Lagos – The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) on Wednesday said that the cut in the Monetary Policy Rate (MPR) would boost the nation’s investment climate.
NACCIMA Vice-President Jani Ibrahim told the News Agency of Nigeria (NAN) in Lagos that the decision would spur the growth of the real sector and boost investors’ confidence.
Ibrahim said that the development would give banks the opportunity to lend more to the real sector aside other critical factors and stimulate economic growth.
He commended the Central Bank of Nigeria (CBN) for the decisive decisions and urged commercial banks to follow the trend by actively lending to entrepreneurs for the growth of the economy.[pro_ad_display_adzone id=”70560″]
Mr Obiora Madu, Chairman, Agro-Commodity Export Group of Lagos Chamber of Commerce and Industry (LCCI), however, said that two per cent cut in the MPR still fell short of the mark.
He told NAN that the MPR should be further reduced to achieve increased investments and higher Gross Domestic Product (GDP) in the country.
“What the CBN has done is good, but interest rates reduction is not just the only one.
“Government needs to do a lot more for the sectors that will drive economic growth of the country.”
Madu suggested that the Federal Government should address the critical issues of foreign exchange, infrastructure and logistics challenges, among others.
NAN reports that the CBN, on Nov. 24, reduced its benchmark lending rate from 13 per cent to 11 per cent.
The apex bank’s monetary policy committee also cut the Cash Reserve Ratio (CRR) to 20 per cent from the previous 25 per cent.
The MPR is the benchmark interest rate at which the CBN lends to banks to meet their immediate cash needs. (NAN)
