The Home of Representatives Committee on Nationwide Planning and Financial Growth has warned the Central Financial institution of Nigeria (CBN) towards the antagonistic results of sustaining excessive rates of interest in its bid to curb inflation.
Chairman of the committee, Rep. Gboyega Nasiru (APC-Ogun), issued the warning on Wednesday in Abuja throughout a gathering with the Statistician-Normal of the Federation and CEO of the Nationwide Bureau of Statistics (NBS), Mr. Adeyemi Adeniran.
Nasiru mentioned the warning was well timed because the CBN prepares for its three hundredth Financial Coverage Committee (MPC) assembly scheduled for early subsequent week.
He famous that whereas the President Bola Ahmed Tinubu administration had taken daring, market-driven reforms which can be starting to yield outcomes, the persistently excessive rates of interest had been stifling key sectors of the economic system.
“There seems to be a common consensus that the present administration has pursued important reforms which can be stabilising the economic system and restoring investor confidence,” Nasiru mentioned.
He famous that the capital market had gained practically 100 per cent over the previous two years, and the CBN had recorded its highest exterior reserves in over three years. The apex financial institution, he added, additionally posted a revenue of N38.8 billion—marking a turnaround from the N1.15 trillion loss in 2023.
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Regardless of these positive aspects, Nasiru expressed concern over the toll excessive rates of interest had been taking over the manufacturing, agriculture and Small and Medium Enterprises (SME) sectors, that are important for job creation.
“The Financial Coverage Charge (MPR) has been raised 10 occasions since January 2023, now standing at 27.5 per cent—up from 16.5 per cent in 2023—in an effort to deal with demand-pull inflation.
“Nonetheless, the coverage’s effectiveness seems constrained by structural bottlenecks and provide chain inefficiencies.
“We subsequently urge the financial authorities to think about a extra accommodative stance that balances inflation management with the necessity to assist progress and employment,” he mentioned.
In his remarks, Adeniran mentioned the newest NBS information confirmed that the unemployment charge declined to 4.3 per cent in Q2 2024, down from 5.3 per cent within the earlier quarter.
He famous, nevertheless, that unemployment remained extra prevalent amongst females (5.1 per cent) than males (3.4 per cent), and better in city areas (5.2 per cent) in comparison with rural areas (2.8 per cent).
Adeniran added that youth unemployment stood at 6.5 per cent, with 12.5 per cent of younger individuals not in employment, schooling or coaching (NEET). The NEET charge was larger amongst younger females (14.3 per cent) than their male counterparts (10.9 per cent).
He mentioned the Q3 and This fall 2024 labour drive experiences had been at present being finalised and could be launched quickly.
