The House of Representatives Committee on National Planning and Economic Development on Wednesday warned the Central Bank of Nigeria to be mindful of the unintended consequences of maintaining high interest given its potential negative effect on the economy.

The Chairman of the Committee, Gboyega Nasiru (APC-Ogun), issued the warning in Abuja while playing host to the Statistician-General of the Federation and Chief Executive Officer of the National Bureau of Statistics, Adeyemi Adeniran.

The lawmaker issued the warning ahead of the apex bank’s 300th Monetary Policy Committee. Nasiru said the caution became necessary as the CBN prepares for its 300th Monetary Policy meeting scheduled for early next week.

He commended the President Bola Tinubu-led administration’s economic policies, noting that there is a general consensus that the current administration has taken bold steps and pursued market-driven reforms, which are beginning to yield positive outcomes.

The lawmaker acknowledged that though the policies were harsh at the onset, they are beginning to yield dividends, with investors’ confidence gradually returning.

According to him, Nigeria’s capital market has surged by about 100 per cent in the last two years, while the CBN recorded its highest external reserves in over three years.

The lawmaker added that the apex bank recently posted a profit of N38.8bn, a significant recovery from the N1.15tn loss recorded in 2023.

That said, Nasiru expressed concern that the sustained high interest rate has adversely affected the manufacturing, agriculture, and Small and Medium Enterprises (SME) sectors, which are critical to job generation.

“The Monetary Policy Rate has been raised 10 times since January 2023, currently standing at 27.5 per cent—up from 16.5 per cent in 2023—in a bid to tackle demand-pull inflation.

“However, it appears the effectiveness of this policy has been undermined by structural bottlenecks and supply chain inefficiencies. It is therefore our view that, given the current economic landscape, the monetary authorities—at their meeting next week—should consider a more accommodative stance that supports both growth and employment,” Nasiru said.

On his part, Adeniran stated that the latest data released by the Bureau, covering the second quarter of 2024, reported an unemployment rate of 4.3 per cent, down from 5.3 per cent in the previous quarter.

He added that unemployment was more prevalent among females (5.1 per cent) than males (3.4 per cent), and higher in urban areas (5.2 per cent) compared to rural areas (2.8 per cent).

The Statistician-General Adeniran further disclosed that young people face a relatively higher unemployment rate of 6.5 per cent, while 12.5 per cent of youth are not in employment, education, or training.

He also disclosed that the Q3 and Q4 2024 reports are currently being finalised and will soon be made known to the public.