House advocates single digit interest rate


… Seeks to criminalize contempt of NASS


The House of Representatives, yesterday, ordered its Committee on Banking and Currency to work with the Central Bank of Nigeria (CBN) to consider the possibility of implementing a single digit benchmark interest rate for Nigeria and report to it in two weeks. The resolution followed a motion raised by Rep Nadu Karibo, representing Ogbia Federal Constituency of Bayelsa State.

The motion was titled: ‘Need to Introduce a Single Digit Interest Rate in Our Monetary Policy Rate (MPR), to encourage the growth of small scale businesses, manufacturing industry and investors’.

Karibo stressed that the monetary policy rate of any country determines the rate at which banks access funds, and the rate at which they lend money to investors and businesses. He observed that Nigeria ranked among countries with very high interest rates in the world, stating that the resultant effect on the economy was that the lending rate rose to between 17 per cent and 25 per cent or more.

The politician regretted that the high interest rate would make it difficult for investors to raise money, stating that even when they managed to borrow, it would be difficult or impossible for them to repay.

He also regretted that the ugly situation had resulted in the collapse of many businesses in Nigeria while some investors in the country were compelled to borrow money offshore.

This, he further noted, resulted in high cost of running business in Nigeria. The Bayelsa-born politician further expressed worries that whether investors raised money locally or from outside the country, the result was always a disadvantage to the economy because unemployment, capital flight, insecurity and other social vices, had to emanate from the unfriendly economic environment caused by the high interest rate.

Karibo, who carried out a survey on interest rates of various countries stated that Switzerland and Japan have interest rate of 0 per cent each, while the USA and UK have 0.25 per cent and 0.50 per cent respectively. Others are: Singapore, 0.03 per cent, Netherlands, 0.75 per cent, U. A. E., 1 per cent, Trinidad and Tobago, 2.75 per cent and Tunisia, 3.75 per cent.

23 yrs boy started importation with N10,450. Read his story here!

Six weeks ago, I couldn't perform in bed. Here's my breakthrough

How to start a profitable importation biz with as low as N10,000 only

How Adetunji generated over N20 million online in 2014. Almost N2m in 2015

How to earn 40k-200k monthly from football matches almost on autopilot

3 Things I did to cure premature ejaculation after my wife left me

How to get flat belly in just 9 days. Click here!

Small manhood and premature ejaculation limited my performance for 4yrs!

Discover How I made N2m in 35 days from importation business

7 Simple yet amazing steps to earn over N200,000/monthly. Click here

Free Download! How to earn N200,000 monthly from importation business

Discover how I made N58000 in two weeks reselling bulksms to Nigerian companies

Click here now if you are interested in earning at least N7,500/daily


About Author

1 Comment

  1. Lowering interest rates to about one percent will stimulate economic growth and fight inflation. Nigeria will experience economic boom as it was in the 1970s and 1980s again. This is the first time the Nigeria national assembly will propose a meaning fiscal policy that will help all Nigerians at home and abroad.

Leave A Reply