Oyedele Warns High Interest Rates Are Bleeding Nigeria’s Finances

Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, says Nigeria’s persistently high interest rates have become costly for the economy, straining public finances and worsening debt obligations. Speaking at a Standard Chartered webinar on Tuesday, Mr. Oyedele linked the burden to the country’s efforts to curb inflation.

He noted that rising yields on government bonds and treasury bills have reduced the Central Bank’s dividend to the federal government. The Debt Management Office recently issued new savings bonds at rates above 14 percent, even as the Central Bank trimmed its benchmark rate to 27 percent — the first cut since 2020.

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Mr. Oyedele expressed optimism that the outlook is improving, predicting lower interest rates, a more stable exchange market, and stronger external reserves in the coming months.