The House of Representatives has called on the Central Bank of Nigeria (CBN) to address the prevailing high interest rates, warning that the situation is crippling the manufacturing sector and strangling small and medium enterprises (SMEs) across the country.
During a session presided over by Deputy Speaker Benjamin Okezie Kalu, the House adopted a motion presented by Honourable Chike Okafor, who voiced deep concern over the economic strain faced by businesses due to steep lending rates. Okafor, representing Ehime Mbano/Ihitte Uboma/Obowo Federal Constituency of Imo State, emphasized that the current rates—hovering between 26% and 30%—are unsustainable for local manufacturers and SMEs striving to survive in an already tough economic climate.
“The manufacturing sector is a critical pillar of Nigeria’s economy, offering jobs and driving GDP growth,” Okafor stated. “But with interest rates this high, manufacturers and small businesses are suffocating. They simply cannot access capital at a cost that allows them to grow, expand, or even stay afloat.”
He pointed out that in addition to the burden on SMEs, the broader consequences are visible in increasing unemployment and reduced economic output, stressing that these trends directly threaten Nigeria’s long-term development goals.
The House expressed its dismay that despite the CBN’s recent efforts to stabilize inflation by hiking the Monetary Policy Rate (MPR), the action has inadvertently worsened credit conditions for local enterprises. Members argued that the policy, while textbook in its approach to curbing inflation, fails to account for the unique challenges of Nigeria’s business environment, where informal and small-scale players dominate.
In response, the House resolved to urge the CBN to consider measures that balance inflation control with the urgent need to support real-sector productivity. Lawmakers proposed that the apex bank introduce more business-friendly lending frameworks, with particular attention to supporting indigenous manufacturers and SMEs.
The Committee on Banking and Currency was also directed to engage the CBN on these concerns and report back with actionable recommendations within four weeks.
