The Centre for the Promotion of Private Enterprise, CPPE has urged the Nigerian government to urgently implement the proposed Accelerated Stabilisation Plan, and recommendations of the Presidential Tax and Fiscal Policy Reforms Committee to tackle the country’s inflation which stood at 34.19 percent in June 2024.
The Director of CPPE, Muda Yusuf disclosed this on Tuesday in his comment reacting to CBN’s interest rate hike to 26.75 percent.
DAILY POST reports that eleven members of the 296th Monetary Policy Committee meeting on Tuesday agreed to raise Nigeria’s interest by 50 basis points to 26.75 percent from 26.25 in May 2024.
Reacting to the interest rate hike, Yusuf said the marginal increase marks a softening of the tightening stance and it is tolerable.
“This appears to be a moderation in its aggressive tightening stance. It is perhaps a reflection of some responsiveness to the clamour by stakeholders in the real economy for the apex bank to effect a deceleration in its rate hikes.
“Although my preference was for a pause on the rate increases because of the enormity of the headwinds that businesses are grappling with. But the marginal increase marks a softening of the tightening stance. It is tolerable.
He, however, stressed that it is time for the government to now accelerate the implementation of the fiscal policy measures to tackle inflation.
“It is also important and urgent for the government to adopt and quickly implement the recommendation of the Presidential Committee on Fiscal and Tax Reforms on the Customs duty exchange rate which proposed N800/dollar. The adoption of this recommendation would have a considerable impact on the cost of goods and services in the country”, he said.
CBN’s interest rate hike: Implement fiscal measures to tackle inflation – CPPE tells FG
