Nigeria's central bank raised its benchmark lending rate by 50 basis points to 18% (NGCBIR=ECI) on Tuesday as monetary authorities continued to tighten policy to rein in inflation which has squeezed consumer purchasing power.
The high cost of living was among major concerns for voters during last month's disputed presidential election that was won by ruling party's Bola Tinubu, who has promised to revive the economy and end widespread insecurity.
The central bank's latest rate hike came after last week's inflation data showed price rises quickened in February despite the recent cashless policy meant to reduce the amount of currency in circulation. Inflation also rose in January.
Central Bank of Nigeria governor Godwin Emefiele said members of the Monetary Policy Committee were unanimous in raising rates, citing price and exchange rate pressures and expectations of the removal of a petrol subsidy that cost $10 billion last year.
"These, in view of members, provided a compelling argument for an upward adjustment of policy rates, albeit less aggressively," Emefiele said.
Razia Khan, head of research, Africa and Middle East at Standard Chartered Bank, said inflation risks remained on the upside but the pace of tightening was more moderate in order to reduce negative real interest rates.
Investors are looking at how quickly the petrol subsidy will be removed as Tinubu prepares to get into office on May 29.
"In terms of reform, there are now firm expectations that we should see fuel subsidy reforms commencing imminently. Less clear is the time frame for any FX policy adjustment," Khan said.
"FX adjustment would likely have to precede any meaningful portfolio inflows, but current global volatility and its impact on the oil price could see fuel subsidy reforms being given prominence near-term, with FX reforms to follow, only later."
Emefiele said Nigeria's banks remained sound and would not be affected by the impact of the collapse of two U.S. lenders and problems at Credit Suisse.
Wednesday, March 22, 2023
Rates rise in Nigeria due to price and exchange rate pressures
Tuesday, March 21, 2023
Video - Lagos governor re-elected in win for Nigeria’s ruling party
The Lagos state governor — Babajide Sanwo-Olu — has been comfortably re-elected for the ruling party after what was expected to be a tight race against his rival from the Labour Party. Security remains tight across Nigeria as vote counting continues following Saturday's elections for more than 900 assembly legislators and 28 state governors. Election officials reported that some ballot boxes had been snatched by thugs in Lagos. Violence and voter intimidation were also reported in other cities. Al Jazeera's Ahmed Idris reports from Kano, Nigeria.
Video - Nigeria skilled labor force leaving to other countries
Nigeria is continuously losing its skilled workers to foreign countries. This mass exodus is known locally as "Japa", which is a Yoruba word for run or flee. But as the most populous African country prepares to install a new president in May this year, there are calls to urgently address this trend by ensuring economic growth, and creating an environment for young people to thrive.
Related stories: Over 10,000 doctors left Nigeria for UK in last 7 yrs
How Nigeria can stop doctors’ brain drain – NMA chairman
Frustrated Nigerians 'flee' abroad in punishing pre-election brain drain
Video - Nigeria among nations with the least obesity preparedness worldwide
Nigeria is among the countries around the world with the least level of obesity preparedness. This was disclosed in a recent report published by the World Obesity Federation. Stakeholders are concerned that this could affect both the health sector and the economy of the nation.
Authorities Brace for Unrest as Gubernatorial Election Winners Announced in Nigeria
Nigeria's Independent National Electoral Commission (INEC) has declared results for 12 states so far, including the economic hub of Lagos, where incumbent governor Babajide Sanwo-Olu of the ruling party was reelected.
But observers say Saturday's elections were characterized by widespread violence, voter suppression and intimidation.
Local media reported that 21 people were killed and scores injured across the country.
In Imo state, police rescued 17 INEC staffers abducted by gunmen on the morning of the elections as they were heading to their polling units.
Rights group Amnesty International condemned the violence.
"There were pockets of violence and prevention of people to make their choices in the ballot, disrupting electoral processes and campaign of calumny, and the employment of thugs. We strongly condemn such human rights violations," said Aminu Hayatu, Amnesty International's conflict researcher.
Amnesty International said social media was used to incite tribal hatred and ethnic slurs and urged social media companies like Twitter, Meta and WhatsApp to improve their screening-out of hateful content.
There were also issues of staff delays and technical difficulties during Saturday's polls.
But Nigeria's information minister, Lai Mohammed, who voted in his hometown in south-west Kwara state, said the election was one of the most credible in Nigeria's recent history.
Idayat Hassan, director at the Center for Democracy and Development, disagrees.
"The likelihoods of postelection violence are high but how widespread is what we do not know," Hassan said. "Considering this is a projection, the response of the state is what we should actually be looking out for. How will the Nigerian state be able to timely nip any form of insecurity in the bud with the minimum use of force?"
Kano state authorities have imposed a dusk-to-dawn curfew in anticipation of unrest as more results are announced.
Amnesty International wants authorities to identify and punish promoters of election violence.
"Such are violations against the international human rights law which Nigeria is signatory to. We're calling on [the] government to investigate and fish out those who are behind such human rights violations, irrespective of who they are," Hayatu said.
Last month, observers said the presidential election in which the ruling party's Bola Ahmed Tinubu was declared the winner lacked transparency and didn't meet the expectations of most citizens.
Experts said there's heightened tension in many states, including Adamawa state where incumbent governor Ahmadu Fintiri of the People's Democratic Party and Senator Aishatu Ahmed-Binani of the All Progressive Congress are locked in a tough race.
Ahmed-Binani is the first woman with a realistic chance of being elected governor in Nigeria.
By Timothy Obiezu, VOA
Related story: State elections postponed in Nigeria due to dispute of presidential vote