NACCIMA calls for change in monetary policy direction

The National President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dele Kelvin Oye, has called for an urgent paradigm shift in the country’s monetary policies to stabilise the economy and drive sustainable economic growth and development.

Oye made the call in a statement in response to the recent economic data released by the National Bureau of Statistics (NBS).

“It has become imperative to address the prevailing concerns regarding the Central Bank of Nigeria’s (CBN) monetary policy and the lack of a published 2024 Fiscal Policy Framework by the Federal Ministry of Finance.

“Despite the reported GDP growth of 2.98 per cent in the first quarter of 2024, it is evident that the high-interest rate is not translating into tangible economic benefits for ordinary Nigerians, farmers, SMEs and large businesses who report lower investments and increased devaluation-induced losses,” he said.

He said the CBN must accept that 35 per cent interest rates offered by commercial banks make it impossible for businesses to access much-needed capital.

“The situation starkly contrasts with the President’s Eighth Point Agenda, which emphasizes access to capital for businesses, particularly SMEs, at single-digit interest rates through the Bank of Industry.

This begs the question, who is the target of these high interest rates? Who is responsible for excess liquidity injections into the financial system? Who is responsible for printing trillions of excess naira for the last 24 months? Who is responsible for over N1.3 trillion FAAC injection every month?” Oye queried.