A development economist has urged the Central Bank of Nigeria (CBN) to be more people-oriented by giving room for low-interest rates.
In a world press conference during the week, the development economist, Basil Odilim noted that the restructuring of the CBN to give room for low-interest rates would make the apex bank to be pro-people and pro-economy.
Over the years, economists have insisted that small businesses would grow faster in Nigeria if both active business practitioners and potential entrepreneurs have access to loans that come with low interest.
In line with this argument, Basil Odilim believes that if the CBN can flood the market with naira, small business owners can borrow the currency at an affordable rate, thereby creating more jobs.
He said, “The issue now is that we have to redesign the Central Bank of Nigeria. We have to make the Central Bank of Nigeria pro-people and pro-economy, a system that is expansionary, meaning that we make interest rates very low and flood the economy with naira so that small businesses can borrow naira at a very very affordable rate. That way, they can go into their businesses and create jobs, grow the economy, and pay taxes.”
He added, “Any economy that is migrating from agricultural activity to industrial must flood the system with cheap money without minding the inflationary rate implications. Because it is when you make money available to those who need the money, and invest the money, that the money becomes an investment.
“Therefore, we must re-engineer our interest rate policy to accommodate small businesses without putting banks out of business.”
Basil Odilim Wants CBN Governor To Be Answerable To The National Assembly
Basil Odilim has urged the incoming president of Nigeria to call a meeting of economists to advise him on how to lower interest rates without negatively impacting the economy.
He also advised that the governor of the Central Bank of Nigeria (CBN) should be made to be answerable to the National Assembly, especially before introducing a new policy.
“Another thing is to make sure that the Central Bank governor must submit himself to the National Assembly. We must come up with a law that will not allow the Central Bank governor to act independently without going to the National Assembly to seek their support or position on any policy”, he said.
