27 Jan

Daily Watch – CBN refuses to devalue, States slowing down on pension contributions

  • The Central Bank has announced that it sticking with 11% for Monetary Policy Rates (rates at which it lends money to banks), Cash reserve requirement (CRR) at 20% (amount of deposits banks cannot lend out) and liquidity ratio of 30%. The CBN has all but fixed the naira at N197-N199 per dollar since early March last year. Nigeria’s foreign exchange reserves are down some 2 percent or $0.7 billion year to date, to $28.2 billion as at January 25 as oil prices fell below $30 per barrel.
  • Royal Dutch Shell has announced the re-opening of its Trans Niger Pipeline, or TNP, which carries Bonny Light crude oil to the export terminal. The pipeline had been out of operation since November, 2015 while the company investigated an the deaths of four contractors during an operation to remove crude oil theft points. The inferno was suspected to have been caused by pipeline vandals.
  • The Punch is reporting that governments and workers were no longer contributing to the contributory pension scheme in Kebbi, Ondo, Cross River, Osun, Niger, Akwa Ibom and Ekiti states. The paper also reported that the governments of Imo, Sokoto, Lagos, Rivers, Abia, Bauchi, Plateau, Edo and Niger states were stalling on the implementation of the PRA 2014. Failure to remit deductions made from workers’ salaries and the financial constraints being faced by most of the state governments has brought the CPS to the brink of failure according to the paper.