The Lagos Chamber of Commerce and Industry has warned the Central Bank of Nigeria against frequent benchmark interest rate hikes, the saying was hampering productivity and, thereby, weakening the economy.
In a statement signed by the Director-General of the chamber, Chinyere Almona, the LCCI claimed the stunted economic growth may force organised businesses to lay off workers.
It urged the apex bank to look at the peculiar situations driving inflationary pressures within the Nigerian economy instead of resorting to indiscriminate rate hikes.
The CBN reviewed interest rates upward five times in the last year in an attempt to tame accelerating inflation, which rose for 10 consecutive months to a 17-year high 21.47 per cent in November, before decelerating to 21.34 per cent in December.
The LCCI urged the Federal Government to urgently tackle food inflation which has been the main driver of the country’s inflationary pressure.
It also advised the government to combat the soaring inflation rate through targeted support to the agriculture and manufacturing sectors and the provision of more export infrastructure for businesses to export more and earn more.