(Ecofin Agency) - In Nigeria, Moody's expects the benchmark interest rate cut’s impact on the economy to be minimal.
Indeed, according to Aurélien Mali, one of the rating agency’s vice presidents, “the Central Bank of Nigeria’s benchmark interest rate cut was expected… However, its possible effects on growth should be minimal because its transmission to the real economy and to lending rates is low in Nigeria.”
This viewpoint from an external investor adds to the divergences observed during the last meeting of the monetary policy committee. During the meeting, only 6 out of the eleven members of this committee had validated the cut in the current shape and form (50 basis points cut).
Two members were against the cut. Two others suggested a 25 bps cut while another member suggested a 100 bps cut. In its closing argument, the committee indicated that it believed the cut strengthened the central bank’s commitment to the promotion of strong growth by encouraging credit flow into productive sectors.
The viewpoint is also shared by some Nigerian analysts. According to the FSDH Merchant Bank, the naira is still solid in the shorter term due to the increase in Nigeria's foreign reserves. In the long-term, however, experts are less optimistic.
Idriss Linge
The African Development Bank has approved a $304 million loan to Botswana to support the southe...
BRVM and Africa50 signed a deal to create new infrastructure financing tools The plan inclu...
The Economic Community of West African States (ECOWAS) parliamentarians met in Lomé from May 6 to 9,...
Nigeria’s audit industry grew 65% in 2024, reaching 28.2 billion naira ($14.4 million). KPMG, EY,...
Africa’s digital economy is growing rapidly, and the demand for data storage, processing power, and ...
• Chad is home to one of the world’s largest shea tree reserves, with up to 82 million trees.• The country could produce up to 800,000 tons of shea nuts...
• The ICJ granted Equatorial Guinea sovereignty over three disputed islands in the Gulf of Guinea.• The ruling opens access to potentially oil-rich waters...
• Jean Bamanisa says Kinshasa needs 3,500 km of roads rebuilt at a cost of over $10 billion.• He warns that without urgent investment, the city...
• Uganda’s telecom industry has launched a joint anti-vandalism initiative led by UCC.• Over 820 cable vandalism incidents and widespread service...
Marojejy National Park, located in northeastern Madagascar, is one of the island’s most pristine and spectacular natural treasures. Nestled in the Sava...
Located about 3 km (1.8 miles) off the coast of Dakar, Senegal’s capital, Gorée Island is one of the most emblematic historical sites in West Africa....