Manufacturers condemn CBN’s retention of interest rate at 14%

Date:

The Manufacturers Association of Nigeria (MAN) Ogun Chapter, has condemned the retention of interest rate by the Monetary Policy Committee of CBN at 14 per cent.

Thank you for reading this post, don't forget to subscribe!

MAN Chairman, Mr. Wale Adegbite, said on Wednesday, in Ota, Ogun State, that such development was not good for the manufacturers as well as the economy.

Adegbite was reacting to the retention of the MPR at 14 per cent by the Committee on Tuesday in Abuja.

NAN reports that the monetary policy committee had, after a two-day meeting, retained the MPR, Cash Reserve Ratio at 22.5 per cent and Liquidity Ratio at 30 per cent.

The monetary policy rate had been retained since July 2016 for the fifth time in a bid to reduce inflation and stimulate economic growth in the country.

He said that higher interest rate from financial institutions in the country was killing the manufacturers as it was difficult in doing business.

”We will have love a situation where the apex bank reduced the interest rate we paid on loans, ” he said.

According to Adegbite, the major issues concerning the manufacturers were in terms of monetary policy, the exchange and interest rates.

He said that availability of dollars had reduced the exchange rate at the official market rate to N325 to a dollar, describing it as an improvement.

He explained that the manufacturers also needed improvement in the interest rate as most medium scale companies were paying 25 per cent and above as interest rate.

“This development is not good for the economy because it will be difficult to engage in investment when interest rate is high, ” he said.

Adegbite said that retaining the monetary policy rate at 14 per cent would not help the manufacturers seeking better interest rate to grow their businesses.

”The early the CBN tried to reduce the interest rate, the better for the manufacturers.” (NAN)

NAN
NANhttp://NAN
News Agency of Nigeria (NAN) is a news reporting agency owned and run by the Federal Government of Nigeria just like Nigerian Television Authority.[1] On 10 May 1976 the agency was founded and established by Onitsha noble Onuora Nzekwu who was its first official Managing Director and Chief Editor. On 2 October 1978 its operations began.[2][3] NAN provides General News Service to subscribers in three bulletins published daily. The agency’s website www.nan.ng was launched on 8 August 2016, to offer news to the worldwide audience interested in news primarily about Nigeria, Africa’s most populated country. The current Managing Director of NAN is Bayo Onanuga.

Share post:

Subscribe

Popular

More like this
Related

“This entertainment industry is so dark cos people in it are so vile – Actress Uche Ogbodo

March 19, 2024. Azonuchechi Chukwu. Actress Uche Ogbodo has said the...

SSANU begins 7-day warning strike

March 19, 2024. Azonuchechi Chukwu. The Senior Staff Association of Nigerian...

Gunmen kill church general overseer and pastor in Akwa Ibom

March 19, 2024. Azonuchechi Chukwu. Gunmen have killed the founder of...

Police Arrest 16-year-old boy for defiling schoolmate in Port Harcourt

March 19, 2024. Azonuchechi Chukwu. The Rivers State Police Command has...

Discover more from Naija247news

Subscribe now to keep reading and get access to the full archive.

Continue reading