By Adedapo Adesanya

The Centre for the Promotion of Private Enterprise (CPPE) has urged policymakers to adopt a cautious approach to further interest rate hikes, warning that rising political spending ahead of the 2027 elections and growing geopolitical tensions could complicate monetary policy decisions.

The Monetary Policy Committee (MPC) of the central bank will hold its 305th meeting starting Monday, May 19 (today) to Tuesday, May 20, after which the monetary policy decisions will be announced.

The centre said while inflation control remains critical, excessive monetary tightening could weaken credit growth, discourage private investment and slow Nigeria’s fragile economic recovery.

Last week, the National Bureau of Statistics (NBS) said the country’s inflation increased to 15.69 per cent in April amid the impact of the continued tension in the Middle East.

According to the chief executive of CPPE, Mr Muda Yusuf, the MPC will need to carefully weigh domestic economic realities alongside global developments before taking any decision on rates.

He stated that geopolitical tensions involving the United States, Israel and Iran were already fueling uncertainty in the global energy market, with rising crude oil prices expected to increase domestic energy, logistics and production costs, noting that the global developments could further intensify inflationary pressures within the Nigerian economy.

On the domestic front, Mr Yusuf said signs of rising liquidity linked to preparations for the 2027 general elections are becoming more evident, explaining that political spending by candidates and parties, combined with increasing allocations from the Federation Account Allocation Committee (FAAC) to state governments, could create fresh liquidity management and inflation challenges for monetary authorities.

“Indications of increased liquidity related to the upcoming 2027 elections are becoming more prominent. Political spending from candidates and parties, coupled with enhanced disbursements from FAAC to state governments, presents important considerations for liquidity management and inflation control,” he said.

Mr Yusuf stated that, given the current environment, there is a strong possibility that the MPC may either retain the current policy stance or opt for only moderate tightening.

The CPPE warned that sustained high interest rates could hurt economic growth, weaken industrial productivity and undermine job creation and acknowledged the need to manage inflation expectations

The centre argued that Nigeria’s inflation challenges are largely supply-driven, particularly due to high energy costs, logistics bottlenecks and structural inefficiencies, limiting the effectiveness of aggressive monetary tightening.

According to Mr Yusuf, monetary tightening is generally more effective in tackling demand-pull inflation than supply-side inflation.

He stressed that higher interest rates could increase borrowing costs for businesses, reduce manufacturing competitiveness, constrain small and medium-scale enterprises and discourage investment at a time when the economy requires stronger productivity growth.

The CPPE also warned that elevated rates could heighten the risk of loan defaults and place additional pressure on businesses already struggling with high operating costs.

Mr Yusuf advocated a more balanced and development-focused monetary policy framework suited to the realities of emerging economies like Nigeria, where infrastructure gaps, weak productive capacity, unemployment and financing constraints remain major challenges.

He maintained that sustainable disinflation in Nigeria would depend more on supply-side reforms, energy security, improved logistics, stable exchange rates and increased domestic refining capacity than solely on aggressive monetary tightening.

“The primary focus should be on fostering investor confidence, encouraging productive investments, enhancing output growth and improving the economy’s supply-side capacity while remaining attentive to inflation management,” he said.

By Modupe Gbadeyanka

Nigerian businessman, Mr Aliko Dangote, has increased his investment in Ethiopia to over $4 billion from $2.5 billion.

During a high-profile visit hosted by Prime Minister Abiy Ahmed, the business mogul informed newsmen in Gode, in Ethiopia’s Somali region, that the expanded scope includes critical infrastructure such as a 110-kilometre pipeline, a 120MW power plant, a polypropylene packaging facility, and a two-million-tonne NPK blending plant, among other new components.

The richest man in Africa described Ethiopia as a key strategic destination for Dangote Group’s long-term investments.

“In total, our declared and signed investments in Ethiopia now exceed $4 billion. This makes Ethiopia the second-largest recipient of our investments in Africa, accounting for nearly nine per cent of our continental outlay between now and 2030,” he said.

He also reaffirmed his commitment to boosting food security across Africa through large-scale fertiliser investments, declaring that the continent has the capacity to feed itself and become a net exporter of agricultural products.

Speaking on the strategic importance of fertiliser in agricultural productivity, Mr Dangote noted that Africa’s food insecurity challenges are largely due to limited access to key inputs.

Africa holds immense agricultural potential, yet continues to grapple with food insecurity due to limited access to fertiliser. Through our investments, we are committed to reversing this trend by boosting productivity, empowering farmers, and advancing a sustainable path to food self-sufficiency,” he stated as he was accompanied to inspect the site of the proposed fertiliser plant, where construction activities are already underway.

He added that his organisation’s ambition, though bold, is achievable with sustained investment in fertiliser production and agricultural infrastructure.

“Africa has the capacity to feed itself and even export to the rest of the world. Our fertiliser investments across the continent are designed to unlock that potential and secure a prosperous future for our people,” Mr Dangote noted.

He further commended Prime Minister Abiy Ahmed’s leadership and vision for economic transformation, saying he is “driving development beyond expectations, but such progress requires strong private sector collaboration. We are proud to partner with Ethiopia to help build one of Africa’s most dynamic economies in the coming decade.”

In his remarks, Mr Ahmed described his guest as a trusted partner and commended the pace of work on the fertiliser project, which he said aligns with Ethiopia’s broader development priorities.

He emphasised that the project would significantly boost domestic fertiliser production, reduce dependence on imports, and provide critical support to millions of Ethiopian farmers.

According to the Prime Minister, the fertiliser plant will also create extensive employment opportunities, strengthen the industrial value chain, and reinforce Ethiopia’s position as an emerging agro-industrial hub in Africa.

“This type of large-scale investment demonstrates the power of strong collaboration between government and the private sector,” he said. “Expanding such partnerships will accelerate economic growth, attract further investment, and improve the livelihoods of our people.”

The Dangote fertiliser initiative is widely seen as a transformative step toward reshaping Africa’s agricultural landscape, with the potential to enhance productivity, reduce import dependence, and drive inclusive economic growth across the continent.

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange closed higher by 1.41 per cent on Friday, May 15, supported by four securities on the platform.

During the session, FrieslandCampina Wamco Plc added N14.24 to its share price to sell for N159.00 per unit, in contrast to the previous day’s N144.76 per unit.

Further, Central Securities and Clearing System (CSCS) Plc appreciated by N1.34 to N72.34 per share from N71.00 per share, Geo-Fluids Plc improved its price by 4 Kobo to N2.94 per unit from N2.90 per unit, and Industrial and General Insurance (IGI) Plc gained 1 Kobo to trade at 61 Kobo per share compared with Thursday’s closing price of 60 Kobo per share.

As a result, the NASD Unlisted Security Index (NSI) rose by 58.20 points to 4,188.41 points from 4,130.21 points, and the market capitalisation soared by N34.82 billion to N2.506 trillion from N2.471 trillion on Thursday.

During the session, the volume of trades went up by 180.8 per cent to 1.2 million units from 417,349 units, and the value of transactions increased by 29.8 per cent to N29.8 million from N23.2 million, while the number of deals fell by 22.6 per cent to 24 deals from 31 deals.

Great Nigeria Insurance (GNI) Plc ended the day as the most traded stock by value on a year-to-date basis with 3.4 billion units sold for N8.4 billion, followed by CSCS Plc with 60.8 million units exchanged for N4.1 billion, and Okitipupa Plc with 27.9 million units valued at N1.9 billion.

GNI Plc also closed the session as the most traded stock by volume on a year-to-date basis with 3.4 billion units worth N8.4 billion, followed by Resourcery Plc with 1.1 billion units transacted for N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units traded for N1.2 billion.