Business
MPC: Expert Predicts Rise In Lending Rate
The Chief Executive Officer
of Time Economics, Dr Ogho Okiti, has predicted that the Monetary Policy Committee (MPC) would tighten the Monetary Policy Rate (MPR) from 12 to 15 per cent.
Okiti made the prediction in an interview with newsmen on Sunday in Abuja.
He expressed the firm’s prediction ahead of the Monetary Policy Committee Meeting scheduled to hold between Monday and Tuesday.
At the last MPC meeting in March, the MPC raised MPR by 100 basis points from 11 per cent to 12 per cent and raised the Cash Reserve Ratio by 250 basis points from 20 to 22.50 per cent.
The Liquidity Ratio was retained at 30 per cent and the asymmetric corridor was narrowed from +200 and -700 basis points to +200 and -500 basis points.
“Following the decisions made at the last meeting along with the committee bias towards price stability, we anticipate that the committee will move toward further rate tightening by raising the Monetary Policy Rate.
“However, we expect they will make little or no adjustment to the Cash Reserve Requirements and the Liquidity Ratio, following very poor growth figures.
“In summary, we anticipate MPR to be increased by 200 basis points to 15 per cent, maintain asymmetric corridor of +200/–500 basis points around the midpoint of the MPR and maintain CRR at 22.5 per cent.
“Also, the Liquidity Ratio will be maintained at 30 per cent,” he said.
Okiti said it was unlikely that the committee would make changes on the exchange rate, given that there was already an expectation of devaluation.
He said the expectation was responsible for the further widening of the gap between the official and the parallel rates, adding that the committee was unlikely to bow to market pressures.
Okiti explained that the slowing economic growth, continued rise in inflation and fuel price would play a key role in the decisions the committee would take at its meeting.
“The meeting will hold amidst what is probably the most severe combination of shocks in the economy since the start of the century.
“The pace of economic growth in the first quarter of 2016 fell by -0.4 per cent from the 2.11 per cent and 3.96 per cent recorded in the fourth quarter, 2015 and the first quarter of 2016.
“Headline inflation index continued its northward movement for the third consecutive month to advance to 13.7 per cent in the month of April.
“The upward advancement in general price levels by 90 basis points were driven by marked increase in both food and core sub-index.
“This increased by 13.2 per cent and 13.4 per cent respectively, compared to 12.74 per cent and 12.17 per cent recorded in March.
“These developments were largely driven by the worsening fuel scarcity which has had crippling effects on business operations and transport costs across the country,’’ he said.
Okiti said the foreign exchange situation, which continues to negatively impact on costs of imported goods, need to be improved and a strong fiscal policy blueprint should be provided to stimulate growth.
MoniePoint Inc. a digital financial firm in Nigeria, has said it is empowering community pharmacists across the country with innovative payment solutions to improve access to drugs.
The financial firm said it had also provided loans for pharmacists under the aegis of the Association of Community Pharmacists of Nigeria (ACPN) to drive healthcare delivery in the country.
MoniePoint in a release titled, “Inside Nigeria’s community pharmacies: How Moniepoint drives healthcare access with payments and funding”, has reaffirmed its commitment to providing digital payment solutions to improve health outcomes in Nigeria.
The release examined how community pharmacies play a crucial role as vital access points for medical care in Nigeria, especially in areas with limited hospital or clinic access.
According to the release, the ACPN National Chairman, Ambrose Igwekwam, highlighted the critical role played by community pharmacies in Nigeria’s healthcare system over the years.
Igwekwam, however, expressed concerns over the challenges confronting the nation’s pharmaceutical industry which he said was hindering access to affordable medicines.
The pharmacist listed poor infrastructural systems, power, transportation, regulatory bottlenecks, importation dependency, and limited research opportunities as major challenges facing the pharmaceutical sector.
He also stressed the need for robust collaborative efforts with institutions like Moniepoint to strengthen the sector.
“As Nigeria continues to grow, improving local pharma manufacturing to meet the demands of this growth presents a key opportunity for us all.
“There is also the African Continental Free Trade Area Agreement, which is expected to boost our industry, especially when we start producing our drugs locally, which will provide the much needed foreign exchange from exports.
“We are also seeing advancements in digital health and technology which would hopefully deepen the practice of e-prescription in Nigeria”, the ACPN boss said.
Corlins Walter
In order to enhance customer service and streamline operations, the Chartered Insurance Institute of Nigeria (CIIN) has called on stakeholders in the insurance industry to embrace Artificial Intelligence (AI).
The President of the institute, Yetunde Ilori, made this call at the 2024 Office Representatives Committee (ORC) Workshop, organised by the institute, with the theme “AI and the Future of the Insurance Industry”, in Lagos.
Ilori at the event, emphasised the importance of AI adoption, noting that it was not a threat to jobs but rather a tool to improve efficiency across the insurance sector.
“It is not about AI taking over our jobs, but about us using AI to simplify processes and give maximum satisfaction to all the customers we serve whether as underwriters, brokers, loss adjusters, or in educating our members”, she said.
The workshop, which brought players in the insurance sector together, aimed to address how AI could be leveraged to transform business processes and improve customer interactions.
The Chairman of the ORC, Monica Nwachukwu, underscored the role of AI in modernising the industry, adding, “AI can automate customer and claims processes, allowing insurers to provide faster and more efficient services to their customers”.
She explained how AI could help extract data from legacy systems, enhancing decision-making processes.
“By integrating AI with APIs, insurers can feed valuable data into AI solutions to improve operations and customer service”, she added.
In his address, the Managing Partner of A4S and Training Heights, Orlando Odejide, stressed the need for companies to align their strategies with future technologies like AI, especially as they prepare for 2025.
“Any organisation that wants to grow into the future must have its strategic plan in place. If your strategy for 2025 is not ready, it should be done by October”, he advised.
He encouraged participants to think critically about how AI could be integrated into their business models to ensure they remain competitive.
“The idea is for you to use this workshop as a platform to think about your organization and how AI can help streamline your processes and improve growth”, Odejide noted.
In order to gain global respect and recognition, the National Space Research and Development Agency (NASRDA) has reaffirmed its determination to pursue its goal in ensuring that Nigeria’s space capabilities are recognised on the world stage.
The agency also reaffirmed its commitment to positioning Nigeria as a key player in the global space economy.
In a statement by the Director of Media and Corporate Communications, Dr. Felix Ale, NASRDA revealed that the Director-General of the agency, Matthew Adepoju, emphasised this during recent engagements at the 79th United Nations General Assembly and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and Global Alliance Business Association international conference in Michigan, United States.
The statement noted that Adepoju outlined a forward-thinking agenda, stressing the importance of Nigeria’s space programme as a leader in research, exploration, and technological innovation.
“Our goal is to ensure that Nigeria’s space capabilities are recognised on the world stage.
“We must foster collaborations with global space agencies to enhance our satellite capabilities and technological infrastructure”, he stated.
The NASRDA boss said the agency is focusing on enhancing satellite capabilities, expanding international collaborations, and leveraging space science for national development.
He said NASRDA will have no stone unturned in pursuit of excellence, ensuring the agency secures the necessary resources and recognition to propel it forward.
“The relationships we build today will pave the way for tomorrow’s advancements in space science.
“Innovation and progress thrive in an environment built on collaboration and inclusivity”, he stated.
He emphasised that with the support of the government, international partners, and a dedicated team, NASRDA is poised to make significant strides in the evolving global space landscape.
“We are on the brink of a new era for Nigeria’s space agency. Together, we will ensure our nation stands out in the global space economy”, he said.
Corlins Walter