Muda Yusuf, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), has called on the Central Bank of Nigeria (CBN) to suspend monetary policy tightening and interest rate hikes.
According to Yusuf, the decision will help alleviate business operating costs and rescue the economy.
He noted that the Inflationary pressures continue to be a troubling feature of the Nigerian economy, as reflected in the new inflation numbers.
TimesNow.com.ng reported that the National Bureau of Statistics (NBS) released the December inflation figures, which show an increase of 34.80%.from November 2024’s rate of 34.60%.
The bureau noted that the increase was primarily driven by the increased demand for goods and services during the festive season.
Also, the report reveals that the food inflation rate in December 2024 was 39.84% on a year-on-year basis, about 5.91% points higher than the rate in December 2023 (33.93%).
This increase was driven by staple foods and grains, including Yam, Water Yam, Sweet Potatoes, Guinea Corn, Maize Grains, and Rice.
Reacting to the inflation figures, Yusuf said the CBN should not be tempted to increase interest rates again to tackle the new inflation figures when the Monetary Policy Committee (MPC) meets.
The Guardian reports that this will save businesses and give consumers some respite as inflation figures rise faster than businesses and Nigerians can cope with.
The CPEE boss predicted that the inflation outlook 2025 promises to be positive and hinged on a sustained moderation in exchange rate volatility and Improvements in foreign reserves.
His words:
Yusuf also expressed concern over the National Assembly’s current fixation on revenue, particularly the arbitrary targets for MDAs.
He observed that the excessive pressure on MDAs to increase revenue and boost internally generated revenue (IGR) carries significant inflationary consequences.
The CPPE stated:
TimesNow.com.ng reported that the Lagos State Chamber of Commerce has sent a message to business owners to brace for a tougher 2025.
The chamber gave the prediction based on higher interest rates for loans in 2025 from CBN and also further inflationary pressures.
To tackle the expected challenges, LCCI called on the government to increase oil production and regulatory support to stabilise the naira.
