LCCI seeks reduction in cost of borrowing in financial sector

The Lagos Chamber of Commerce and Industry (LCCI) has advised the Central Bank of Nigeria (CBN) and others relevant monetary authorities to revise the current monetary policy to bring down the cost of borrowing to investors.

The LCCl Director General, Mr Yusuf Muda, told the News Agency of Nigeria (NAN) in Ota, Ogun, on Saturday that the domestic investment and consumer spending would thrive under a low-interest rate regime.
“The tight monetary policy regime should be relaxed to spur domestic investment and consumer spending,” he said.

Muda explained that a high-interest rate was a major challenge that affected domestic investors and foreign investors adversely in 2016.

The LCCI boss, however, advised the CBN and others monetary authorities like the Monetary Policy Committee (MPC) that there was the need to review the present country’s monetary policy stance to reduce the cost of funds to investors in 2017.

Muda, an economist, also urged the Federal Government to reduce import tariff on major inputs for production and services sectors to moderate the current high cost of goods and services, boost investment spending and enhance disposal income of citizens.

According to him, the high import tariffs is a major driver of cost and inflation in 2016.

He also added that the sharp currency depreciation and high import tariffs pose a major burden of cost and inflation as well as the simultaneous impact on business and citizens’ welfare.