• About Us
  • Contact Us
  • Privacy & Policy
Sunday, June 29, 2025
Umpirenews | Latest News, Politics, Breaking News, Nigeria and African history
Advertisement
  • National
  • Politics
  • Economy
  • Entertainment
  • Sports
  • Editorial
  • Opinion
  • Columns
No Result
View All Result
  • National
  • Politics
  • Economy
  • Entertainment
  • Sports
  • Editorial
  • Opinion
  • Columns
No Result
View All Result
Umpirenews | Latest News, Politics, Breaking News, Nigeria and African history
No Result
View All Result

Inflation: Nigeria’s Economy Teeters as MPC Weighs Options

Vincent Amadi by Vincent Amadi
September 19, 2024
in Economy, News
Reading Time: 3 mins read
A A
0
Inflation: Nigeria’s Economy Teeters as MPC Weighs Options
Share on FacebookShare on TwitterShare on WhatsappShare on EmailShare on Telegram


The Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) is facing a difficult decision regarding the benchmark interest rate due to recent petrol price hikes. With inflation slowing down to 32.4% in August 2024, analysts initially thought the committee might cut rates to boost economic activities. However, the petrol price increases have introduced a new challenge, leaving the MPC uncertain.
Nigeria’s inflation rate dropped from 33.4% in July 2024 to 32.15% in August 2024, according to the National Bureau of Statistics. The Nigerian National Petroleum Company (NNPC) Limited raised petrol prices by 11% on Monday, marking the second hike in two weeks. This adjustment followed the company’s decision to source fuel from the Dangote Oil Refinery in Lagos.


The price of petrol increased from N858 ($0.53) per liter to N950 in Lagos and up to N1,019 in northeastern states. The NNPC purchased the product from the refinery at N898 per liter, which was disputed by the Dangote refinery. In just weeks, petrol prices have jumped over 50% from N617 to between N950 and N1,019.
Analysts believe the conflicting trends present a unique dilemma for the MPC. On one hand, slowing inflation could allow for a rate cut to ease financial conditions and boost economic growth. On the other hand, rising petrol prices could trigger another wave of inflation, undermining the benefits of any rate reduction.
Experts suggest the MPC must weigh both scenarios carefully. Cutting rates prematurely could lead to an inflation resurgence, complicating Nigeria’s economic recovery. The MPC meets from September 23 to 24, 2024, and market players, businesses, and consumers eagerly await the outcome.


Tilewa Adebajo, CEO of The CFG Advisory, doesn’t expect a rate cut, citing the fuel price increase’s direct impact on inflation. Ayodele Akinwunmi, senior relationship manager at FSDH Merchant Bank, notes that while inflation dropped for two consecutive months, the rate remains high at 32.15%. Changing the monetary policy stance may be premature.
Ayokunle Olubunmi, head of financial institutions ratings at Agusto Consulting, agrees that the fuel price hike has changed dynamics, intensifying inflationary pressures. “The best-case scenario is to hold rates.” Ayodeji Ebo, managing director at Optimus by Afrinvest, attributes the recent inflation moderation to base effect rather than declining prices.
Analysts at Coronation Merchant Bank Limited expect the MPC to maintain the benchmark policy rate at 26.75% in the next meeting. “Inflation remains elevated, likely above 30% in 2024.” FBNQuest analysts predict the MPC will pause its rate tightening cycle to evaluate previous rate hikes’ economic impact.
However, Ike Ibeabuchi, a markets analyst, suggests the MPC may raise rates slightly in anticipation of imminent inflation hikes. At the 296th MPC meeting in July, the committee increased the policy rate by 50 basis points to 26.75% and revised the asymmetric corridor around the Monetary Policy Rate.
This adjustment lifted the suspension on the Standing Lending Facility, allowing authorized dealers to access the facility within specified hours via the Scripless Securities Settlement System. The MPC’s decision will significantly impact Nigeria’s economic trajectory, and all eyes are on their upcoming meeting.

Tags: business
Vincent Amadi

Vincent Amadi

Related Posts

US based Nigerian CEO arrested in US for fraud and  money laundering
News

US based Nigerian CEO arrested in US for fraud and money laundering

1 day ago
Senate Threatens Arrest of NNPCL Boss over missing N210 Trillion
Economy

Senate Threatens Arrest of NNPCL Boss over missing N210 Trillion

2 days ago
Peter Obi Slams Tinubu Over Deepening Lawlessness, Cites Demolition of Brother’s Property in Lagos
News

Lagos State Government Denies Demolishing Property Allegedly owned to Peter Obi’s Brother, Orders Investigation

2 days ago
Gospel Artist sentenced to Death for beheading NYSC Girlfriend
News

Gospel Artist sentenced to Death for beheading NYSC Girlfriend

2 days ago

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

NATIONS NEWS

Comrade Babangida Declares for NYCN Presidency, Promises Sweeping Reforms and Youth Reawakening
National

Comrade Babangida Declares for NYCN Presidency, Promises Sweeping Reforms and Youth Reawakening

5 hours ago
Fubara, Wike, and Amaewhule in first public outing since presidential peace meeting
National

Fubara, Wike, and Amaewhule in first public outing since presidential peace meeting

11 hours ago
Prominent Kano businessman, grandfather to Dangote, Alhaji Aminu Dantata passes on at 94
National

Prominent Kano businessman, grandfather to Dangote, Alhaji Aminu Dantata passes on at 94

12 hours ago
Columns

Kidnapped, Silenced, Vindicated: The Full Impact of Kanu’s Judgment

1 day ago
Breaking News: APC National Chairman Ganduje Resigns
National

Breaking News: APC National Chairman Ganduje Resigns

1 day ago
Tinubu Probes Wike for alleged allocation of 2,082 Hectares of Abuja Land to Son
National

Tinubu Probes Wike for alleged allocation of 2,082 Hectares of Abuja Land to Son

1 day ago

POLITICS

PDP Crisis Deepens as NWC Members Reject Anyanwu

PDP Crisis Deepens as NWC Members Reject Anyanwu

3 days ago
President Tinubu should Declare State of Emergency in Benue – Security expert Babaeko

2027 ELECTIONS: Tinubu Dismisses 2027 Coalition, Calls Opponents Political IDPs

3 days ago
INEC Receives 110 Applications from Associations Seeking Registration as Political Parties Ahead of 2027 Elections(see list)

INEC Receives 110 Applications from Associations Seeking Registration as Political Parties Ahead of 2027 Elections(see list)

3 days ago
PDP Crisis: PDP Confirms Samuel Anyanwu as National Secretary

PDP Crisis: PDP Confirms Samuel Anyanwu as National Secretary

3 days ago
Reno Omokri is a delusional liar, talks rubbish nonstop – Segun Showunmi

Reno Omokri is a delusional liar, talks rubbish nonstop – Segun Showunmi

4 days ago
SDP Suspends National Chairman Gabam Over Alleged ₦100M Fraud

SDP Suspends National Chairman Gabam Over Alleged ₦100M Fraud

4 days ago

YOUR ECONOMY

Senate Threatens Arrest of NNPCL Boss over missing N210 Trillion
Economy

Senate Threatens Arrest of NNPCL Boss over missing N210 Trillion

2 days ago
IPMAN: Dangote’s New Delivery Plan Will Bring Cheaper Fuel to Nigerians’s
Economy

IPMAN: Dangote’s New Delivery Plan Will Bring Cheaper Fuel to Nigerians’s

1 week ago
Enforce Transparent Pump Pricing, oil marketers Cheating Nigerians, PENGASSAN laments
Economy

Enforce Transparent Pump Pricing, oil marketers Cheating Nigerians, PENGASSAN laments

2 weeks ago
PETROAN kicks against Dangote’s petrol distribution strategy
Economy

PETROAN kicks against Dangote’s petrol distribution strategy

2 weeks ago
Dangote Refinery Begins Distribution of Petrol Nationwide
Economy

Dangote Refinery Begins Distribution of Petrol Nationwide

2 weeks ago
Nigeria Stock Exchange to Partner with Hong Kong’s Stock market
Economy

Nigeria Stock Exchange to Partner with Hong Kong’s Stock market

3 weeks ago

E & P

Breaking: Jhon Durán set to joins Fenerbahçe, leaving less than 7 months after joining Al Nassr
Sports

Breaking: Jhon Durán set to joins Fenerbahçe, leaving less than 7 months after joining Al Nassr

by Steven Atogi
12 hours ago
0

Colombian youngster and top tier striker, Jhon Durán is set to join Turkish Super Lig side Fenerbahçe for €10m. The...

Brighton FC signs Super Falcons goalkeeper Chiamaka Nnadozie

Brighton FC signs Super Falcons goalkeeper Chiamaka Nnadozie

12 hours ago
Breaking: NAPTIP declares Speed Darlington wanted

Breaking: NAPTIP declares Speed Darlington wanted

1 day ago
Cristiano Ronaldo Extends Al Nassr Contract, Commits to Saudi Pro League Project Until 2027

Cristiano Ronaldo Extends Al Nassr Contract, Commits to Saudi Pro League Project Until 2027

2 days ago
MultiChoice Slashes DStv Decoder Price by 50%

MultiChoice Slashes DStv Decoder Price by 50%

3 days ago
Favour Ofili Dumps Nigeria for Turkey After AFN’s Olympic Blunder

Favour Ofili Dumps Nigeria for Turkey After AFN’s Olympic Blunder

6 days ago

YOUR THOUGHT & HISTORY

Columns

Kidnapped, Silenced, Vindicated: The Full Impact of Kanu’s Judgment

by Odini Brains
1 day ago
The Emerging Kogi: Economic Growth Impact Transforming Better Reality
Columns

The Emerging Kogi: Economic Growth Impact Transforming Better Reality

by Kiikpoye Karibo
3 days ago
ON THE PUBLIC NUISANCE CALLED SOWORE
Opinion

ON THE PUBLIC NUISANCE CALLED SOWORE

by Kiikpoye Karibo
4 months ago
Data Visualizations
Columns

Five Key Considerations for Creating Effective Data Visualizations

by Blessing Chinyere Daniel
5 months ago
The Transformative Power of AI in Revolutionizing Industries and Empowering Growth
Columns

The Transformative Power of AI in Revolutionizing Industries and Empowering Growth

by Blessing Chinyere Daniel
6 months ago

Who we are

Umpirenews | Latest News, Politics, Breaking News, Nigeria and African history

Welcome to Umpire News, your go-to online newspaper dedicated to broadening perspectives and expanding the horizons of our numerous readers. Read more

Browse by Category

  • Columns
  • Economy
  • Editorial
  • Entertainment
  • International
  • National
  • News
  • Opinion
  • Politics
  • Sports
  • Trends

Recent News

Comrade Babangida Declares for NYCN Presidency, Promises Sweeping Reforms and Youth Reawakening

Comrade Babangida Declares for NYCN Presidency, Promises Sweeping Reforms and Youth Reawakening

June 28, 2025
Fubara, Wike, and Amaewhule in first public outing since presidential peace meeting

Fubara, Wike, and Amaewhule in first public outing since presidential peace meeting

June 28, 2025
  • About Us
  • Contact Us
  • Privacy & Policy

© 2024 Copyright Umpirenews. All rights reserved

No Result
View All Result
  • Home
  • National
  • Economy
  • Politics
  • Sports
  • Entertainment
  • Editorial
  • Opinion
  • Columns

© 2024 Copyright Umpirenews. All rights reserved

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
🤑Join & Get Our Easter Gifts 🤑

Enter your NAME & Email NOW!!

Be among the 1st 100 lucky WINNERS to win our Amazing GIFTs this Easter Period as you READ our Daily hot NEWs & make meaningful comments and follow us on our social media handles.

Name
Enter your email address