Uwaleke Urges CBN to Lower Rates for Economic Growth

Prof. Uche Uwaleke, a representative of Capital Market Academics Nigeria, called on the Central Bank of Nigeria (CBN) to gradually reduce interest rates to revive development finance during a press conference in Abuja. He warned that persistently high borrowing costs negatively impact investment, business expansion, and job creation.

Uwaleke noted that Nigeria's inflation has become increasingly structural, suggesting that merely increasing interest rates is insufficient to tackle the issue. He advised that monetary policy should gradually rely less on repeated interest rate hikes, as high rates discourage productive investment.

Uwaleke also highlighted the importance of creating appropriate financial interventions through existing development finance institutions rather than direct administration of intervention programs. He commended the CBN's efforts to stabilize prices and restore investor confidence, while also acknowledging the challenges posed by high living costs and weak purchasing power.

Uwaleke expressed concern over Nigeria's public debt exceeding ₦159 trillion by the end of 2025, warning that a widening fiscal deficit and low capital expenditure threaten infrastructure development.