galloping inflation, to cut cash in circulation

Published

1 year ago

August 23, 2023

FG worries over galloping inflation, to cut cash in circulation

Minister of Finance and Coordinating Minister for the Economy (CME), Wale Edun, has hinted about plans by the Federal Government to cut the cash in circulation to rein in inflation.

He said the measure became imperative to keep rising inflation at a desirable and stable level.

Amid fuel subsidy removal and forex liberalisation policies, Nigeria’s annual inflation rate was up 129 basis points from June to 24.08 per cent in July 2023.

Edun spoke in Abuja on Tuesday while chairing the Federation Account Allocation Committee (FAAC) meeting.

“There should be discipline in money supply to control inflation in the nation’s economy,” the minister told FAAC members.
By maintaining discipline in money supply, the government aimed to keep inflation within a target range conducive for stable economic growth and price stability, he said.
The finance minister also noted that there was a need for government to mobilise resources to deliver on its mandate to increase employment and reduce poverty.

The FAAC agreed to share N966.11 billion as federal allocation to the three tiers of government for last month.

The amount was shared from a total gross revenue of N1.746 trillion.

The total revenue was made up statutory revenue of N397.42 billion, Value Added Tax (VAT) revenue of N271.95 billion, Electronic Money Transfer Levy (EMTL) revenue of N12.84 billion and Exchange Difference revenue of N283.9 billion.

For last month, the total deductions for cost of collection came to N62.42 billion, while the total deductions for savings, transfers, refunds, and tax credit cancellation amounted to N717.96 billion.

The Excess Crude Account (ECA) stood at $473,754.57.

A communiqué made available to reporters after the meeting showed that the Federal Government got N374,48 billion; state, N310.67 billion; and the 774 local government areas went home with N229.41 billion.
Additionally, N51.55 billion was shared among the relevant states as 13 per cent derivation revenue.
The gross statutory revenue for the month of July was N1.15 trillion, which was lower than the N1.15 trillion generated in the preceding month (June) by N2.49 billion.

Related Topics:Cash in circulation Featured Finance minister inflation Wale Edun

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PH refinery: 200 trucks will load petroleum products daily, says Presidency

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November 26, 2024

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PH refinery: 200 trucks will load petroleum products daily, says Presidency

No fewer than 200 trucks are set to load petroleum products at the government-owned Port Harcourt Refinery, the presidency has said.

A presidential spokesperson, Sunday Dare, made this known in a statement through his official X handle on Tuesday.

Newstrends had reported that the Nigerian National Petroleum Company on Tuesday announced that Port Harcourt Refinery has resumed operations and crude oil processing after years of inactivity.

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Breaking: CBN increases interest rate to 27.50%

Published

6 hours ago

November 26, 2024

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Breaking: CBN increases interest rate to 27.50%

The Central Bank of Nigeria (CBN) has raised the lending interest to 27.50 per cent from 27.25 per cent.

This latest increase in the Monetary Policy Rate came after a meeting of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) on Monday and concluded Tuesday.

The Monetary Policy Rate measures the benchmark interest rate.

The CBN Governor, Yemi Cardoso, announced this in Abuja on Tuesday after the MPC meeting, last for the year, held at the apex bank’s headquarters.

He said the MPC voted unanimously to raise the MPR by 25 basis points from 27.25% to 27.50%; and retain the Cash Reserve Ratio (CRR) at 50% for Deposit Money Banks and 16% for Merchant Banks.

The CBN governor also said the MPC retained the Liquidity Ratio (LR) at 30% and Asymmetric Corridor at +500/-100 basis points around the MPR.

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Nigeria’s unemployment rate dropped to 4.3% in Q2 – NBS

Published

10 hours ago

November 26, 2024

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Nigeria’s unemployment rate dropped to 4.3% in Q2 – NBS

Nigeria’s unemployment rate stood at 4.3 per cent in the second quarter of 2024, the National Bureau of Statistics (NBS) has said in its latest report.

The report released on Monday said the unemployment rate decreased compared to the 5.3 per cent recorded in the Q1 of 2024.

The NBS defined the unemployment rate as the share of the labour force (the combination of unemployed and employed people) who are not employed but actively searching and are available for work.

“The unemployment rate for Q2 2024 was 4.3%, showing an increase of 0.1 percentage point compared to the same period last year,” the report stated.

“The unemployment rate among males was 3.4% and 5.1% among females.

“By place of residence, the unemployment rate was 5.2% in urban areas and 2.8% in rural areas. Youth unemployment rate was 6.5% in Q2 2024, showing a decrease from 8.4% in Q1 2024.”

Report also said the unemployment rate among persons with post-secondary education was 4.8 per cent; 8.5 per cent among those with upper secondary education, 5.8 per cent for those with lower secondary education, and 2.8 per cent among those with primary education in Q2 2024.

Employment rate – 76%

The report showed that the employment-to-population ratio, which measures the number of employed workers against the total working-age population, increased to 76.1 per cent in Q2 2024.

“In Q2 2024, 76.1% of Nigeria’s working-age population was employed, up from 73.1% in Q1 2024,” the report stated.

Self-employment – 85.6%

The report further showed that Nigeria’s labour market saw a notable shift as the proportion of self-employed individuals increased in Q2 2024.

It stated, “The proportion of persons in self-employment in Q2 2024 was 85.6%.”