Webinar on How MPC Decisions Affect SMEs’ Access to Funds Holds Friday

March 20, 2024
SMEs access funds

By Modupe Gbadeyanka

On Friday, March 22, 2024, some industry experts will discuss how the decisions of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) can affect business owners in the Small and Medium Enterprises (SMEs) in the country.

Last month, the central bank raised the Monetary Policy Rate (MPR), which is also known as the benchmark interest rate, by 400 basis points or 4.00 per cent to 22.75 per cent from 18.75 per cent.

This action increased the cost of borrowing and it, in turn, led to a hike in the cost of production, which was passed on to consumers, who had to pay more for goods and services.

The apex bank jerked the rates forward to bring down the rising inflation rate in the country at 29.90 per cent when the action was taken.

The National Bureau of Statistics (NBS), two weeks after the MPC rate hike, said inflation in February 2024 rose by 31.70 per cent, and with another MPC meeting slated for next week, there are expectations of a further increase in the interest rate.

Since the last rate hike, several questions have been raised and explanations made on the effect of the CBN’s action on businesses in the country.

On Friday, the FATE Foundation is organising an MSME webinar by 11 am on Understanding CBN’s MPC Decisions: What it means for SMEs in Accessing Finance.

The speakers will educate participants on how the CBN’s revised interest rates can impact their business. They will give a breakdown of CBN’s recent review of the MPR, insights into funding experiences shared by startup entrepreneurs, and explore financing options and opportunities for starting, growing, or scaling a business.

Business Post reports that the resource persons include a Senior Economist at the Nigerian Economic Summit Group (NESG), Mr Wilson Erumebor; the Head of SME Assets Business Banking Group for SMEs at FCMB, Mr Oluremi Agboola; the Programme Lead at VC4A, Mr Ayobamigbe Teriba; the co-founder of Mebic Organic, Ms Ebele Ajaba; and the chief executive of LegitCar Africa, Mr Vincent Okeke; while the Programme Manager and Head of Learning and Influence at the FATE School, Ms Cindy Ezerioha will moderate the session.

Interested participants are required to register ahead of the event via https://bit.ly/CBNsMPCDecisions.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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