The Nigeria Employers’ Consultative Association (NECA) has cautioned against lingering inflationary pressure, particularly amid a 19.9 per cent year-on-year increase in money supply and the ongoing banking sector recapitalisation efforts.

The employers’ body stated that a premature policy easing could unravel the delicate progress the nation has made and could endanger economic stability.

The warning came following the Monetary Policy Committee’s (MPC) recent meeting, where it retained the monetary policy rate (MPR) at 27.5 per cent, while also keeping the cash reserve ratio (CRR) and liquidity ratio unchanged.

NECA, while commending the move to sustain a tight monetary policy stance, described it as a necessary step to consolidate recent economic gains and ensure long-term stability.

NECA’s Director-General, Adewale-Smatt Oyerinde, said the move aligns with the prevailing economic conditions and signals the Bank’s commitment to maintaining macroeconomic discipline.

Oyerinde described the decision as a critical and timely intervention aimed at safeguarding Nigeria’s modest progress in reducing inflation, stabilising the naira, and attracting investor confidence.

Stating that even though inflation has eased from 24.48 per cent in January to 22.22 per cent in June 2025, while capital inflows have improved and the exchange rate has shown marginal appreciation, the indicators, though encouraging, he said, remain fragile.

The NECA boss urged the MPC and the CBN to adopt a dual-track approach, by maintaining price stability while enhancing access to productive credit.

Oyerinde said it was essential to complement monetary tightening with policies that promote investment, job creation and sustainable growth.

This, according to him, includes expanding targeted credit schemes, reducing regulatory bottlenecks, and improving foreign exchange access for manufacturers.

As the nation approaches the third quarter (Q3) and Q4, he encouraged the MPC to stay consistent with its policies while being ready to support the real economy if disinflation continues and external threats lessen.

He affirmed NECA’s support for the MPC’s prudent stance, while encouraging readiness to support the real sector should disinflation continue, and global risks subside.

Further speaking, Oyerinde emphasised the need for Nigeria to bolster its policy buffers against global headwinds, including rising global interest rates and volatile commodity markets.

He reiterated NECA’s stand on its earlier call for a technical adjustment to the asymmetric corridor around the MPR, suggesting that such a move could inject targeted liquidity into the productive sector—especially SMEs and manufacturers—without undermining the primary objective of inflation control.