Sanni: Focus is on rising interest rate, alternative action to curtail inflation

The CEO of Emerging Africa Group, Toyin Sanni, recently highlighted the disruptive impact that sustained interest rate hikes have on businesses, particularly micro, small, and medium enterprises (MSMEs). In a chat with CNBC Africa at the Investor Summit and Awards Dinner, Sanni emphasized the need for alternative actions by the government to curb rising inflation in Nigeria. She stressed the importance of fiscal reforms complementing monetary initiatives to address the challenges faced by businesses in the country. Sanni's group organized the inaugural Emerging Africa Investor Summit and Awards Night with the aim of gathering thought leaders to engage the investing public, clients, and investors. The event sought to provide insights into the outlook of the Nigerian economy and encourage continued investment in the country. Sanni highlighted the importance of reform initiatives, the role of investors in advocating for change, and the potential for Nigeria to remain a viable investment destination. One of the key discussions at the summit revolved around the rising interest rates and the impact on businesses. Sanni pointed out that high capital costs were hindering the productivity and sustainability of MSMEs. She advocated for a holistic approach to curbing inflation, emphasizing the need for increased productivity, import substitution, and affordable finance to support local industries. The group's partnership with the Bank of Industry highlighted the importance of development finance in driving economic growth. Sanni positioned Emerging Africa Group as a thought leader and actively engaged in critical conversations about the country's future. The group's recognition of key partners through awards underscored the collaborative efforts needed to achieve success in the Nigerian market. In analyzing the global economic landscape, Sanni drew a contrast between developed nations reducing monetary policy rates due to tamed inflation and the challenges faced by developing countries like Nigeria. She described Nigeria's economic situation as a 'triple whammy,' with high interest rates, currency volatility, and soaring inflation rates posing significant obstacles to growth. Sanni's prognosis for Nigeria's inflation in the short to medium term raised concerns about the impact of rising interest rates and the Central Bank's strategies to combat inflation. As Nigeria navigates the complex economic landscape, stakeholders are called upon to work together to implement sustainable solutions that promote growth, stability, and investment opportunities. Sanni's insights underscore the importance of addressing the root causes of inflation and adopting comprehensive strategies to support businesses and foster economic development in Nigeria.