What to expect from Nigeria’s Monetary Policy Committee meeting next week

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Policy rate: 13.5%
Inflation rate: 11.9% (November)
Stubbornly high inflation limits the Nigerian MPC’s room to cut borrowing costs

The Central Bank of Nigeria is expected to hold its key rate for a fifth straight meeting as it seeks to stem price pressures.

Inflation in Africa’s top oil producer quickened to 11.9% in November, well above the target band, as the closing of the country’s borders, which started in August to curb smuggling, sent food costs soaring.

While Governor Godwin Emefiele has said the inflationary impact of the border closure is temporary, prices will remain under pressure as long as the boundaries remain shut, said Abiodun Keripe, the Lagos-based head of investment research at Afri Invest.

This, together with a proposed electricity tariff hike and currency pressures may force the MPC to adopt a tighter policy stance in the second half of the year, he said.

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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