Despite the announcement of an interest rate hike by the Central Bank of Nigeria (CBN) on Tuesday, the naira appreciated to N1, 659.44 against the US dollar.

Data from the Nigerian Autonomous Foreign Exchange Market (NAFEM) showed a N16.88 gain against the dollar from the N1, 675.62 it traded at on Monday.

A look at the parallel section of the foreign exchange market showed a gain of N5 for the naira against the dollar, trading at N1,750 compared to the N1,755 it traded at on Monday.

The naira, however, didn’t record any change in trade against the British pound on Tuesday as it still exchanged at Monday’s rate of N2,245 against the pound.

Also, the naira maintained N1,300 against the Canadian dollar but appreciated marginally against the Euro to trade at N1,840/€1 as against the previous day’s rate of N1,845/€1.

The Centre for the Promotion of Private Enterprise (CPPE) has raised concerns over the Central Bank of Nigeria’s (CBN) sustained tightening of the Monetary Policy Rate (MPR), now at 27.50 per cent.

Dr Muda Yusuf, Chief Executive Officer of CPPE, stated in Lagos on Tuesday that the continued rate hikes by the Monetary Policy Committee (MPC) could further stifle economic growth.

NAN reports that the MPC of the CBN, during its 298th meeting, further raised the country’s interest rate to 27.50 per cent from 27.25 per cent.

It, however, retained the Cash Reserved Ratio (CRR) at 50 per cent for Deposit Money Banks and 16 per cent for merchant banks.

The committee also retained the Liquidity Ratio at 30 per cent, and also the Assymetric Corridor at +500/-100 basis points around the MPR.

“It is troubling that despite the declining growth performance of many critical sectors of the economy as evidenced in the third quarter GDP report, the MPC still continued its tightening stance.

“The GDP sectoral performance report also revealed a glaring disconnect between the financial services sector and the real economy,” he said.

He said that the financial services sector recorded a growth of 32 per cent while agriculture and manufacturing grew by 1.14 per cent and 0.92 per cent.

Yusuf said, “This disposition will deepen this distortions. Meanwhile strategic economic sectors such as agriculture, manufacturing and real estate recorded declines in growth in the third quarter.

“Air transport and textile remained in recession. These sectors need monetary and fiscal support, not a further tightening of monetary conditions.

The financial expert called on CBN to increase support for development finance institutions to address financing challenges caused by the sustained tight monetary policy regime. 

The monetary policy committee (MPC) of the Central Bank of Nigeria (CBN) has raised the monetary policy rate (MPR), which benchmarks interest rates in the country to 27.50 percent — from 27.25 percent.

Olayemi Cardoso, CBN’s governor, announced the committee’s decision at a press conference on Tuesday after the panel’s 298th meeting in Abuja.

He said the committee increased the MPR by 25 basis points.

Nigerians across the country are facing cash shortages as the festive season approaches.

Some Automated Teller Machines (ATMs) dispense only small sums—if functional at all—while Point of Sale (POS) operators charge exorbitant fees for transactions.

This crisis persists despite assurances from the Central Bank of Nigeria (CBN) that measures are in place to ensure cash availability.

Just two months ago, the CBN announced plans to sanction banks failing to load cash in ATMs and that it will release an additional N1.4 trillion into circulation over the next three months to improve cash flow within the banking system.

Speaking after the 297th Monetary Policy Committee (MPC) meeting in Abuja, CBN Governor Yemi Cardoso said that all deposit money banks must ensure there is always enough cash available for withdrawals.

This move, Cardoso said, is aimed at ensuring sufficient cash availability in ATMs and across bank branches, addressing the challenges of cash insufficiency that many customers have faced.

He said: “Another N1.4 trillion is likely to be delivered in another three months to aid that whole process of cash within the system and cash velocity.

“So, from our perspective, we are doing everything possible to ensure that there is sufficient cash in the system. There is no excuse for not having sufficient cash in the system.

“Now it goes to the deployment of that cash and quite frankly, we are working very, very closely, we are engaging with all the deposit money banks to ensure that they are putting these things through their ATMs, effectively dispensing cash to those that are in need.

“And whether they are in need or not, that’s the function of the deposit money banks. And at all points in time, there should be sufficient cash in their system that nobody should go there without being able to withdraw.”

Despite these measures, POS operators report challenges accessing cash, pushing transaction fees to unprecedented levels.

In many locations, withdrawing ₦1,000 to ₦5,000 now attracts a charge of ₦100, while amounts above ₦5,000 cost ₦200 to ₦300, depending on the area.

Residents in remote areas, where ATMs are scarce or non-functional, face even higher charges, with some operators reportedly charging ₦100 for as little as ₦2,000 and N200 for amounts above N2,000 and below N5000, and N300 for amounts above N5,000 and below N10,000.

With just 29 days to Christmas, the shortage of cash is forcing many to make drastic adjustments to their finances.

Entrepreneurs and small business owners are among the hardest hit, with some resorting to hoarding cash for essential transactions.

An entrepreneur, Mr John Otafu, told DailyPost that things were just becoming more difficult, noting that customers could only withdraw a maximum of N10,000 at some ATM points, while many ATMs were empty.

“You will just see that you are moving from one point to another, looking for a working ATM to collect your money,” Otafu said.

“The condition is still not pleasant, and this has forced many people to be patronising POS operators.”

A food vendor, Titilayo Abayomi, said the scarcity has forced her to stop saving in the bank.

“I go to the ATM and only get a fraction of what I need for my business. Imagine needing ₦100,000 and being restricted to ₦5,000 or ₦10,000 withdrawals. The banks are benefiting from innocent Nigerians who are working hard just to survive,” Abayomi lamented to DailyPost.

Meanwhile, the National Secretary of the Association of Point of Sale Users in Nigeria (APOSUN), Mr. Isah Zakari, accused commercial banks of exacerbating the crisis by reducing cash withdrawals for POS agents.

Zakari, in a recent statement, alleged that some bank officials sell cash directly to POS operators, prioritizing their personal outlets over customers.

“As an individual, let me not speak as a POS operator. If I need N50,000, I have to go to the ATM to withdraw and when I go to the bank, I also have the right to withdraw. It is my right because I paid the money there.

“So now, the POS operator wants to use money in the bank, but he does not get it. At ATM points, limits on withdrawals have been placed; he cannot get more than N10,000 or N20,000.

“Our members have been complaining, saying the only amount of money they can withdraw is N10,000,” Zakari said.

The Nigerian Labour Congress (NLC) has rejected the National Bureau of Statistics (NBS) report on unemployment, calling it a “voodoo document” and a “fabrication designed to mislead the public.”

NBS yesterday announced a drop in Nigeria’s unemployment rate to 4.3 per cent in Q2 2024, a decrease from 5.3% recorded in Q1 2024 and 5.0% in Q3 2023.

NBS said the Labour Force Participation Rate rose to 79.5% in Q2 2024 from 77.3% in the previous quarter, indicating increased workforce engagement while the Employment-to-Population Ratio also improved significantly, climbing to 76.1% from 73.2% in Q1 2024.

The report noted that the dominance of self-employment, accounted for 85.6% of total employment, up from 84% in the previous quarter. Informal employment also rose slightly to 93.0%, underscoring the economy’s reliance on informal jobs.

NBS added Urban unemployment dropped to 5.2% from 6.0% in Q1, while rural unemployment stood at 2.8%, down from 4.3%. This disparity reflects the role of agriculture and informal activities in rural employment compared to urban areas’ dependence on formal jobs.

According to the report; the youth unemployment rate (ages 15–24) decreased significantly to 6.5%, compared to 8.4% in Q1 2024.

Meanwhile, NLC’s Assistant General Secretary, Chris Onyeka, described the report as a “voodoo document” and accused the NBS of manipulating figures to mislead the public.

Onyeka also described the report as “a figment of imagination concocted by people who want to manipulate figures” and labelled it as “INEC-style manipulation,” a term he used to draw parallels between perceived shortcomings in Nigeria’s election management and the NBS figures.

He further challenged the NBS to substantiate its claims, stating, “Unemployment cannot be coming down in Nigeria when factories are closing shops.”

Onyeka added that the unemployment rate “cannot be coming down when there is increasing inventory” and “reduced consumer spending.”

He noted that If anything, unemployment is increasing, noting, “Where are the jobs coming from? Is it from employers who are complaining of consumer resistance and slowing economic activities? It doesn’t add up,” Onyeka said.

“Once data does not reflect reality, it loses relevance. Unfortunately, the NBS has lost credibility as a result of the data they continue spewing out,” he stated.

Onyeka, however, noted that Nigerians can go to court if they don’t like the figures presdiented by NBS, adding that “NBS has become a failed institution, much like INEC in the eyes of the public.”

The usage of the Contactless Passport Application System app will commence on the 1st of December, 2024.

The Nigerian Immigration Service (NIS) announced this in an update it provided on its official X account on Sunday evening.

“The Contactless Passport Application System app is now available on the Google Play Store as “NIS Mobile”,” NIS announced.

“Please remember that the worldwide usage will commence from the 1st of December, 2024.”

According to the statement, the current Geo-fencing feature is only available for Nigerians in Canada and the United States of America (USA).

The Federal Government, meanwhile recently partnered with the United Kingdom (UK) to strengthen security in Nigeria and also work on a lasting contactless biometrics solution.

The Minister of Interior, Olubunmi Tunji-Ojo disclosed this in a statement on his official X account after meeting with the Home Secretary of the UK, Rt Hon Yvette Cooper early November.

Tunji-Ojo said the FG’s commitment to building strategic partnerships that enhance security and public service delivery was reinforced after the meeting.

“We discussed mutual goals to strengthen security, efficiency, and service delivery, showing our administration’s dedication to sustainable development through cooperation and shared purpose,” he said.

“In line with our initiative to extend contactless biometrics solution to the UK, having successfully launched in Canada with impressive success rate, I also led senior officials, including the Permanent Secretary, Dr Magdalene Ajani, on an oversight visit to the Nigeria High Commission.”

According to Tunji-Ojo, the visit reaffirms the federal government’s support for the attachés working to improve their services to Nigerians abroad.

The NIS decided to implement the contactless biometric solution process for passports and visa applications to ease challenges associated with the process and curb corruption.

Tunji-Ojo while presenting a scorecard of his achievements within one year in office had explained that the contactless biometric system allows applicants to apply for passports or visas from the comfort of their homes or offices.

He added that they would do this without visiting any passport office, particularly for Nigeria’s consulates, where the number of applications often exceeds the daily capture capacity.

“With the contactless biometric solution, you won’t need to go to the embassies to book an appointment anymore because of the new system,” the minister explained.

“The era of resource wastage in the passport process is over. In Canada, for example, over 16,000 applications are received as against 260 captures per day.”

Tunji-Ojo was joined in the meeting with the UK Home Secretary, Cooper by key Nigerian officials including the Comptroller General of Immigration, Kemi Nandap and the Controller General of Fire Service, Engr. Abdulganiyu Olola Jaji.