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Nigeria's central bank pledges to keep policy tight as it holds key rate again

Nigeria's central bank pledges to keep policy tight as it holds key rate again

Reuters5 days ago
ABUJA, July 22 (Reuters) - Nigeria's central bank kept its monetary policy rate at 27.50% (NGCBIR=ECI), opens new tab for the third consecutive time this year, pledging on Tuesday to maintain its current stance until inflation risks recede.
Consumer inflation (NGCPIY=ECI), opens new tab in the oil-producing West African nation fell for the third straight month in June to 22.22% year-on-year from 22.97% in May.
Central Bank Governor Olayemi Cardoso acknowledged that inflation was easing. He said the rate-setting Monetary Policy Committee's decision was based on the need to sustain disinflation.
"Maintaining the current monetary stance will continue to address the existing and emerging inflationary pressure," Cardoso said, adding the goal was to get inflation to single digits.
Most economists polled by Reuters had predicted the central bank would keep the rate unchanged after hiking it six times in 2024 to fight soaring inflation, which repeatedly hit 28-year peaks last year.
Price pressures have been spurred by President Bola Tinubu's reforms since coming to office in 2023, including ending costly subsidies and the devaluation of the naira currency .
But inflation dropped sharply in January when the statistics agency updated the base year for its calculations and re-weighted the inflation basket, falling to 24.48% in annual terms from 34.80% in December.
However, its decline has since slowed.
Cardoso said the fall in inflation in June was largely driven by the moderation in energy prices and stability in the foreign exchange market.
"Despite these positive developments, members (of the MPC) observed the uptick in month-on-month headline inflation, suggesting the persistence of underlying price pressures, the continued global uncertainties," he said, adding that tariff wars and geopolitical tensions could sustain price pressures.
The World Bank has warned that persistently high inflation remains a challenge for Nigeria, urging it to stick to tight monetary and disciplined fiscal policies.
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Turkey's economy returns to a 'positive cycle', finance minister says
Turkey's economy returns to a 'positive cycle', finance minister says

Reuters

time9 hours ago

  • Reuters

Turkey's economy returns to a 'positive cycle', finance minister says

ANKARA, July 27 (Reuters) - Turkey's economy has returned to a "positive cycle" after market turbulence in March, Finance Minister Mehmet Simsek said on Sunday. All financial indicators including gross foreign exchange reserves and the main stock index BIST100 (.XU100), opens new tab have returned to mid-March levels with the steps taken to manage the economy, Simsek said in a live interview with broadcaster Kanal 7. The detention of Istanbul Mayor Ekrem Imamoglu, President Tayyip Erdogan's main political rival, on March 19 triggered market turmoil that prompted an emergency interest rate hike and drained foreign currency reserves. Turkey's central bank this week cut its benchmark interest rate by a larger-than-expected 300 basis points to 43%, resuming an easing cycle that had been disrupted in March. Credit ratings agency Moody's on Friday upgraded Turkey's rating to "Ba3" from "B1," citing improving monetary policy credibility, easing inflation and reduced economic imbalances. Turkey's government expects that inflation will end the year "within the central bank's mid-point to high forecast range. We expect a figure below 29%," Simsek said. Turkish annual consumer price inflation slowed to 35% in June, extending its fall from a peak of around 75% in May 2024. The central bank's year-end inflation mid-point estimate currently stands at 24%, in a forecast range of 19% to 29%. Turkish economic growth has remained below forecasts in recent months and there is a "high probability" of a limited deviation from the budget revenue target, Simsek said. Based on its three-year policy roadmap published last September, the government predicts 4.0% gross domestic product growth this year. According to the median forecast of 34 economists in the July 18-23 Reuters poll, growth in Turkey's GDP is expected to be 2.8% this year, slower than 3.2% in 2024.

Blue gold: how a Ghana mine's troubles hit workers and UK politicians – and could cost British taxpayers
Blue gold: how a Ghana mine's troubles hit workers and UK politicians – and could cost British taxpayers

The Guardian

time13 hours ago

  • The Guardian

Blue gold: how a Ghana mine's troubles hit workers and UK politicians – and could cost British taxpayers

In late 2020, amid the economic maelstrom unleashed by Covid-19, there were few better places to be than sitting on top of a goldmine. In Ghana, the west African country once called the Gold Coast by British colonisers, the Bogoso-Prestea mine was producing 4,000 ounces of the precious metal a month, valued at $6m (£4.5m). As gold prices reached record highs, London-based Blue International Holdings – a seasoned investor in African energy projects, pounced to buy the mine for $95m. Blue International promised 'attractive financial returns while having a positive impact on the communities and countries in which it operates, and the planet as a whole', according to its website. It enjoyed the backing of a trio of British political heavyweights, including two members of the House of Lords and a government minister. Yet, a few short years later, its future appears to have tarnished. And, as the Guardian reveals now, the venture appears to have resulted in collateral damage to everyone from Ghanaian mineworkers to a member of the British royal family, a billionaire backer of the GB News TV channel and, possibly, UK taxpayers. 'Blue Gold is a scam' read a placard, as protesters, backed by a brass band, voiced their discontent in February 2024. It was the latest in a string of demonstrations as miners and suppliers in the resource-rich Ashanti gold belt demanded to know why they were seeing no benefit from the precious metal buried beneath their feet. Four years earlier, when Blue International arrived, the future had seemed promising. The company boasted a track record of African investment stretching back to 2011, steered by its co-founders Andrew Cavaghan and Mark Green, professional investors with financial pedigree. 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Glen, the MP for Salisbury in Wiltshire, said he was not aware of the loan application when he served at the Treasury and there is no suggestion that he did. The Future Fund was designed, in the words of then chancellor Rishi Sunak, to support 'start-ups and innovative firms' survive the pandemic by extending them loans that converted into equity. In this case, the money supported a company engaged in extracting valuable minerals from African soil. In mining, all can appear calm on the surface, even as things fall apart below ground. By the time British taxpayers' money was pumped into Blue International, its Ghanaian venture was on the brink of a financial collapse whose tremors reached from rural west Africa to the City of London. Within two years of Blue International's takeover, operations at Bogoso-Prestea had been shut down several times, according to corporate filings and contemporary reports. Mineworkers blamed lack of investment from Blue, which owned and operated the mine via a local subsidiary, Future Global Resources (FGR). Lack of output choked off cashflow and increased costs, as equipment failed or required maintenance, according to one corporate filing. FGR failed to pay local suppliers, including the Ghanaian state electricity company, while mineworkers were left out of pocket, according to filings, fuelling local protests. 'It had devastating consequences,' said Abdul-Moomin Gbana, the general secretary of the Ghana Mineworkers' Union (GMWU). He said workers' salaries went unpaid for months, hitting the community hard. 'General conditions declined because they had no income. The communities virtually became ghost towns,' he said. 'It became obvious that if nothing was done, there was no way there could be a future for the mine.' Blue Gold declined to answer questions about the claims of unpaid wages, and directed questions to FGR. 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His partner was Thomas Kingston, who had also worked in Iraq conducting hostage negotiations for the UK Foreign Office in Baghdad, where he had witnessed first-hand the horrors of sectarian violence. In the UK, Kingston was better known for his marriage, in 2019, to Lady Gabriella Windsor, a second cousin of King Charles III. With this experienced and well-connected duo at the helm, Devonport thrived, recording pre-tax profit of £6m in 2023. But as Blue International's Ghanaian woes mounted, it began defaulting on the interest payments it owed to Devonport. Another of Devonport's important borrowers also defaulted at the same time, leaving the lender increasingly unable to repay its own creditors. Then, in February 2024, personal tragedy struck. Thomas Kingston died from a gunshot wound at his parents' home in the Cotswolds on 25 February. A coroner ruled that he had taken his own life. 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Lagos go experience partial blackout for 25 days
Lagos go experience partial blackout for 25 days

BBC News

timea day ago

  • BBC News

Lagos go experience partial blackout for 25 days

Residents for some parts of Nigeria largest commercial city, Lagos state go experience partial power outage for 25 days, according to di state electricity distribution company. Di Ikeja Electric Plc announce on X say di Transmission Company of Nigeria (TCN) wan carry out repair work on Omotosho – Ikeja West 330kV transmission line, and dat go cause power cuts for di area from Monday, 28 July to 21 August, 2025 According to Ikeja Electric, di maintenance go cause partial power supply across some areas of di state during dis period. Di affected areas wey include Ojodu, Oke-Ira, Agidingbi, Omole Phase 1 & 2, Iju, Berger, Magodo (Phase 1 & 2), some parts of Ketu, Oregun, Ojota, some parts Agege, Ifako, Abule Egba, Ojo, Ikeja, Oshodi, Ayobo, Alimosho, Ogba, Alausa and Ejigbogo. Eko Electricity Distribution Company (EKEDC) also say dia customers go experience irregular power supply sake of di maintenance work TCN wan carry out on di Omotosho – Ikeja West 330kV transmission line from 28 July to 21 August, 2025, but dem no tok dis exact areas wey go dey affected. However, di company operations na for Lagos Island, Victoria Island, Lekki, Apapa, Festac and Surulere. Wetin be di reason for di expected blackout? Di Disco companies explain say di reason for di partial blackout na sake of scheduled maintenance wey di Transmission Company of Nigeria wan do di Omotosho-Ikeja West 330kv powerline, and di maintenance go affect di load shedding across dia networks. Di maintenance go involve upgrade of operations for Omotosho–Ikeja West 330kV transmission area, and dis na one important power transmission channel for Nigeria power grid system. Di line dey serve as key conduit between di Omotosho Power Station for Ondo State and Ikeja West, wey be major power transmission hub for Lagos State. Ikeja Electric and EKEDC don inform residents within dis coverage areas to expect load management measures throughout di maintenance period, wey fit affect residential, commercial, and industrial during working hours. For Lagos residents during di peak hour wen power supply go dey dem go need to schedule dia activities and business around di blackout. Wen and how long di power outage dey expected to last Di electricity distribution company say di maintenance go last for 25 days. E go start on Monday, 28 July and end on 21 August, 2025. Lagos residents go experience di blackout between 8:00am-5:00pm daily. Areas wey go dey affected by di blackout?

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