Deadline extension for naira notes, IMF outlook… 7 top business stories to track this week

Here are the seven top business news you need to track this week — January 30 to February 3.

IMF’S WORLD ECONOMIC OUTLOOK UPDATE

The International Monetary Fund (IMF) will release its world economic outlook (WEO) 2023 update in Singapore on Tuesday, January 31, 2023.

The WEO update provides an overall assessment of the macroeconomic outlook and challenges for the global economy. A hybrid press conference is expected to follow.

NBS’S ENERGY REPORT 

The National Bureau of Statistics (NBS) is expected to release a report on daily energy generated and sent out in 2022.

CBN EXTENDS DEADLINE FOR OLD NAIRA NOTES

The Central Bank of Nigeria (CBN) extended the deadline for the withdrawal of old naira notes from circulation by 10 days.

The new deadline –February 10, 2023 — will allow Nigerians to deposit the old currency notes at banks.

After the deadline elapses and the notes become illegal, the apex bank said Nigerians will still be able to deposit their old notes directly with the CBN until February 17, 2023, described as “grace period.

Meanwhile, Godwin Emefiele, governor of CBN, says N1.7 trillion worth of naira notes have been returned to banks so far — with N900 billion more to go.

ABUJA-KADUNA RAIL SUSPENDED SERVICE AS TRAIN DERAILED

The Nigerian Railway Corporation (NRC) has suspended the Abuja-Kaduna rail services after a train derailed on the corridor.

A train said to be a few minutes from its destination in Abuja derailed last Friday.

The incident was said to have occurred in the Kubwa area of the federal capital territory (FCT).

The development came a few days after the Warri-Itakpe train service derailed at kilometre 30 Ajaokuta-Itakpe section of the track.

CBN RAISES INTEREST RATE 

The policy-setting committee of the CBN recently raised the monetary policy rate (MPR), which measures interest rate, from 16.5 percent to 17.5 percent to rein in inflation “aggressively”.

In December, Nigeria’s inflation rate fell slightly from 21.47 percent to 21.34 percent.

The monetary policy rate (MPR) is the baseline interest rate in an economy, every other interest rate used within an economy is built on it.

Also, the CBN launched the Nigerian national domestic card scheme — an initiative to boost the country’s payments landscape.

According to Emefiele, the domestic card scheme would provide opportunities to integrate the informal segment of the economy, reduce shadow banking, and bring more Nigerians into the formal financial services system.

EMEFIELE VS SENATE REQUEST 

Femi Gbajabiamila, speaker of the house of representatives, says he will issue a warrant of arrest on Godwin Emefiele, governor of the Central Bank of Nigeria (CBN), and managing directors of banks if they ignore the summon of the house.

The lower legislative chamber house had set up an ad hoc committee chaired by Alhassan Doguwa, majority leader of the house, to meet managing directors of banks and the CBN over the deadline for the withdrawal of old naira notes from circulation.

The meeting with the CBN was scheduled to take place last Wednesday at the national assembly.

But the apex bank wrote to the committee requesting a postponement.

Despite the threats of arrest, Emefiele refused to show up.

NMDPRA BLAMES MARKETERS, SMUGGLERS FOR LINGERING PETROL SCARCITY 

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says the petrol scarcity in the country is exacerbated by the activity of cross-border smugglers, erring marketers, and ongoing road construction.

In a statement last Friday, NMDPRA maintained that there is petrol sufficiency of over 1.6 billion litres — both on “land and marine”.

The regulator said the Nigerian National Petroleum Company (NNPC) Limited is committed to supplying more petrol in the coming months at government-regulated prices.

Meanwhile, the Independent Petroleum Marketers of Nigeria (IPMAN) had recently said petrol scarcity may persist till mid-2023 when the federal government intends to scrap subsidy.