CBN’ll retain MPR at 14% to sustain dollar inflow

IN spite of the optimism expressed by the Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele about the possibility of reduction in the Monetary Policy Rate (MPR) before July, Chief Executive of Afrinvest Securities Limited, Ayodeji Ebo says a rate cut will be unlikely as this would undermine foreign exchange inflow and stability in the foreign exchange market. Ebo made this assertion while speaking at the Finance Correspondents Association of Nigeria (FICAN) Economic Outlook with theme:

‘Nigeria Economy and Financial Market Outlook: 2017 Review and 2018 Outlook’ held at the FICAN Centre, Lagos. The CBN Governor had on Wednesday said the apex bank may begin a gradual rate cut by the end of the first half of the year as inflation continues to decline. Inflation which had risen to almost 19 per cent last year January had maintained a steady decline standing at 15.37 in December. Speaking at the Ebo stated that a cut in rate would impact rates at the money market causing investors to consider putting their funds in other countries where the risks are not as high with a good enough returns in investment. “This will affect the current stability at the foreign exchange market and that is what the government would not want at a time the country is approaching an election period”, he said. He explained further that while the argument for a cut in rates is for increased lending to the real sector, a lower benchmark interest rate would not result in increased lending by banks. “Bringing down the MPR will not translate to improved lending by the banks. There is nothing like patriotic lending because we have to grow the economy. The banks will not use private money to grow the economy when they still see there are evident risks within the space. It is about the risk environment. “Most of the companies that they would have lend to are struggling in terms of returns on their investment as they have factor in the cost of power as well as infrastructure and by the time you factor in those things your business is not profitable and you cannot service your loan so the bank will not lend to you. “For instance a lot of banks lent to the power sector during the privatisation but a lot of them got their hands burnt, so no matter how low interest rate comes, that will not translate proportionately to increased lending as long as they continue to see that risks.

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China positive about US negotiation remark on North Korea

China said on Thursday it was positive that the United States is open to resolving tensions over North Korea through talks. Foreign Ministry spokesman Geng Shuang made the comment at a regular news briefing in Beijing. The Trump administration said on Wednesday it aimed to push North Korea into dismantling its nuclear and missile programs through tougher international sanctions and diplomatic pressure, and remained open to negotiations to bring that about. NAN reports that the U.S. stance, which appeared to signal a willingness to exhaust non-military avenues inspite of repeated warnings that “all options are on the table,” came in a statement following an unusual White House-hosted briefing for the entire U.S. Senate followed by a briefing to the House of Representatives. The statement from Secretary of State Rex Tillerson, Defence Secretary Jim Mattis and Director of National Intelligence Dan Coats described North Korea as “an urgent national security threat and top foreign policy ...

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Armed youths kill scores in Akwa Ibom/Cross River boundary attacks

Fresh trouble erupted again on Saturday as armed youths, from Ikot Offiong in Odukpani Local Government Area of Cross River State, reportedly killed scores of fishermen during another attack of Ikot Ada Akpan Community in Oku-Iboku, Akwa Ibom State on Saturday. Dr. Demson Ekong, an indigene of the area said that, the attackers came in six speed boats from Ikot Offiong in Cross River and opened fire on the fishermen. Though, the death figure could not be ascertain at the time of filling this report but, the source said, “Some fishermen have been killed as the actual number of casualties are yet to be determined. “There is a serious attack on Oku-Iboku this morning. The attackers came in six speed boats but, were repelled by the military But the Police Public Relations Officer, PPRO, Akwa Ibom State police Command, Mr Chukwu Ikechukwu, who confirmed the incident said ‘‘No death was recorded’’. ‘‘What I know is that, the youths from Ikot Offiong went to Ikot Ada Akpan community again...

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I’m different from young artistes – Majek Fashek

Since his return to the Nigerian music scene, veteran reggae maestro, Majek Fashek, has been on a conscious mission to once again stamp his feet on the music space, reclaiming his throne as the only musician in the world who can draw rain with his music fic. In a recent interview with HIPTV, the rain maker, as he is fondly called, claimed there is a cut clear difference between the quality of sound and music he makes and that of young artistes. According to Majek, “I make sound while all these young musicians make jam, I make good sound but they are always jamming, they don’t make good sound, they just jam. My song ‘Send down the rain’ was made over thirty years ago, but if you listen to it today, you will realize that the sound will appeal to both the old and equally the young ones because the sound is good and still relevant today, that is something the young musicians don’t have.” In a one-on-one chat with E-Daily , Majek explained that his statement in the i...

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