The Managing Director of Coleman Technical Industries Limited, George Onafowokan, has expressed concern over the recent increase in interest rates by the Central Bank of Nigeria (CBN), saying that the impact will have a detrimental effect on manufacturers.
Speaking with journalists, he said the increase would lead to higher borrowing costs that would ultimately raise the cost of production.
While acknowledging that raising interest rates was the right move to address inflation concerns and the foreign exchange (FX) crisis, Onafowokan emphemphasized need for a balance between inflation control and economic growth.
Onafowokan called for incentives and intervention from the government to stimulate the manufacturing sector.
He suggested offering direct interventions such as adjustments to interest rates or fiscal measures.
These actions, he said, could help mitigate the impact of the hike.
Despite the challenges faced by manufacturers, Onafowokan said he was hopeful about the government’s ability to drive positive change.
He acknowledged that things may get worse before they improve, but he believes in the potential for a stronger currency and economic growth in the future.
He urged the government to demonstrate empathy and to practice what they preach by implementing measures that would alleviate the burden on the private sector.
The Coleman boss stressed the importance of government incentives and support to alleviate the burden on the private sector and to drive economic growth.
