Rewane Warns Against Continued Retention Of Current Interest Rates

Ronke Sanya  
Updated May 29, 2018

Economist, Bismarck Rewane believes the most critical sectors to Nigerians are suffering and will continue to do so unless things change.

Rewane, who was one of the guests on Channels Television Programme, Channels Forum held on Tuesday called for a change in the interest rate which has remained static for about 22 months.

He said if the interest rate is changed, then the problem of increased unemployment can be resolved in Nigeria.

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“If we look at the growth numbers that came out recently, 14% growth was in the oil sector, then we have insurance and some other areas where people are not employed.

“The sectors that employ people which are interest rate sectors are the ones that are actually slow and contracted; therefore I submit that if we don’t bring down interest rate (we have had 22 months of no change in interest rate) to stimulate and increase economic activity, then all of these things are going to…”

Rewane, who is also the Managing Director of Financial Derivatives Company Limited, stressed the importance of shifting focus from sectors that are growing but not creating jobs to the jobs-providing sectors.

“The underlined thing is that unemployment and underemployment has increased in all the three quarters that we have had positive growth. We have had higher unemployment. Therefore the sectors that are growing are not the ones that are employing.

“So we now have to shift emphasis and focus on areas where there is labour intensive activities, these people can create jobs.

“The unemployed man becomes a dysfunctional member of the society who disrupts, who kidnaps and that destroys everything,” he said.

The economists also noted that despite government’s noble intentions the impacts are not felt due to these impediments while Nigerians are eager to see results and impacts.