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    Kapital FM 92.9 The Station that Rocks!

Business

New CBN Interest Rate’ll Increase Unemployment – Small Business Owners

todaySeptember 25, 2024

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Small business owners have described the new Central Bank of Nigeria, CBN, Monetary Policy Rate, MPR, as unfortunate, and capable of further contracting businesses.

They added that as businesses contract, firms will downsize, leading to loss of jobs.

Recall that yesterday the CBN raised the MPR by 50 basis points from 26.75% to 27.25%. But it retained the asymmetric corridor of +500/-100 basis points. Injuries, male colleagues’ attitude almost made me quit welding – Zainab Giwa, Yaba Tech graduate The CBN governor, Mr Olayemi Cardoso, disclosed this at the end of the 154th Monetary Policy Committee, MPC, meeting in Abuja yesterday.

He said the decision to further hike the rate was that of 11 of the 12-member Monetary Policy Committee, MPC, present at the meeting.

The MPR, set by the MPC of the CBN, is a benchmark of the interest rate charged by banks to their customers.

Meanwhile, the Nigerian Bureau of Statistics, NBS, also yesterday, announced that Nigeria’s unemployment rate grew by 1.2 percentage points to 5.3 per cent year-on-year, YoY.

Hence, the alarm raised by small businesses.

The new interest rate, they said, will make many lose their jobs, while businesses will be bad for made-in-Nigeria goods. Reacting to the new interest rate, small business owners joined other stakeholders to fault the CBN policy. They said it was the wrong time to raise rate.

The President of the Association of Small Business Owners of Nigeria, ASBON, Dr Femi Egbesola, said the move would lead to further contraction in the real sector of the economy.

Written by: Kevin Nwabueze

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