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ActionAid Nigeria Responds to CBN’s Interest Rate Hike, Highlights Economic Implications and Proposes Solutions
ActionAid Nigeria Responds to CBN’s Interest Rate Hike, Highlights Economic Implications and Proposes Solutions
By: Michael Mike
ActionAid Nigeria acknowledges the Central Bank of Nigeria’s (CBN) recent decision to raise the Monetary Policy Rate (MPR) to 26.25%, as announced by Governor Yemi Cardoso during the 295th Monetary Policy Committee (MPC) meeting. This marks the third consecutive increase aimed at curbing the surging inflation, which currently stands at 33.69%.
Speaking at its head office in Abuja, ActionAid Nigeria’s Country Director, Andrew Mamedu, noted that, “While the decision to adjust the MPR demonstrates a proactive approach to achieving price and economic stability, it is important to acknowledge its broader implications. We recognise that although inflation is still rising, the month-on-month rate increase is reducing. In the other hand, the increased MPR will inevitably lead to higher borrowing costs for businesses and individuals. Small and Medium-sized Enterprises (SMEs), which are the backbone of our economy, will face heightened challenges in accessing affordable credit. This could stifle innovation, growth, and job creation within this vital sector.
For vulnerable populations, the rising cost of living and food prices, exacerbated by higher interest rates, will further strain their already limited financial resources. This becomes a case of double jeopardy of high inflation and high interest rates. As the cost of borrowing increases, so does the difficulty in securing loans for essential needs, pushing many deeper into poverty.”
To mitigate the impacts of the increase in interest rates and inflation, ActionAid Nigeria proposes that the Federal and State Governments must immediately step-up social protection programs to support the most vulnerable populations. This includes expanding food assistance initiatives, providing targeted financial aid to low-income families, and offering more support to other social sectors, including education, health, and housing.
Andrew Mamedu also reiterated that “It is only fair for the CBN to increase special credit facilities with lower interest rates for SMEs at this crucial time to ensure they can continue to operate and grow. Providing technical and financial support to these businesses will help them sustain their contributions to the economy. Additionally, not many people understand the implications of this hike in interest rates. It is very important for the CBN to collaborate with the National Orientation Agency (NOA) to engage with the public and stakeholders to explain the rationale behind these economic policies. This will foster understanding and patience and enhance transparent communication from the government to manage expectations and build trust and get the citizens to hold greedy businesses and individuals accountable from exploiting the system.
The country director concluded that the fiscal aspects of the economy need to complement the CBN’s efforts in managing monetary policy. This includes improving the ease of doing business, implementing progressive taxation, and ensuring effective budgeting and budget utilisation.
ActionAid Nigeria remains committed to working with the government, private sector, and civil society to address these challenges and promote a more inclusive and resilient economy.
ActionAid Nigeria Responds to CBN’s Interest Rate Hike, Highlights Economic Implications and Proposes Solutions
Bandits kill seven, abduct three in Sabon Birni border attack in Sokoto
By: Zagazola Makama
At least seven persons were killed and three others abducted when armed bandits attacked Kyara village, a remote border community in Sabon Birni Local Government Area of Sokoto State, in the early hours of Thursday.
Sources said the attack occurred at about 4:00 a.m. in the village, which lies close to the Niger Republic border and has no mobile phone network coverage.
The bandits, who were said to be in large numbers and armed with sophisticated weapons, stormed the community, shooting sporadically and causing panic among residents.
During the attack, seven persons were shot dead, while two others sustained gunshot injuries. Three villagers were also kidnapped, and an unspecified number of domestic animals were rustled.
Joint security forces were immediately deployed to the area after the incident was reported. On arrival, they evacuated the corpses and the injured victims to a hospital for autopsy and medical treatment.
Troops have since launched a manhunt for the attackers with a view to rescuing the abducted victims, recovering the rustled livestock and arresting those responsible.
Confidence-building patrols are currently ongoing in and around Kyara village to reassure residents and prevent further attacks.
Bandits kill seven, abduct three in Sabon Birni border attack in Sokoto
Five injured in suspected IED blast on Bukuyum road in Zamfara
By: Zagazola Makama
Five persons have been seriously injured following a suspected improvised explosive device (IED) explosion along the Takalafiya–Gadar Zaima Road in Bukkuyum Local Government Area (LGA) of Zamfara State.
Sources said the incident occurred at about 11:30 a.m. on Thursday when a motorcycle conveying five passengers ran into an explosive device believed to have been planted by armed bandits targeting security patrols in the area.
The device detonated on contact, causing a loud explosion that severely damaged the motorcycle and left all five occupants with serious injuries.
Following the incident, security operatives immediately closed the road to traffic and advised residents to stay away from the area pending a thorough safety assessment.
The injured victims were evacuated to the General Hospital, Gummi, where they are currently receiving medical treatment.
Movement along the Takalafiya–Gadar Zaima axis remains restricted as security agencies continue to monitor the situation and clear the area of any further threats.
Five injured in suspected IED blast on Bukuyum road in Zamfara
Three killed in fatal road accident at gaggaba village in Borno
By: Zagazola Makama
At least three persons were killed in a fatal motor vehicle accident at Gaggaba Village, Fune Local Government Area of Borno State, early Wednesday morning.
Sources said the accident occurred around 1:20 a.m. when a Daf trailer with registration number DAL 964 YY, driven by Mal. Abubakar, 35, of Maiduguri, traveling from Lagos to Maiduguri, was involved in a collision with a Mitsubishi Canter truck, registration XA 437 NNR, driven by Salisu Ibrahim of Dirra Village, Fune LGA.
The Canter reportedly veered at full speed from its lane and rammed into the Daf trailer, causing the trailer driver and two passengers to fall unconscious. They were immediately rushed to General Hospital Damagum, where the driver and two passengers were pronounced dead by medical personnel.
Three killed in fatal road accident at gaggaba village in Borno
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