Friday, October 30, 2020
35 C
Abuja
Friday, October 30, 2020

Cut interest rates to boost economy, says Tinubu

Must read

COVID

By Emma Ujah The COVID-19 pandemic will widen the gap between the rich and the poor, especially in emerging markets and developing economies, the International...

Nigeria imported N2.78tn manufactured goods in three months –NBS

Nike PopoolaNigeria imported manufactured goods worth N2.78tn while the total export component was N254.2bn between April and June.According to figures obtained from the National...

Why leaders must address poverty, unemployment now — Tambuwal

Governor Aminu Tambuwal of Sokoto State has said for Nigeria to overcome its challenges, the country’s present crop of leaders must address poverty and...

’Femi Asu

The National Leader of the All Progressives Congress, Asiwaju Bola Tinubu, has said the Central Bank of Nigeria should seize the opportunity of the coronavirus crisis to lower interest rates in a bid to boost the nation’s economy.

Tinubu also urged the Federal Government to demand a renegotiation of existing loans or debt relief from the World Bank and other development finance institutions.

“The economic fallout from the coronavirus may present the best, most pressing case for revising the CBN’s high interest rate policy. The undue rates penalise domestic investment and consumer borrowing,” he said in a statement on Sunday.

Tinubu said the country must retreat from high interest rates “if we want investment borrowing to attain levels that actually increase private-sector growth and job creation.”

According to Tinubu, high interest rates, along with an unreliable power supply, combine to form a steep obstacle to sufficient real-sector investment, growth and productivity.

He said the country had become too reliant on foreign borrowing, and had created a highly imbalanced and imperfect economy.

Tinubu said, “On one hand, high rates are used to scare domestic investment borrowing, thus undermining income, production and consumption.

“On the other hand, high interest rates are used to attract foreign creditors who must be repaid with an increasing percentage of our intake of dollars.”

He said to stimulate their economies, the central banks of all major economies had driven their prime interest rates below one per cent and nearer to zero per cent.

READ ALSO: FG retains N125/litre petrol price despite crude oil crash

“These central banks are lending vast amounts at low rates just to support their industries and firms,” he said,

He said, “My position has always been one of reticence to foreign denominated-debt due to repayment challenges.

“However, if we need foreign currency to buy items essential to protecting the nation from the coronavirus, now is the time to borrow.

- Advertisement -

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Latest article

COVID

By Emma Ujah The COVID-19 pandemic will widen the gap between the rich and the poor, especially in emerging markets and developing economies, the International...

Nigeria imported N2.78tn manufactured goods in three months –NBS

Nike PopoolaNigeria imported manufactured goods worth N2.78tn while the total export component was N254.2bn between April and June.According to figures obtained from the National...

Why leaders must address poverty, unemployment now — Tambuwal

Governor Aminu Tambuwal of Sokoto State has said for Nigeria to overcome its challenges, the country’s present crop of leaders must address poverty and...