LAGOS, Nigeria — The Central Bank of Nigeria‘s Monetary Policy Committee has announced a modest increase in monetary policy rates to 18.75 percent, a measure aimed at curbing the nation’s escalating inflation.
The Acting Governor of the Central Bank of Nigeria, CBN, Mr. Folashodun Shonubi, unveiled the decision on Tuesday, July 25, 2023, during a press briefing following the conclusion of the 292nd Monetary Policy Committee meeting.
In the prior MPC meeting, the CBN had also taken a tightening stance on the economy by raising the interest rate to 18.5 percent from 18 percent.
“The MPC thus resolved by majority to raise the Monetary Policy Rates,” Shonubi stated. “Six members voted to raise the MPR, four by 25 basis points, two by 50 basis points, while five voted to hold the MPR constant.”
The apex bank has narrowed the asymmetric corridor from +100 to -700 basis points, settling at a new level of +100 and -300 basis points around the Monetary Policy Rate.
Consequently, the MPC voted to increase the MPR by 25 basis points from 18.5 percent to 18.75 percent.
Other key parameters remained unchanged, with the Cash Reserve Ratio, CRR, and Liquidity Ratio (LR) steady at 32.5 percent and 30 percent, respectively.
The MPC’s decision comes amidst a sustained rise in inflation, which hit 22.79 percent in June.
The central bank’s marginal hike in the MPR reflects its strategy to reign in inflation and stabilize the economy.
The persistently high inflation concerns Africa’s largest economy, increasing pressure on the central bank to act decisively.
Today’s rate hike underlines the bank’s commitment to curb inflationary pressures, although the impact on the broader economy and Nigerian households will be keenly watched.
High Court Annuls Arrest and Detention of Suspended CBN Governor Emefiele
The High Court of the Federal Capital Territory, Apo, Abuja, has declared the arrest, detention, and interrogation of suspended Governor of Central Bank of Nigeria, CBN, Mr. Godwin Emefiele, as invalid.
The decision arrived merely 24 hours following another court’s order that he be either charged or immediately released from Department of State Services, DSS, custody.
In a judgment on an Originating Motion on Notice filed by Mr. Emefiele, Justice Bello Kawo ruled that his arrest, detention, and questioning violated a standing judgment and orders of Justice M. A. Hassan in Suit No. FCT/HC/GAR/CV/41/2022.
“Mr. Emefiele sought this court to quash his arrest and detention for being illegal and a nullity in light of the standing judgment of Justice M. A. Hassan delivered on December 29, 2022,” said his counsel, Mr. Peter Abang.
In a separate order, Justice Bello Kawu invalidated any warrant of arrest obtained by the DSS or other respondents relating to Mr. Emefiele’s allegations of terrorism financing, fraudulent practices, money laundering, round tripping, and threat to national security.
The court further granted an injunction preventing the DSS from interfering with Mr. Emefiele’s personal liberty, freedom of movement, or proceeding against him in connection with any allegations.
It also ordered the DSS to immediately release Mr. Emefiele from any detention or questioning regarding these allegations.
Counsel to Mr. Emefiele, Obed Agu, remarked on the judgment: “We were in court to seek enforcement of Justice Hassan’s judgment, which the DSS has refused to enforce. The DSS has not appealed or obtained a stay of execution of that judgment. Therefore, Emefiele, by his lawyers, came to this court to ask for enforcement of that judgment.”
Agu further explained: “When Justice Hassan ordered the DSS to charge Emefiele within seven days, they immediately went to Lagos to file a charge. But we’re stating that they have not obeyed the judgment of Justice Hassan obtained as far back as December 29, 2022.”
Agu appealed to President Bola Ahmed Tinubu, “Let the rule of law reign; that is what we are asking for. The DSS can charge anybody, but it must be within the constitutional provisions, which they have the authority to do. That is our position, and that is what we are asking.”