The Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA) has called on the Central Bank of Nigeria (CBN) to ramp up its efforts in safeguarding indigenous businesses from the brink of collapse. During the CBN Special Day at the ongoing 36th Enugu International Trade Fair on April 12, ECCIMA President, Chief Odeiga Jideonwo, raised concerns over the impact of rising interest rates on the viability of local industries.
Jideonwo acknowledged the various interventions by the CBN to support businesses but emphasized the need for more sustainable and long-term strategies to prevent further strain on Nigeria’s indigenous industrial sector.
He voiced concern over the CBN’s aggressive interest rate hikes, which have been implemented to curb inflation and manage liquidity. According to him, these high interest rates are creating barriers to accessing credit, which in turn affects businesses’ productivity and the overall stability of the economy.
“The high interest rate regime will likely have adverse effects on the accessibility of bank credit by businesses,” Jideonwo said. “There is no doubt that access to credit and the cost of funds are closely linked to economic productivity and GDP growth.”
He further emphasized the importance of aligning the CBN’s policies with the Federal Government’s “renewed hope” mantra, which aims to bolster national economic recovery and stability. Jideonwo also praised the CBN for its decision to resume participation in trade fairs, a move that he believes will help the public better engage with the bank’s operations and policies.
The Acting Director of the CBN’s Corporate Communications Department, Mrs. Hakama Ali, responded by reassuring stakeholders that the bank is addressing the macroeconomic challenges facing the nation. Ali highlighted the resilience of the banking system, ongoing recapitalization efforts, and the strides made in Nigeria’s payment systems infrastructure, which have been instrumental in increasing financial inclusion across the country.
She also pointed to the positive impacts of the bank’s policies, including increased foreign direct and portfolio investments and a favorable trade balance, as signs that the CBN’s strategy is beginning to yield positive results.
As the ECCIMA and CBN continue to navigate these complex economic issues, the call for more robust support for indigenous businesses remains a pressing concern for many stakeholders in Nigeria’s industrial and economic landscape
