The Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA) has appealed to the Central Bank of Nigeria (CBN) to implement more effective measures to prevent the collapse of local businesses and the industrial sector, amidst prevailing economic challenges. ECCIMA President, Chief Odeiga Jideonwo, voiced this concern during the CBN Special Day at the 36th Enugu International Trade Fair. While acknowledging the CBN’s existing interventions aimed at supporting business growth, Jideonwo stressed the need for more enduring strategies and interventions to address the current economic realities. This call underscores the anxieties felt by businesses facing the pressures of a volatile economic landscape and the imperative for stronger support from the apex bank.
Jideonwo expressed particular concern over the CBN’s recent and consistent interest rate hikes, implemented to combat inflation and manage liquidity. He argued that the resulting high interest rate regime could restrict access to credit for businesses, potentially hindering productivity, GDP growth, and economic stability. He emphasized the direct link between access to affordable credit and the overall health of the economy, hoping that the CBN’s policies align with the Federal Government’s “Renewed Hope” agenda. This highlights the tension between the need to control inflation and the potential negative impacts of high interest rates on businesses struggling to access vital funding.
Jideonwo also commended the CBN for its decision to resume participation in trade fairs after a brief hiatus in 2023. He viewed this renewed engagement as a positive step, allowing the public to interact directly with the bank and gain a clearer understanding of its operations and policies. This direct engagement fosters transparency and provides a platform for open communication between the CBN and the business community, potentially addressing concerns and fostering a collaborative approach to economic challenges.
Mrs. Hakama Ali, the Acting Director of the Corporate Communications Department at the CBN, addressed ECCIMA’s concerns by outlining the bank’s ongoing efforts to tackle macroeconomic challenges and maintain a robust and resilient banking system. She emphasized the CBN’s commitment to overseeing the recapitalization of the banking sector, aiming to ensure the injection of high-quality capital. This highlights the CBN’s focus on strengthening the financial system’s foundations to better withstand economic pressures and support sustainable growth.
Ali further highlighted the CBN’s progress in developing a globally recognized Nigerian payments system, emphasizing the bank’s commitment to ensuring effective and efficient payment infrastructure. She explained that these advancements have accelerated financial inclusion and broadened payment options for Nigerians, making transactions more seamless, affordable, and accessible. This underscores the CBN’s role in modernizing the financial landscape and promoting greater participation in the formal economy, ultimately contributing to economic growth and development.
Ali outlined the CBN’s three-pronged approach to achieving impactful industrial development: strengthening foundational financial systems, ensuring foreign exchange market stability, and fostering strong collaboration between monetary and fiscal authorities. She asserted that these efforts are already yielding positive results, citing increased foreign direct and portfolio investments and a favorable trade balance. This signals a positive outlook, suggesting that the CBN’s strategies are contributing to a more stable and attractive investment environment, potentially driving future economic growth and development.
