Nigeria’s High Cost of Living, Macroeconomic Challenges, and Outlook for Next MPC Meeting

February 16, 2024 | The VaultNewsletter

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how is the government reacting
cbn monetary policies
data vault too expensive to borrow
these rate adjustments are primarily a response to the rising interest rates in advanced economies such as the us uk and the european union additionally they are driven by the imperative to rein in soaring inflation towards target levels
what policy and insight do you seek
what we are tracking
malawi malawi lifts visa restrictions for 79 countries
senegal delay of february 25 election ruled illegal by constitutional council
liberia president boakai has launched anticorruption audits
want more
reviewing buhari's administration cash transfer policy
how has kenyan president william ruto fared six months into his tenure
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Feel free to share your thoughts with us and If you need insight into any key legislation, please tell us.

how is the government reacting

The government recently announced a series of palliatives to alleviate the high cost of living. These include:

cbn monetary policies

The Central Bank has also implemented measures to stabilize the FX market. See here .

data vault too expensive to borrow

Like Nigeria, the central banks of Zambia and Namibia are set to soon announce interest rate decisions. The interest rate—the cost of credit— has increased for many countries in Africa in the past year. In Nigeria, the rate increased from 16.5% in 2022 to 18.75% in 2023. Likewise, South Africa, Kenya, and Egypt increased their rates from 7%, 8.25%, and 16% in 2022 to 8.25%, 13%, and 21.25% in 2023 respectively.

these rate adjustments are primarily a response to the rising interest rates in advanced economies such as the us uk and the european union additionally they are driven by the imperative to rein in soaring inflation towards target levels

The trade-off involves a heightened cost of credit for countries in the region, potentially impacting investment, growth, and employment. Moreover, there is a noteworthy impact on debt burdens and fiscal sustainability for countries, attributable to the corresponding rise in dollar-denominated debts.

what policy and insight do you seek

Whether you are a government official, civil society organization, or researcher, our repository provides comprehensive access to public policies, regulations, and guidelines across Africa. We provide insights and intelligence on these regional policies and regulations for research, advocacy, policymaking, and investing.

what we are tracking

We’re also tracking the latest current events in the news, and how they may affect the decisions of policymakers. Below are some of the latest developments.

malawi malawi lifts visa restrictions for 79 countries

Malawi has officially lifted visa restrictions for travelers from 79 countries in an effort to promote tourism. This includes countries such as the UK, China, Russia, Germany, Australia, and Canada. The visa exemption also applies to citizens of the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA). However, it’s important to note that nationals from countries that impose visa requirements on Malawian citizens are still subject to those requirements. The goal of this decision is to make it easier for tourists to visit Malawi and boost the country’s tourism industry.

senegal delay of february 25 election ruled illegal by constitutional council

On Thursday, Senegal’s Constitutional Council cancelled the decree signed by President Macky Sall that postponed the election. The Council’s judgement, approved by seven members, stated that the National Assembly’s decision to reschedule the vote for December 15 was also contrary to the nation’s constitution. The Council urged the competent authorities to organize the presidential election as soon as possible due to the impossibility of holding it on the initially planned date.

liberia president boakai has launched anticorruption audits

Liberian President Joseph Boakai has taken action to combat corruption by initiating audits of three important government institutions, including the central bank, national security agency, and executive protection service. The audits, directed by the General Auditing Commission, will cover the period from 2018 to 2023 and are expected to be completed within three months. This effort reflects President Boakai’s commitment to uprooting corruption and promoting transparency within government ministries and agencies.

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Check some of our recently published insights, which provide you with deeper analysis and context at the intersection of public policy and current events.

reviewing buhari's administration cash transfer policy

President Muhammadu Buhari established a Conditional Cash Transfer (CCT) programme as part of the broad 2016 Social Intervention Scheme, part of a key campaign promises to reduce poverty through robust social intervention. The Minister of Humanitarian Affairs emphasized the success of the CCT stating in a press brief, that since 2015, over 1 million households (7 million persons) have benefited. However, looking at the overall data, the number of Nigerians in poverty has increased, from 40.1 percent in 2015 to 45 percent in 2023. This data suggests poor households are no better off now compared to 2015. In this article, we discuss some issues and challenges for this. Read more…

how has kenyan president william ruto fared six months into his tenure

Elected on the promise of a “Bottom-Up Economic Transformation,” President Ruto has taken several early actions in line with his pledges of economic transformation. He recently promised a KES50 billion annual commitment to the Hustlers Fund initiative —a financial inclusion fund to provide affordable credit to businesses, aimed at boosting economic growth and employment. He has also kept his promise on the housing and settlement plan by launching several affordable housing projects across the country. Read more…

visit our website for more insights

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