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CBN raises interest…again
Good morning, Big Brains. I feel like a prophet right now because I predicted CBN’s next move. When you read the newsletter, you’ll realise that it’s probably not something that I should gloat about but allow it.
- Margaret
Word count: ~ 1,000
Reading time ~3 mins
Let’s get into today’s edition:
CBN raises interest rate… again
President Tinubu asks UN to do giveaway for Nigeria
Elon Musk wants you to stop blocking your opps
The Big Deal
CBN raises interest rate… again
The sun is not the only thing that’s rising this morning, interest rates are too and we hate to be that guy but we called it. Last week, we mentioned that the Central Bank of Nigeria was facing a dilemma – to raise the Monetary Policy Rate or maintain it. Knowing the CBN governor, Yemi Cardoso, we predicted that the MPR would most likely be raised again. To all our readers who said “God forbid”, we have bad news – the MPR has been raised from 26.75% to 27.25%.
We’d argue that it’s our blood Cardoso is after at this point but Cardoso is insisting that the interest rate increases over the past few months since he became the CBN boss have helped keep inflation in check. Not sure it’s the same inflation that is at an all-time high he’s talking about but we all have to toot our horns.
Why is this a big deal?
This affects everything – business, goods, and services. Just squeeze some cash into the hands of any business owner you know because loans are about to get even more expensive. Before this new increase, some corporate and digital lenders were already charging as high as 30% interest on business loans. The hike adds to the long list of things that make running a business in Nigeria difficult.
To survive these crazily expensive times, some businesses may be forced to let go of some of their employees. The National Bureau of Statistics recently released a report that shows that the unemployment rate in Nigeria grew from 5.0% to 5.3% in less than a quarter. We can already imagine what those numbers will look like before the end of the year.
But business owners and their employees are not the only victims. The rising cost of doing business will also make goods and services more expensive for every Nigerian except Tinubu and Cardoso who are obviously rich enough to not be fazed by price increases.
Even though Cardoso claims that the MPR hikes are helping Nigeria appeal to foreign investors and manage inflation, no Nigerian is feeling the impact of any of those things. Fuel is still expensive, food is expensive and the naira is still playing a weak game against the dollar. So it seems that it’s Cardoso, Tinubu and everybody in their Whatsapp group that are really benefiting.
President Tinubu asks UN to do giveaway for Nigeria
ICYMI, the United Nations General Assembly (UNGA79) is ongoing and world leaders have been having some interesting conversations. Iran’s new president, Masoud Pezeshkian talked about his plan to guide Iran into a “new era” and he criticised Israel for what he called “crimes against humanity” – A+ presentation. President Tinubu, on the other hand, took “closed mouths don’t get fed” too seriously with his official statement and decided to ask for debt forgiveness (as in they should cancel all the debt Nigeria owes o) – F9 presentation.
Did he stop there? No. He went ahead to throw stones even though he lives in a glass house. He asked world leaders to take stronger action against hunger and terrorism to strengthen relationships among UN member states, emphasising the need for inclusivity, equality, and cooperation. This is very rich coming from someone who has 31.8 million starving people in his country and only 8 out of his 45 ministers are women.
Why was he dishing out unsolicited advice?
He’s concerned that the core values of the UN are in danger of being lost because the principles of inclusivity, equality, and cooperation that the UN supports are being overlooked.
President Tinubu said, “Today, these pillars of our organisation are threatened. They risk being broken by the relentless pursuit of individual national priorities rather than the collective needs of the nations that are assembled here today.”
But we’re more curious about when he will address the danger of Nigeria’s core values being lost.
Elon Musk wants you to stop blocking your opps
Are we dramatic or are village people after Elon Musk? X, formerly Twitter, is planning to change its block feature, and people have mixed feelings about it.
Elon Musk, the founder of X, commented, “It’s about time. The block function will stop that account from engaging with you, but they’ll still be able to see your public posts.”
The block feature currently stops users from accessing posts, replies, media, and the follower lists of the person who blocked them.
But now, Elon Musk, the owner of X, is shaking things up by allowing blocked users to still see public posts from accounts that have blocked them. This move follows Musk’s earlier comments, where he described the block button as “nonsensical.”
He’s been on a mission to swap it out for a tougher mute function, and in August 2023, he announced that the block feature might soon be history. Musk said the only exception would be for direct messages—because who doesn’t want to keep those awkward chats under wraps.
This Week’s Big Question
“What’s the funniest excuse you’ve used recently to avoid adulting?”
Wisdom’s response - “The biggest joke of my life is that I moved back in with my parents to avoid adulting. And it’s miles away from civilization.”
You can also share your response here and if it’s as interesting as Wisdom’s response, we’ll feature it in the next edition.
The Big Picks
FG Raises Corps Members Allowance To ₦77,000 Per Month: The Federal Government has approved an increase in the monthly allowance for Corps Members to ₦77,000, effective July 2024.
ASUU Threatens Fresh Strike, Issues 14-Day Ultimatum To FG: The Academic Staff Union of Universities has given the Federal Government a 14-day ultimatum to address long standing issues that have persisted since 2009, warning of a potential strike.
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