A financial expert has urged the Central Bank of Nigeria to reduce the Monetary Policy Rate currently at 14 per cent in order to boost the economy.
Dr. Samuel Nzekwe, a former president of the Association of National Accountants of Nigeria (ANAN) disclosed at the weekend to National Daily that a high MPR had eroded the purchasing power of most Nigerians.
According to him, the interest rate charged by the commercial banks was too high, making businesses difficult to do in the country. “The Federal Government needs to create enabling environment by providing lower interest rate and address critical infrastructure deficiency for industries to thrive’’, the ex-ANAN boss said.
According to him, Nigeria is experiencing cost push inflation, the result of higher cost of production of goods and services.
Nzekwe said devaluation of the nation’s currency was a major factor that affected the high cost of production.
“Goods and services are available but people have no money to buy them because the recession made people to be worse off’’, he said.
He, therefore, advised the CBN to reduce interest rate so that investors could access cheap loans, reduced cost of production and create more employment.
This, he said, would boost the Gross Domestic Product and eradicate poverty level in the country.
Recall that the Monetary Policy Committee of CBN had at its two-day meeting in Abuja last week retained the MPR at 14 per cent.