– The three-day public holiday declared by
the federal government due to the Eid el-
Fitr celebration came at a cost
– Nigeria lost N138billion in the process
– Experts say this is not ideal for an
economy inching closer to recession
Nigeria would have lost N138 billion by
the time activities resume today, July 8
after a three day break due to the Eid el-
Fitr holiday declared by the federal
government.
Acting Chief Imam of the National
Mosque, Abuja, Ibrahim Maqari leading
Muslim faithfuls in prayer to mark Eid el-
Fitr
The reason for this is there were
scheduled treasury bills auction estimated
at N94 billion, as well as N44 billion
treasury bills maturity for the week, which
three-day break have put off.
According to The Guardian, the monetary
policy measures were expected to put
liquidity into the system this week, with
the auction component helping to taper
its effect on money market rates.
Usually, treasury bills auctions and
maturities are executed between Tuesdays
and Thursdays, except for seeming special
interventions on Fridays.
The report stated that in the event the
monetary policy measures are
implemented today, the effect in the
market rates would be minimal and driven
by sentiments because the liquidity will
not have trickled down to the market and
volumes of interbank activities are usually
moderate.
“So, the week just ran like a closed
economy. It is as if everyone was just
sleeping and not waking up at all. That is
exactly how gains and losses and value
addition to the economy also remained
standstill. Friday’s transactions are
usually cautious one due to speculations
over the week ahead. The auctions on
Friday will not make much meaning,” a
financial market operator opined.
Traders had told Reuters that many banks
had approached the Central Bank of
Nigeria’s discount window to borrow
short-term cash last week to enable them
meet their obligations and ease liquidity
pressures.
Meanwhile, t he expected release of capital
spending by the federal government to re-
inflate the economy should inject more
cash into the money market in the coming
days, which experts say should impact
positively on the interbank rate.
On Tuesday, July 5, the Nigerian
government extended the public holidays
for the celebration of Eid-el Fitr by one
day following the announcement of Alhaji
Sa’ad Abubakar III, the Sultan of Sokoto,
about the continuation of the Ramadan
fast.
Source:NAIJ
Posted by TAGED
