Reps Urge CBN to Lower Interest Rates

As the Central Bank of Nigeria (CBN) prepares for its 300th Monetary Policy Committee (MPC) meeting this week, the House of Representatives Committee on National Planning and Economic Development has expressed concern over the negative impact of high interest rates on key sectors of the economy.

Speaking during a meeting in Abuja with Adeyemi Adeniran, the Statistician General of the Federation and CEO of the National Bureau of Statistics (NBS), Committee Chairman Hon. Gboyega Isiaka warned that elevated interest rates—implemented to tackle inflation—are placing undue pressure on the manufacturing, agriculture, and small and medium enterprise (SME) sectors.

Isiaka acknowledged that the current administration’s bold economic reforms are beginning to yield tangible results, citing improved economic stability and renewed investor confidence. He noted significant progress, including a 100% growth in the capital market over the past two years and a rise in external reserves—the highest in over three years. The CBN also posted a profit of N38.8 billion, a sharp recovery from the N1.15 trillion loss reported in 2023.

Despite these gains, Isiaka stressed that high interest rates are stifling growth in productive sectors that drive employment. “The Monetary Policy Rate (MPR) has been raised 10 times since January 2023—from 16.5% to 27.5%—as a tool to curb demand-driven inflation. However, its effectiveness appears limited due to structural bottlenecks and supply chain disruptions,” he explained.

He called on the CBN to adopt a more balanced and growth-friendly approach at its upcoming meeting, recommending policies that not only address inflation but also foster economic expansion and job creation.