20160811

CBN is failing us, causing massive job loss –Governor el-Rufai

Kaduna State governor, Nasir el-Rufai, has decried the Central Bank prevailing fiscal regime, saying the bank’s 14 percent monetary policy rate has led to massive job losses in the country.

El-Rufai said CBN risked losing its power to set rates for commercial banks unless it immediately addressed the situation, adding that only unscrupulous elements could successfully operate under the current fiscal policy atmosphere. His words:

“We have a Central Bank that has an MPR at — what? — 14 per cent and banks lending at 20 percent. Only traders and drug dealers can make money at this interest rate.
“I have said it before and I will repeat it again, unless the Central Bank and the banking system make a conscious decision to bring interest rate down, one day we would legislate it.”