Nigeria law maker Yahaya Abdullahi has stress the needs for Nigeria to lower its interest rate and cut domestic debt to stimulate lending for private sector investment, in order to boost growth after its economy slipped out of recession, a lawmaker said in a motion.
The central bank had on Tuesday held interest rates at 14 percent to keep liquidity tight. The bank said it felt that loosening would worsen inflation and drive bond yields negative which could lead to a capital flight and hurt the currency
Yahaya Abdullahi who read a motion in the Senate on Tuesday, said the exit from recession was largely due to favourable oil prices and increased domestic production with relative peace in the restive Niger Delta. Costing the country about $9 billion to stabilise the naira at 306 and is being traded for 360.