November food prices, CBN vs reps… 7 top business stories to track this week

Here are the seven top business news you need to track this week — December  19 to December  23.

SELECTED FOOD PRICES, TRANSPORT FARE WATCH REPORT

The National Bureau of Statistics (NBS) is expected to release a report on the country’s liquefied petroleum gas (cooking gas) price and national household kerosene price watch for November.

The bureau also intends to release a report on the Federation Account Allocation Committee (FAAC) (November 2022 disbursement), selected food prices watch and transport fare watch for November 2022.

Also, the bureau will release a report on terms of trade as well as a report on selected banking sector data: sectorial breakdown of credit, ePayment channels, deposits; domestic credit breakdown and staff strength for the third quarter (Q3) of 2022.

EMEFIELE TO MEET REPS ON TUESDAY OVER CASH WITHDRAWAL POLICY

Godwin Emefiele, governor of Central Bank of Nigeria (CBN), will meet with the house of representatives on Tuesday on issues relating to the new cash withdrawal policy.

The house had asked the apex bank to consider an upward adjustment of the limit placed on cash withdrawal in response to “public outcry.”

Recently, the CBN announced a restriction on the maximum cash withdrawal over-the-counter (OTC) by individuals and corporate organisations per week to N100,000 and N500,000, respectively.

The new policy will take effect from January 9, 2023.

NIGERIA’S INFLATION REACHES 21.47% IN NOVEMBER 

The consumer price index (CPI), which measures the rate of change in prices of goods and services, surged to 21.47 percent in November 2022, up from 21.09 percent in the previous month.

The NBS said this in its latest consumer price index (CPI) report.

This is the 10th consecutive increase in inflation this year.

The rate is 6.07 percent points higher compared to the figure recorded in November 2021 which was 15.40 percent.

Also,  the report said food inflation rose to 24.13 percent in the month under review, an uptick compared to the 23.72 percent recorded in the preceding month.

NIS SETS UP PASSPORT DESKS AT AIRPORTS FOR NIGERIANS IN DIASPORA

The Nigeria Immigration Service (NIS) has directed the immediate opening of passport desks in international airports across the country.

The directive is geared towards attending to Nigerians in the diaspora who plan to return home during the yuletide.

According to Tony Akuneme, NIS public relations officer, the new policy is to ensure that there is a seamless passport process for all Nigerians coming home and those who may desire to process their passports.

Meanwhile, the federal government also asked airlines to board Nigerians returning home with expired passports “without any hindrance”.

WORLD BANK REDUCES NIGERIA’S GROWTH FORECAST TO 3.1% IN 2022

The World Bank has reduced Nigeria’s 2022 growth forecast to 3.1 percent from a previous forecast of 3.8 percent.

This, the bank explained, is due to Nigeria’s slow economic growth amid declining oil output and reduced non-oil activity.

According to the bank, Nigeria’s fiscal pressures have intensified, exacerbated by the soaring cost of the petrol subsidy which will likely exceed N5 trillion this year.

The bank also said five million Nigerians have been pushed into poverty as a result of inflation in 2022.

OIL PRICE FALLS BELOW $80 A BARREL AS CENTRAL BANKS HIKE INTEREST RATES

On the global scene, oil prices fell as the market assessed the aftermath of interest rate hikes at central banks.

Brent crude futures fell 2.28 percent to $78.87 per barrel while West Texas Intermediate futures slipped 2.76 percent to $74.01 a barrel.

The development comes as central banks in Europe raised interest rates.

IMF REACHES STAFF-LEVEL AGREEMENT WITH GHANA ON $3 BILLION LOAN

The International Monetary Fund (IMF) and Ghana reached a staff-level agreement for a three-year loan package of $3 billion last week.

A staff-level agreement is reached between a country requesting for fund and the IMF mission and is subject to the approval of the IMF management and executive board as well as receipt of the necessary financing assurances by Ghana’s partners and creditors.

IMF said the program aims at restoring macroeconomic stability and debt sustainability while protecting the vulnerable, preserving financial stability, and laying the foundation for strong and inclusive recovery.