Central Bank’s Refusal To Collaborate With Market Operators, Naira Depreciation Worsen Economic Difficulties –Nigerian Association Of Chambers Of Commerce, Others
The National President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dele Kelvin Oye, has urged for a change in Nigeria’s monetary policies to stabilize the economy and foster sustainable growth. He highlighted concerns over the Central Bank of Nigeria’s (CBN) monetary strategies and the absence of a 2024 fiscal policy framework from the Federal Ministry of Finance.
Despite a reported GDP growth in the first quarter of 2024, Oye pointed out that high-interest rates haven’t translated into tangible benefits for Nigerians, small businesses, and large corporations. He emphasized that while the service sector has seen growth, it’s mainly benefited banks due to these policies. Agriculture has shown some improvement, but it’s rebounding from previous losses, while industries are facing challenges like inflation, currency instability, and high interest rates.
Oye criticized the CBN’s refusal to collaborate effectively with currency market operators, which has worsened economic difficulties for businesses and individuals. He questioned the disparity between the high interest rates imposed by commercial banks and the government’s agenda of providing single-digit interest rates for businesses, particularly SMEs.
He raised concerns about the impact of current monetary policies, citing hyperinflation eroding consumer purchasing power, limited access to capital due to high interest rates, foreign exchange losses from Naira depreciation, and business closures leading to job losses.
Oye concluded that the CBN’s approach has failed, advocating for a shift towards stakeholder engagement and collaboration. He emphasized the need for public discourse to address these issues before they escalate further.
In essence, Oye is calling for a revamp of Nigeria’s monetary policies to address the disconnect between the government’s economic agenda and the realities faced by businesses and individuals. He highlights the adverse effects of current policies and urges for a more collaborative and inclusive approach to foster economic stability and growth.
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