ACF: High interest rates will kill Nigeria’s economy

The Arewa Consultative Forum (ACF) has decried the high interest rates charged by commercial banks, saying it would kill the Nigerian economy.

According to the group, no business can survive with 27 to 30 per cent interest rate.

This was raised by the former Minister of Agriculture and ACF Chairman, Chief Audu Ogbe in a statement issued on Saturday.

Ogbe also lamented that the youths have now resorted to kidnapping as a means of personal economic recovery.

Ogbe noted that, though the Central Bank of Nigeria (CBN) has made efforts to reduce the interest rates, commercial banks still charge exorbitant rates.

According to Ogbe, “I congratulate President Muhammadu Buhari for his presentation of the budget estimates of the 2022 fiscal year. The forum appreciates the desire and commitment of his administration to take steps to expand and concretise the infrastructure base without which economic growth will be a mirage.

“We are however worried that that no mention of the problem of interest rate was made. For nearly three decades, we have endured the most outrageous interest rates that any developing country can endure.

“How can we continue to pay lip service to the vital issue of the growth of  Small and Medium Scale Enterprises, the prosperity of the younger generation  if we make it impossible for them to access credit.

“We appreciate the efforts of the Central Bank of Nigeria CBN, but we regret to say those efforts will not solve the problem when commercial banks are still charging 27-30%. What kind of business will anybody do with such interest rates?

“We also want to commend government on the new onslaught on bandit and criminals nationwide.

“We wish to caution that that unless and untill we hurriedly establish a mechanism to deal with the current national tragedy where our children have resolved that the fastest way to their personal economic recovery is kidnapping.

“We think that the Nigerian economy cannot experience real growth if access to reasonable credit remains forever blocked,” the ACF Chairman said.