Barely a week after Africa’s richest man, Alhaji Aliko Dangote, criticized Nigeria’s high interest rates for stifling private sector growth, Lagos State Governor Babajide Sanwo-Olu has echoed similar concerns about the public sector. Speaking at the presentation of a book titled “Power of One Man: How Soludo Engineered Consolidation Transformed Nigerian Banks to Global Players” by Dr. Ray Echebiri, Sanwo-Olu appealed to the Central Bank of Nigeria (CBN) to alleviate the pressure caused by the current interest rate regime.
Sanwo-Olu highlighted the challenges faced by the public sector due to high interest rates, calling for temporary relief. He expressed hope that the CBN would stay committed to its ongoing banking consolidation exercise but urged for measures to ease the financial strain on both public and private sectors.
Similarly, lubricant entrepreneur Oluwatoni Oladiran, CEO of Oilden Energies Limited, lamented the impact of rising inflation and foreign exchange instability on Nigerian businesses. He noted that these economic pressures are eroding returns on investment, profitability, and competitiveness within the lubricant industry.
Oladiran called on the federal government to introduce tax incentives and fiscal interventions to support local businesses. He emphasized the need for government policies to stabilize the sector, particularly in light of the challenges posed by foreign exchange volatility and the quality of locally produced base oils.
At the event, Anambra State Governor Charles Soludo, who spearheaded the 2005 banking consolidation as CBN Governor, humorously addressed the high interest rates. He expressed hope that the banks he helped grow would offer more favorable terms to public sector borrowers, acknowledging the financial strain posed by the current rates.
CBN Governor Dr. Olayemi Cardoso, represented by Deputy Governor for Financial Stability Phillip Ikeazor, defended the high interest rates, stating that they are necessary to control galloping inflation and prevent hyperinflation. Cardoso assured that the CBN would maintain the rate hikes until inflation is stabilized, emphasizing the importance of monetary control.
Oladiran also highlighted the issue of product adulteration in the market, which threatens significant investments in the lubricant sector. He called for joint efforts between the government and private sector to monitor and ensure product quality, underscoring the need for reliable distribution channels.
In summary, both public officials and industry leaders are advocating for relief from high interest rates and economic instability, urging the government and CBN to implement supportive measures to foster growth and stability in Nigeria’s economy.
