High interest rates killing investors’ interest in Nigeria –Saraki

Unless an urgent solution is found to high interest regime in Nigeria, business enterprises and investors’ zeal in the country would soon die off. This is according the Senate President, Bukola Saraki.

Speaking at a Stakeholders’ Roundtable on High Interest Rate in the economy, held at the Senate Conference Room on Tuesday, Saraki said the private sector is holding the legislators accountable for the continued increase in interest rates that has continued to hover around 25 -30 per cent, despite calls for its reversal.

He said, “It is no longer news that the 8th National Assembly has made the issue of the economy its number one legislative priority. Our decision is anchored on our belief that unless we expand opportunity for our people to create wealth and improve their livelihood, we will continue to have significant challenges in maintaining the peace and securing of our union.

“As much as our people value and commend us for these new initiatives for growth, they are also worried and have complained to us bitterly about the impossible interest rate regime our businesses face today to survive.

“ It is inconceivable that businesses anywhere can survive on a 25-30% interest rate regime.
How can an investor anywhere survive on these rates? How can they create jobs and make returns? But this is the situation our businesses currently live with.

Read also: CCT: FG insists Saraki has serious case to answer

“All the legislative actions that we are taking is rooted in our believe that, if we are to attract more investments, add more jobs in the market, promote business development and widen the range of possibilities and opportunities for our teeming youthful population, a demographic advantage we are yet to fully explore, we must create the right legal regulatory and institutional frameworks that is enabling in a free market,” the Senate President stated.

Saraki said the upper chamber appreciated that some of the factors that play a role in determining interest rate regimes in any economy is high inflation regime, but added that the law makers must, as a matter of urgency push for policies aimed at reducing high interest rate in the country.

“There should be a deliberate policy frame in our monetary to support businesses, otherwise our economy rescue mission may not be attained. And it will be profoundly improbable to genuine businesses like agriculture, production and solid minerals to survive on interest rate regime of 30%.

“A 25-30% interest rate regime is a yoke too hard to bear for any real sector business. Our businesses need a breather. I am a firm believer that unless we are ready to think outside of the box and task ourselves to make sacrifices and take hard decisions with a view to the future we will not make much progress,” he stated.

He urged the stakeholders’ gathering to support the SMEs, known to be engaging about 88 per cent of Nigeria’s work force.

The Senate President expressed hope that a workable solution would “put a halt on the current rising interest rates regime and return profitability, viability to Nigerian enterprises”.

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