The bank disclosed this in a statement on Wednesday. According to the bank, Rewane is a respected economist and experienced leader in Nigeria’s financial sector, with more than 40 years of experience in macroeconomic research, investment banking, and strategic management.

The bank further stated that, “Rewane is the managing director at Financial Derivatives Company Limited, a top financial advisory and economic research firm. He is a Fellow of the Nigerian Economic Society and has held leadership roles at International Merchant Bank Nigeria Limited and First National Bank of Chicago.

He graduated from the University of Ibadan with a degree in Economics and is a Fellow of the Chartered Institute of Bankers of Nigeria and an Associate of the Institute of Chartered Bankers of England and Wales.

“Mr. Rewane has served on the boards of blue-chip companies and multinationals, including Guinness Nigeria Plc., British American Tobacco, Henkel Nigeria Limited, Top Feeds Nigeria Limited, and Africa Infrastructure Plus Partners. He was a member of the Presidential Steering Committee for the Resolution of the Global Economic Crisis. He has completed executive management programmes at top business schools, including the Oxford International Capital Markets programme, the Euromoney Institute of Finance, and IMD Lausanne, Switzerland.

“The Board of Directors of First City Monument Bank (FCMB) welcomes Mr. Rewane. The Bank is confident that his expertise in macroeconomics, corporate governance, and strategic management, together with the Bank’s stronger capital base, will strengthen its leadership and help drive the next phase of growth while continuing to deliver value to stakeholders.’’

Rewane said this during his presentation at the June edition of the Lagos Business School Breakfast session.

The analysts who did a mid-term economic review of the current administration maintained that the Nigerian currency remains undervalued by 26.82 per cent, while the dollar, which has weakened by 8.7 per cent year-to-date, could support the strengthening of the naira.

He said,

“The official and parallel market rates have converged more closely. Now trading within a 1–3 per cent margin. A major improvement from the 50–70 per cent gap observed pre-reforms. The spread is now within the N50 margin, meaning that the naira is now fairly priced and the naira will trade at about N1,600-N1,650/$”.

For the June/July period, Rewane projected that “inflation data will reveal a slight decline to 23.15 per cent.

The real GDP growth for Q1 25 will come out at 3.4 per cent. Brent will trade at $60-$63 pb as OPEC+ increases output. Nigeria’s oil production will increase to 1.5 mbpd.

The price of PMS will decline marginally to N845/litre. Diesel will trade at N950/litre. Corporate profitability in Q2’25 will increase as companies carry lower inventory. FAAC allocation will be flat at N1.6tn as corporate income tax clawback reduces tax liabilities.”

He also projected that the Monetary Policy Committee of the Central Bank of Nigeria would drop the benchmark rate by 50bp at its next meeting. He added that Nigeria will be mostly unaffected by the tariffs imposed by US President Donald Trump in the global trade arena.

Rewane’s projection on the naira was substantiated by analysts at Meristem, who estimated that it would remain relatively stable at the official window, supported by sustained FX interventions and improved market liquidity.

“However, the parallel market is likely to remain under pressure, especially if downward risks to FX inflows persist and speculative demand stays elevated. As a result, the widening spread between both markets may linger in the near term,” he stated.

In May, the naira appreciated marginally at the Nigerian Foreign Exchange Market, suggesting a relatively steady FX supply supported by the CBN’s sustained interventions.

It, however, depreciated month-on-month at the parallel market, widening the spread between both markets to N24.25/$ in May from N1.69/$ in April.

The Meristem monthly report noted that this was the first notable divergence since March 2025 and attributed the widening gap to sustained demand pressures and speculative activities amid growing uncertainties in the global market.

On the corporate performance front, Rewane painted a positive picture, saying there was strong revenue and profit growth, reflecting robust business performance and higher domesticated debt which shields firms from naira devaluation risks tied to foreign loans.

The private sector also has faster access to local funding, ideal for working capital and short-term needs, as seen in the volume of commercial papers being offered. This reliable domestic credit has supported expansion and bridge financing for corporate Nigeria.

These factors have led to the projection of a positive outlook for the Nigerian private sector as corporates “adapt by repricing, local sourcing, and digital transformation. Investor sentiment is warming, fuelled by forex reforms, policy clarity, and signs of macroeconomic stabilisation. Investors are showing renewed interest, particularly in banks, infrastructure, and energy, but are still watching the policy environment. Portfolio investors are slowly returning, encouraged by higher yields, a more flexible exchange rate, and enhanced central bank transparency,” Rewane added.

The 50% tariff hike was first implemented by MTN Nigeria just a week earlier. Telecom operators are revising their prices following the Nigerian Communications Commission (NCC) approval of a 50% tariff increase on January 20, 2025.

Under the new pricing structure, Airtel’s most affordable data plan has been revised. The 1.2GB plan previously priced at ₦1,000 has been replaced with 2GB for ₦1,500, representing a 50% increase. 

The adjustments extend to other plans as well. For example, the 3GB plan now costs ₦2,000, up from ₦1,200 for 1.5GB, and the 4GB plan now stands at ₦2,500, an increase from the previous 3GB at ₦1,500. 

The 8GB plan now costs ₦3,000, a rise from ₦2,000 for the former 4.5GB package. Larger bundles have also been impacted, with the 10GB plan now priced at ₦4,000, replacing the earlier 6GB plan that cost ₦2,500. 

Other hikes include the 13GB plan at ₦5,000 (previously 10GB at ₦3,000), 18GB for ₦6,000 (up from 15GB at ₦4,000), and 25GB for ₦8,000, replacing the previous 18GB plan at ₦5,000.

Airtel has also revised its call rates, introducing a new flat rate of 25 kobo per second, which means a one-minute call now costs approximately ₦15, an increase from the previous ₦11 rate. 

However, the telco has left certain plans untouched. Notably, the 5GB weekly plan priced at ₦1,500 remains the same, providing some relief for customers seeking shorter-term options.

Raising tariffs aims to help telcos maintain service quality and encourage investment in infrastructure. According to Airtel, the new rates will help the company continue to invest in network improvements, ensuring better service, more reliable connectivity, and a wider coverage area for its customers. 

The operator has stressed that the tariff increase will also contribute to enhanced customer service, better network quality, and greater access to innovative solutions.

Even with these assurances, there are talks that the new pricing structure may place additional stress on Nigerian consumers. 

The recent tariff hikes are foreseen to further stretch household budgets, particularly as the country’s inflation and costs of living keep increasing. Experts have warned that the increases could result in reduced usage by consumers, who may struggle to keep up with the higher costs.

Bismarck Rewane, the chief executive officer of Financial Derivatives Company, pointed out that while the price hikes may benefit the telecom operators in the short term, they could lead to reduced consumption, potentially affecting the long-term sustainability of the changes. 

He explained that the tariff increases would likely weigh heavily on consumers, especially those already feeling the economic impact of rising inflation. “The hike promises to benefit operators but will put additional strain on consumers’ pockets, possibly resulting in reduced usage from consumers,” Rewane noted.

Before Airtel, MTN Nigeria was the first to implement the hike in tariffs and the telco received complaints from its subscribers. MTN Nigeria had raised three of its data plans by more than 50%, which led to a flurry of objections on social media and other platforms. 

While the telco defended its move, explaining that the hikes were within the NCC-approved limits and part of efforts to remove subsidies from special plans, it eventually issued an apology to its customers in response to the outcry.

Airtel’s tariff adjustments have met with mixed reactions from users, many of whom are concerned about the affordability of telecom services, especially for those who rely heavily on mobile data for work, education, and communication. 

The move aims to help operators resolve challenges of sustaining operations in the market, while also coping with inflation and high costs. However, the telecom industry is one of the most profitable sectors in Nigeria, with a growing base of mobile phone and internet users, despite the challenges caused by increasing tariffs.

While Airtel and MTN may have their reasons for these hikes in tariffs, the obvious remains that consumers are bearing the brunt of these increases, despite service quality and infrastructure offsetting the financial aspect for telcos.

Rewane made this statement on Channels Television’s Business Morning segment of the Sunrise Daily breakfast program on Thursday, as monitored by our correspondent.

He said: “We’ve seen onions come down sharply to N115,000, and rice has also come down to N110,000; it was as high as N120,000. The commodity that is surprising to everybody is beans; beans have gone out of storage and out of reach.’’

An investigation of major markets reveals that traders sold a painted rubber of beans for N13,000 and a derica of the commodity for N3,000, while a bag of beans goes for as high as N180,000.

Rewane attributed the hike in bean prices to recent flooding which ravaged food-producing states like Borno, Bauchi, and Sokoto, among others.

“Flooding has destroyed a lot of goods,” Rewane said, adding that the costs of moving agricultural produce from farms to the markets have also gone up due to a recent hike in petrol prices — from around N600 to about N1,000 per litre.

The economist predicted that food inflation would increase in the coming weeks but was optimistic that duty waivers on expected imported commodities would moderate prices.

“For now, despite everything, we think that inflation will still increase. Food inflation in particular will increase; headline inflation will increase to 34% but this is only temporary. When the imported commodities that we are going to enjoy the duty waivers come into the country, those prices will start to reduce,” Rewane said.

On October 1, 2024. President Bola Tinubu said his administration is focused on restoring peace to the troubled parts of the North so that farmers displaced by bandits and kidnapping can return to their farmlands and increase food production.

“We expect to see a leap in food production and a downward spiral in food costs. I promise you, we shall not falter on this,” Tinubu said on Tuesday during his 2024 Anniversary Broadcast on the occasion of Nigeria’s 64th Independence Day Anniversary.

Nigeria is battling one of its worst economic crises in recent times, with rising living and energy costs, sparked by the twin policies of the government’s removal of petrol subsidy and unification of the foreign exchange windows in May 2023.

While the market size and loquacious nature of the country’s population are significant factors in the sector’s viability, the crucial role of the regulatory body, the Nigerian Communications Commission (NCC), currently led by Dr Aminu Maida, cannot be overstated.

Effective regulation is a critical variable in the success of any industry, and the NCC’s leadership has been instrumental in shaping the sector’s progress. However, current realities in the country suggest that a lot remains to be done.

If we take a moment to reflect on the past and consider the incredible technological advancements that have transformed our society, we will undoubtedly find them astonishing.

These advancements carry profound implications for our future and compel us to ponder how our world will continue to evolve.

In any human society, whether it’s a simple tribe or a highly developed civilization, communication is essential. Without the ability to share information and ideas, it would be difficult for people to come together, collaborate, and make important decisions that affect everyone.

• Communication enables cooperation, the creation and exchange of goods, the sharing of knowledge and ideas, and providing help and support to each other when it’s needed. This makes the telecoms sector a very strategic one.

The global spread of mobile phones has further transformed communication, offering new opportunities and challenges. This technology has revolutionized the telecommunications sector, requiring adaptable strategies for both developed and developing countries.

As the popular saying goes, “In a city that has no laws, there is no crime,” governments therefore continue to prioritise the establishment of strong, independent regulators to prevent chaos and ensure that national development goals are achieved.

Beyond concerns around  quality of service and enhancing communication experience, the regulation of the telecommunications sector has been motivated by the need to ensure fair competition when market forces alone are insufficient.

The goal of universal services, particularly in enabling customers to receive and make calls, has also influenced the regulation of basic telecommunications services.

Nowadays, basic telecommunications services are widely regarded as essential, and regulations are in place to ensure it is affordable and widely available.

Over the last two decades, many telecommunications markets have attained a certain level of regulatory maturity, establishing separate regulators, and competitive frameworks.

In Africa, the telecommunications industry is experiencing rapid changes, with the market valued at approximately $63.17 billion in 2024.

It is projected to surpass $82.34 billion by 2029, growing at an annual rate of 5.44%. This growth is strongly linked to Africa’s youthful population.

Kenya, an East African technological hub, boasted a telecommunications market worth around $3.3 billion in 2023. The total telecom service revenue in Kenya was expected to grow at a compound annual growth rate (CAGR) of more than 2% throughout 2023.

South Africa also holds significant influence in the African telecom market, where it is projected to generate approximately US$16.0 billion in revenue from communication services by 2024.

Nigeria is also widely recognised as one of the major telecommunications markets in the world. With a population of over 200 million and blessed with abundant natural resources, Nigeria ranks as the 14th largest oil producer in the world and the telecommunications sector contributes as much as 14% to the GDP.

This makes it an attractive prospect for potential investors looking to tap into the largely untapped telecoms market.

• The outcome of the telecom sector will have an immense impact on other sectors of the Nigerian economy.

At a breakfast session organised by the Lagos Business School (LBS), Bismarck Rewane, the CEO of Financial Derivatives Ltd, said, “Big push theory posits that growth in one sector can stimulate growth in others through backward and forward linkages.

The telecom sector has both forward and backward linkages to various sectors. This linkage to other sectors is vital for economic growth, innovation, and productivity across various industries making it a key enabler and driver of development in modern economies. If the telecom industry collapses, all other sectors will follow.”

Recognizing the pivotal role that telecommunications can play in national development, the Nigerian government is dedicated to rapidly expanding telecommunications facilities and services through adequate efforts of regulatory bodies. Private investment in the sector has surged from $50 million in 1999 to over $70 billion twenty-one years after, leading to a rapid growth in subscriber numbers.

The advancements and progress in these industries are largely driven by the visible efforts of the regulatory bodies overseeing them.

Meanwhile, they are not without their challenges. South Africa’s telecoms sector is regulated by the Independent Communications Authority of South Africa (ICASA), Kenya, Communications Authority of Kenya, and Nigeria, the Nigeria Communications Commission; all responsible for ensuring fair play, continued infrastructural development and quality of service.

The Nigerian Communications Act of 2003 further empowers the NCC to effectively carry out its responsibilities as the independent regulator of the industry in Nigeria.

Additionally, the Act established the office of the head of the NCC, led by an Executive Vice Chairman (EVC), who is responsible for overseeing the regulation of the telecommunications sector in the country.

The body has continued to facilitate private sector participation in communication services delivery and regulate the activities of the operators to ensure consistency in the availability of service delivery and fair pricing.

The incumbent Executive Vice-Chairman, Dr. Aminu Maida is making significant strides despite the numerous challenges that plague the industry. The NCC recently obtained right-of-way (RoW) fee waivers in six states.

Typically, some States require telecom operators to pay these fees to install fiber optic cables along roadways.

High right of way fees have been a significant barrier for telecom companies, hindering the expansion of broadband access and infrastructure.

These waivers will allow telecom operators to deploy infrastructure more easily and cost-effectively, facilitating broader internet coverage.

The EVC’s stance is also evident in his advocacy that the telecom infrastructure should be regarded as a national infrastructure, reflecting its critical role in the nation’s development.

It should be co-managed in partnership with the telecom industry, which operates and maintains it.

This collaborative management approach would address issues like frequent fiber cuts caused by uncoordinated activities of engineers and builders who often do not consult the sector’s regulator before proceeding with their work. Such disruptions are a major cause of vandalism and service interruptions.

His advocacy has resulted in government action to make cable damages and vandalization of telecom infrastructure a criminal offense.

This proactive approach not only discourages future irresponsible behaviour but also helps in maintaining uninterrupted services for the public.

Consumers today have a growing reliance on staying connected and having fast internet speed.

The increasing demand for high-speed applications like video streaming and gaming, along with the expansion of the mobile ecosystem, is driving the need for better broadband connectivity.

This demand has put pressure on the industry to improve the availability and quality of broadband services, resulting in connectivity issues.

To address this, the regulatory body has continued to lay emphasis on the need for operators to move from quality of service to quality of experience, which is a holistic approach to improving customer experience in the industry.

Indeed, the telecoms sector is on the rise. However, additional safeguards are necessary to sustain its growth and ensure long-term viability.

============

Dr. Falade Muritala Adesola is a Senior Lecturer and former HOD, Computer and Information Sciences Department, Trinity University.

At a breakfast session hosted by the Lagos Business School, Pan-Atlantic University on June 5, 2024, leading voices in the private sector gathered to discuss the theme “Telecom Sector: The Fulcrum for Economic Dynamism in Nigeria.”

Keynote speaker Bismarck Rewane, CEO of Financial Derivatives Company, emphasized the telecom sector’s critical role in driving economic growth, innovation, and productivity across various industries.

Rewane, in his presentation titled, “Nigerian Economy on the Brink, Adapt or Collapse?” highlighted the sector’s challenges, including rising inflation, high operating costs, limited access to foreign exchange, regulatory burdens, multiple taxations, and state and local government extortion.

He stressed that these challenges are threatening the sector’s growth and development, citing MTN’s reported loss in 2023 financial year.

The expert’s comments align with telecom operators’ push for cost-reflective tariffs, which they deem necessary due to adverse economic headwinds.

Rewane emphasized that the current situation is having a detrimental impact on the sector’s growth and development, warning that the revenue potential from telecoms may start falling, leading to a ripple effect on other sectors.

“Big push theory posits that growth in one sector can stimulate growth in others through backward and forward linkages. The telecom sector has both forward and backward linkages to various sectors. This linkage to other sectors is vital for economic growth, innovation, and productivity across various industries making it a key enabler and driver of development in modern economies. If the telecom industry collapses, all other sectors will follow”, he added.

Other notable speakers, including Prof. Ali Bongo, echoed Rewane’s sentiments, stressing the need for government support and deregulation to ensure the sector’s survival.

They highlighted the sector’s growth potential, citing its 8% outperformance of GDP growth rate between 2019 and 2023.

The event examined the telecom sector’s critical role in Nigeria’s economic growth and development, with stakeholders urging the government to provide support and create an enabling environment for the sector’s growth.

As the telecom sector continues to face numerous challenges, experts warn that its decline could have far-reaching consequences for Nigeria’s economic dynamism.

The Financial Derivatives stated this in its May edition of the Monthly report.

According to the report, the Naira has been under pressure because of Nigeria’s external imbalances caused by disruption in oil production, drop in oil prices, regulatory arbitrage, and speculative behaviour of market actors.

Other reason includes; negative trade balance (0.86% of GDP), which has put pressure on the Nigerian currency market.

On how Diaspora fund can be of immense benefits, the report noted that it will  encourage remittances, attract diaspora investment, contribute to economic transformation and development, which in the long run will bring about developed infrastructure, promote good health care system, education and facilitate development.

According to the World Bank Report, Nigeria diaspora remittance was about $20 billion. It estimated that more than 90 percent of that did not get to Nigeria, they are being externalized.

The naira has a checkered history, it has witnessed a profound disruption in the past three decades and not yet a convertible currency.

The exchange rate of the naira is influenced by Economy, Politics and Policy.

According to the report, Nigeria’s balance of trade declined by 96% between 2022 and 2023, while Inflation soared to 33.2% in April 2024,  the terms of trade was pegged at – 1.68.

However, Diaspora remittances declined by 5.7% between 2022 ($20.13 bn) and 2023 ($18.95 bn). It also noted that encumbered resources have fallen sharply which intensified the FX market pressure, with the Current account balance is $7.61bn, and Terms of trade moved from 39.3 to 33.2.

The report further note that the naira was overvalued before the FX reform that took place in June 2023, but it under-valuation occurred between July 2023 and December 2023.

Since January 2024, the naira has become overvalued exchange rate trajectory on a depreciation path.

According to Augusto, Co, Remittances have grown to become a significant source of external financing for most low and middle-income countries (LMICs), playing an increasingly important role in their economies.

In 2020, remittance flows to LMICs exceeded the flow of foreign direct investments (FDI) and overseas development assistance to LMICs (excluding flows to China) and served as a major lifeline to these vulnerable economies as they grappled with the adverse effects of the COVID-19 pandemic.

Global remittance flows, which increased by 5% to $831 billion in 2022, grow by a more modest 1% to $840 billion in 2023.

The anticipated moderation is hinged on the elevated cost of living in several advanced economies, including the United States of America (USA), the United Kingdom (UK), and the Eurozone, which accounted for almost half of global outward remittances in 2022.

The steady inflow of funds from the Nigerian diaspora reflects the strong bond between the diaspora community and their home country, fostering economic stability and contributing to economic development.

The increasing importance of remittances in supporting the country’s reserves has necessitated a better understanding of the dynamics of remittance flows into Nigeria.

Speaking during a ChannelsTV interview, over the weekend, Rewane justified price increment for telecoms services, citing several factors.

According to Rewane, the last time there was a telecom price review was in 2013, and the prices of every other service in Nigeria have gone up in multiple-folds since then.

Rewane said, the current tariff regime is inhibiting the operators’ capacity to invest more in infrastructure, hence, the quality of their services has been deteriorating in recent times.

He added that poor telecom services, would not only affect the telecom subscribers but the economy at large.

“The last time there was a tariff review for the telecom sector was 11 years ago, in 2013. At that time, we had a president by the name of Goodluck Jonathan. Ever since then, there’s been President Buhari and now President Tinubu, and the price of a bag of cement at that time was 1,800. Today that bag of cement is 7,500, it had gone higher by 4,066%.

“A bag of rice at that time was N12,000 and now it’s up to N77,000. That is a 525% increase. The price of diesel was N196 and it went all the way to N1,900, that’s up to 1,000% and now it’s down to N1,400, which is an increase of 614%.

“The Naira was exchanged at N157 to a dollar, today, it’s N1,400 in the parallel market, a depreciation of 763%. So, if you check cumulative inflation from 2013 to now, it is 387%. The minimum wage then was N18,000, today, the labour union is asking for N615,000.”

According to Rewane, while the telecom sector officially contributes 10% to the GDP, it is a critical form of social infrastructure, hence, people must be ready to pay the right price to enjoy the services.

He added that in other countries where the right prices are being paid, they get better quality service compared to what Nigerians are getting currently

“Just like petrol and electricity, if you go across neighbouring countries where their income and their GDP is lower than ours how come there are no queues in Benin Republic and no breakdown in power supply even in Togo?

“How come the telecom system works efficiently? If you underinvest in any sector, if you don’t manage that sector efficiently you will get low returns and inefficient outcomes so that is what it is you can’t eat your cake and have it. You have to pay to get quality service,” he said.

In a joint statement by the Association of Licensed Telecom Operators of Nigeria (ALTON) and The Association of Telecommunication Companies of Nigeria (ATCON), the operators said the telecom industry is the only industry that has not reviewed its prices despite the rising inflation in the country and other economic realities that warrant increment.

They blamed this on the regulatory restraints that have been preventing them from pricing appropriately.

The Nigerian Communications Commission (NCC) regulates prices in the telecom industry and telecom operators are not allowed to implement any price change without the regulator’s approval.

The regulator has said a cost-based study is being conducted to determine if it would approve price increments for the operators.

Bismarck Rewane, the founder/CEO of the company made this known in a presentation at the Lagos Business School (LBS).

According to a report, it projected that inflation figure is expected to peak at 32.4 percent in March 2024, hitting a multi-decade high.

The renowned organization said, “Inflation in March is expected to surge to 32 per cent underpinned by food supply chain disruption and lingering impact of fuel subsidy reduction,”

It added that consumer price is further fueled by what it termed as “greedification”, “corporate greed and the naked exploitation of consumers by conscienceless marketers”.

Bismarck Rewane, noted that while inflation has begun to decelerate in other countries like South Africa, United Kingdom and India, Africa’s largest economy prices may increase by 0.7 percentage points from what it was in February.

According to the Statistics by National Bureau of Statistics, Consumer Price Index which accelerated to 31.7 percent in February, may continue its streak until a descent is seen later in the year.

“Inflation is set to peak in May/June and begin to decline after the wage review,” FDC noted.

The Lagos-based company noted that while the central bank has embarked on aggressive monetary policy targeted at taming the stubbornly high inflation, it might not be sufficient enough to bring the numbers down.

It said that countries like Kenya, Turkey and Egypt did more than deploying monetary tools, adding that they sourced for new money in terms of Eurobonds and bailout interventions from World Bank or International Monetary Fund.

FDC further stated that structural reforms and wage review were measures adopted by these countries in controlling its inflation figures.

On his part, Muhammad Sani Abdullahi, the deputy governor of the Economic Policy Directorate of the Central Bank of Nigeria (CBN), projects the nation’s CPI to soar to 32.63 per cent.

For Abdullahi, three major drivers that have kept inflation jumping are high energy costs, the impact of exchange rate fluctuations and persistent insecurity concerns in the country.

He said:

“Headline inflation is expected to rise to 32.63 per cent in March 2024, due to: high Energy Prices: Lingering impact of fuel subsidy removal, resulting in an increase in the cost of household utilities, transportation and production costs.

“Exchange Rate Passthrough: Depreciation of the naira resulting from the market-determined exchange rate policy, is likely to have a passthrough effect on domestic prices.

“Insecurity: Impact of insecurity on food production, the winding down of the harvest season, and high cost of farm input could negatively impact food prices.”

Meanwhile, the Olayemi Cardoso-led CBN has been ramping up efforts to bring the numbers down through a tighter monetary condition.

Notably, the CBN increased the country’s lending rate by a combined 600 basis points at 24.75 percent between its monetary policy committee meeting in February and March.

Cardoso’s leadership has equally put the nation’s currency, naira, on check now moderating around N1,200 per US dollar, a major rebound for a currency that was heading to N2,000/$ in less than two months.

“Our analysis indicates that inflation is likely to reach a peak in the Q2 before gradually receding, all things being equal,” analysts at Coronation, a leading Africa financial services company, said.

With 31.7 per cent inflation rate in February, analysts sought Central Bank of Nigeria’s (CBN) consideration of measures undertaken in three countries with significant inflation surge like Nigeria.

In an emailed report to investors, Rewane, said Kenya, with $74 billion economy, recorded 5.7 per cent inflation rate in March, after pursuing tight monetary policy, getting International Monetary Fund (IMF) assistance, carrying out structural reforms that included upward review of fuel prices.

Turkey with $907 billion economy, also tightened its monetary policy, sold Eurobonds, did wage review and achieved 68.5 per cent inflation rate in March.

In Egypt, inflation in February surged to 36 per cent from 29.8 per cent in January, underpinned by 50 per cent hike in minimum wage and 800 basis point hike in interest rate in one month.

The Financial Derivatives Company Limited said although there are no quick fixes, inflation can be managed as seen in Kenya, Turkey, and Egypt.

Rewane explained that not only tight monetary policy was used in these counties to fight inflation,  new money was sourced, institutional intervention was undertaken from multilateral financial institutions,  structural reforms and increase in productivity were also entrenched.

He insisted that for Nigeria, the rate hike from 600 basis points in two months to 24.75 per cent alone could not address the inflation surge.

“Rate hike alone may not be a golden bullet that will address inflation. However, new money and intervention from institutions are needed as a backup for a quicker outcome,” he predicted.

He said money supply grew by 79 per cent to N95.6 trillion in February adding that there is a direct relationship between money supply and inflation. “Money supply is projected to decline in the next quarter underpinned by the CBN’s proactive approach to tightening the Monetary Policy Rate (MPR) and Cash Reserve Ratio (CRR),” he said.

He said the CBN-led Monetary Policy Committee (MPC) position that it will consistently raise interest rates until inflation numbers begin to rebound.

Bismarck Rewane added:

“Inflation does not disappear overnight. It takes focused commitment to rein in inflation. It took the US four months to record the first moderation in inflation.  If the exchange rate continues to appreciate, and other measures are employed, inflation numbers are likely going to decline by June.”

According to him, Nigeria attracted capital inflows of about $2.3 billion in February which were underpinned by increased demand for Nigeria’s securities by foreign investors.

“CBN data also showed overseas remittances more than quadrupled to $1.3 billion in February compared with $300 million in January. CBN efforts to increase forex liquidity include restricting banks’ foreign exchange speculative activities, prohibiting street trading in foreign exchange  and capping net open positions at 20 per cent of shareholders’ funds,” he said.