Business
Experts Urge Reduction Of Interest Rate To Stimulate Growth
Smoke coming out of the Federal Secretariat, during the fire incident at a section of the secretariat in Abuja, recently
The Chief Executive Officer of Johnsons Holdings Ltd., Mr Johnson Joseph, has called on the Central Bank of Nigeria (CBN) to reduce the existing interest rate to help stimulate economic growth.
Joseph told newsmen on Monday in Abuja that the existing interest rate had remained much too high, thereby hindering economic development.
He said that the ongoing Monetary Policy Committee (MPC) meeting in Abuja should look at the issue critically and see how to reduce the interest rate.
It would be recalled that during the last MPC meeting in March, the committee retained the Monetary Policy Rate (interest rate) at 13 per cent.
The committee also retained the Cash Reserve Requirement (CRR) on private and public sector deposits at 20 per cent and 75 per cent, respectively.
Joseph said the manufacturing sector would want the committee to reappraise performance of the economy in 2015 with a view to formulating friendly policies that would enhance growth in the sector.
According to him, if the committee evaluates the performance of the economy in 2015, it will guide it in arriving at decisions that had affected the economy positively.
“Other than the relative stability in the exchange rate, the effect has been mostly negative on the sector.
“Most of the first quarter financial results for the major manufacturing companies have now been released and almost without exception; all the companies have witnessed a decline in the key performance metrics.”
The chief executive officer said the sector would, therefore, want to see a reduction in the nation’s MPR to grow the real sector and prevent the economy from further decline.
He urged the apex bank to offer some palliatives to the sector in form of special credit or intervention funds.
“If the manufacturing sector can have access to low cost financing, it will go a long way towards addressing the type of decline we have witnessed in the sector since the beginning of this year.”
Mr Bismarck Rewane, Managing Director of Financial Derivatives, a financial and investment advisory firm, said that bringing down the interest would affect the value of naira.
“The question is, are you going to bring down interest rate to stimulate growth or are you going to keep the rate high to protect the naira?
“If the inflation has gone up, then interest rate cannot afford to be coming down.
“There is what we call monetary policy dilemma.”
He added that Nigeria was facing a “stagflation”, meaning growth is stagnant while inflation is increasing.
Bismark said that the only way out was to have catalyst for economic activities.
Commenting on whether consideration for a change of government would affect MPC’s decision, Rewane said economic realities did not have timetable.
He explained that prices would always go up whether there was a new administration or not, saying that domestic political timetable remained the country’s business.
“The fact is prices of goods will go in a direction; the value of the naira will go in another direction.
“It is the Nigerian government that will take economic variables into consideration; economic variables cannot take Nigeria’s political timetable into consideration.”
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