The House of Representatives Committee on National Planning and Economic Development has raised concerns over the Central Bank of Nigeria’s (CBN) current interest rate policy, warning that the high rates are negatively impacting Nigeria’s manufacturing, agriculture, and small and medium enterprise (SME) sectors.
Committee Chairman Gboyega Isiaka issued the caution on Wednesday during a meeting with Adeyemi Adeniran, the Statistician-General of the Federation and CEO of the National Bureau of Statistics (NBS), ahead of the CBN’s upcoming 300th Monetary Policy Committee (MPC) meeting.
“The monetary policy rate (MPR) has been raised 10 times since January 2023, now standing at 27.5 percent, up from 16.5 percent,” Isiaka said. “While the goal is to curb inflation, the result has been severe strain on sectors that are vital for job creation and economic growth.”
While acknowledging that President Bola Tinubu’s economic reforms have spurred investor confidence and strengthened macroeconomic indicators — including a 100% capital market gain and a CBN profit of N38.8 billion — Isiaka stressed that the benefits were not reaching key employment-generating sectors.
He urged the apex bank to adopt a more balanced approach at its next policy meeting.
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“The time has come to consider a more accommodative monetary stance that prioritizes not only inflation control but also economic expansion and employment,” he said.
Also speaking at the session, NBS chief Adeniran reported a drop in Nigeria’s unemployment rate to 4.3% in Q2 2024, down from 5.3% in Q1.
However, he noted disparities, with unemployment higher among women (5.1%) compared to men (3.4%) and more prevalent in urban areas (5.2%) than rural areas (2.8%).
Youth unemployment remains a pressing issue, with 6.5% of young people jobless and 12.5% not engaged in employment, education, or training.
Adeniran said these figures underscore the need for job creation policies and pledged that Q3 and Q4 unemployment data for 2024 would be released soon.
As the CBN prepares to review its monetary direction, stakeholders are calling for a careful balance between inflation control and economic inclusiveness to ensure Nigeria’s recovery is both sustainable and equitable.