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‘Economy might slip back into recession’- CBN Warns
The Monetary Policy Committee of the Central Bank of Nigeria on Tuesday warned that weak economic fundamentals currently being shown by the economy were putting the country’s exit from recession under threat.
The Nigerian economy exited recession in 2017 after suffering contraction for five consecutive quarters.
Addressing journalists shortly after the two-day meeting of the MPC members held at the headquarters of the apex bank, the CBN Governor, Mr Godwin Emefiele, said the economy had started showing signs of weakness.
For instance, he said the committee was concerned that there was a fresh threat of recession as the economy recorded growth rate of 1.95 per cent and 1.5 per cent during the first and the second quarters of this year, respectively.
He noted that the slowdown emanated from the oil sector, with strong linkages to employment and growth.
For instance, the apex bank boss said the late implementation of the 2018 budget, weakening demand and consumer spending, rising contractor debts, and low minimum wage were some of the risks to output growth.
Others, according to him, are the impact of flooding on agricultural output, continued security challenges in the North-East and North-Central zones, and growing level of sovereign debts.
Emefiele stated, “The MPC observed that despite the underperformance of key monetary aggregates, headline inflation inched up to 11.23 per cent in August 2018 from 11.14 per cent in July 2018.
“The near time upside risks to inflation remain the dissipation of the base effect expected from 2019 election related spending, continued herdsmen attacks on farmers and episode of flooding, which destroyed farmlands and affected food supply ultimately.
“In this regard, the committee urges the fiscal authorities to sustain implementation of the 2018 budget to relieve the supply side growth constraints so that they can address the flooding, which has become perennial on a permanent basis.
“Relative stability has returned to the foreign exchange market buoyed by the robust external reserves, with inflation trending downward for the 18th consecutive month.”
He added, “The gains so far achieved appeared to be under threat following the new data, which provides evidence of weakening fundamentals. The committee identified rise in inflation and pressure on the external reserves created by the capital flows reversals as the current challenges to growth.
“It noted that the underlying pressures have started rebuilding and capital flows reversals have intensified as shown by the bearish trend in the equities’ market even though the exchange rate remains very stable.
“The committee was concerned that the exit from recession may be under threat as the economy slid to 1.95 per cent and 1.5 per cent during the first and the second quarters of 2018, respectively.
“The committee noted that the slowdown emanated from the oil sector with strong linkages to employment and growth.”
On what could be done to stimulate economic activities, the CBN governor said that though growth remained weak, the effective implementation of the 2018 Federal Government budget and policies that would encourage credit delivery to the real sector of the economy might boost aggregate demand, stimulate economic activity and reduce unemployment in the country.
The CBN governor said the committee urged government to take advantage of the current rising trend in oil prices to rebuild fiscal buffers, strengthen government finances in the medium term and reverse the current trend of decline in output growth.
The MPC, according to him, also called on the fiscal authority to intensify the implementation of the Economic Recovery and Growth Plan to stimulate economic activities, bridge the output gap and create employment.
The apex bank boss said the MPC expressed concern over the potential impact of liquidity injection from election-related spending and increase in federal allocations, which are rising in tandem with increase in oil receipts.
Emefiele added that the committee was concerned with the rising level of non-performing loans in the banking system, and urged the banks to closely monitor and address the situation.
He also expressed concern over the weak intermediation by Deposit Money Banks and its adverse impact on credit expansion as well as investment growth by the private sector.
While revealing the outcome of the meeting, Emefiele explained that seven out of the 10 members of the committee agreed to maintain the current monetary policy stance, while three voted to increase the rates.
According to him, the MPC decided to leave the Monetary Policy Rate unchanged at 14 per cent.
Apart from the MPR, which was retained at 14 per cent, the committee also retained the Cash Reserves Ratio at 22.5 per cent.
Also retained were the Liquidity Ratio which was left at 30 per cent; and the Asymmetric Window, which was left at +200 and -500 basis points around the MPR.
Explaining the rationale for the decision, the CBN governor said, “Tightening will tame inflationary pressure, tame the reversal of portfolio capital, improve the external reserves, and maintain stability in the foreign exchange market.
“Conversely, the committee also noted that raising rate would further weaken growth, as credit would become more expensive, non-performing loan would increase further, leading to a deceleration in output.
“In the committee opinion, the upward adjustment would not only signal the bank’s commitment to price stability, but also its desire to maintain all policy interest rates.”
He added, “A decision to hold all policy parameters will sustain natural improvement in output growth.
“There is need to maintain the current policy stand and await a clearer understanding of the quantum and timing of liquidity injection into the economy before deciding on possible adjustment.”
When asked about the state of the Nigerian banking system following the withdrawal of the licence of the defunct Skye Bank Plc, the governor insisted that the Nigerian banking system remained “sound and healthy.”
He said, “In every chain, there will always be strong points and weak points in a chain, but what we will continue to do is to make sure that that chain remains strong in all aspects of it. Notwithstanding that, as we see areas where there are weaknesses, we will do everything possible to make sure that we keep the chain linked together, and that is what we did with Skye Bank.
“As I have said before, I will love to see a situation where banks are not liquidated, that we have to think outside the box to see how much we can ensure that we have more banks in the country than have less number of banks in the country, and that is what we are doing.
“The situation with Skye Bank, as you well know, is that as at two years ago when the news broke that the bank had slide into negative capital as a result of Non-Performing Loan, at that time, we compelled the entire board and executives to resign and they did.”
Emefiele added, “After that, before we conducted an internal audit, the hole (financial gap) was about N370bn. After the forensic audit, it came to the level it is today, which is almost about N800bn
“So what we did was to say that having established a hole at this level, taxpayers’ money will be invested in this bank as a loan. So, we decided that there is a need to let shareholders know, particularly those that have lost their investments; we will try to make sure that small investors remain protected.
“It is for this reason that the name had to be changed for legal reasons. Having got to the point where the Central Bank of Nigeria has invested close to N800bn in this bank, at some point it must be seen to be owned by the CBN until we find investors that can pay a fair price for the bank.”
Membership Drive — August: Month of Membership 2025/2026
By Prince Adeyemi Aseperi-Shonibare
Charter President, Rotary Club of Ikeja Alausa
“Friendship was the foundation rock on which Rotary was built and tolerance is the element which holds it together.” — Paul Harris, Founder of Rotary
This August, Rotary clubs worldwide celebrate Membership Month — a time to reflect on why we joined, how we serve, and who we will invite next. Membership is the heartbeat of Rotary. Without new minds, fresh energy, and diverse perspectives, even the most vibrant club risks losing momentum. If you have yet to invite a friend, colleague, or family member to join, you may be withholding one of life’s greatest gifts: the opportunity to serve humanity through fellowship.
Rotary is not just a meeting. It is a movement, a mindset, and a lifestyle of purpose — a passport to significance and a front-row seat to impact humanity.
We are 1.4 million members in more than 200 countries and territories, united by a single motto: Service Above Self. Membership begins with one simple act — an invitation.
“The true measure of a Rotarian’s leadership is not in holding a title, but in multiplying our tribe” “When everyone bring one, and you’ve changed a life. Bring many, and you’ve changed the world.”
Rotary’s 7 Areas of Focus: A Magnetic Invitation
The most compelling way to introduce someone to Rotary is through action. The 7 Areas of Focus are powerful entry points for potential members:
1. Peacebuilding and Conflict Prevention – Promoting dialogue, resolving disputes, and fostering understanding.
2. Disease Prevention and Treatment – Fighting polio, tackling malaria, and expanding access to healthcare.
3. Water, Sanitation, and Hygiene – Providing clean water and proper sanitation for healthier communities.
4. Maternal and Child Health – Reducing mortality and empowering mothers through quality care.
5. Basic Education and Literacy – Combating illiteracy and fostering lifelong learning.
6. Community Economic Development – Creating jobs, supporting entrepreneurship, and reducing poverty.
7. Supporting the Environment – Protecting ecosystems, promoting sustainability, and addressing climate change.
When people see Rotary in action — planting trees, building schools, equipping hospitals, or supporting mental health — they see a cause worth joining.
Meetings That Inspire
Rotary meetings should be engaging, uplifting, and relevant. Keep them concise and full of energy. Vary formats with outdoor fellowships, club visits, service days, and inspiring guest speakers. Hybrid meetings are vital in today’s busy world — reliable internet, quality audio-visual tools, and inclusivity ensure every member stays connected, even when attending from office or outside the country.
Caring for Our Own
A strong club does not only serve the community; it also cares for its members. Reach out to those who miss meetings. Make every member feel valued. Rotary is a family — and families look out for one another.
Why Members Leave — And Why They Stay
Members leave when they feel disengaged, meetings lack energy, onboarding is weak, culture is unwelcoming, or flexibility is absent.
Members stay when they find meaningful service, global fellowship, personal growth, flexible structures, and a shared purpose.
Inviting People Into Rotary
Lead by example. Share Rotary stories. Use social media. Invite community leaders. Showcase our projects in maternal health, peacebuilding, and the environment. Host open events. Involve families. Show them a project in action. And never underestimate the power of asking: “Would you like to join Rotary?”
The Benefits of Rotary
Rotary membership opens doors to global friendship, leadership growth, professional networks, international experiences, purposeful living, recognition, and the joy of leaving a legacy. As RI Past President Barry Rassin said: “Rotary is a gift. You don’t keep a gift this good to yourself.”
This Rotary year, let us shine our light brighter, welcome more members, and extend the most valuable gift — the invitation to a life of service and fellowship.
Be the reason someone says, “Joining Rotary changed my life.”
Come and join Rotary with me. See what we do, feel the fellowship, share in the service, and be part of a story bigger than yourself. Let every Rotarian bring at least one new member. My personal goal this year is to bring ten. It is possible, it is necessary, and it is how we keep the Rotary light shining.
Fellow Nigerians, and friends of Nigeria abroad,
They said the APC was not popular with the people. They said its strength was only in government houses, not in the marketplace, not in the villages, not in the hearts of men and women who rise each day to labor under the hot sun. Yet the people have now spoken, and their voice is louder than the rumors of social media, stronger than the whispers of drawing rooms.
In the bye-elections of this past weekend, sixteen seats were set before the people. Out of these, the APC took eleven, stretching across Kano, Kaduna, Jigawa, Taraba, Ogun, Kogi, Edo, Adamawa, and Niger. One more stands in contest, and there too the APC leads.
APGA secured two seats in Anambra. The PDP held one in Oyo. The NNPP claimed one in Kano. But the others—ADC, SDP, Labour—were nowhere to be found. Not a single seat fell their way.
So I ask: how do you define popularity? By the clamor on Facebook? By the trend on Instagram? By the fury of TikTok or the storms of X? No. Popularity in a democracy is measured by ballots cast, by hands inked, by real people walking to the polls to say with their vote: this is who we trust.
In America, they speak of midterm elections, a verdict passed halfway through a presidency. There, such elections measure the strength of the president and the staying power of his party. Nigeria has no midterm Congress. But these bye-elections, spread across thirteen states and five geopolitical zones, are our closest equivalent. And their meaning cannot be ignored.
Many thought the ADC, older in years than the APC, would rise with its new converts and prove itself a rival. Many thought the PDP would mount a strong wave. But the verdict of the ballot tells a different story. The PDP lives, but it fights to hold ground. The ADC, SDP, and Labour remain shadows, not yet substance. The NNPP, for all its color, remains a Kano river, not a national sea.
The APC, under President Bola Ahmed Tinubu, has not only stood but has been endorsed. For all the cries, for all the bitter words against his reforms, the people have answered with their votes: they are willing to endure the hard medicine if it promises a better tomorrow.
What then is the road ahead? It is clear. The APC stands as the party to beat in 2027. The opposition must gather itself, must bind its wounds, must cease from fighting in fragments if it wishes to rise as a true alternative.
But for now, let it be recorded in the annals of our young democracy: that on the 16th of August, 2025, the Nigerian people spoke with ballots, not hashtags; with votes, not noise; with courage, not despair. And their verdict was plain.
The APC is not a party of rumor, but a party of the people.
The Lagos State Government, in its continued effort to promote cultural heritage and deepen tourism footprints, has concluded plans to host the Lagos Cultural Weekend.
A three-day cultural extravaganza, scheduled to take place across multiple strategic locations, including the J. Randle Centre for Yoruba Culture and History, Freedom Park, National Theatre, Badagry Heritage Museum, Lekki Arts and Crafts Market, and Tafawa Balewa Square, from November 14th to November 16th, 2025.
This weekend-long celebration will spotlight the richness of Nigeria’s traditions through curated events that blend history, culture, and local artistry.
Speaking on the initiative, Special Adviser to the Governor on Tourism, Arts, and Culture, Mr. Idris Aregbe, noted that the event is a key part of a broader framework of the Lagos Cultural Mission.
“We aim to use the Lagos Cultural Weekend as a true reflection of Lagos culture, a herescope for tourists and visitors from across the globe to witness just how rich our culture is.
“The three days will be a cultural baptism, a deep, meaningful introduction to who we are. As a government, we now understand prioritising cultural representation as a driver for economic growth.
”On the initiative’s impact, the Special Adviser explained that it goes beyond showcasing culture, but investing in cultural artisans, talented enthusiasts, and key stakeholders to foster real engagement and growth.“Governor Babajide Sanwo-Olu’s administration values collaboration and inclusiveness, which is why we want to work closely with Lagosians who truly understand our culture to help us achieve these goals.
“From the historians, to creatives, curators, artisans, culinary experts, performers, fashion designers, community leaders, and traditional institutions, we need them to join us in making a lasting impact.“So that, in the end, our guests and friends from many nations will carry home an authentic story of Lagos and enriched cultural literacy,” Mr. Aregbe said.
Attendees will enjoy array of activities, including live music performances, DIY sessions, contemporary art exhibitions, traditional dance showcases, fashion shows, culinary tastings, and craft demonstrations.
Also lined up are symposiums and cultural lectures designed for tourists and enthusiasts who wish to dive deeper into the Lagos cultural identity.
The weekend will be animated by diverse local performance groups representing the rich ethnic landscape of Lagos, with a special emphasis on language, literature, and indigenous storytelling.
Lagos Cultural Weekend 2025 reaffirms the state’s commitment to building a thriving creative economy while celebrating the depth of Nigerian traditions.
Through strategic partnerships, corporate sponsorships, and community engagement, this initiative will set a new benchmark for inclusive cultural programming in Lagos and Africa at large.
Lagos Cultural Mission….Preserving Our Heritage, Advancing The Future
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