Now that inflation has dropped significantly to 12.48%, the Lagos Chamber Of Commerce and Industry, LCCI wants the Central Bank of Nigeria, CBN to review downward the benchmark interest rate.

The benchmark interest rate has been at 14% since July 2016 and the apex bank had promised a downward review depending on inflationary pressures which is targeted at single digit.

On Tuesday, the LCCI advised the CBN to review its tight monetary policy as inflation rate declined for the 15th consecutive month.

The LCCI Director-General, Muda Yusuf, was reacting to the National Bureau of Statistics, NBS April inflation rate which stood at 12.48% from 13.34% in March.

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According to the NBS report, the decline is the lowest since February 2016.

Yusuf said that the continuous tightening of the monetary policy would not stimulate growth and create jobs in the business community because the policy had inhibited liquidity flow for investment.

According to him, Nigeria’s inflation cannot be strictly a monetary issue, adding that the Federal Government could drastically reduce inflation by tackling the issues that led to high inflation.

“Things like cost of transportation and energy cost are very important factors that impact on inflation.

“We should not focus too much on using monetary tools to tackle inflation because in the process of doing that we stifle the economy and deny it of the needed liquidity that would promote growth,” he said.

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