The House of Representatives Committee on National Planning and Economic Development has warned the Central Bank of Nigeria (CBN) about the negative impact of maintaining high interest rates in its ongoing fight against inflation.
Chairman of the committee, Rep. Gboyega Nasiru (APC, Ogun), issued the warning during a meeting on Wednesday in Abuja with the Statistician-General of the Federation and CEO of the National Bureau of Statistics (NBS), Mr. Adeyemi Adeniran.
Rep. Nasiru noted that while recent reforms under the current administration have helped stabilise the economy and restore investor confidence, the rising Monetary Policy Rate (MPR) is having an adverse effect on key sectors like manufacturing, agriculture, and small and medium-sized enterprises (SMEs)—sectors critical for job creation and economic recovery.
“The MPR has been raised ten times since January 2023, now standing at 27.5%, up from 16.5% in 2023. This is aimed at tackling demand-pull inflation, but the policy’s effectiveness is limited by structural bottlenecks and supply chain inefficiencies,” Nasiru said.
He added that while the CBN has recorded key milestones—including a N38.8 billion profit turnaround from a ₦1.15 trillion loss in 2023, higher external reserves, and a 100% gain in the capital market over two years—the monetary policy needs to strike a balance between inflation control and economic growth.
“We urge the CBN to consider a more accommodative stance that supports growth and employment while addressing inflation,” he added.
Meanwhile, NBS boss Adeyemi Adeniran reported that the national unemployment rate declined to 4.3% in Q2 2024, down from 5.3% in the previous quarter. However, he flagged ongoing disparities in employment rates:
- Female unemployment: 5.1%
- Male unemployment: 3.4%
- Urban areas: 5.2%
- Rural areas: 2.8%
- Youth unemployment: 6.5%
- NEET rate (youth not in employment, education or training): 12.5% (higher among young females at 14.3% compared to 10.9% for males)
Adeniran concluded by noting that the Q3 and Q4 2024 Labour Force Reports were in the final stages of review and would be released soon.
