National Telescope national telescope newspaper
The Central Bank of Nigeria (CBN) is set to hold a crucial meeting amidst growing concerns over the naira’s woes and the recent 45% hike in fuel prices.
“The pressure on the naira and the increase in fuel prices are major concerns that need to be addressed,” said Ayodeji Dawodu, an analyst at BancTrust Investment Bank Ltd.
The meeting comes as the country faces severe fuel scarcity, with long lines at gas stations and slowed economic growth.
The NNPC has attributed the scarcity to its debt to oil merchants, which it disputes.
“The government owes us $4.9 billion, or 7.8 trillion naira,” said the NNPC.
The CBN has increased its benchmark interest rate by 15.25 percentage points since 2022, reaching a record 26.75% in July. Analysts predict that the rate may not be cut soon due to concerns over inflation and pressure on the naira.
“We think that a broader shift toward monetary easing may be premature this year despite inflation trending lower,” said Dawodu.
The governor of the central bank, Olayemi Cardoso, has emphasized the need to contain inflation.
However, the recent fuel price hike may lead to increased inflationary pressures.
“New petrol prices are pointers to the high possibility of a rise in inflation figures because of transport and commodities costs,” said Segun
Ajayi-Kadir, director-general of the Manufacturers Association of Nigeria.
