Some of the experts, who spoke on the policy, said quality investment windows were few while the lending rates still remained high.
“The incentive to save will therefore further diminish, but it may stimulate investment because the alternative to savings is investment.“An improvement in the quality of investment climate could translate the low interest regime into good investment opportunities. The acting Director-General, Manufacturers Association of Nigeria, Mr Ambrose Oruche, said it would boost investment, spending and consumption because people would rather buy assets or keep the money with a company that would give a better return than 1.25 per cent.
A former President, Association of National Accountants of Nigeria, Dr Sam Nzekwe, who said the policy was to discourage people from saving and encourage investment, observed that the gap between the savings and lending rates was too high.