NACCIMA advocates single digit rate to boost investment | Independent Newspapers Limited
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NACCIMA advocates single digit rate to boost investment

Posted: Apr 24, 2015 at 4:31 am   /   by   /   comments (0)

By Phillip Oladunjoye – Lagos


The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has made an appeal to the incoming government of General Muhamadu Buhari and on the Central Bank of Nigeria to do everything possible to reduce the Monetary Policy Rate (MPR) to a single digit number from the 13 percent it presently stands so as to boost investment in the country.

Addressing the media on the state of the nation in Lagos yesterday, the Acting National President of the association, Chief Bassey E. O. Edem, lamented that despite several reform programmes put in place by the current administration to improve the lots of the average Nigerian, there are still much to be done to tackle the hydra headed challenges ranging from insecurity in the country; unstable exchange rate, unemployment, unstable power supply, inflation; decline in trade volume and devaluation of the Naira, which has drastically reduced the purchasing power of the ordinary Nigerian.

He said these challenges have slowed down the realization of the government Transformation Agenda and the nation’s quest of becoming one of the twenty most industrialized nations in the world by the year 2020.

He noted that the economic and the business indicators as provided by the Central Bank of Nigeria (CBN) and the National Bureau of Statistics (NBS) do not portray the economy in good health.

He said the inflation rate is put at 8.5 percent; Monetary Policy Rate (MPR), 13 percent; Prime Lending Rate, 13.5 percent; External Reserve, US$ $29.79billion; CBN Exchange Rate (Official), N197; while interest rate on loans, he said  hovers between 18 and 28 percents.

Other economic indicators, he said include capacity utilization, which is put at 51.96 percent; Liquidity Ratio, 30 percent; Treasury Bill Rate (91 days), 10.80 percent; currency in circulation, N 1,661 trillion; Cash Reserve Requirement for  Public sector deposits, 75 percent; cash reserve requirement for   Private Sector deposits, 20 percent; while external debt stood at N1.48tn or US$9.52 billion.

To improve the economy, the association advised that the incoming administration must ensure that the socio-economic programmes of their government are aimed at improving the lots of the Nigerian citizenry within the shortest possible time, saying that this explains the call by the Organised Private Sector (OPS) for a policy dialogue session with the incoming administration.   “A conducive business environment is very imperative for the growth of the business sector and overall improvement of the economy.