Oye made the call in a statement on Sunday in response to the recent economic data released by the National Bureau of Statistics (NBS).
The National President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dele Kelvin Oye Esq., has called for an urgent paradigm shift in the nation's monetary policies to stabilise the economy and drive sustainable economic growth and development.
Oye made the call in a statement on Sunday in response to the recent economic data released by the National Bureau of Statistics (NBS).
Oye said, "It has become imperative to address the prevailing concerns regarding the Central Bank of Nigeria's (CBN) monetary policies and the lack of a published 2024 Fiscal policy framework by the Federal Ministry of Finance."
He noted that "despite the reported GDP growth of 2.98% in the first quarter of 2024, it is evident that the high-interest rate is not translating into tangible economic benefits for ordinary Nigerians, farmers, SMEs and large businesses who report lower investment and increased devaluation induced losses."
The NACCIMA boss stated, "The services sector's notable growth is principally driven by phenomenal profits gifted to Banks by these policies.
"The slight improvements in agriculture must be adjusted for recovery from the significant losses in preceding years.
"The industry sectors are boosted by investment decisions in the preceding years but now overshadowed and at risk of challenges posed by stubborn inflation, currency instability and high interest rates."
Oye said the persistent depreciation of the Naira, combined with the CBN's refusal to collaborate meaningfully with the currency market operators, has exacerbated the economic difficulties faced by businesses and ordinary Nigerians.
He said, "The CBN must accept that 35% interest rates offered by commercial banks makes it virtually impossible for businesses to access much-needed capital.
"This situation starkly contrasts with Mr. President's 8th Point Agenda, which emphasizes access to capital for businesses, particularly SMEs, at single-digit interest rates through the Bank of Industry.
"This begs the question; who is the target of these high interest rates? Who is responsible for excess liquidity injections into the financial system? Who is responsible for printing trillions of excess naira for the last 24 months? Who is responsible for over 1.3 trillion naira FAAC injection every month?
"The answer lies entirely in the lap of both the CBN and the Federal Ministry of Finance. They have the power to control or switch off the taps at will.”
According to him, "The current monetary policies of mopping up excess liquidity is ingenious and impractical. The private sector must be held blameless and relieved of this unnecessary suffering."
Oye said the misguided monetary policies have resulted in several detrimental outcomes which include:
"Hyper-Inflation: Eroding purchasing power of consumers leads to higher unsold inventory. Eroding SME capital leads to lower SME investment which is a major driver of this economy.
"Access to Capital: The high interest rates imposed by commercial banks have rendered loans unaffordable, stifling business growth and innovation.
"Foreign Exchange Losses: The ongoing depreciation of the Naira has led to significant foreign currency losses, further destabilizing businesses engaged in international trade.
"Business Closures: The unfavorable economic environment has forced many businesses to close or exit the market, resulting in job losses and reduced economic activity."
The NACCIMA boss further stated, "It is clear that the CBN's current approach has been a resounding failure. The insistence on an imperial, know-it-all stance, devoid of stakeholder engagement and collaboration, has only deepened the economic crisis. The time to change tactics is now.
"Clearly private entreaties to CBN have failed, so we have to publicly engage now before it is too late."