ADVERTISEMENT
TechEconomy
Monday, June 2, 2025
No Result
View All Result
  • News
  • Tech
    • DisruptiveTECH
    • ConsumerTech
      • Accessories
      • Phones
      • Laptop
      • Gadgets and Appliances
      • Apps
    • How To
    • TechTAINMENT
  • Business
    • Telecoms
      • Broadband
    • Mobility
    • Environment
    • Travel
    • Commerce
    • StartUPs
    • TE Insights
    • Security
  • Partners
  • Economy
    • Finance
    • Fintech
    • Digital Assets
    • Personal Finance
    • Insurance
  • Features
    • IndustryINFLUENCERS
    • Guest Writer
    • Appointment
    • EventDIARY
    • Editorial
  • Apply
  • TecheconomyTV
  • Techeconomy Events
  • BusinesSENSE For SMEs
  • TBS
  • News
  • Tech
    • DisruptiveTECH
    • ConsumerTech
      • Accessories
      • Phones
      • Laptop
      • Gadgets and Appliances
      • Apps
    • How To
    • TechTAINMENT
  • Business
    • Telecoms
      • Broadband
    • Mobility
    • Environment
    • Travel
    • Commerce
    • StartUPs
    • TE Insights
    • Security
  • Partners
  • Economy
    • Finance
    • Fintech
    • Digital Assets
    • Personal Finance
    • Insurance
  • Features
    • IndustryINFLUENCERS
    • Guest Writer
    • Appointment
    • EventDIARY
    • Editorial
  • Apply
  • TecheconomyTV
  • Techeconomy Events
  • BusinesSENSE For SMEs
  • TBS
No Result
View All Result
Tech | Business | Economy
No Result
View All Result
Podcast

Home » Interest Rate May Surge Before Year-End, Amid Inflationary Pressure, Analysts Say

Interest Rate May Surge Before Year-End, Amid Inflationary Pressure, Analysts Say

Yinka Okeowo by Yinka Okeowo
May 25, 2022
in Finance
0

RelatedPosts

America Debt - IMF

Can AI Save America from its Debt Spiral

May 31, 2025

Naira Holds Steady at N1,586/$1 in Official Market

May 31, 2025

The Central Bank of Nigeria (CBN) may increase the Monetary Policy Rate (MPR) higher than the current 13 percent before the end of 2022, amid continued inflationary pressure occasioned by limited access to forex, and increasing debt crises, analysts have said. 

Africa’s largest economy faces an economic inflationary crisis, the major reason the CBN decided on Tuesday to raise the interest rate to 13 percent from 11.5 percent, TechEconomy reported.

Before the Monetary Policy Committee decided to increase the interest rate, the CBN had announced in February stop the sale of foreign exchange to Deposit Money Banks by December this year.

Limited Access to Forex

Accessing the dollar for legitimate purposes has been a lingering crisis in Nigeria. Nigerians who are involved in international transactions, such as paying for education; and business owners, such as importers have little or no access.

The current situation compels Nigerians to approach the black market, making Naira slide to over N600 per dollar, thus, eroding the purchasing power of many Nigerians.

Data obtained from the Central Bank of Nigeria showed that Nigerians spent at least $220.86 million on foreign education between December 2021 and February 2022.

In a letter titled ‘important notice’, seen by TechEconomy, Access Bank says it will need a 30-day period to fulfill requests for school fees, upkeep, and rent payments.

Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) requests, it said, will take 14 days.

In contrast, TechEconomy gathered several reports revealing that politicians with unrestricted access to dollars have been on spending sprees to fund the forthcoming elections.

In an interview monitored by TechEconomy on Classic FM, Peter Obi, Presidential aspirant of the Peoples Democratic Party (PDP) said “manufacturers are looking for dollars for spares, for inputs, for critical goods, but they can’t find it and we the politicians are sharing dollars.”

“Let me tell you, one of the measures of any country’s economic stability is the currency. It is an abomination that somebody serving in government is spending another country’s currency, and I say it any day, If I’m president today, no government official would spend dollars, you go to jail. we have a currency.”

Increasing Debt Crises

The Federal Government has been heavily criticized for borrowing without any feasible commensurate infrastructural output.

President Buhari had in April written to the House of Representatives, informing the parliament that the deficit in the 2022 Appropriation Act had risen by N965.42bn to N7.35tn.

“Borrowing is not bad, what matters is what you are doing with when you borrow, Obi said. “Nigeria must desist from borrowing for consumption.”

The Debt Management Office (DMO), projected that the total debt stock of Nigeria is likely to reach N45tn, after it revealed that the country’s total debt stock as of December 2021 was N39.55tn.

Domestic debt stands at N23.7 trillion as of December 2021 from N20.21 trillion recorded in the previous year.

According to Ikemesit Effiong, Head of Research, SBM Intelligence, government borrowing costs, external and domestic, are sure to rise, and capital-intensive and interest-rate-sensitive sectors such as manufacturing and oil and gas will see a net rise in operating costs.

“This factor may account for why the committee didn’t opt for a bigger price hike.”

Food Inflation

Although, many Nigerians believe the depreciating value of their local currency is responsible for food inflation. This also includes the high cost of transportation, lack of storage facilities, insecurity and other factors.

Security agencies in Nigeria are yet to find a lasting solution to the menace of insecurity across the country. Farmers and transporters are gripped with fear not to be attacked by bandits. This negatively affects the quantity of agricultural product at the market.

The emergence of unknown gunmen in the Southeast part of the country coupled with sit -at-home will all have effects on food inflation.

Recent SBM Intelligence analyses have shown that market prices increased from October to December. Then it experienced a dip in February before rising again between February and March.

Price increases in recent times are attributed to fuel scarcity, insecurity situation, poor electricity supply, etc. It is expected that 19.4 million Nigerians will face famine by August 2022

Food inflation is currently 15.63 percent in December 2021, according to NBS.

Inevitable Inflation

Analysts say the combination of these several factors will create an economic situation that will give rise to inflation and eventually pressure the CBN to increase interest rates.

“The CBN will hold at its next meeting in July, but that rates will hit 14% by the end of the year if inflation continues to accelerate. said Abdulazeez Kuranga, Senior Analyst at Lagos-based Cordros Capital Ltd.

“Inflationary pressure will be increasing given the election spending,” said Abdulazeez Kuranga, Senior Analyst at Lagos-based Cordros Capital Ltd.

“It is driving the demand for money in the domestic economy and causing inflationary pressure.”

Nigeria’s current inflation rate is 16.82 percent, according to the Consumer Price Index report, released in April 2022 by the National Bureau of Statistics (NBS).

On a month-on-month basis, inflation increased by 1.76% in April 2022, compared to 1.74% increase recorded in the previous month.

2 total views , 1 views today

Advertisements
MTN ADS

Author

  • Yinka Okeowo
    Yinka Okeowo

    View all posts
0Shares
Tags: CBNInterest RateMPC
Previous Post

Real-time Fraud Analytics Increasingly Important for Insurers

Next Post

Bolt Food Expands Service to Lagos Mainland

Yinka Okeowo

Yinka Okeowo

Related Posts

America Debt - IMF
Finance

Can AI Save America from its Debt Spiral

by Techeconomy
May 31, 2025
0

As America stares down the barrel of a $35 trillion debt pile, policymakers, investors - and increasingly, the public -...

Read more
Nigeria economy by FBNQuest, Naira currency, Nigeria's currency, strongest currencies

Naira Holds Steady at N1,586/$1 in Official Market

May 31, 2025
Naira vs Dollar | Asset management

Naira Appreciates in the Official Market, Closes at N1,586/$1

May 30, 2025
Arik Air in 2024

Alleged N76bn Fraud: EFCC Witness & Ex-Union Bank ED Reveals He Wrote-Off Arik’s $2.3m Debt

May 29, 2025
SANEF CEO Uche Uzoebo receives RedTech Award

RegTech Conference: SANEF’s CEO Uche Uzoebo Makes Case for More Financial Inclusion Strategies Targeting Women

May 29, 2025
SEC cancels Silverkuun

SEC Warns Public against Investing in Silverkuun Limited

May 29, 2025
Next Post

Bolt Food Expands Service to Lagos Mainland

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Techeconomy Podcast

Techeconomy Podcast
Techeconomy Podcast

Infowave is brought to you by TechEconomy. Every week we will bring new stories from startups and influencers who are shaping and changing the world we live in. We’ll also bring you reports on topics you should know.

Follow us @techeconomyng for more.

Audio Player
TECH TALK EPISODE 2
Techeconomy Podcast
TECH TALK EPISODE 2
PRODUCTIVITY AND WORK-Life Balance[...]
  • 0.8
  • 1
  • 1.2
  • 1.5
  • 2
Download
  • Facebook
  • Twitter
  • Linkedin
  • Copy episode link Copied
  • Download
Captions
00:00
00:00
TECH TALK EPISODE 2
byTecheconomy

PRODUCTIVITY AND WORK-Life Balance

TECH TALK EPISODE 2
May 22, 2025
Techeconomy
CYBERSECURITY ESSENTIALS
April 24, 2025
Techeconomy
Digital Marketing Trends and strategies for 2025 and beyond
February 27, 2025
Techeconomy
Major Lesson for Techies in 2024 and Projections for 2025
December 6, 2024
Techeconomy
Major Lessons for Techies in an AI-Driven World | Techeconomy Business Series Highlights
November 26, 2024
Techeconomy
Maximizing Profitability Through Seasonal Sales: Strategies For Success
November 8, 2024
Techeconomy
Techeconomy Business Series
October 15, 2024
Techeconomy
PRIVACY IN THE ERA OF AI: GETTING YOUR BUSINESS READY
May 30, 2024
Techeconomy
Unravel the Secrets of Marketing Everywhere All At Once with Isaac Akanni from Infobip | Infowave Podcast Episode 1
February 9, 2024
Techeconomy
The Role of Ed-tech in Life Long Learning and Continuous Education
October 19, 2023
Techeconomy
Search Results placeholder

WHAT IS TRENDING

Video Player
https://www.youtube.com/watch?v=g_MCUwS2woc&list=PL6bbK-xx1KbIgX-IzYdqISXq1pUsuA4dz
00:00
00:00
00:31
Use Up/Down Arrow keys to increase or decrease volume.

Follow Us

  • About Us
  • Contact Us
  • Careers
  • Privacy Policy

© 2025 Techeconomy - Designed by Opimedia.

No Result
View All Result
  • News
  • Tech
    • DisruptiveTECH
    • ConsumerTech
      • Accessories
      • Phones
      • Laptop
      • Gadgets and Appliances
      • Apps
    • How To
    • TechTAINMENT
  • Business
    • Telecoms
      • Broadband
    • Mobility
    • Environment
    • Travel
    • Commerce
    • StartUPs
    • TE Insights
    • Security
  • Partners
  • Economy
    • Finance
    • Fintech
    • Digital Assets
    • Personal Finance
    • Insurance
  • Features
    • IndustryINFLUENCERS
    • Guest Writer
    • Appointment
    • EventDIARY
    • Editorial
  • Apply
  • TecheconomyTV
  • Techeconomy Events
  • BusinesSENSE For SMEs
  • TBS

© 2025 Techeconomy - Designed by Opimedia.

Translate »
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.