The Centre for the Promotion of Private Enterprise (CPPE) is urging the Central Bank of Nigeria (CBN) to reconsider any plans for additional interest rate increases ahead of the upcoming Monetary Policy Committee (MPC) decision. This appeal was made by CPPE’s Executive Director, Dr. Muda Yusuf, during an interview with DAILY POST on Monday.

Dr. Yusuf’s comments come just before the MPC’s 297th meeting, where a crucial decision regarding interest rates is expected to be revealed on Tuesday. He underscored the importance of keeping the current interest rate, which was set at 26.75 percent in July, arguing that another hike could negatively impact investors.

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Notably, Nigeria has experienced two consecutive months of declining inflation, with rates dropping to 33.40 percent in July and 32.15 percent in August. Despite these improvements, Dr. Yusuf pointed out that the prices of goods remain high. “We anticipate a pause in the interest rate hikes. While inflation is decreasing, consumer prices haven’t yet followed suit,” he stated. “Should the CBN decide to increase rates again, it would pose additional challenges for investors, particularly those who rely on loans.”

Dr. Yusuf further advocated for maintaining the current rates, suggesting that doing so would allow for a more thorough evaluation of the effectiveness of recent fiscal policy measures aimed at curbing inflation.

Over the past year, the CBN MPC has raised interest rates four times in response to rising inflation. The forthcoming announcement on Tuesday will clarify the central bank’s strategy moving forward.