CBN may retain current interest rates – Coleman Wires CEO

Ahead of the next meeting of the Central Bank of Nigeria (CBN)‘s Monetary Policy Committee (MPC), stakeholders have projected that the body is likely to maintain the current interest rates
The Managing Director and CEO of Coleman Wires and Cables Industries Limited, Mr. George Onafowokan, speaking on the state of the economy, noted that while a slight reduction of 0.25% might be possible, the MPC is expected to focus on maintaining stability rather than making drastic changes. According to him, “The economy is already struggling with high interest rates. The impact of a 27.5% Monetary Policy Rate (MPR) translates to commercial interest rates ranging between 35% and 38%, which is unsustainable.”
He explained that businesses currently face the challenge of servicing expensive loans, where borrowing ₦1,000 requires generating over ₦350 to ₦380 just to cover interest costs, without considering profit or operational expenses.
Onafowokan stressed the need for policies that stabilise the economy to gradually reduce inflation, which would then allow for a decline in interest rates over time.
He further highlighted that Nigeria’s business and industrial sectors expect the government to prioritise industrial growth, especially with preparations for the next election cycle beginning in 2025.
He equally commended the government’s recent efforts, including the appointment of a Minister of State for Industry, who has been engaging with stakeholders to understand the challenges facing local manufacturers.
Looking ahead, the Coleman Wires CEO urged the government to implement a comprehensive fiscal policy for the industrial sector, emphasising that such a policy would address high tariff costs affecting raw materials and finished goods.
He reiterated the importance of strengthening local content policies across various industries, including power transmission, telecommunications, general construction, and building materials, to drive national economic growth.
On the foreign exchange market, Onafowokan expressed optimism about the recent stability of the naira, which has enabled businesses to plan better and make informed investment decisions.
However, he maintained that further stability is needed to lower inflation and, consequently, reduce interest rates—a key challenge for businesses in Nigeria.
Discussing the government’s directive for the Nigeria Customs Service to increase revenue generation, the Coleman boss warned against using customs solely as a revenue-generation tool.
He argued that excessive tariffs and import duties could stifle businesses by raising production costs, ultimately leading to higher consumer prices.
Rather, he called for a balanced approach that ensures customs policies, support industrial growth while maintaining fiscal discipline.
As the MPC meeting approaches, industry players will be closely watching the CBN’s decision on interest rates, as businesses continue to grapple with economic pressures.