African Loans – Bungeni http://bungeni.org/ Fri, 01 Jul 2022 11:18:48 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://bungeni.org/wp-content/uploads/2021/05/bungeni-icon-150x150.png African Loans – Bungeni http://bungeni.org/ 32 32 China offers Zimbabwe a modern parliament https://bungeni.org/2022/07/01/china-offers-zimbabwe-a-modern-parliament/ Fri, 01 Jul 2022 11:13:25 +0000 https://bungeni.org/2022/07/01/china-offers-zimbabwe-a-modern-parliament/

By KITSEPILE NYATHI

China has gifted Zimbabwe a new, modern parliament building to replace the current structure built during colonial times as Beijing continues to strengthen its influence over the southern African country.

The imposing structure spans 33,000 square meters and includes a six-story office complex and a four-story building housing the National Assembly and Senate.

Three bridges on each floor connect the two buildings. The National Assembly can accommodate 400 people, while the Senate Chamber accommodates 150.

It also has conference facilities, 15 committee rooms, staff offices and parking. The office building has 600 rooms that would house MPs and employees.

Constructed by Shanghai Construction Group (SCG) and fully funded by the Chinese government as a “gift to the people of Zimbabwe”, the new Parliament building is located at Mt Hampden, approximately 18 kilometers from downtown Harare, where find the old rooms.

Zimbabwe’s new Chinese-built parliament building on the hill of Mount Hampden, Zimbabwe, June 29, 2022. PHOTO | XINHUA

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SCG completed the buildings in 42 months, 10 months late with delays attributed to the Covid-19 outbreak.

“There is no doubt that the new parliament building will become a historic building in Zimbabwe and indeed in all of southern Africa,” said Cai Libo, the project manager of the SCG.

He said the building would be handed over to the Zimbabwean government. “The project strongly supports democracy in Zimbabwe while boosting the country’s image,” he said.

“This building is a historic building in Zimbabwe,” he added. “It is proof of the strong friendship between China and Zimbabwe.”

China Aid funded the construction through a grant.

Read also : China clashes with Zimbabwe unions over ‘systematic abuses’

Zimbabwe plans to build new infrastructure near the new Parliament to decongest the capital. It will include offices for the executive, judiciary, retail and residential areas.

Information Minister Monica Mutsvangwa said the new parliament building is a symbol of the “deep relationship” between Zimbabwe and China.

“It’s an amazing building that was made possible by a grant from the People’s Republic of China, which shows the deep relationship between the two countries,” Ms Mutsvangwa said.

“It will allow the legislature to do its job and as you know it has three mandates which are representative, legislation and oversight.”

The parliament building is China’s second major infrastructure “donation” to Zimbabwe after Beijing built the country’s biggest stadium in 1987.

Located in the capital Harare, the National Sports Stadium can hold 60,000 people, but has been banned from hosting international football matches by the Confederation of African Football due to poor maintenance.

China is also upgrading the country’s largest thermal power plant at an estimated cost of $1.2 billion. He carried out a $533 million renovation at the Kariba South Power Plant, the country’s largest hydroelectric plant.

Zimbabwe, which has an external debt of $14.4 billion, is heavily indebted to China, the only economic superpower willing to provide loans to Harare due to its poor repayment record.

In the era of the late strongman Robert Mugabe, Zimbabwe adopted a “look east policy” after its economy was hit by Western isolation and sanctions over alleged violations of human rights and electoral fraud.

President Emmerson Mnangagwa succeeded Mugabe in 2017 following a military coup.

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Policy Watch: why developing countries are calling for science-based adaptation goals https://bungeni.org/2022/06/27/policy-watch-why-developing-countries-are-calling-for-science-based-adaptation-goals/ Mon, 27 Jun 2022 10:30:00 +0000 https://bungeni.org/2022/06/27/policy-watch-why-developing-countries-are-calling-for-science-based-adaptation-goals/

Women carry containers after filling them with water at an abandoned stone quarry in Badama village in India’s northern state of Uttar Pradesh May 4, 2022. REUTERS/Ritesh Shukla

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June 24 – Political will was the missing ingredient at the climate meeting in Bonn earlier in June, which was supposed to lay the groundwork for progress at COP27, the upcoming global climate summit in Sharm el-Sheikh in November. But it ended with little tangible progress, not only on reducing emissions, but also on helping vulnerable countries cope with the impacts of climate change. Cries of betrayal were heard.

Climate change makes extreme events more likely – from flash floods in Germany last year to unusually early and intense heat waves that hit India and Pakistan this spring. Even if the average warming could be limited to 1.5 to 2 degrees Celsius, extreme events will continue to occur and the world must prepare for them.

Developing countries want financial support for both adaptation and the consequences of climate change to which they cannot adapt – the so-called ‘loss and damage’. The less progress there is in mitigation, the more adaptation is needed and therefore the greater the loss and damage.

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It’s a political hot potato. Rich countries fear that awarding compensation amounts to an admission of legal liability that will open the floodgates to litigation. For vulnerable nations, it is a question of solidarity.

They pushed hard at COP26 for a dedicated funding facility but did not get it. Instead, they secured the Glasgow Dialogue, aimed at examining how loss and damage could be funded. Seven months later, they could not put the financing of loss and damage on the official agenda in Bonn. Climate Action Network tweeted that “rich countries have no moral right to speak of urgency when blocking progress. (The) EU, Norway, Switzerland, supported by the US, are completely blocking how the Loss and Damage Financing Mechanism will be established.

Nigerian President Muhammadu Buhari speaks during the United Nations Climate Change Conference (COP26) in Glasgow, Scotland, Britain November 2, 2021. Adrian Dennis/Pool via REUTERS

There is a huge funding gap for both loss and damage and adaptation. Various analyzes have estimated the bill for the former at between 400 and 580 billion dollars by 2030. Last year, the United Nations Environment Program (UNEP) warned that the costs of adaptation could be between 140 and $300 billion a year. by 2030, and up to $500 billion a year by 2050. And that’s just for developing countries. But as the pandemic has demonstrated, nations can mobilize funds whenever they want. In 2020, $16.7 trillion in COVID-19 recovery funding was deployed globally, but less than 12% was spent on adaptation measures.

While developed countries have still not delivered on their pledge to provide $100 billion a year in climate finance to developing countries, the lion’s share of what has been provided has gone to mitigation, not adaptation. This was recognized at the COP26 climate conference in Glasgow last year, where governments were urged to double their collective funding for adaptation from 2019 levels by 2025. This means reaching 40 billion dollars by 2025.

“Funding should come in the form of grants, not loans, because countries shouldn’t go into debt to protect themselves from excess emissions from rich countries,” Azara Sanogo, climate justice chief, told reporters. Oxfam for West Africa. She wants developed countries to come to COP27 with a clear delivery plan.

Even where there is funding, it is difficult to access it. Seyni Nafo, spokesperson for the African Group of Climate Change Negotiators and coordinator of the African Adaptation Initiative, said the plan aims to identify and address gaps in scientific, reporting and financial capacity that are hampering institutions and civil society groups.

Speaking at a side event at the summit, Preety Bhandari, senior adviser on global climate finance at the World Resources Institute, said public finance should play the leading role (which the private sector would learn from). Options include IMF Special Drawing Rights and a new Resilience and Sustainability Trust Fund designed to help vulnerable nations build resilience to external shocks; redirection of fossil fuel subsidies; debt cancellations or exchanges. Bonds and insurance instruments are also under discussion. “The toolkit is there, it’s about starting with the political will, and then the form will follow,” Bhandari said.

A man crosses a flooded bridge, caused by heavy rain, in kwaNdengezi near Durban, South Africa, May 22, 2022. REUTERS/Rogan Ward

The global goal on adaptation is a key part of the Paris Agreement, but many of the building blocks remain to be defined. Just as a rigorous scientific process established a goal of limiting average warming to 1.5 degrees, the same effort must be directed towards adaptation, says Chukwumerije Okereke, director of the Center for Climate Change and Development at AEFUNAI University in Nigeria. He said the Intergovernmental Panel on Climate Change (IPCC) has a role to play in helping to develop metrics to assess levels of vulnerability and the costs of adaptation.

By “unleashing the power of science, we can achieve something that can help galvanize action.” But Okereke warned that there is no one size fits all and that developing countries “must be present” when key decisions are made.

Okereke is part of a group of climate experts and think tanks that together form the Alliance for Climate Transformation by 2025 (ACT2025). The group also calls for the acceleration of national adaptation plans, increased financial flows, in particular to the most vulnerable countries, and the financing of loss and damage. The Paris Agreement called for all countries to develop national adaptation plans – but only 36 have been submitted, despite 112 nations having policies geared towards adaptation.

There are many opportunities between now and COP27 for world leaders to unlock these financial flows. The question is whether they can lift their heads from the immediate crises of the war in Ukraine and the ensuing global food shortages to muster the political will that is essential to restore confidence.

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The opinions expressed are those of the author. They do not reflect the views of Reuters News, which is committed to integrity, independence and non-partisanship by principles of trust. Sustainable Business Review, part of Reuters Professional, is owned by Thomson Reuters and operates independently of Reuters News.

Angeli Mehta

Angeli Mehta is a science writer with a special interest in environment and sustainability. Previously, she produced programs for BBC Current Affairs and holds a research doctorate. @AngeliMehta

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Statement by President Akinwumi A. Adesina, African Development Bank Group: G-7 Ministerial Conference on “United for Global Food Security”, June 24, 2022 [EN/AR/PT] – World https://bungeni.org/2022/06/25/statement-by-president-akinwumi-a-adesina-african-development-bank-group-g-7-ministerial-conference-on-united-for-global-food-security-june-24-2022-en-ar-pt-world/ Sat, 25 Jun 2022 04:18:39 +0000 https://bungeni.org/2022/06/25/statement-by-president-akinwumi-a-adesina-african-development-bank-group-g-7-ministerial-conference-on-united-for-global-food-security-june-24-2022-en-ar-pt-world/

Attachments

I would like to thank the ministers Baerbock, Schulze and Cem Ozdemirfor inviting me to this G7 ministerial meeting on global food security.

  • I applaud the leadership of Chancellor Olaf Scholz and the German G-7 Presidency on the “Global Alliance for Food Security”. The African Development Bank will be a partner of the Alliance.

  • For today, as Secretary Bliken said, we should hear from the countries most affected, particularly by the Russian war in Ukraine.

  • I raise my voice on behalf of the 1.3 billion people in Africa affected by a looming food crisis resulting from this war.

For Africa, we must go beyond emergency food aid. We must prioritize food production!
We have the technologies to feed Africa. Africa doesn’t need bowls in the hand to beg for food, Africa needs seeds in the ground to produce for food.

When farmers have the right technologies, they can feed their country.

  • Our flagship program, Technologies for African Agricultural Transformation (TAAT) has already provided 12 millions farmers with climate-resilient crop varieties in just two years.

  • In Ethiopia, heat-tolerant wheat varieties supported by TAAT enabled him to grow 675,000 hectaresand it reduced its wheat imports by 80% in two years.

  • And this year, for the first timeEthiopia did not import wheat.

  • With our support, Ethiopia will become a wheat exporter next year, and export 1.2 to 1.5 million tonnes of wheat in Kenya and Djibouti.

To address the effects of the Russian war in Ukraine on food security in Africa, the Board of Directors of the African Development Bank approved on May 20, 2022, a $1.5 billion African Emergency Food Production Facilityto support the African Emergency Food Production Plan, jointly developed with the African Union.

  • The facility will support 20 millions farmers in African countries to produce 38 million metric tons of food, valued at $12 billion.

  • This will consist of 11 million tons of wheat, 18 million metric tons of corn, 6 million metric tons of rice and 2.5 million metric tons of soy.

To date, the African Development Bank has received requests for 35 countries to the African Emergency Food Production Facility.

  • Nowadays, Operations in 26 countries estimated at $1.1 billion will be before our board of directors for approval before July 15.

  • Six other operations valued at $264 million will be approved between September and November.

But we need more resources urgently.

  • While the African Development Bank has mobilized $1.3 billion of the $1.5 billion for the Africa Food Contingency Plan, we have a $200 million funding gap provide grant fund produce food in vulnerable countries in Africa, credit guarantees for the fertilizer sector and financing of the Technologies for African Agricultural Transformation (TAAT) platform.

  • I would therefore like to ask that Germany and all the G-7 countries are contributing to this balance of $200 million. These needs are very urgent.

  • Together, we will avoid a food crisis in Africa.

  • Together, we will help Africa become a global solution to global food challenges, now and in the future, by fully unlocking Africa’s food production potential.

  • Thanks.

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march to Kigali with over 300 supporters calls on leaders to eliminate malaria and neglected tropical diseases (NTDs) in Africa | The Guardian Nigeria News https://bungeni.org/2022/06/23/march-to-kigali-with-over-300-supporters-calls-on-leaders-to-eliminate-malaria-and-neglected-tropical-diseases-ntds-in-africa%ef%bf%bc-the-guardian-nigeria-news/ Thu, 23 Jun 2022 18:01:53 +0000 https://bungeni.org/2022/06/23/march-to-kigali-with-over-300-supporters-calls-on-leaders-to-eliminate-malaria-and-neglected-tropical-diseases-ntds-in-africa%ef%bf%bc-the-guardian-nigeria-news/

Every two minutes, an African child dies of malaria. The continent represents more than 90% of malaria deaths worldwide and more 40% of global load neglected tropical diseases (NTDs). The Kigali Summit is a historic opportunity for world leaders to reaffirm their commitment to ending malaria and NTDs.

KIGALI, Rwanda, June 23, 2022,-/African Media Agency (AMA)/- The March to Kigali, a campaign led by a group of like-minded civil society organizations from across Africa and supported by Speak Up Africa has garnered the commitment of more than 300 signatories. The campaign is urging world leaders to prioritize the elimination of malaria and neglected tropical diseases (NTDs) at the Kigali summit, which takes place today alongside the Commonwealth Heads of Government Meeting (CHOGM) .

With these diseases disproportionately affecting vulnerable members of society and negatively impacting Africa’s economic and social development, the March to Kigali campaign is drawing global attention to accelerate action to end malaria and to NTDs on the continent.

Every two minutes, an African child dies of malaria. The continent accounts for over 90% of malaria deaths globally and over 40% of the global NTD burden is in Africa. Efforts to eliminate these diseases are stifled by inadequate health systems and limited program funding, coupled with less attention and prioritization on the global and regional stage.

This Kigali summit presents a historic opportunity for world leaders to reaffirm their commitments to end these diseases and their untold suffering and misery for billions of people. As part of the March to Kigali campaign, we are calling for domestic resource mobilization for increased and sustainable resources aligned with the Global Fund co-financing requirements of US$18 billion needed to put the world back on track. path towards building resilient and sustainable health systems. .

“The March to Kigali campaign recognizes the strength of the Kigali Summit in bringing together key decision makers to draw united global attention to malaria and NTDs. These diseases are fully treatable and preventable but remain a major obstacle to economic and social development in Africa, affecting the most marginalized populations,” says Yacine Djibo, Founder and Executive Director of Speak Up Africa.

The campaign also calls for a refocus on integrating the control and elimination of malaria and NTDs. Multi-disease solutions have the potential to improve the efficiency of health system financing with existing integration opportunities to build upon. For example, Senegal’s National Malaria Control Program is streamlining effort and cost by using its platform to collect data on both diseases.

The March to Kigali campaign builds on the existing partnerships and platforms of the “No to NTDs” and “Zero Malaria Starts with Me” campaigns and aims to secure commitments from national and sub-national stakeholders to end these epidemics of malaria. 2030 as part of the Sustainable Development Goals (SDGs). This includes political engagement, private sector engagement, civil society and youth engagement. Civil Society Organizations (CSOs) from across Guinea, Côte d’Ivoire, Senegal, Burkina Faso, Ghana, Benin and Niger are leading the charge in increasing public awareness and political engagement to eliminate malaria and NTDs.

In Sierra Leone, twelve leading artists have released “Malaria e Don Wan Dae Na Mi Han”, a music video on the prevention and treatment of malaria. Community health workers in Sierra Leone have also been trained to be the first line of defense against these diseases, and more than 100,000 malaria rapid test kits have been distributed in Burkina Faso. Additionally, through the “Lines of Impact” initiative, the campaign works with African journalists from Benin, Burkina Faso, Ghana, Nigeria, Senegal and Togo to develop quality stories on NTDs and Malaria “Neglected tropical diseases have received little attention in the media. Mass media can play a huge role in disseminating information, influencing public behavior, ultimately curbing the spread of disease,” said Dr Charity Binka, Executive Secretary of the African Media Research Network and Malaria (AMMREN) and National Leader of the March for Kigali Campaign in Ghana.

Over 300 civil society organizations and grassroots organizations, media and individuals across the continent have signed the ‘March to Kigali’ call to action, demonstrating the incredible commitment at national and continental level to end these diseases .

Distributed by African Media Agency (AMA) on behalf of Speak Up Africa.

About Speak Up Africa

Based in Dakar, Senegal, Speak Up Africa is a strategic communications and advocacy organization dedicated to catalyzing leadership, enabling policy change and increasing awareness of sustainable development in Africa. Through our platforms and relationships and with the help of our partners, we ensure that policy makers meet implementers; that the solutions are presented and that every sector – from individual citizens and civil society groups to global donors and business leaders – contributes critically to the dialogue and strives to form the concrete action plans for the public health and sustainable development.

For more information on Speak Up Africa, please visit www.speakupafrica.org

March to Kigali country campaign leaders

  • Benin: Dr Odry Agbessi, President, VIA-ME
  • Burkina Faso: Ida Savadogo, Technical Assistance Program Manager, RAME
  • Burkina Faso: Zoungrana Irene, Executive Director, New Vision
  • Cameroon: Zeinabou Idé, Program Advocacy Officer, Impact Santé Afrique
  • Côte d’Ivoire: Kenneth Prudencio, Advocacy Manager, ASAPSU
  • Sierra Leone: Kodah Moses Sorie, Executive Director, NAYE-Salone
  • Ghana: Dr Charity Binka, Executive Secretary, African Media and Malaria Research Network (AMMREN)
  • Guinea: Salomon Yedidya Dopavogui, Executive Director, Jeunesse Secours
  • Niger: Yaou Moussa, Program Manager, Lafia Matassa
  • Niger: Oumarou Mahamadou, Program Coordinator, CDR (Contribution to Rural Development)
  • Senegal: Dame Ndiaye, Executive Director, ANJ

Media Contact

For media or interview requests, please contact:

Name: Uzoamaka Madu

Contact: press@whatsinitforafrica.com

The post March to Kigali movement with over 300 supporters calls on leaders to eliminate Malaria and Neglected Tropical Diseases (NTDs) in Africa appeared first on African Media Agency.

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Jonathan Jackson toasted on social justice issues at town hall https://bungeni.org/2022/06/21/jonathan-jackson-toasted-on-social-justice-issues-at-town-hall/ Tue, 21 Jun 2022 21:53:32 +0000 https://bungeni.org/2022/06/21/jonathan-jackson-toasted-on-social-justice-issues-at-town-hall/

Jonathan Jackson late Monday night gave strong support for social justice issues such as abortion rights and reparations during a town hall meeting held at the New Covenant Missionary Baptist Church led by Pastor Stephen J. Thurston .

The questions were answered by Chicago Crusader journalist Erick Johnson and N’DIGO editor Hermene Hartman. Santita Jackson was the moderator.

Johnson asked Jackson about his thoughts on the economy, particularly inflation, his thoughts on the health care disparity in post-pandemic black Chicago and would he support slave reparations.

Regarding inflation and the economy, Jackson said that when workers earn $15 an hour, that means $30,000 a year. Jackson said this problem kept him up late at night on several occasions. “We need to make sure people have adequate food, transportation to work and housing.

(Photo from left to right) Jonathan Jackson, Mrs. Jackson, Pastor Stephen Thurston and Michael Barksdale
(Photo by Chinta Strausburg)

“The federal government needs to help people when they can’t help themselves,” Jackson said. “The feds have to step in,” Jackson said, 50% of workers make less than $20 an hour, 55% of workers don’t have enough money to last until the end of the week, and many cannot lay their hands on $2,000 in an emergency.

Referring to the economy and rising gas prices, Jackson said, “These are price gouging. He’s the culprit.

When asked by Johnson whether President Biden wanted to cut student loans by $10,000, Jackson said, “In 2006, President George W. Bush passed a bankruptcy reform bill. He said that under this bill, business people could buy cars and write off other expenses, but not student loans. “They imposed the heavy bill on our students.

“The student loan was $4.8 billion in 2006. Today the student debt market is $1.8 trillion,” Jackson said. He called on Congress to go back and review this law. He called for the elimination of all student debt. He also called for the elimination of interest on student debt.

Jackson said huge student loans have even affected personal relationships because students are reluctant to marry someone who is burdened with these loans. And he said that while students can learn, doors of opportunity should always be open to them without fear of racking up huge student loans.

Referring to Johnson’s question about the state of the economy, Jackson said there are currently 2 million cybersecurity jobs, a shortage of 14,000 airline pilots, a shortage of bus drivers and a shortage of rail operators. He said there were not enough people applying for police jobs.

Given the rise in youth crime, Jackson said, “We need to capture this workforce and bring it back into the fold. We represent 5% of the world’s population but 25% of incarcerated people,” Jackson said. “The remnants of slavery are real. “I want their records expunged so they can ‘become productive citizens.’

On Johnson’s question about the economy, Jackson admitted it was “pretty weird,” but he was clear about rising gas prices. “These are scams that make big profits at the expense of the poor. The profit scam is the real culprit.

Dorothy Brown, Ms Jackson and a crowd after the meeting (Photo by Chinta Strausburg)
Dorothy Brown, Ms Jackson and a crowd after the meeting
(Photo by Chinta Strausburg)

Jackson said African Americans are fully invested in this country. People don’t go for this ‘white supremacy’ ideology and that black people are not inferior and white people are not superior.

When you talk about repairs, Jackson said you have to include institutions like black people not having equal access to public transit within 20 minutes. “It’s called regular services, no public transport”, or the lack of transport for the far south side and the west side.

“When seniors don’t have access to Walgreens or CVS within a mile of services,” Jackson said, that’s one example of institutions getting in the way of equal access to services and another. reason for repairs.

“Repairs are absolutely imperative,” he said. “Jackson also wants basic institutions of unequal life opportunity fixed – equal services for all.

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Nigeria: Faced with inflationary pressures, banks raise maximum lending rate to 27.79% https://bungeni.org/2022/06/20/nigeria-faced-with-inflationary-pressures-banks-raise-maximum-lending-rate-to-27-79/ Mon, 20 Jun 2022 06:40:37 +0000 https://bungeni.org/2022/06/20/nigeria-faced-with-inflationary-pressures-banks-raise-maximum-lending-rate-to-27-79/

Following a spike in inflation in April this year, Nigerian banks increased the maximum lending rate on loans and advances to customers from 26.61% in March 2022 to 27.79% in April, indicating an increase of 4.43% or 1.18 basis points.

THISDAY’s survey found that Nigerian banks have consequently increased lending to the real sector of the economy.

The Central Bank of Nigeria (CBN), in its “Money Market Indicators” data, showed a 0.51 percentage point increase in the average maximum lending rate to 27.79% in April 2022, from 27, 65% in January.

CBN data revealed that in the first four months of 2021, the maximum lending rate hovered around an average of 28.56%.

The apex bank in the first four months of 2022 maintained its monetary policy rate (MPR) or lending rate at 11.5%, but raised it to 13% in May, citing inflationary pressure that has risen from 15.7% in January to 16.82%. in April 2022.

The MPR hike was the first time in two and a half years that the country’s financial regulator’s policy-making committee would raise the rate.

The MPR is the base interest rate in an economy, while all other interest rates used in such an economy are based on it.

CBN Governor Godwin Emefiele in his statement at the end of the Monetary Policy Committee (MPC) meeting in May explained that members were concerned about the somewhat aggressive rise in inflation of nearly 90 basis points in April 2022.

According to him, “To mitigate expectations of inflationary pressures, the MPC has decided to shift from its historically cautious approach to interest rates to higher policy rates, while adopting a dovish approach to development finance initiatives that supported economic growth and a sustained recovery.

“The MPC is of the view that rates for the Bank’s development finance initiatives should remain at 5% until March 2023.

Therefore, regarding the decision to hold or not. tighten or loosen, MPC believes that easing in the face of higher policy rates in advanced economies could lead to a sharp increase in capital outflows and a faster drying up of foreign credit lines. »

MPC member, Professor of Economics at the University of Benin, Mike Obadan in his personal statement had argued that, “Further tightening of monetary policy will not tame inflation. lending rates from commercial banks, limit access to credit and hamper investment in real sectors of the economy.

“Indeed, a further tightening policy will run counter to the CBN’s objective of increasing investors’ access to cheap credit in order to foster economic recovery, spur growth, increase employment and to reduce poverty.

“On the other hand, easing monetary policy under the current circumstances could increase untargeted money supply growth and exacerbate inflation. The situation of low growth, high unemployment and incidence of poverty and double-digit inflation undoubtedly involves difficult policy choices.”

Meanwhile, analysts attributed the increase in the maximum lending rate to inflationary pressure, pointing out that the gap between the CBN lending rate and the maximum lending is huge.

Speaking to THISDAY, Vice Chairman of Highcap Securities Limited, Mr David Adnori said: “The spread is almost double digits and this indicates a serious quest for ranting within the banking industry. The gap between the maximum lending rate and the MPR shouldn’t be more than 10%, but when you have anything over 100%, that means there’s serious rent-seeking activity in the industry. banks that erode the country’s resource economy. »

On his part, PAC Holdings analyst, Mr. Wole Adeyeye, said, “A lot of countries like the United States, Ghana among others have raised their policy rate and Nigeria cannot operate in isolation. banks reacted to the rising inflation rate and increased the maximum lending rate to 27.79% in April 2022.”

Similarly, the Chairman of the Bank Customers Association of Nigeria (BCAN), Dr. Uju Ogubunka, attributed the increase in the maximum lending rate to the surrounding uncertainty and rate of inflation in the business environment amid political tensions in the country.

Ogubunka, who was the former Registrar/Chief Executive of the Chartered Institute of Bankers of Nigeria (CIBN), said Nigeria’s economy in 2022 has not seen major improvement to justify a hike in the bank lending rate. to the real sector.