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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
Cattle rustlers steal 50 cows in Lafiagi in Kogi, as security forces launch search operation
By Zagazola Makama
Fifty cows have been stolen by suspected cattle rustlers in Gbugbu, Lafiagi, Kogi State, the Police Command has reported.
Zagazola learnt that the incident occurred on December 18 at about 1600 hours when two Fulani herders, Hassan and Husseini, both aged 25, were grazing their cattle on the outskirts of Gbugbu. Unknown gunmen attacked the herders and made away with 50 cows.
The report was filed by Alhaji Abubakar Muhammadu, 50, and Malam Tijani Ahmed, 62, Secretary of Miyeti Allah, Lafiagi branch.
Following the report, a joint team comprising Army troops, police operatives, Village Guard Network (VGN) and local hunters were mobilized to the scene to comb the surrounding bush for possible recovery of the stolen livestock.
Cattle rustlers steal 50 cows in Lafiagi in Kogi, as security forces launch search operation
Bandit attack in Sobon Birni LGA leaves one dead in Sokoto
By Zagazola Makama
One person has been killed following an armed bandit attack on Garin Idi Village in Sobon Birni District, Sokoto State, the State Police Command has confirmed.
Zagazola Makama learnt that the incident occurred on December 18 at about 2140 hours, when a large group of heavily armed bandits launched a sporadic shooting attack on the community.
Troops of Operation FANSAN YANMA, promptly responded and engaged the bandits in a gun duel. The attackers were overpowered and fled into the surrounding forest.
During the attack, one Malam Saluhu, aged 60, was shot and killed.
Joint security teams have intensified efforts to track down the bandits, and troops have been alerted to remain vigilant for any movements by the fleeing criminals.
End
Fire outbreak destroys over 20 vehicles at Malaysia Market, Zuba
By Zagazola Makama
Over twenty vehicles have been destroyed following a fire outbreak at Malaysia Market, Zuba, near the main motor spare parts area.
Sources said that the incident occurred on December 17 at about 2300 hours. The market, known for scrap vehicles, was engulfed in flames before police patrol teams promptly mobilized to the scene.
Through the combined efforts of security forces and community members, the fire was successfully contained, preventing further escalation. No injuries or loss of life were reported.
The cause of the fire and the estimated value of the destroyed vehicles are yet to be determined as security sources said Investigations are ongoing.
Fire outbreak destroys over 20 vehicles at Malaysia Market, Zuba
Cattle rustlers steal 50 cows in Lafiagi in Kogi, as security forces launch search operation
Bandit attack in Sobon Birni LGA leaves one dead in Sokoto
Fire outbreak destroys over 20 vehicles at Malaysia Market, Zuba
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