Double digit interest rate hurting economy, MAN tells FG

Says economy prone to perpetual decline

The Manufacturers Association of Nigeria (MAN) has lamented that the current double digit interest rate is not healthy for the growth of the Nigerian economy as it would continue to pose serious challenge to economic growth and development, particularly now that the economy has just outgrown recession.

Dr. Frank Udemba Jacobs, president, MAN, who stated this at the Association’s 45th AGM held in Lagos recently, with the theme: “Recovery and Economic Growth of the Nigerian Economy,” noted that some concerted efforts and positive looking policies have been initiated by the government to address seeming economic challenges, adding that the issue of interest rates has for sometime stalled efforts to leapfrog the economy.

He noted that the theme was necessitated by the prevailing economic exigency in the country, and the need to overcome it and how to sustain a post-crisis economy
Udemba said: “I can safely say that no nation has recorded significant economic development with unrestrained high interest rates. The case of Nigeria will not be different. With the prevailing double-digit interest rates, the Nigerian economy will continue to suffer decline. Therefore we recommend, as the Association has done in the past and always, a single-digit interest rate.”

He charged the government on the need to revitalise the epileptic electricity supply as top priority, stressing that without adequate and stable power, economic and social development will be a mirage.

The MAN president pointed out that the issue of forex for the importation of essential manufacturing inputs is very important, saying that if government judiciously drive the resource-based industrialisation programme, it can be overcome.

He warned government of the implications of the EU-ECOWAS Economic Partnership Agreement (EPA), maintaining that MAN has made its position known on the need to reject the EPA proposal, as MAN will appreciate the Federal Government for agreeing with its position.

He urged the government to maintain its stand as the anticipated destructive impact of the EPA on the economy would be enormous, adding that MAN sees the proposed admission of Morocco into ECOWAS as signing the EPA through the back door.
He advised that FG should strongly oppose the Morocco’s admission moves arguing that it would spell doom for the manufacturing sector of the economy; and would greatly hinder the economic growth of the country.

Udemba noted that the former president of Tanzania, Mr. Benjamin William Mkapa was invited as the guest speaker due his outstanding performance and people oriented policies, which effectively managed an economy through turbulent tide and sustained it effectively.

Ganiyu Obaaro