Author: pressly

  • BREAKING: CBN Hikes Interest Rate to 27.5% as Naira Tumbles to ₦1,650/$ at Parallel Market

    BREAKING: CBN Hikes Interest Rate to 27.5% as Naira Tumbles to ₦1,650/$ at Parallel Market

    ABUJA – The Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate (MPR) by 150 basis points to 27.5 percent, the sixth consecutive hike this year, as the naira plunged to a record low of ₦1,650 per dollar on the parallel market on Thursday.

    Announcing the decision after the Monetary Policy Committee (MPC) meeting in Abuja, CBN Governor Dr. Olayemi Cardoso cited persistent inflationary pressures, a widening trade deficit, and speculative attacks on the local currency as reasons for the aggressive tightening.

    “The committee noted with grave concern the renewed volatility in the foreign exchange market. While we have cleared a significant portion of the backlog, demand continues to outstrip supply. We must act decisively to restore confidence,” Cardoso told financial correspondents.

    He added that the committee was split, with three members voting for a smaller hike, two for a status quo, and six backing the full 150-basis-point increase.

    Market Reaction: Chaos and Concern

    The news sent shockwaves through the Nigerian Exchange (NGX) as investors fled to the sidelines. The All-Share Index fell by 1.8 percent shortly after the announcement, with banking stocks—particularly GTCO, UBA, and Access Corporation—leading the losses.

    At the parallel market, also known as the black market, currency traders in Lagos’s Festac Town and Abuja’s Zone 4 reported that the naira weakened further after the announcement, touching ₦1,670 before settling at ₦1,655.

    Bureau de Change (BDC) operator Alhaji Sani Musa, who trades in the Wuse Zone 4 market, told our correspondent: “The CBN is fighting with one hand. They raised rates, but where is the dollar? We don’t have dollars to sell. Until the oil refineries work and we stop importing everything, this will continue.”

    Borrowing Costs Skyrocket, Businesses Groan

    The rate hike, the highest since the early 2000s, has drawn sharp criticism from the Organised Private Sector (OPS). The Lagos Chamber of Commerce and Industry (LCCI) warned that the move would cripple small businesses and accelerate job losses.

    “The average manufacturer cannot borrow at 27.5 percent. That is not a business environment; it is a survival gauntlet,” said LCCI Director-General Dr. Chinyere Almona. “We urge the CBN to consider fiscal solutions—production, not just monetary tightening.”

    Similarly, the Nigerian Association of Small and Medium Enterprises (NASME) called for an emergency stimulus package, warning that “hundreds of thousands of SMEs will close shops before Christmas” if lending rates remain at current levels.

    IMF Weighs In, Bank Customers Panic

    In a surprising development, the International Monetary Fund (IMF) Resident Representative for Nigeria, Dr. Ari Aisen, released a brief statement supporting the CBN’s “courageous” decision while urging complementary fiscal reforms.

    “The MPR hike is necessary but insufficient. Nigeria must aggressively boost oil output and reduce import dependency,” the statement read.

    Meanwhile, worried bank customers have begun requesting loan restructuring across commercial banks. A senior loan officer at a Tier-1 bank, who spoke anonymously, confirmed that “default inquiries have doubled in the last 48 hours.”

    What This Means for the Average Nigerian

    For ordinary citizens, the rate hike translates to:

    • Higher borrowing costs: Personal and car loans will become significantly more expensive.

    • Increased savings rates: Fixed deposit yields may rise above 20 percent for the first time.

    • Potential job losses: Businesses may downsize to afford operating loans.

    • Rent and food inflation: Landlords and traders may pass increased borrowing costs to consumers.

    Analyst Outlook

    Financial analyst and CEO of Vetiva Capital, Mr. Adewale Adebayo, offered a grim near-term forecast: “We expect the naira to test ₦1,700 by month-end unless the NNPC begins remitting dollars to the CBN. The MPR hike is a painkiller, not a cure.”

    The next MPC meeting is scheduled for mid-January 2026, but analysts predict an emergency session may be called if the currency continues its freefall.

    Additional reporting by our finance team

  • BREAKING: Former VP Atiku, Governor Fubara Meet in London, Ignite ‘Super Coalition’ Talks

    BREAKING: Former VP Atiku, Governor Fubara Meet in London, Ignite ‘Super Coalition’ Talks

    LONDON/ABUJA – Former Vice President Atiku Abubakar and Rivers State Governor, Siminalayi Fubara, held a clandestine five-hour meeting at a private residence in London’s upscale Kensington district on Wednesday, sparking intense speculation about a major political realignment ahead of the 2027 general elections.

    Multiple sources close to both camps confirmed to our correspondent that the meeting, which also included two former governors from the North-West and a chieftain of the Labour Party (LP), focused on the formation of a “National Salvation Coalition” aimed at unseating President Bola Tinubu.

    The meeting is seen as a significant coup for Atiku, the 2023 presidential candidate of the Peoples Democratic Party (PDP), who has been aggressively courting disaffected members of the ruling All Progressives Congress (APC) and opposition figures.

    Fubara’s Defection Looms

    While neither principal spoke to the press, a top aide to Governor Fubara, who spoke on condition of anonymity, revealed that the Rivers governor is “deeply frustrated” with the ongoing political crisis in his state and the perceived marginalization of his camp by the Federal Capital Territory (FCT) Minister, Nyesom Wike.

    “Governor Fubara has not closed the door on the PDP, but he is also not closing the door on a new movement. The London meeting was about building a structure that can defeat Wike’s influence and the APC machine simultaneously,” the aide said.

    Political analysts believe Fubara, who controls the strategic oil-rich Rivers State and its massive vote bank, could be the “missing piece” in Atiku’s puzzle. Should Fubara defect with his structure to a yet-to-be-named mega party, it would deal a devastating blow to the PDP’s existing hierarchy, which remains loyal to Wike.

    APC Reacts, PDP in Panic

    The APC, through its National Publicity Director, Felix Morka, dismissed the London talks as “a gathering of sore losers and political merchants shopping for relevance.”

    “President Tinubu is focused on governing. Let them form their 50th coalition. It will fail like the others,” Morka said in a terse statement.

    However, inside the PDP, the mood is one of panic. The party’s National Working Committee (NWC), still fractured between pro-Atiku and pro-Wike factions, has called an emergency meeting for Thursday. A senior party official admitted: “If Fubara walks, the South-South walks with him. That would be catastrophic.”

    What They Are Saying

    Ahead of the rumored defection, supporters of Governor Fubara have begun printing “Fubara 2027” campaign posters in Port Harcourt, depicting him as a vice-presidential candidate, though it remains unclear if he would accept the number two slot or demand the top position.

    Meanwhile, the former Vice President’s camp is remaining coy. Atiku’s media adviser, Paul Ibe, simply texted: “When the time comes, Nigerians will know.”

    As the political temperature rises, all eyes are now on the National Assembly, where sources say a critical mass of 45 lawmakers from the North-Central and South-East are preparing to decamp from the APC and PDP to an unnamed “third force” before the end of the quarter.

    Developing story…

  • BREAKING: Northern Senators Caucus Withdraws Support for Tax Reform Bill, Cite Regional Imbalance

    BREAKING: Northern Senators Caucus Withdraws Support for Tax Reform Bill, Cite Regional Imbalance

    ABUJA – In a dramatic turn of events on the floor of the National Assembly on Tuesday, the Northern Senators Forum (NSF) officially withdrew its support for the controversial National Tax Reform Bill, throwing the Tinubu administration’s flagship economic policy into serious jeopardy.

    The bill, which seeks to harmonize Value Added Tax (VAT) collection and create a new revenue-sharing model, has been fiercely opposed by 19 northern governors for the past month. The Senators’ decision follows a closed-door emergency meeting that lasted over four hours.

    Addressing journalists at the National Assembly complex, the Chairman of the NSF, Senator Ahmed Kaita (Katsina North), argued that the proposed legislation creates a “dangerous economic fault line” between the North and the South.

    “We have conducted a thorough analysis of this bill with our state governors and traditional rulers. The current template shortens the North. It penalizes agriculture-dependent states while rewarding states with ports and high corporate density,” Senator Kaita said.

    “Until the Presidency agrees to a zonal renegotiation of the derivation principle from the current 10% to a fairer 30%, we will not allow this bill to see the light of day,” he added.

    Executive moves to quell rebellion

    The Presidency responded swiftly, with the Special Adviser to the President on Revenue, Mr. Olumide Soyinka, rushing to the National Assembly to hold a last-minute parley with the Senate President, Godswill Akpabio.

    “We are in the season of difficult reforms. The President is open to input, but we will not abandon a policy that frees up fiscal space for sub-nationals,” Soyinka told State House correspondents.

    However, political analysts warn that the standoff has exposed a deep ethnic rift within the ruling All Progressives Congress (APC). Political science professor Tunde Odetola from the University of Ibadan noted: “This is not about tax. It is about the 2027 realignment. The North feels it is losing its demographic leverage to economic muscle from the South-West and South-South.”

    Reactions

    The opposition Peoples Democratic Party (PDP) has seized on the chaos. Its National Publicity Secretary, Debo Ologunagba, released a statement calling the infighting a “vote of no confidence in the President’s economic management team.”

    Meanwhile, the Arewa Consultative Forum (ACF) has called for nationwide protests by Monday if the bill is not withdrawn entirely, raising tension across Kaduna, Kano, and Katsina states, where armed police were seen deploying to strategic locations yesterday evening.

    Details later…

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