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CBN raises interest rate to 27.5%

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The monetary policy committee (MPC) of the Central Bank of Nigeria (CBN) has raised the monetary policy rate (MPR), which benchmarks interest rates in the country to 27.50 percent — from 27.25 percent.

Olayemi Cardoso, CBN’s governor, announced the committee’s decision at a press conference on Tuesday after the panel’s 298th meeting in Abuja.

He said the committee increased the MPR by 25 basis points.

Cardoso said the committee retained the asymmetric corridor at +500 and -100 basis points around the MPR.

The CBN governor said the MPC also retained the cash reserve ratio (CRR) at 50 percent, as well as the liquidity rate at 30 percent.

The economist said the MPR was raised to address price developments.

According to the CBN boss, the MPC stressed the need to focus on the optimum policy choice to address the uptrend in price development, stabilise the exchange rate, and anchor inflation expectations appropriately.

“The committee was particularly concerned that all three measures also inched up on a month-on-month basis, suggesting the persistence of price pressures with attendant adverse impact on income and welfare of citizens,” Cardoso said.

“Members, therefore, agreed unanimously to remain focused in addressing price developments.

“While food prices remain a key contributor to the uptick, members commended the efforts of the federal government for the improved security, especially in the northeast of the country, which would likely improve food production.

“The committee also noted the role of rising energy prices on the general price level due to its impact on factors of production.

“The recent increase in the price of premium motor spirit, PMS, has also impacted the cost of production and distribution of food items and manufactured goods.”

However, Cardozo said the committee was optimistic that the full deregulation of the downstream subsector of the petroleum industry would eliminate scarcity and stabilise price levels in the short to medium term.

“Members thus reiterated the need to strongly forge ahead with the deepening collaboration between the monetary and fiscal authorities to ensure the achievement of our synchronized objectives of price stability and sustainable growth.”

The CBN governor also said the committee was happy about the improvement in the external sector, reflected by the increase in the current account surplus, enhanced remittance, and capital inflows.

This, he added, has impacted the external reserves positively.

Cardoso also said the committee agreed that the key policy measures by both the monetary and fiscal authorities are “yielding the desired outcomes”.

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KADIRS seals off facilities of 13 companies over N213.6m land use charge debt

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2 hours ago

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November 27, 2024 9:00 am

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The Kaduna State Internal Revenue Service (KADIRS) has sealed the buildings of five banks over confirmed and accumulated land-based revenue (LUC) liabilities.

In an X post on Tuesday, Zakari Muhammad, head of corporate communications at KADIRS, said the Bank of Agriculture, Chicken Republic, Hamdala Hotel, and Forte Oil filling station were also sealed.

Muhammad said the total LUC debts are over N213.6 million — with Hamdalah hotel having the highest liability.

“Kaduna State Internal Revenue Service in exercise of its powers vested in it by Section 104 of Personal Income Tax Act, and Section 24 sub-sections (1,2,3) of the Kaduna State Tax Codification and Consolidation Law, 2020 as amended has sealed up the following organisations, due to huge established and accumulated land-based revenue (LUC) liabilities as established by the Kaduna State Geographic Information Service (KADGIS),” the statement reads.

“The organisations are as follows: Hamdala Hotel Kaduna with LUC revenue liability of N113,134,272.00k,” he said.

“Hamdala Motel Kaduna with LUC revenue liability of N26,291,384.00k.

“Bank of Agriculture Kaduna with LUC revenue liability of N20,484,641.00k. New Nigeria Development Company (Ten Storey Building) with LUC revenue liability of N20,002,559.00k.

“Unity Bank at Yakubu Gowon Way with LUC revenue liability of N3,886,036.00k. Unity Bank main branch Kaduna with LUC revenue liability of N3,115,920.00k.

“Chicken Republic at Yakubu Gowon Way with LUC revenue liability of N980,911.00k. First City Monument Bank (FCMB) at Yakubu Gowon Way with LUC revenue liability of N11,539,086.00k.

“Zenith Bank at Yakubu Gowon Way with LUC revenue liability of N5,355,229.00k.

“Forte Oil filling station at Muhammadu Buhari Way with LUC revenue liability of N2,238,546.00k. GT Bank parking lot with LUC revenue liability of N622,284.00k.

“A.G. Leventis Building with LUC revenue liability of N3,743,461.00k. Keystone Bank PLC with LUC revenue liability of N2,213,136.00k.”

Muhammad said KADIRS secured a court order for the immediate closure and takeover of all the affected properties until the unpaid land-based revenue liabilities are fully settled.

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Naira depreciates to N1,770/$ in parallel market

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22 hours ago

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November 26, 2024 1:04 pm

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The Naira yesterday depreciated to N1,770 per dollar in the parallel market from N1,750 per dollar last weekend.

Similarly, the Naira depreciated to N1,675.62 per dollar in the Nigerian Autonomous Foreign Exchange Market, NAFEM.

Data from FMDQ showed that the indicative exchange rate for NAFEM rose to N1,675.62 per dollar from N1,652.62 per dollar last weekend, indicating N23 depreciation for the naira.

The volume of dollars traded (turnover) fell by 55.2 percent to $108.79 million from $243.05 million traded last week Friday.

Consequently, the margin between the parallel market and NAFEM rate widened to N117.38 per dollar from N97.38 per dollar last weekend.

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Port Harcourt Refinery begins crude oil processing

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22 hours ago

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November 26, 2024 12:52 pm

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The Nigeria National Petroleum Company Limited (NNPCL) has confirmed that the Port Harcourt Refinery in Rivers State has commenced crude oil processing.

The Chief Corporate Communications Officer of the compaanyy, Femi Soneye, broke the news on Tuesday.

Soneye revealed that the refinery will operate at 60 percent capacity and process 60,000bpd.

https://twitter.com/FM_Soneye/status/1861330633831620917?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1861330633831620917%7Ctwgr%5E776845f88f6fa6dd3c70082f4da1ee2632656999%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.vanguardngr.com%2F2024%2F11%2Fbreaking-port-harcourt-refinery-begins-crude-oil-processing%2F

“Today marks a monumental achievement for Nigeria as the Port Harcourt Refinery officially commences crude oil processing. This groundbreaking milestone signifies a new era of energy independence and economic growth for our nation,” Soneye said on Tuesday.

“Hearty congratulations to President Bola Ahmed Tinubu, the NNPC Board, and the exceptional leadership of GCEO Mele Kyari for their unwavering commitment to this transformative project. Together, we are reshaping Nigeria’s energy future!”

Soneye added that truck loading will commence on Tuesday (today), adding that the NNPCL is also “working tirelessly to bring the Warri Refinery back online soon”.

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