Reduce monetary policy rate, NACCIMA urges CBN

The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture has called on the Central Bank of Nigeria to review the Monetary Policy Rate from the current 12 per cent to five per cent. The President, NACCIMA, Alhaji Mohammed Abubakar, said in Lagos on Tuesday during the review of the nation’s economy that the high MPR had become detrimental to the growth of businesses in the country. He said, While we have commended the Central Bank of Nigeria and its Monetary Policy Committee for doing a good job to maintain monetary stability in the economy, we are also at the same time expressing concern on the continued retention of its high Monetary Policy Rate at 12 per cent since 2012, which keeps the interest rate high and unaffordable to borrowers, especially the small and medium-scale enterprises. Business operators should not be allowed to continue to struggle with that kind of high lending rate in existence, which is based on wrong monetary policy stance. Indeed, the MPR should be reduced to less than five per cent to enable banks lend to the private sector at less than 10 per cent interest rate if they are to thrive and boost productive capacities and create more jobs to reduce unemployment and poverty level in the country. NACCIMA also urged the CBN to review the guidelines and include the organised private sector in the steering committee for effective administration and management of the N220bn Micro Small and Medium Enterprises Development Fund.

Punch Newspaper