News Column

Industry Sears Under CBN Lending Rates

September 3, 2014

Henry Ifeanyi



THE Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture has bemoaned the continued retention of the 12 percent lending rate by the Central Bank of Nigeria (CBN) as impacting negatively on businesses' growth.

Speaking at a forum in Lagos, NACCIMA President, Alhaji Mohammed Abubakar, said the continued retention of CBN's Monetary Policy Rate at 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 high lending rates which are based on wrong monetary policy stance.

He urged the CBN to instead reduced interest rate to less than 5 percent to enable banks lend to the private sector at less than 10 percent interest rate.

"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 percent 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 organized private sector in the steering committee for effective administration and management of the N220 billion Micro Small and Medium Enterprises Development Fund.

He 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.


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Source: AllAfrica


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