Economy
Economy: Investors Panic as CBN ‘Suspends’ MPC Meeting
By Modupe Gbadeyanka
With just two weeks left to the first meeting of the Monetary Policy Committee (MPC) meeting this year, it is not certain if the meeting will hold.
This is because the committee lacks the quorum to seat and the Senate, which is to screen and confirm nominees to fill the vacant positions, has refused to carry out this duty because of a face-0ff with the executive arm of government.
The MPC meeting is organised by the Central Bank of Nigeria (CBN) and it uses it to formulate monetary policies and set interest rates.
The committee comprises the CBN Governor, who acts as the chairman; the four deputy governors of the apex bank; two members of the board of directors of the chief lender; three members appointed by the President; and two members appointed by the Governor.
At the moment, eight positions on the 12-member committee are vacant, making it impossible for the committee to form a quorum.
With the crisis on ground, investors are already getting worried where this could lead the nation’s economy to.
Business Post gathered that investors and observers want the Senate and Presidency to quickly resolve the issue so as not to put the recovering economy into another crisis.
“It is a bad signal to investors. If the meeting fails to hold later this month, be rest assured that it would have a negative effect on the economy because it would surely bring panic amongst us,” an investor, Mr Sunday Akinremi, told Business Post on Monday.
The Senate is expected to resume from its recess on Tuesday, January 16, 2018, while the MPC meeting is scheduled to hold a week after.
According to a report by ThisDay, a Senator, who spoke on the condition of anonymity on Sunday, maintained that the position of the upper legislative chamber remained unchanged until the impasse regarding the nomination and non-confirmation of the acting chairman of the Economic and Financial Crimes Commission Crimes Commission (EFCC), Mr Ibrahim Magu, was resolved.
The lawmaker also said the Senate had resolved to seek legal interpretation of a comment made by Vice-President Yemi Osinbajo that the position of the EFCC chairman does not require the confirmation of the Senate, as it was not specified in the constitution.
As a result of Mr Osinbajo’s remark, the Senate had resolved to suspend the confirmation process for all nominees of the president not specifically mentioned in the 1999 Constitution, but are provided for in the establishment Acts of several agencies of the federal government such as the CBN, FIRS, NCC, and others.
The source explained: “What we are saying is that there is a need to test this in court. Since the vice-president, who is a lawyer, can pronounce that Magu does not need Senate confirmation and that his nomination should not have been sent to us in the first instance, then we queried why that of the MPC members were sent to the Senate.
“After all, the appointment of MPC members is also not contained in the constitution. So why was it sent to us? If we decline confirmation, would the executive not still interpret it the way they have chosen to interpret the issue with Mr Magu?
“Just like the EFCC chairmanship, the members of the MPC are not mentioned in our constitution.”
However, the lawmaker pointed out that the Senate has been confirming nominees of the president specifically mentioned in the constitution such as officials of the Independent National Electoral Commission (INEC).
When contacted, the spokesman of the Senate, Mr Sabi Aliyu Abdullahi, could not be reached for his reaction, as his mobile phones were switched off.
In a recent interview, he had told THISDAY that the resolution of the Senate was still in place until the impasse regarding Mr Magu was resolved.
The President had in October nominated Mrs Aisha Ahmad as deputy governor of the CBN to replace Mrs Sarah Alade, who retired from the Bank last June.
He also nominated Professor Adeola Festus Adenikinju, Dr Aliyu Rafindadi Sanusi, Dr Robert Chikwendu Asogwa and Dr Asheikh Maidugu as members of the MPC to fill the positions of four others whose tenure expired at the end of last year.
Similarly, the president had nominated five non-executive directors for the CBN, who have also not been confirmed by the Senate.
Meanwhile, Mr Suleiman Barau, another deputy governor of the central bank, who is also a member of the committee, retired last month.
The president is yet to name a replacement for him.
The delay in confirming the MPC nominees has led to uncertainty over the January meeting of the committee, which has operational independence in setting interest rates as well as formulating monetary policies for the country.
Speaking on the issue Sunday, a senior CBN official who pleaded to remain anonymous, said the matter was beyond the CBN.
She explained: “The CBN is not in a position to push for the confirmation of the nominees. It is something between the presidency and the Senate.
“We would have loved to get the confirmation so that our MPC and even the Board of Governors would be up and running.”
When asked about the likely implication of not holding the meeting, the CBN official said: “The implications are very clear. Apart from being a national disgrace, it would be an international embarrassment that the CBN cannot hold its MPC because of the lack of quorum. I don’t think it has ever happened to any country.”
By Dipo Olowookere
The bulls regained control of the Nigerian Exchange (NGX) Limited on Friday after surrendering power to the bears a day earlier as a result of mild selling pressure.
Yesterday, the Nigerian bourse rebounded by 0.54 per cent, mainly due to the gains recorded by First Holdco and others.
Data harvested by Business Post indicated that the industrial goods and energy sectors were flat, while the banking index chalked up 3.13 per cent. The insurance space expanded by 1.08 per cent, and the consumer goods counter rose by 0.21 per cent.
Consequently, the All-Share Index (ASI) went up by 1,316.52 points to 243,462.13 points from 242,145.61 points, and the market capitalisation grew by N850 billion to N157.057 trillion from N156.207 trillion.
The market breadth index was bullish during the last trading session of this week, printing 31 appreciating stocks and 23 depreciating stocks, representing strong investor sentiment.
First Holdco led the advancers’ log after it climbed 9.97 per cent to N95.95, Haldane McCall appreciated by 9.94 per cent to N3.65, LivingTrust Mortgage Bank soared by 9.73 per cent to N3.72, LASACO Assurance jumped by 5.26 per cent to N2.00, and Thomas Wyatt gained 5.10 per cent to quote at N3.09.
On the flip side, Red Star Express declined by 9.50 per cent to N20.00, Omatek slipped by 6.08 per cent to N1.70, C&I Leasing shrank by 5.93 per cent to N5.55, Jaiz Bank crashed by 5.03 per cent to N8.50, and Livestock Feed fell by 3.89 per cent to N8.65.
As for the activity chart, market participants bought and sold 685.9 million equities for N42.7 billion in 44,134 deals on Friday versus the 498.5 million equities worth N34.9 billion traded in 39,484 deals on Thursday, implying a rise in the trading volume, value, and number of deals by 37.59 per cent, 22.35 per cent, and 11.78 per cent, respectively.
Investors’ darling for the day was First Holdco, with a turnover of 225.9 billion units valued at N21.0 billion, Guinea Insurance sold 53.4 million units for N45.2 million, Zenith Bank traded 41.5 million units worth N4.7 billion, Access Holdings exchanged 29.1 million units valued at N720.6 million, and UBA exchanged 27.5 million units for N1.2 billion.
By Modupe Gbadeyanka
The Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has appealed to the Nigeria Customs Service (NCS) to deepen its sensitisation on the newly introduced Green Tax Surcharge Policy.
The chairman of APFFLON, Mr Akeem Ayobiojo, made this plea on behalf of his colleagues on Tuesday, July 14, 2026, at the Customs House in Abuja, during a stakeholders’ engagement with the agency.
He also called for improvements in the administration of Pre-Arrival Assessment Reports and Post Clearance Audit and the African Continental Free Trade Area (AfCFTA).
Mr Ayobiojo stated that freight forwarders were happy to work with the customs, commending the organisation for implementing Chapter 99, describing it as a major relief for manufacturers.
He, however, emphasised that a deeper understanding of the new tax was necessary for his members, saying more predictable procedures would reduce delays and unexpected costs for importers and freight forwarders.
In his remarks, the Comptroller-General of Customs, Mr Adewale Adeniyi, assured manufacturers, freight forwarders and other players in the nation’s trade sector that the NCS would continue to engage them on fiscal policies affecting their businesses, saying sustained dialogue remains key to resolving implementation challenges and improving the country’s trading environment.
He also promised them the service’s resolve to enhance and facilitate trade, acknowledging that, “Your feedback is important because it helps us understand what is happening in the field, and where necessary, we will take your concerns to the Federal Ministry of Finance and other relevant government institutions.”
Speaking about Authorised Economic Operator (AEO), Mr Adeniyi further explained that Nigeria would not lower the standards required under the Authorised Economic Operator Programme as the initiative is guided by global benchmarks established by the World Customs Organisation (WCO).
On her part, the Deputy Comptroller-General of Customs for Tariff and Trade, Ms Caroline Niagwan, clarified that electric vehicles can be imported without payment of duty only by holders of Import Duty Exemption Certificate (IDEC) issued by the Federal Ministry of Finance.
She also urged importers facing classification disputes to take advantage of the Advance Ruling system, noting, “Once an Advance Ruling is issued based on genuine documentation, importers have certainty on classification, valuation or origin before the goods arrive, thereby reducing unnecessary disputes during clearance.”
By Adedapo Adesanya
The Naira appreciated against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, July 17, by N1.35 or 0.07 per cent to N1,380.18/$1 from N1,381.53/$1.
It also improved its value against the Pound Sterling in the same market segment during the session by N11.75 to trade at N1,854.42/£1 compared with the previous day’s N1,866.17/£1, and gained N5.69 against the Euro to sell at N1,576.99/€1 versus Thursday’s closing price of N1,582.68/€1.
In the same vein, the Naira chalked up N1 against the United States currency yesterday at the GTBank forex desk to quote at N1,388/$1, in contrast to the preceding day’s N1,389/$1, but closed flat at the black market at N1,405/$1.
The appreciation of the Nigerian currency on Friday came amid fresh signals that Nigeria is building its external reserves for protection against shocks and excessive currency volatility.
The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, said the country’s gross reserves had risen above approximately $52 billion by 15 July, while net reserves had increased from about $3 billion when the current CBN leadership took office to more than $40 billion.
Mr Cardoso linked the increase in reserves to reforms that had restored greater confidence in the foreign exchange system. He also pointed to efforts to diversify foreign currency inflows, including policies designed to increase remittances through official channels.
He noted that monthly diaspora remittances had risen above $600 million and the CBN expected them to reach approximately $1 billion by the end of 2026. The target is part of a broader effort to grow reserves through recurring inflows rather than temporary measures.
The improvement, he argued, had strengthened Nigeria’s capacity to respond when unexpected events threatened market stability.
The apex bank has also launched a new digital platform that will track every foreign exchange transaction involving Bureau De Change (BDC) operators, marking a major step in its efforts to improve transparency and strengthen oversight of Nigeria’s retail forex market.
As for the crypto market, prices were up as markets overlooked geopolitical developments and macro forces weighing on the whole market ecosystem rather than anything crypto-specific, with Cardano (ADA) up by 4.6 per cent to $0.1661.
Bitcoin (BTC) jumped by 1.8 per cent to $63,968.32, Ethereum (ETH) improved by 0.9 per cent to $1,843.88, Dogecoin (DOGE) also rose by 0.9 per cent to $0.0723, Solana (SOL) soared by 0.6 per cent to $74.90, Ripple (XRP) also appreciated by 0.6 per cent to $1.08, and Binance Coin (BNB) advanced by 0.1 per cent to $567.32.
However, TRON (TRX) depreciated by 0.2 per cent to close at $0.3218, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
