Mohammed Shosanya

Access Holdings Plc,has announced its half-year audited financial results for the period ended 30 June 2024.

The results underscore the company’s continued resilience, focus on delivering sustainable performance and commitment to creating long-term value for shareholders,a statement said.

The bank demonstrated strong performance across all key balance sheet indicators and continues to maintain a well-structured, healthy, and diversified financial position.

This is evident in the resilient half year results from the banking franchise operating in twenty-two markets across four continents and the non-banking subsidiaries including Access Pensions, Hydrogen Payments, and Access Insurance Brokers.

In half year 2024, total assets and shareholders’ equity stood at ₦36.5 trillion and ₦2.8 trillion, respectively. This represents a year to date of growth of 37.1% and 29.8%, respectively. Customer deposits increased by 31.3%, from ₦15.3 trillion in December 2023 to ₦20.1 trillion by half year 2024. Gross loans and advances also saw an increase of 37.6%, growing from ₦8.9 trillion in December 2023 to ₦12.3 trillion by half year 2024, from organic loan growth and the impact of foreign currency-denominated loans.

Access Holdings reported triple-digit growth across all profitability metrics, with gross revenue rising by 133.5% year-on-year, from ₦940 billion in half year 2023 to ₦2.2 trillion in half year 2024.

This increase was supported by higher interest and non-interest earnings in the period. Interest income surpassed the ₦1 trillion mark, from the expansion of risk assets and effective pricing, leading to a 142% growth from ₦606.8 billion in half year 2023 to ₦1.47 trillion by half year 2024. Non-interest income also grew by 117%, rising from ₦333.4 billion in half year 2023 to ₦723.6 billion in half year 2024.

Profit before tax increased by 108.2% year-on-year, from ₦167.6 billion in half year 2023 to ₦348.97 billion in half year 2024, while profit after tax rose by 107.7%, from ₦135.4 billion to ₦281.3 billion over the same period. This resulted in a 103% growth in earnings per share (EPS), which increased from ₦3.74 in half year 2023 to ₦7.58 in half year 2024.

Cost-to-income ratio (CIR) remained relatively flat at 60.4% in half year 2024 despite double digit growth in inflation and devaluation in the same period. Cost to income was moderated as revenue outpaced operating expenses.

The increase in operating expenses was primarily from ongoing IT upgrade and integration, double-digit growth in AMCON levy and NDIC premium which increased by 63.1% and 37%, respectively, and will normalise in the second half of the year, inflation-related cost-of-living adjustments, higher energy expenses, and the currency conversion impact of subsidiaries’ operating costs.

To maximise value for our shareholders, Access Holdings Plc has declared an interim dividend of 45 kobo per share (half year 2023, 30 Kobo), representing a 50% increase in dividend payout.

Despite the challenging operating environment and tight monetary policy stance, Access Banking Group recorded strong year-on-year growth across all performance metrics, with Interest and non-interest income contributed significantly to gross earnings.

Net interest income grew by 131% from N232.2 billion in half year 2023 to N536.7 billion in half year 2024. Fees and commissions increased by 94% year on year from N119.8 billion to N232.5 billion from higher transaction volumes on our digital channels, credit related fees and card payments.

The Banking Group subsidiaries contributed 55% to the Group’s Profit Before Tax (PBT), demonstrating the significant impact of their operations and growing importance in driving overall profitability. Year-on-year, their PBT performance grew by 218% from N63.3 billion to N201.7 billion.

It added:”As part of our ongoing strategic expansion beyond Nigeria, we have successfully completed the full integration of the merged entities in Zambia and Tanzania operations. These developments not only enhance our presence in key markets but also create significant value by expanding our customer base, strengthening cross-border banking capabilities, and fostering increased operational efficiency across our subsidiaries”.

Through its proactive risk management approach, the non-performing loan (NPL) ratio closed at 2.72% in half year 2024, below the regulatory threshold of 5%. Capital Adequacy Ratio (CAR) remained strong at 19.8%. Our loan-to-funding and liquidity ratios also improved to 63.9% and 57.2%, respectively.

All prudential ratios exceeded regulatory requirements, underscoring our ability to maintain a robust and liquid balance sheet.

The operating performance of its non-banking subsidiaries demonstrates a consistent growth trajectory. Access Pensions has achieved a remarkable 162.1% increase in Assets Under Management (AUM), rising from ₦1.1 trillion in December 2023 to ₦2.9 trillion in the first half of 2024,the statement said.

This growth is driven by organic expansion in RSA accounts, new mandates, and synergies from the merger with ARM Pensions. As a result, Access Pensions has positioned itself as one of the top two largest pension fund administrators (PFAs) in Nigeria, with over 2.8 million RSA accounts.

Besides,the operating income for the pension business saw a substantial increase of 190%, climbing from ₦5.6 billion in H1 2023 to ₦16.2 billion in H1 2024.

Hydrogen Payments achieved a remarkable 1,871% growth in top-line revenue compared to H1 2023, reflecting its exceptional performance and contribution to the profitability of the holding company. The total payment volume (TPV) processed surged by 306%, reaching N13.8 trillion in H1 2024, up from N3.4 trillion in H1 2023.

Notably, 90% of these transactions were processed through the Hydrogen switching platform, underscoring its reliability and dependability, particularly for small businesses across Nigeria.

The platform’s ability to handle large transaction volumes with minimal downtime has significantly improved operational efficiency, contributing to a stronger profit outlook for the group.

Access Insurance Brokers posted significant growth with an 83% increase in gross premiums written and a 60% rise in commission income in the first year of operations.

Specifically,gross written premiums surged from N2.3 billion to N5.9 billion by half year 2024.

The bank said its agile execution strategy and customer-centric approach position us as a market leader in Nigeria, while simultaneously enabling us its consolidate market share in existing locations beyond Nigeria and explore opportunities in new geographies under consideration for expansion.

The bank remains confident in its ability to surpass the growth momentum achieved in the first half of the year as it looks ahead to the second half.

The bank said,its strategic priorities will remain focused on scaling non-banking segments, expanding its digital footprint, and solidifying our presence in high-growth African and international markets.

These are geared towards accelerating revenue diversification and ensuring long-term sustainable value creation for its shareholders,the statement said.

It added:”Furthermore, we are fast-tracking the completion of our technology infrastructure integration and upgrades, which will significantly enhance operational efficiency across the group. This technology transformation will strengthen our digital capabilities, allowing us to deliver superior services to our customers, drive operational synergies, and optimise cost.

“Our strategic focus on non-banking segments, digital expansion, and geographic diversification will continue to create lasting value for shareholders, positioning the group to capitalise on emerging opportunities and sustain growth in the long term.

“We recently concluded our rights issue of N351 billion, and we are awaiting the Central Bank of Nigeria (CBN) capital verification and the Securities and Exchange Commission (SEC) approval for the allotment of rights. We will keep our investors and shareholders informed as we proceed with the exercise”.

Mohammed Shosanya

Access Holdings Plc has donated buses to Bethesda Child Support Agency,in order to empower vulnerable children through education. As part of its longstanding partnership with Bethesda Child Support Agency,

The Human Resources and Executive Office team of Access Holdings Plc,acquired and formally handed over two coaster buses to the organisation during a ceremony held recently at Access Towers in Victoria Island, Lagos, a statement said.

This donation marks an important moment in Access Holdings’ mission to provide quality education to 1,000 underprivileged children across Nigeria—a mission that has been at the heart of its corporate social responsibility (CSR) efforts for over a decade.

According to the statement,the new buses are set to play a crucial role in Bethesda’s operations, enabling the safe and efficient transportation of children to and from school, thus removing one of the significant barriers to education for these young minds.

The team of about 20 employees has in the last couple of years channelled resources generated mainly from personal funds under its CSR program to support Bethesda’s comprehensive services, which include education, healthcare, and essential support for underserved children.

This partnership,the statement said,exemplifies how individuals, groups and corporate initiatives can extend beyond philanthropy, directly impacting lives and fostering community development.

Speaking at the handover event, Victor Willie, Head of Government & Stakeholder Relations at Access Holdings PLC, emphasised the transformative potential of this partnership: “This collaboration with Bethesda is more than just a philanthropic gesture; it’s about creating tangible opportunities and breaking the cycle of poverty for vulnerable children. The buses we’ve donated will help Bethesda reach more children, ensuring they have access to the education that is fundamental to their growth and the future of our nation.”

With millions of Nigerian children still out of school, Access Holdings’ initiatives address a critical need by eliminating obstacles to education. For many of these children, gaining access to education is not merely about learning; it represents a lifeline that can protect them from exploitation and abuse while offering a pathway out of poverty.

By addressing transportation challenges, Access Holdings is actively contributing to the creation of a brighter, more equitable future for these children and their communities.

Pastor (Mrs.) Nkoyo Rapu, founder of Bethesda Child Support Agency, expressed deep gratitude during the event, noting the profound impact of Access Holdings’ continued support:

She said:“Access Holdings has been a dedicated partner in our mission for over ten years. This latest donation of buses will change the lives of countless children who otherwise would have had no access to education. Their support underscores the power of collective responsibility and demonstrates what can be achieved when organisations truly commit to community upliftment. Together, we are unlocking doors of opportunity for those who need it most.”

Access Holdings remains steadfast in its dedication to driving initiatives focused on education, human capital development, and community empowerment.

Through enduring partnerships and impactful programs, the organisation continues to work towards building a more just and inclusive society, where every child has the opportunity to realise their full potential.

This partnership with Bethesda Child Support Agency highlights Access Holdings’ belief in the fundamental importance of education as a cornerstone for capacity building, nation-building, and sustainable community development.

Mohammed Shosanya

Ecobank Nigeria Limited has received approvals from the Securities and Exchange Commission and the Central Bank of Nigeria for the launch of its custody business operations in the country.

In a statement from the bank,the Ecobank Group explained that the custody business in Nigeria would be provided through Ecobank Nominees Limited, the special entity set up to hold clients’ assets separate from the bank’s assets.

The Ecobank Group, in its custody services in its other subsidiaries within the Central Africa, Francophone and Anglophone West Africa regions, has a combined asset size of over $4bn in Assets Under Custody.

Announcing the launch in Lagos, Managing Director/Regional Executive, Ecobank Nigeria, Bolaji Lawal, stated that the new custody offering positions the Bank to offer more value-adding banking and investment solutions to its customers.

He said, “As a Pan-African Bank with a gateway into other African countries, there was an identifiable gap to offer custody services in Nigeria. We have therefore decided to provide a better way for Nigerian investors to protect their assets and to spread their business interests across the continent seamlessly, through our support.”

The Head of Custody/Managing Director of Ecobank Nominees Limited, Adebola Adedeji, also disclosed that the custody business has fully commenced operations, is now in the market for business and already signing on customers.

She added: “The custody business is set to position the bank as a one-stop shop offering premium financial services and investor solutions to our valued customers. Custody services are already being offered in some other countries where Ecobank has operations, and expanding into Nigeria will further serve as an inroad to the African and international markets for our customers.

“Ecobank custody offers an efficient post-trade service with the deployment of a world-class technology solution that will enhance the client experience at every stage of the investment cycle. Our comprehensive service offerings include settlements, fund administration, corporate actions processing, portfolio valuation, FX services, securities lending, cash management, escrow agency services, reporting, and multi-market access through Ecobank Group affiliates, amongst others.”

Mohammed Shosanya

African Export-Import Bank (Afreximbank) has arranged a senior US$500-million and a junior US$150-million reserve-based lending facility for Oando Petroleum and Natural Gas Company Limited.

The facility was used to finance Oando’s acquisition of the 20 per cent participating interest held by Nigerian Agip Oil Company Limited (NAOC) in the NEPL/NAOC/Oando Joint Venture in Nigeria,a statement said on Friday.

The joint venture, with significant oil and gas assets, including oil mining licenses 60, 61, 62 and 63, has produced 4.4 billion barrels of oil and 12 trillion cubic feet of natural gas to date, with 1.2 billion barrels of oil and 10.7 trillion cubic feet of natural gas remaining.

Afreximbank, retained as mandated lead arranger for the transaction, also served as bookrunner, coordinator, underwriter, escrow agent, facility agent and security trustee, and also participated and underwrote US$350 million of the facility,the statement said.

Also participating in the transaction were Indorama Eleme Petrochemicals Limited, with US$150 million, and Mercuria Energy Group, with US$150 million.

Oando expects the acquisition to significantly enhance its production capacity from the current 20,000 barrels of oil equivalent per day (kboe/day) to 60,000 kboe/day, effectively boosting Nigeria’s oil output and reinforcing the country’s position in the global energy market. It also expects the transaction to drive local economic growth by creating jobs, improving infrastructure and fostering technological advancements in the oil and gas sector.

Leading the Oando participation at the closing ceremony held in London, United Kingdom on August 22, 2024, was Mr. Wale Tinubu, the Group Chief Executive.

He was accompanied by representatives of ENI S.P.A. led by Guido Brusco, Group Chief Operating Officer and representatives from Mercuria Energy Group. Afreximbank was represented by Mr Peter Adeshola Olowononi, Head, Client Relations, Anglophone West Africa and Mrs Ketiwe Lwando, Manager Structured Trade & Commodity Finance.

Commenting on the transaction, Mr. Haytham Elmaayergi, Executive Vice President, Global Trade Bank, Afreximbank, said that the facility marked a critical step in advancing the Bank’s strategy for promoting local content in Africa’s oil and gas sector.

“By supporting the acquisition of key energy assets by an indigenous company like Oando, the Bank is fostering economic empowerment, enhancing regional trade, and contributing to the sustainable development of Africa’s natural resources,” he said.

He described the transaction as a significant milestone in Nigeria’s upstream oil and gas sector, saying that it underscored the increasing role of local companies in the ownership and operation of critical energy assets, in line with Nigeria’s local content policy, energy security and economic sovereignty strategy.

Mr. Wale Tinubu CON, Group Chief Executive OANDO, noted: “Today’s announcement is the culmination of ten years of toil, resilience, and an unwavering belief in the realisation of our ambition since the 2014 entry into the Joint Venture via the acquisition of Conoco-Philips Nigerian Portfolio. It is a win for Oando, and every indigenous energy player, as we take our destiny in our hands, and play a pivotal role in this next phase of the nation’s upstream evolution. With our assumption of the role of operator, our immediate focus is on optimizing the assets’ immense potential, advancing production and contributing to our strategic objectives.

“This we will do while prioritizing responsible practices and sustainable development in ensuring a balanced approach to our host communities, and environmental stewardship as we complement the nation’s plan to boost production output.We thank Afreximbank for its unwavering leadership in bridging the trade finance gap in Africa and ensuring that Oando can consolidate its stake in the Joint Venture via the acquisition of NAOC 20% stake.”

Toluwani Shosanya

The Central Bank of Nigeria (CBN) has reported a significant increase in remittance inflows, reaching $553 million in July 2024.

Mrs. Hakama Sidi Ali, the Acting Director, Corporate Communications, in a statement, noted that the figure represents a 130 per cent increase from the corresponding period in 2023.

According to the statement, the figure also represents the highest monthly total inflows on record and reflects ongoing efforts by the CBN to enhance liquidity in Nigeria’s foreign exchange market.

“The substantial growth in remittance receipts is attributable to policy measures introduced by the CBN to enhance liquidity in Nigeria’s foreign exchange market. These measures include granting licenses to new International Money Transfer Operators (IMTQOs), implementing a willing buyer-willing seller model, and enabling timely access to naira liquidity for IMTOs.

“Diaspora remittances are a crucial source of foreign exchange for Nigeria, supplementing both foreign direct investment and portfolio investments. The CBN’s initiatives have supported continued growth in these inflows, aligning with the institution’s objective of doubling formal remittance receipts within a year.

“The increase in remittances is a strong testament to the success of the CBN’s ongoing efforts to bolster public confidence in the foreign exchange market, strengthen a robust and inclusive banking system, and promote price stability, which is essential for sustained economic growth.

“Recent data from the National Bureau of Statistics (NBS) revealed that Nigeria’s year onyear headline inflation rate slowed in July 2024, for the first time in 19 months a clear indication that the CBN’s monetary policy tightening measures are delivering results.

“The CBN anticipates that these measures will contribute to achieving its broader objective of maintaining stability in the foreign exchange market. The Bank will continue to monitor market conditions and adjust policies as necessary to enable greater remittance flows into Nigeria” reads the statement in part.

Mohammed Shosanya

African Export-Import Bank,plans to double its financing of intra-African trade from US$20 billion in 2021 to US$40 billion by 2026, Mr. Haytham ElMaayergi, Afreximbank’s Executive Vice President, Global Trade Bank, has said.

He told participants and guests in Abuja at the African Caucus Meeting of the World Bank Group and the International Monetary Fund (IMF),recently where he represented Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank.

The meeting had the theme “Facilitating Intra-African Trade: Catalyst for Sustainable Development in Africa”, and was aimed at identifying key challenges facing Africa in achieving full integration and at engaging in strategic dialogues to engender sustainable solutions.

He said that Afreximbank had been a champion in facilitating intra-African trade since its founding and that it had committed US$1 billion to support the funding of the AfCFTA Adjustment Fund and a US$10-million grant to facilitate the establishment and operationalisation of that fund.

“The Bank is also partnering with the AfCFTA Secretariat and the African Union Commission (AUC) to ensure a successful implementation of the Pan-African Payments and Settlements System, the African Trade Gateway and the Afreximbank African Collaborative Transit Guarantee Scheme,” he added.

Mr. ElMaayergi noted that Nigeria was a key founding member of the Bank and had continued to play a critical role in its growth and success as its second largest shareholder, adding that Afreximbank had also played a critical role in supporting the country’s development agenda.

He said:“Since inception in 1993, the Bank has approved over US$40 billion in support of Nigerian public and private sector entities,” he said, adding that it was currently implementing several of its flagship continental initiatives in the country, including the African Medical Centre of Excellence and the Afreximbank African Trade Centre.

Highlighting the existence of several other continental multilateral financial institutions created to help address the critical financing gaps in Africa and facilitate trade, with privileges and capitalisation granted them in order to enable them to fulfil their mandates, Mr. ElMaayergi indicated that it was to enhance their effectiveness that the Alliance of African Multilateral Financial Institutions (AAMFI) was launched, in collaboration with the AUC, on the margins of the 37th Ordinary Session of the Assembly of the Heads of State and Government of the AU in Addis Ababa in February.

He noted that the AU had recognized African multilateral financial institutions as crucial for strengthening the continental financial framework and advancing the AU’s Agenda 2063 and called on the meeting participants to reaffirm their commitment to those institutions. He urged the World Bank and the IMF to work with AAMFI in addressing the continent’s challenges.

“Most especially, we call on you to reaffirm that the special privileges and immunities that you have given these institutions, including the preferred creditor status, are essential for addressing the continent’s development needs, and to call upon all stakeholders to respect the treaty obligations you have made to these institutions,” added Mr. ElMaayergi.

Mohammed Shosanya

The Central Bank of Nigeria’s (CBN),has offered $876m to fulfil bids submitted by customers at an auction concluded on Wednesday, August 7.

In a statement,the CBN noted that the move is in line with its pledge to provide transparent access to foreign exchange for all legitimate customers,adding that it has introduced an additional mechanism through the Retail Dutch Auction System (RDAS) to directly facilitate FX sales to end users.

It explained that,this approach aims to foster a more transparent market, reducing information asymmetry and supporting price discovery.

It complements the two-way quote system deployed over the past few months to enhance liquidity in the interbank market, through which over $305 million of foreign exchange has been sold to authorised dealers in the last three weeks.

It added:”The CBN’s policy objectives are yielding tangible results and bolstering market confidence. Net foreign exchange flows rose to $25.4 billion between January and June, marking a 55% year-over-year increase. This growth has been driven by a rise in capital importation, which reached $6 billion in June 2024, and record inflows from diaspora remittances through formal channels.

“The foreign exchange market is also showing signs of improvement and increased depth, with more robust and diversified sources of liquidity contributing to the sustained convergence of exchange rates across all segments of the market. The official market recorded a turnover of $43 billion in customer transactions by the end of July 2024, with CBN-supplied liquidity representing less than 5% of total market activities.

“The CBN remains steadfast in its commitment to fostering a transparent, market-driven foreign exchange market, and it will continue to strengthen the market’s capacity to meet the needs of all legitimate participants”.

Mohammed Shosanya

The Central Bank of Nigeria has approved the merger of Providus Bank and Unity Bank.

Acting Director, Corporate Communications, Hakama Sidi,who disclosed this in a statement on Tuesday,explained that the action is in accordance with the provisions of Section 42 (2) of the CBN Act, 2007.

The development,the bank said,signals the first merger to be approved following a mandate by the apex bank to increase its minimum capital base

Besides,the apex bank also announced approval of a pivotal financial accommodation to support the proposed merger between Unity Bank Plc and Providus Bank Limited.

It said,the strategic move is designed to bolster the stability of Nigeria’s financial system and avert potential systemic risks.

The statement read: “The Central Bank of Nigeria has granted approval for a pivotal financial accommodation to support the proposed merger between Unity Bank Plc and Providus Bank Limited. This strategic move is designed to bolster the stability of Nigeria’s financial system and avert potential systemic risks.

“The merger is contingent upon the financial support from the CBN. The fund will be instrumental in addressing Unity Bank’s total obligations to the Central Bank and other stakeholders. It is unequivocal to state that the CBN’s action is in accordance with the provisions of Section 42 (2) of the CBN Act, 2007.

“This arrangement is crucial for the financial health and operational stability of the post-merger organisation.”

Mohammed Shosanya

Access Bank has been honoured at the Euromoney Awards for Excellence 2024, being named Nigeria’s Best Bank and Ghana’s Best Bank for ESG.

These accolades highlight the bank’s outstanding performance and commitment to sustainable practices across its operations in Africa,a statement said on Monday.

Roosevelt Ogbonna, Managing Director/Chief Executive Officer of Access Bank Plc, commented on the awards, saying: “This recognition by Euromoney doesn’t just acknowledge our achievements, it also reflects our future aspirations as a bank.

“At Access, we are driven by a purpose to not only meet the financial needs of our customers, but also to make a lasting positive impact on the communities we serve. These awards motivate us to continue leading the way in responsible banking practices across Africa.”

Last year, Access Bank Nigeria received Euromoney’s ‘Market Leader’ rating, across the areas of Corporate Banking, CSR, Digital Solutions, ESG, and SME Banking.

Similarly, Access Bank Ghana was rated ‘Market Leader’ in CSR, affirming its strong impact in the local communities.

Also speaking on the awards, Olumide Olatunji, Managing Director of Access Bank Ghana, said, “Our commitment to sustainability is integral to everything we do at Access Bank Ghana. Whether it’s through our support for grassroots sports, such as our partnership with the Ghana Football Association’s Division One League, or our environmental initiatives like planting over 20,000 seedlings across the country and the ‘A Sandal More for a Better Tomorrow’ campaign, we are dedicated to enriching lives and building resilient communities.”

The Euromoney Awards for Excellence is widely recognised as the definitive annual awards programme for the global banking industry.

For over 30 years, Euromoney has celebrated banks and bankers who demonstrate differentiation and innovation, setting the industry benchmark for excellence. This year, Access Bank’s achievements have been acknowledged, reaffirming its leadership in the financial sector.

Mohammed Shosanya
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) at its 296th meeting Raised the Monetary Policy Rate (MPR) by 50 basis points to 26.75 per cent from 26.25 per cent.

According to a communique issued after the meeting by the Central Bank of Nigeria (CBN), the Committee also adjusted the asymmetric corridor around the MPR to +500/-100 from +100/300 basis points, and retained the Cash Reserve Ratio of Deposit Money Banks at 45.00 per cent and Merchant Banks at 14 per cent, while retaining the Liquidity Ratio at 30.00 per cent.

The CBN Governor, Olayemi Cardoso, noted that the Committee’s decision was guided by some significant facts adding that it was mindful of the effect of rising prices on households and businesses and expressed its resolve to take necessary measures to bring inflation under control.

“It re-eemphasized its commitment to the Bank’s price stability mandate and remained optimistic that despite the June 2024 uptick in headline inflation, prices are expected to moderate in the near term. This is hinged on monetary policy gaining further traction, in addition to recent measures by the fiscal authority to address food inflation.

“In its consideration, the Committee noted the persistence of food inflation, which continues to undermine price stability. It was observed that while monetary policy has been moderating aggregate demand, rising food and energy costs continue to exert upward pressure on price development. The prevailing insecurity in food producing areas and high cost of transportation of farm produce are also contributing to this trend. Members were, therefore, not oblivious to the urgent benefit of addressing these challenges as it will offer a sustainable solution to the persistent pressure on food prices.

“Also noted in its consideration, is the increasing activities of middlemen who often finance smallholder farmers, aggregate, hoard and move farm produce across the border to neighbouring countries. The Committee suggested the need to put in check such activities in order to address the food supply deficit in the Nigerian market to moderate food prices. The MPC, therefore, resolved to sustain collaboration with the fiscal authority to ensure that inflationary pressure is subdued.

“In addition, the Committee expressed optimism with the recent stop gap measures by the Federal Government to bridge the food supply deficit. In particular, the 150-day duty free import window for food commodities (maize, husked brown rice, wheat and cowpeas), amongst others, will moderate domestic food prices.

“It is noteworthy that these measures will not lead to direct injection of liquidity into the economy as to cause further inflation.

“While the measure is a welcome development and may prove effective in the short run, it is expedient that it is implemented with a defined exit strategy to avert a possible rollback of the recent gains in domestic food production.

“To support these initiatives, the Bank is already engaging Development Finance institutions like the Bank of Industry (BOI) to ensure adequate support to industries with a focus on Small and Medium Scale Enterprises (SMEs).

“The MPC noted the narrowing spread between the various foreign exchange segments of the market, an indication of price discovery and improved market efficiency, thus reducing opportunities for arbitrage and speculation.

“The Committee noted that the increase in the level of external reserves would further build confidence for a more stable exchange rate and thus urged the Bank to explore available avenues to improve inflows, especially through diaspora remittances.

“In addition, Members noted the efforts of the Federal Government and private sector towards improving domestic refining capacity as this is expected to reduce foreign exchange currently being expended on the importation of refined petroleum products.

“The MPC noted the sustained resilience of the banking system, reflected in improvements of key financial soundness indicators (FSIs). Members further encouraged the continued need for close monitoring of the system, as the implementation of the recapitalization exercise progresses.

“To consolidate on the gains thus far achieved, the Committee re-emphasized its commitment to stay on course with its tightening cycle in view of the urgent need to address inflationary pressures.

“According to the National Bureau of Statistics, domestic headline inflation rose marginally to 34.19 per cent in June 2024 from 33.95 per cent in May 2024, driven by the continued rise in the year-on-year components of food and core inflation.

“Similarly, month-on-month headline inflation rose to 2.31 per cent in June 2024, from 2.14 per cent in the preceding month. The food and core components rose to 2.55 and 2.06 per cent in June 2024 from 2.28 and 2.01 per cent in May, respectively.

“Real GDP (year-on-year) grew by 2.98 per cent in the first quarter of 2024, compared with 3.46 per cent in the fourth quarter of 2023, driven by both the oil and non-oil sectors. Staff forecasts, however, suggest that the domestic economy will grow by 3.38 per cent in 2024, while the IMF has projected growth at 3.1 per cent in 2024.

“As of July 18, 2024, external reserves stood at US$37.05 billion, compared with US$34.70 billion as at end-June 2024. This represents eleven (11) months of import cover for goods and services.

“The global economy, according to the IMF, is forecast to grow at 3.2 and 3.3 per cent in 2024 and 2025, respectively. Headwinds to the global projection remain the tight global financial conditions and ongoing geopolitical tensions associated with the wars in Gaza and Ukraine, both of which have significant impact on commodity prices and the global supply chain.

“Global inflation is forecast to continue to decelerate marginally in 2024 but may stay above the long-run objectives of most advanced economy central banks”.