Nancy Olisakwe’s Post

Day 2 @ NES 65th Annual Conference Lecture 1: Monetary-Fiscal Coordination in Price and Exchange Rate Stability Economists have long advocated for the alignment of monetary and fiscal policies to achieve Nigeria's macroeconomic goals, particularly in terms of price and exchange rate stability. However, due to institutional irregularities and the political motivations behind many fiscal policies, achieving this alignment has proven challenging. Consequently, the Central Bank of Nigeria (CBN) has had to expand its jurisdiction to encompass aspects of fiscal policy. The hypothesis that price and exchange rate stability can be managed solely by the CBN is flawed. Inflation, particularly in Nigeria, is both a monetary and fiscal phenomenon. This dual nature of inflation necessitates a coordinated approach between monetary and fiscal policies. Recently proposed fiscal policy reforms, such as implementing zero tax on food items, aim to address price instability. Food inflation, which constitutes a significant portion of the Consumer Price Index (CPI), illustrates the need for a cohesive strategy. Although this reform is a short-term solution, it demonstrates the necessary collaboration between Nigeria’s fiscal and monetary policies to achieve the desired macroeconomic objectives. Lecture 2: The Renewed Hope Agenda: 15 Months After: What have we learnt and the Pathway for the future. A careful analysis of this agenda was done and it was concluded that its actualized objective it way behind its project objective. #NES65thAnnualConference #RenewedHopeAgenda #FiscalMonetaryPolicyCoordination #Nigeria #Insight

Dive into the April macroeconomic report for a comprehensive look at Nigeria's current economic landscape. From exchange rate volatility to inflation concerns and dwindling reserves, we analyze the intricate forces at play. Explore the Central Bank of Nigeria's strategies to combat inflation and the associated costs. Delve deeper into the seismic shift in the banking sector, assessing recent downturns and the allure for foreign investors. Highlighting the urgent need for reforms, we paint a vivid picture of the sector's trajectory with a blend of historical context and current insights. The Nigerian Stock Exchange (NGX) faced a significant setback in April, with the All-Share Index (ASI) dropping by 6.06%, notably impacting the Banking sector with a 24.8% decline. Does this signal a looming storm or just a fleeting setback post Q1's stellar performance? The bearish sentiment in the Sub-Saharan Africa (SSA) euro bond space reflects uncertainty, influenced by expectations of prolonged contractionary US monetary policy. This downturn underscores the importance of economic stability in the region. Amidst the drama of battling inflation, the CBN navigates a delicate balance between curbing inflation and fostering economic growth. Our monthly report offers insights into these complexities, serving as a roadmap through Nigeria's evolving economic landscape. Regards.

Publication Alert! Our research explores the short-run dynamics between macro-financial drivers and Nigeria's bond market, shedding light on key factors that shape its development. Key Findings: Negative Impacts: Fiscal deficits, inflation, and GDP per capita growth hinder bond market growth. Positive Impacts: Domestic debt and stock market development drive market performance. Insights: Banking size and monetary policy rate had insignificant effects, and no long-run relationship was found between drivers and market performance. Policy Recommendations: 1️⃣ Redirect public spending to projects that stimulate economic growth. 2️⃣ Promote financial inclusion to enhance the domestic debt market. 3️⃣ Ensure macroeconomic stability to build investor confidence. 4️⃣ Foster stronger integration between bond and stock markets. This research underscores the need for dynamic fiscal discipline and structural reforms to unlock the potential of Nigeria's bond market as a driver of economic growth. You can read the full article here: https://lnkd.in/geVeg4bF #Finance #Macroeconomics #BondMarket #Nigeria #EconomicGrowth #Research

🌍 Navigating the Economic Storm: A Global Perspective 🌍 I am excited to share my comprehensive 27-page video presentation, specifically designed for my clients in Nigeria, which addresses the unique opportunities and strategies available amidst the current economic landscape—one that significantly affects not only Nigeria but many countries worldwide, including the big four economies. This detailed analysis explores the pressing issues of currency devaluation and soaring inflation while emphasizing the importance of externalizing investments and diversifying into hard currencies to protect wealth against local economic challenges. With over 100 years of family legacy in property development and extensive global experience in finance, I bring valuable insights that can help individuals and businesses understand this complex interplay of local and global economies. As we look toward the future, this video highlights not only the urgent economic realities but also the potential for reinvesting wealth back into Nigeria and other affected nations as conditions improve. Join me on this journey to navigate these turbulent times, and discover tailored investment solutions that can secure your financial future while contributing positively to economies around the globe. #EconomicStorm #InvestmentStrategies #Nigeria #GlobalEconomy #CurrencyDevaluation #Inflation #WealthPreservation #FinancialSecurity #PropertyDevelopment #OffshoreInvestments #Diversification #EconomicGrowth #FinancialPlanning #TailoredInvestments #WealthManagement #FutureInvestments #InvestmentOpportunities #SmartInvesting

Market Update for 5th DECEMBER 2024 The Nigeria financial landscape yesterday, showcased remarkable stability in Nigeria's money market, offering a calm day amidst a sea of economic complexities. From steady exchange rates to intriguing trends across foreign exchange, fixed income, and equity markets, this analysis deepens into the numbers, trends, and opportunities shaping investor strategies. Market Indicators • Inter-Bank Call Rate: 27.50% • Savings Deposit Rate: 6.85% • Prime Lending Rate: 17.05% • Monetary Policy Rate (MPR): 27.5% • Cash Reserve Ratio (CRR): 50% • Liquidity Ratio: 30% Foreign Exchange Market The foreign exchange market saw marginal fluctuations, with demand and supply dynamics remaining balanced. Stability in rates offers opportunities for businesses engaged in international trade to plan with confidence. Fixed Income Market Yields on government securities reflected sustained investor confidence in Nigeria's economic fundamentals. This segment continues to attract conservative investors seeking steady returns. Equity Market The equity market witnessed modest movements, highlighting mixed sentiments among investors. While some sectors showed promise, others saw cautious trading amidst macroeconomic uncertainties. Recommendation In an era of dynamic financial shifts, the Nigerian market holds opportunities for the observant and strategic investor. With stability paving the way, aligning your investments to long-term growth sectors and employing hedging strategies against risks could be your gateway to thriving in this ever-evolving financial landscape. #investment #GABS #money #market #trend

Economic Growth vs Inflation? On Saturday, I had the privilege of joining News Central TV as a Business Analyst where we delved into one of Nigeria’s most pressing economic issues: the Central Bank of Nigeria’s interest rate hike and its broader implications. I emphasized how the recent 25 basis point increase in the Monetary Policy Rate (MPR), now at 27.5%, has made borrowing prohibitively expensive, especially for businesses seeking to expand. While the Central Bank’s primary focus is to curb inflation, this policy tightening comes at the expense of economic growth—a delicate trade-off that demands careful calibration. On the fiscal side, I proposed leveraging the government’s CNG free ride initiative to extend access to CNG trucks for farmers, enabling them to transport produce from farm gates to markets at significantly lower costs. This measure could mitigate logistics costs, making food more affordable and directly addressing food inflation—one of the largest contributors to our overall inflation rate. The discussion further underscored that while inflation remains the “common devil” we must tame, there’s a critical need for policies that balance price stability with growth. Collaboration between fiscal and monetary authorities is paramount to achieving sustainable economic progress. As a stakeholder in Nigeria’s business media space, I remain committed to shedding light on the economic realities impacting lives and businesses, while championing actionable solutions for progress. Let’s continue the conversation. What innovative solutions do you think can help Nigeria navigate this tricky inflation-growth dynamic? #ThoughtLeadership #NigeriaEconomy #CBNPolicy #FoodInflation #CNGInitiative #EconomicGrowth #InflationControl #InterestRate

Should the CBN adopt the Inflation Targeting Policy Framework? It's about time we bid the monetary targeting policy goodbye 👋🏽 Introduced in 1974 after the "Nixon shock" at the collapse of the Bretton Woods agreement of fixed exchange rates and still being in use till date, we can say that the monetary targeting policy has outstayed its impact as the Nigerian monetary policy framework. Is monetary targeting still the solution to this economic fluctuation and exorbitant inflation in Nigeria? 🚫Changing relationship between different measures of monetary aggregate and policy target induced by financial sector liberalization 🚫financial innovations 🚫advances in information technology and globalization Thus, the ideal conditions for the effectiveness of the (current) monetary targeting strategy no longer exist in the case of Nigeria. This justifies the need for a change in the monetary policy strategy. What is Inflation Targeting? Inflation Targeting is a monetary policy framework in which central banks forecasts and makes public a target inflation rate towards a target through the use of key monetary policy instruments, such as central bank policy rate, repurchase and reverse repurchase (REPO and reverse REPO), Open Market Operations (OMO) bills and other monetary policy tools. Why Inflation Targeting Strategy? ✅ Perceptions that it can anchor inflationary expectations much better than other strategies especially when supported by a transparent operating and policy environment ✅ Identification of a forward looking and quantifiable inflation target upon which policy decisions are based ✅ Allows flexibility for macroeconomics variables to assume any dimension and magnitude without distorting the fundamentals of the economy ✅ It reduces the likelihood that the central bank will fall into the time-inconsistency trap However, is Nigeria Prepared/Ready to adopt the Inflation Targeting Policy? The answer to this is YES, to a very reasonable extent. What is, however, required is the political will to support a fullscale transition to inflation targeting, as the decision for the adoption of any monetary policy, even though the central bank operates as a democratic deficient body, has to be supported by the political head and structure of the country. #monetarypolicy #inflationinsights #cbn #finance

📊 Nigeria's Financial Market Update – October 16th, 2024 🇳🇬 As we enter Q4, Nigeria’s financial markets are showing key developments: Bank Recapitalization Surge: The Central Bank of Nigeria’s recapitalization mandate continues to drive a wave of capital-raising activities in the banking sector. Institutions like Fidelity, Access, and UBA are launching rights issues, creating significant primary market activity. Currency Stabilization: The Naira is expected to stabilize, attracting foreign investment and benefiting manufacturing companies that have been hit hard by FX losses in the past year. Interest Rates & Market Impact: Elevated interest rates make money market instruments (like treasury bills) more appealing than stocks, which may slow down broad market rallies. However, sectors like healthcare continue to show strong performance, while consumer goods and firms exposed to FX losses remain under pressure. With these factors in play, investors should watch key sectors and opportunities as we approach year-end. 🚀 #NigeriaMarket #InvestmentOpportunities #Banking #Economy #FinancialMarkets Sources: Nairametrics SIMPLY WALL ST

Hello everyone! Been a minute posting here and thanks for checking in from time to time. I invite you to an important webinar hosting officials from Africa's major capital markets: Ghana, Kenya and Nigeria to speak to developments going into Q4 2024/Q12025. 🗓️ Date: Thursday, 31st October 2024 ⏰ Time: 12 PM GMT 🔗 Register here: http://bit.ly/4fcKTNQ What to expect? Think of it this way For instance, Ghana (and the US, RE: foreign investor component) is entering an election period; and everyone else enters the festive season amidst fluctuating oil prices inspired by Israel/Iran/Hezbollah; soaring gold prices; etc. IMF hailed Wale Edun (Nigeria's minister for finance) recently for holding the policy rate tight to arrest inflation; predicting Nigeria's inflation to drop to 25% in 2025 from the worrying 32.7% September. Kenya on the contrary had to drop interest rates as inflation fell to record lows which is expected to improve the hightened lending rates dampening private sector activity. Ghana was shocked by an uptick in inflation (marginal though) right after the central bank (BoG) dropped policy rates (first time since Jan 2024), seemingly following US (et al) fed rate cuts. Clearly BoG will revert to hawkish stance to attempt holding inflation as the year ends. What do these mean for you in terms of alternative investments in stocks? Is stock trading and investment reserved for the wealthy? Of course not but find out why and where ordinary individuals can also diversify their investments from the stock markets' perspective. And many more. Make a date. Also check out our news and research portal at https://lnkd.in/eUXUFyRq for news and research content on these major markets and reach us if you're confused, interested or simply curious 🙂. #XMarketConvos #SSXWebinar #SecondSTAX SecondSTAX

Obaseki Slams CBN Monetary Policy, Says Action Not Enough for Economic Challenges https://ift.tt/D2L4iIM The Standard Gazette Obaseki Slams CBN Monetary Policy, Says Action Not Enough for Economic Challenges The Central Bank of Nigeria has come under severe criticism from Godwin Obaseki, the governor of Edo State, for hiking the Monetary Policy Rate by 22.75%. Obaseki said the choice is insufficient to solve the nation’s persistent economic problems. He advised promoting local production to meet the demand for goods and services. As seen in […] The post Obaseki Slams CBN Monetary Policy, Says Action Not Enough for Economic Challenges appeared first on The Standard Gazette. via https://tstga.com/ March 04, 2024 at 09:00PM