Adewale-Smatt Oyerinde, the director-general of the Nigeria Employers’ Consultative Association (NECA), has applauded the Central Bank of Nigeria (CBN) for lowering the monetary policy rate (MPR) by 50 basis points to 27 percent at its 302nd monetary policy committee (MPC) meeting.
In a statement on Monday, Oyerinde said the modest rate cut, alongside other measures such as a 45 percent cash reserve ratio (CRR) for deposit money banks and 75 percent CRR on non-TSA public sector deposits, comes as headline inflation eased to 20.12 percent in August from 21.88 percent in July.
“For over five months, inflationary pressures have eased, giving policymakers room to balance price stability with the urgent need to stimulate growth,” Oyerinde noted.
The NECA chief, however, cautioned that the impact of the rate cut will depend on how effectively it lowers borrowing costs.
“If credit costs are lowered, businesses can access affordable financing, expand investments, and create jobs. But the persistently high CRR and other liquidity restrictions could limit these outcomes,” he warned.
Oyerinde added that food inflation remains elevated at 21.87 percent, squeezing households and eroding disposable incomes.
He urged government to complement monetary policy with broader reforms—stabilising the exchange rate, improving security in farming communities, expanding agricultural mechanisation, and addressing energy, transport, and regulatory bottlenecks.
“It is time to complement price stability with deliberate growth stimulation,” he said. “Nigerians need relief from the cost-of-living crisis, and international investors are waiting to see credible, sustained reforms that create an enabling environment for inclusive growth.”
