As the Central Bank of Nigeria (CBN) prepares to hold its landmark 300th Monetary Policy Committee (MPC) meeting this week, the House of Representatives Committee on National Planning and Economic Development has cautioned against the continued rise in interest rates, warning of its damaging impact on key economic sectors.
Speaking during a session with the Statistician-General of the Federation, Mr. Adeyemi Adeniran, in Abuja, Committee Chairman Hon. Gboyega Isiaka stressed that while current reforms are producing signs of macroeconomic stability, the manufacturing, agriculture, and SME sectors are suffering under the weight of high borrowing costs.
“The monetary policy rate (MPR) has been raised 10 times since January 2023, rising from 16.5% to 27.5%. While the aim is to control demand-driven inflation, this strategy has inadvertently stifled growth in critical sectors,” Isiaka stated.
The lawmaker acknowledged some economic gains, noting that recent government reforms have restored investor confidence, spurred a 100% surge in the capital market over the past two years, and strengthened CBN’s external reserves to their highest level in more than three years. The apex bank also reportedly posted a profit of ₦38.8 billion, recovering from a staggering ₦1.15 trillion loss in 2023.
Despite these achievements, Isiaka noted that structural issues—such as supply chain inefficiencies and systemic bottlenecks—have limited the effectiveness of current monetary policies.
The Committee urged the CBN to adopt a more balanced and growth-oriented stance at its upcoming MPC meeting.
“We believe the time has come for a shift toward policies that promote job creation and economic growth, not just inflation control,” Isiaka emphasized.
The statement reflects growing concern among lawmakers and industry stakeholders over the long-term sustainability of aggressive monetary tightening, particularly its effect on sectors responsible for mass employment and food production.
