Business News

FG targets reduction in interest rate to attract investment – Wale Edun

The federal government is looking towards a reduced interest rate to attract investments and grow the economy according to the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun.

Speaking on the sidelines of the World Bank-IMF spring meeting holding in Washington D.C, United States, the Minister stated that the federal government hopes to increase its revenue base.

He noted the revenue sources of the revenue the government was looking at increasing include oil revenues and taxes. Specifically, he mentioned that the government was looking at increasing taxes without raising the tax rate but ensuring effective administration and collection.

The Central Bank of Nigeria (CBN) in the past two months has taken a hawkish monetary policy stance during its last two MPC meetings. In February, the apex bank hiked interest rate by 400 basis points from 18.75% to 22.75%. This was followed by another 200 basis points increase the following months putting MPR at 24.75%– one of the highest in the nation’s history.

The CBN has stated that its recent decisions on monetary policy were geared towards taming inflation and stabilising the foreign exchange market. Although, analysts and stakeholders have faulted the move stating it will negatively affect the real economy.