CBN Accountable For Nigeria’s High Lending Rates – NACCIMA

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Alhaji Mohammed Abubakar

The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, NACCIMA has said that the continued retention of the 12 per cent lending rate by the Central Bank of Nigeria, CBN is unrealistic.

The Association urged the CBN to reduce rate from 12 per cent to five per cent, stating that, the high Monetary Policy Rate (MPR) had become detrimental to the growth of businesses in the country.

Speaking at a forum in Lagos, NACCIMA President, Alhaji Mohammed Abubakar said that the continued retention of CBN’s high MPR at 12 per cent since 2012, has made the interest rate high and unaffordable to borrowers, especially the small and medium-scale enterprises.

Abubakar said business operators should not be allowed to continue to struggle with that kind of high lending rate which is based on wrong monetary policy stance.

He urged the CBN to reduce interest rate 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.

“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,” he said.

Abubakar 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.

Abubakar said this would enhance private sector collaboration with the bank in a bid to improve access to finance to genuine MSME operators in the country.