In a statement on Monday, the National President of NACCIMA, Dr. Ademola Ajayi, said it supports the reintroduction of toll gates in the country not just for revenue collection or for road maintenance but for security reasons.
“Nigeria could complement the efforts of security agencies and enhance security surveillance, with adequate security gadgets installed (as at airports) for detecting movements of dangerous weapons by persons/groups across the country, and also for apprehending criminals and dangerous goods” he said.
Commenting on the decision of the Central Bank of Nigeria to retain Monetary Policy Rate at 12 per cent, he said this could defeat government’s intention of ensuring single digit interest rate and may continue to jack-up the cost of borrowing by the real sector, which presently swings between 17 per cent and 28 per cent.
“According to our investigations, we believe that retaining the MPR at 12 per cent is not the best option for now as this will definitely have negative implications of increasing costs of production, decline in output, possible lay-off of workers to worsen unemployment levels, locally manufactured products would continue to be more expensive and uncompetitive against foreign products, and a discouragement for intending manufacturers” he said.
He said NACCIMA wishes to counsel that the CBN should address the main causative variables, e.g. the unabated factor of excess liquidity in the system, etc., adding that, this if reviewed timely, will allow both interest and inflation rates to fall to a more comfortable level and would spur real sector desired growth.
“We must not allow industrial productivity in the economy to remain stagnant or to decline as the retention of high MPR will not deliver the country from conflicting price signals and global uncertainties as argued by CBN, but rather continue to spell hardship for the citizens by way of cost of funds” he stated.