NIGERIAN Association of Chambers of Commerce, Industry, Mines and Agriculture(NACCIMA), has flayed the Central Bank of Nigeria(CBN) for not performing her core functions for more than 20 years now.
This was the reaction of the Association to the lingering high interest rates recently pegged to 16 percent from 22 percent by the apex bank.
â€œFor over twenty years CBN has not performed her core functions of price stability in the economy which is the ability of the apex bank to moderate inflation, attain stable interest and exchange rates and create a conducive investment climate for long term growth and development as contained in the CBN Act 2007 and which objective is mainly to enable the CBN adopt necessary measures to control the state of inflation in the country,â€ said NACCIMA President, Dr. Simon Okolo.
â€œIt is worrisome that the CBN fully aware that the possibility of economic growth and development in Nigeria predicates on its (CBN) ability to perform its core function of price stability in the economy have failed woefully in this, which have resulted in consistently prohibitive double digit inflation in the economy with banks lending interest rates hovering at over 22%. No sane investor or industrialist can source funds from the financial sector at that crazy rate, hence the death of investments bedeviling the country.
Okolo asserted that any interest rate above ten percent is still high, stressing that attempting to grow the private sector without a good monetary system may only be a mirage.Â Â Further, he described the continued depreciation of the naira, high inflation rates ranging above 10 percent and double-digit bank lending rates as killers of businesses and stunting economic growth .