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Centre for Social Justice advices Nigeria to fix interest rates, avoid exploitation

CBN had post-recession retained the benchmark interest rate at 14 percent alongside other monetary policy rates.


Centre for Social Justice advices Nigeria to fix interest rates, avoid exploitation
Centre for Social Justice also asked CBN to control the ‘hidden charges ‘by commercial banks. (Image Credit: Reuters)

Centre for Social Justice has urged Monetary Policy Committee (MPC) to fix interest rates on bank loans as a way to tackle high lending rates charged by financial institutions.

Mr Eze Onyekpere, the Lead Director, Centre for Social Justice adviced that Central Bank of Nigeria (CBN) should ensure that commercial banks set their lending rates not more than 400 basis points above Monetary Policy Rate, in an interview to News Agency of Nigeria (NAN).

"In other words, if the CBN can reduce the MPR rate by 200 basis points to 12 percent, the lending rate should be pegged at not more than 16 percent. This is justifiable because even the 16 percent is higher than the current inflation rate that hovers around 14 percent."

Centre for Social Justice also asked CBN to control the 'hidden charges 'by commercial banks.

CBN had post-recession retained the benchmark interest rate at 14 percent alongside other monetary policy rates.

The inflation rate in Nigeria recently dropped for 12th consecutive time recently to 14.33 percent, reported the National Bureau of Statistics (NBS).


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