Private Sector
Faces 26.25% Interest Rate Loan Repayment Crisis.
Members of the Organized Private Sector and
economists have expressed fear over the latest hike in the nation’s benchmark
interest and the Monetary Policy Rate by the Monetary Policy Committee, adding
that, the decision could significantly hamper economic operators’ ability to
repay their loans.
Governor of the Central Bank of Nigeria,
Olayemi Cardoso, who also doubles as the chairman of the MPC, said, the
decision of the committee to raise the interest rate by 150 basis points to
26.25 per cent from 24.74 per cent, adding that, the MPC has maintained a
hawkish stance as it battles inflation amid a challenging economic climate.
Cardoso also said, the MPC linked the
development to the free market system, after members observed the recent
volatility in the foreign exchange market attributing this to seasonal demand,
a reflection of the interplay between demand and supply of a freely functioning
market system.
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