Emir Sanusi calls for lower interest rates

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By Mohammed Usman with agency report

Emir of Kano, Alhaji Muhammad Sanusi ii, has called for monetary policy action that would guaranty lower interest rates in Nigeria.

According to Reuters, Sanusi who was Central Bank of Nigeria (CBN) governor stated this to CNBC television.

“It’s time to loosen monetary policy. We need to lower interest rates otherwise we compound an exchange rate crisis for businesses with high borrowing costs and declining demand,” Hesaid.

The central bank let the main benchmark rate unchanged at 13 percent at its last monetary policy meeting in September while cutting the banks’ cash reserve ratio to 25 percent from 31 percent.

He criticised foreign currency restrictions imposed by the CBN, which have frustrated local firms struggling to get dollars.

Speaking on the value of naira, he said “It is wrong to think that you can keep the naira at a certain level when the price of oil is falling without depleting your reserves.” “It does not speak well of us to pretend that the naira is appropriately priced.”

CBN Governor Godwin Emefile has ruled out another naira devaluation, saying repeatedly the currency was “appropriately” priced despite a sharp fall of oil revenues whacking public finances.

Meanwhile, Zenith Bank has declared quarterly 9 months ended Sept. 30, 2015 group net interest income of 161.4 billion naira agaist 143.37 billion naira last year. Reuters reports. It added that quarterly 9 months ended Sept. 30, 2015 group profit before minimum tax and income tax declared was 104.05 billion naira versus 86.82 billion naira last year.

It further added that Lafarge Africa quarterly 9-Months revenue of 168.14 billion naira versus 159.39 billion naira last year was shown, and also 9-Months profit before tax of 33.67 billion naira versus 38.09 billion naira last year. 9-Months profit after tax of 29.55 billion naira versus 31.76 billion naira last year of Lafarge Africa was reported.

That of Mobil was reported to be 9-Month revenue of 45.33 billion naira versus 60.72 billion naira last year, and 9-Month profit before tax of 5.25 billion naira versus 7.89 billion naira last year with 9-Month profit after tax of 3.65 billion naira versus 5.99 billion naira last year.

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