Business Will Not Grow With New Interest Rate – Ex-Lawmaker To CBN

A former member of the House of Representatives, Tajudeen Adefisoye, has said the current interest rate set by the Central Bank of Nigeria (CBN) would affect business growth in the country.

The All Progressives Congress (APC) chieftain said the new interest rate set at 26.75%,  would also affect employment creation.

The former Reps member for Idanre/Ifedore Federal Constituency of Ondo State, on Tuesday, on his X handle, argued that business owners would avoid loans from financial institutions due to continuous increase in the interest rate.

He added that not taking loans by businesses would lead to non-expansion of businesses by entrepreneurs and would affect employment creation.

“Interest rates have gone up again. How do you give more employment when you can’t even pay salaries? How will businesses survive when they cannot even get loans at good rates for their businesses?” Adefisoye said.

Naija News, on Tuesday, reported that the increase in interest rate was after the 290th CBN Monetary Policy Committee meeting in Abuja.

According to the CBN Governor, Yemi Cardoso, the increase in interest rate was to control Nigeria’s inflation. He said the apex bank was committed to policies that would strengthen the country’s economy in the long term.

He added that collaboration between fiscal and monetary policies would strengthen economic foundation of the nation and ensure sustainable growth.

The CBN governor said the economy has been experiencing positive outcomes through the apex bank’s policies.

“Collaboration between fiscal and monetary policies will strengthen our economic foundation and drive sustainable growth, with the CBN remaining vigilant in its responsibilities.

“We are seeing positive outcomes from our recent efforts, including the exchange rate convergence and increased net inflows and capital importation compared to last year, ” Cardoso said.