By Rukayat Moisemhe

Olusegun Aganga, former Minister of Finance, says continuity and implementation of the nation’s various policies is critical to engendering economic transformation.

Aganga who is also Chairman, Leadway Pension PFA, said this at the 2023 edition of the Chartered Institute of Directors Nigeria (CIoD) Annual Directors Conference on Thursday in Abuja.

The News Agency of Nigeria (NAN) reports that the hybrid event has the theme, “Driving Nigeria’s Economic Transformation and Diversification: “The Role of Corporate Governance”.

He also said doing so should be with strengthening its institutions through sound corporate governance structure.

He stated that while every successive governments in Nigeria had talked about the need to transform and diversify the economy, none had identified corporate governance as a major catalyst for driving that transformation.

He said that Nigeria, with its vast potential and human resources, has an incredible opportunity to redefine its economic landscape through effective corporate governance.

“Nigeria commenced the implementation of its industrial plan in 2011 and officially launched it in 2014 to diversify the economy and then put it in the cooler for eight years.

“As result the growth of manufacturing’s contribution to Gross Domestic Product (GDP) which was in double digits throughout 2011 to 2014 peaking at 24.59 per cent in 2013 crashed to negative 1.46 per cent in 2015, another negative 4.32 per cent in 2016 and only grew marginally by 2.45 per cent in 2022.

“If it had been implemented rigourously, Nigeria would have become a top competitive global exporter of at least three or four of the 13 products identified for export by now,” he said.

Aganga noted that while a code of corporate governance for the private sector had been issued, leaving out same for the public sector was a recipe for economic diversification and transformation failure.

He said the full implementation of the Nigerian Code of Corporate Governance in the public sector would have a dramatic and positive effect on our economic institutions.

Aganga urged the National Assembly to amend the Acts which established ministries and their agencies to make the adoption of the code mandatory for the public sector.

He also said that the Acts should specify the skills, competence, and professional experiences required to chair the board and to be in the executive management team of an agency.

“That was one of the strategies employed to have strong governance and effective leadership at the Sovereign Wealth Fund (Nigeria Sovereign Investment Authority) and which regulators like National Pension Commission (PenCom) have used effectively to regulate the pension industry which is now one of the best regulated sectors.

“Economic institutions and agencies must henceforth be held accountable, as any industrial plan will fail if the relevant economic institutions are weak.

“Dividends of democracy should not be about sharing positions to party loyalists but should be about good governance where key Performance Indicators (KPI) are set, and a comprehensive review of their performance regularly undertaken before any reappointments.

“Both the private and public sectors need to show more commitment to environmental, social and governance (ESG) practices as investors are beginning to demand this to invest in companies and countries,” he said.

The former minister charged CIoD to advocate and facilitate the adoption of corporate governance code in the public sector for efficient and effective corporate governance practices to thrive in the country.

He added that the institute must develop an index for ranking corporate governance in the public sector, particularly the institutions responsible for economic diversification and transformation.

Alhaji Tijjani Borodo, President, CIoD, said in organising the conference, the institute intends to proffer far-reaching innovative solutions in governance, to foster a conductive environment that would enhance private sector participation in the Nigerian economy.

He said the 2023 ADC’s theme highlighted the crucial role that corporate governance plays in advancing the nation’s economic growth and development.

“Within this overarching theme, we have chosen four subthemes that specifically address key sectors and their potential for Nigeria’s economic transformation.

“Our conference will delve into the pivotal role corporate governance can play in unleashing the potential of these sectors, thus contributing to the larger goal of national economic transformation.

“Together, we will explore innovative strategies, share best practices, and develop actionable solutions to drive Nigeria’s economic transformation,” he said.

Borodo reiterated the institute’s commitment to establishing and maintaining connections among business leaders at the highest levels and collaborating with the government to foster business-friendly policies, particularly in the face of challenging circumstances. (NAN)(www.nannews.ng)

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Edited by Olawunmi Ashafa

By Kadiri Abdulrahman

The Central Bank of Nigeria (CBN), has expressed optimism that its monetary policy initiatives are yielding the desired results.

The bank’s Director, Corporate Communications Department, Isa AbdulMumin said this in Abuja on Wednesday, while speaking on the latest National Bureau of Statistics (NBS) figures.

According to him, the low increase in the average price level in October is an indication that the CBN’s monetary policy stance to tighten, as well as its money market reforms were yielding the desired effect.

The director said that aggressive monetary tightening using various liquidity mechanisms had raised Open Buy Back (OBB) rates from less than one per cent in August to their expected levels around the monetary policy rate presently.

He said that such mechanisms included removing the cap on the Standing Deposit Facility (SDF) and Open Market Operations.

He acknowledged the 0.61 per cent increase in headline inflation rate from 26.72 per cent in September to 27.33 per cent in October.

He, however, assured that in spite of the increase, the CBN was headed in the desired direction in terms of achieving price stability.

“Available statistics showed that the first indication of deceleration in prices was recorded in September.

“Further reforms in the money market, which commenced in October had accelerated easing in prices as indicated by the substantial drop in month-on-month changes recorded in October.

“Moderation in month-on-month changes in prices observed in the headline, food and core components of the consumer basket followed reforms in the money market and relative stability in the FX market,” he said.

The News Agency of Nigeria (NAN) reports that Nigeria’s headline inflation rate, on a month-on-month basis, in October stood at 1.73 per cent, which was 0.37 per cent lower than the rate recorded in September.(NAN)(www.nannews.ng)

Edited by Ese E. Eniola Williams

By Okeoghene Akubuike

The National Bureau of Statistics (NBS) said Nigeria’s headline inflation rate increased to 27.33 per cent in October 2023. 

The NBS disclosed this in its Consumer Price Index (CPI) and Inflation Report for October, which was released in Abuja on Wednesday.

According to the report, the figure, which is 0.61 per cent points higher compared to 26.72 per cent recorded in September 2023.

It said on a year-on-year basis, the headline inflation rate in October was 6.24 per cent higher than the rate recorded in October 2022 at 21.09 per cent.

The report said the increase in the headline index for October 2023 on a year on year basis was attributed to the increase in some items in the basket of goods and services at the divisional level.

It said these increases were observed in food and non-alcoholic beverages at 14.16 per cent and housing, water, electricity, gas, and other fuel at 4.57 per cent.

Others were clothing and footwear at 2.09 per cent; transport at 1.78 per cent; furnishings, household equipment and maintenance at 1.37 per cent, education at 1.08 per cent, and health at 0.82 per cent.

It added, “Miscellaneous goods and services at 0.45 per cent; restaurant and hotels at 0.33 per cent; alcoholic beverage, tobacco and kola at 0.30 per cent; recreation and culture at 0.19 per cent, and communication at 0.19 per cent.”

In addition, the report said, on a month-on-month basis, the headline inflation rate in October 2023 was 1.73 per cent, which was 0.37 per cent lower than the rate recorded in September 2023 at 2.10 per cent.

It said, ”This means that in October 2023, the rate of increase in the average price level is less than the rate of increase in the average price level in September 2023.

It said the percentage change in the average CPI for the 12 months ending October 2023 over the average of the CPI for the previous corresponding 12-month period was 23.44 per cent.

“This indicates a 5.57 per cent increase compared to 17.86 per cent recorded in October 2022.”

The report said the food inflation rate in October increased to 31.52 per cent on a year-on-year basis, which was 7.80 per cent higher compared to the rate recorded in October 2022 at 23.72 per cent.

It added, “The rise in food inflation on a year on year basis is caused by increases in prices of oil and fats, bread and cereals, fish, potatoes, yams and other tubers, fruits, meat, vegetable, milk, cheese and eggs. ”

It said on a month-on-month basis, the food inflation rate in October was 1.91per cent, which was a 0.54 per cent drop compared to the rate recorded in September 2023 at 2.45 per cent.

The report added, “The decline in food inflation on a month-on-month basis was caused by a decrease in the average prices of fruits, oil and fats, coffee, tea and cocoa, bread and cereals. ”

It said the “All items less farm produce and energy’’ or core inflation, which excluded the prices of volatile agricultural produce and energy, stood at 22.58 per cent in October on a year-on-year basis.

“This increased by 5.12 per cent compared to 17.46 per cent recorded in October 2022.

“The exclusion of the PMS is due to the deregulation of the commodity by removal of subsidy,” the report continued.

It said the highest increases were recorded in prices of passenger transport by road, medical services, passenger transport by air, actual and imputed rentals for housing, pharmaceutical products etc.

The NBS said on a month-on-month basis, the core inflation rate was 1.39 per cent in October 2023.

The report added, “This indicates a 0.83 per cent drop compared to what was recorded in September 2023 at 2.22 per cent.

“The average 12-month annual inflation rate was 19.98 per cent for the 12 months ending October 2023, this was 4.60 per cent points higher than the 15.38 per cent recorded in October 2022.”

The report said on a year-on-year basis in October, the urban inflation rate was 29.29 per cent, which was 7.66 per cent higher compared to the 21.63 per cent recorded in October 2022.

It said, “On a month-on-month basis, the urban inflation rate was 1.81 per cent in October representing a 0.43 per cent decline compared to September 2023 at 2.24 per cent.

The report said on a year-on-year basis in October, the rural inflation rate was 25.58 per cent, which was 5.01 per cent higher compared to the 20.57 per cent recorded in October 2022.

“On a month-on-month basis, the rural inflation rate was 1.67 per cent, which decreased by 0.29 per cent compared to September 2023 at 1.96 per cent.’’

On states’ profile analysis, the report showed in October, all items inflation rate on a year-on-year basis was highest in Kogi at 34.20 per cent, followed by Rivers at 31.44 per cent, and Lagos at 31.33 per cent.

It, however, said the slowest rise in headline inflation on a year-on-year basis was recorded in Borno at 20.06 per cent, followed by Jigawa at 23.52 per cent, and Sokoto at 24.47 per cent.

The report, however, said in October 2023, all items inflation rate on a month-on-month basis was highest in Yobe at 3.72 per cent, Jigawa at 2.85 per cent, and Sokoto at 2.84 per cent.

“Kogi at 1.01 per cent, followed by Edo at 1.05 per cent and Kwara at 1.18 per cent recorded the slowest rise in month-on-month inflation.”

The report said on a year-on-year basis, food inflation was highest in Kogi at 41.74 per cent, followed by Kwara at 38.48 per cent, and Lagos at 37.37 per cent.

“Borno at 24.41 per cent, followed by Kebbi at 24.90 per cent and Jigawa at 25.10 per cent recorded the slowest rise in food inflation on a year-on-year basis,”it added.

The report, however, said on a month-on-month basis, food inflation was highest in Yobe at 5.35 per cent, followed by Sokoto at 3.68 per cent and Jigawa at 3.45 per cent.

It said, “With Edo at 0.95 per cent, followed by Katsina at 1.03 per cent and Rivers at 1.10 per cent recorded the slowest rise on month-on-month food inflation.’’ (NAN) (www.nannews.ng)

Edited by Dorcas Jonah/Bashir Rabe Mani

By Kadiri Abdulrahman

The Central Bank of Nigeria (CBN), says the old Naira banknotes will henceforth remain legal “ad infinitum ”.

CBN’s Director, Corporate Communications Department, Isa AbdulMumin, said this in a statement on Tuesday in Abuja.

The News Agency of Nigeria (NAN) recalls that the CBN had introduced redesigned N200, N500 and N1,000 denominations in October 2022.

The apex bank also set certain deadlines for legal tender status of the old design of the denominations to cease to exist.

However, in March, the Supreme Court extended the validity of the old N200, N500, and N1,000 till Dec. 31.

The President Sen. Bola Tinubu, during his inauguration on May 29, promised to revisit the Naira redesign policy.

According to Abdulmumin, without prejudice, the CBN wishes to inform the general public of its desire to extend the legal status deadline of the old design of N200, N500 and N1,000 denominations ad infinitum.

“This is in line with international best practices and to forestall a repeat of earlier experiences.

“Thus, all banknotes issued by the CBN, in accordance with Section 20 (5) of the CBN Act, will continue to remain legal tender, even beyond the Dec. 31 deadline,” he said.

The director assured that the CBN was working with relevant authorities to vacate certain subsisting judicial pronouncements on the subject.

He said that all CBN branches across the country would continue to issue and accept all old and redesigned denominations of Nigerian banknotes to and from Deposit Money Banks.

He enjoined the general public to accept all banknotes (old or redesigned) for day-to-day transactions.

He also urged Nigerians to handle the banknotes with utmost care to protect and safeguard their life cycle.

“Also, the general public is encouraged to embrace alternative modes of payment, e-channels, for their day-to-day transactions,” he said. (NAN)(www.nannews.ng)

Edited by Ese E. Eniola Williams