President, Lagos Chamber of Commerce and Industry (LCCI), Leye Kupoluyi has warned that while keeping the Monetary Policy Rate (MPR) unchanged at 27.0 per cent signals the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN’s) commitment to a tight monetary stance to stem inflation and supporting FX stability; he said it has also raised borrowing costs, suppressed aggregate demand, slowed business expansion and exerted downward pressure on household consumption.
 
Speaking at the chamber’s Q1 press conference on the state of the economy held at Commerce House in Lagos, he said these effects are weighing on economic recovery, particularly in interest-sensitive sectors such as manufacturing, real estate and consumer goods.
  
Touching more on the country’s monetary policy developments, he said by retaining Cash Reserve Ratio (CRR) at 45 per cent for Deposit Money Banks and 16 per cent for Merchant Banks, it limits banks’ capacity to lend to productive sectors. Consequently he said, banks are prioritising large, low-risk borrowers, while MSMEs face persistent credit constraints. The effective cost of funds also rises since a significant share of deposits remains non-earning, he said.
  
He urged the CBN to maintain clear, transparent, and predictable policy communication to anchor inflation expectations and reduce speculative pressures as well as a stronger coordination between monetary and fiscal authorities to boost production, stabilise markets and support economic agents. 

He said strengthening infrastructure, ensuring stable energy and transport costs and maintaining FX stability will ease food prices, protect household purchasing power and create a conducive environment for investment and economic growth.
  
He regretted that the inflation projection of 16.5 per cent in 2026, up from 15.8 per cent in the 2025 budget and a current rate of about 14.45 per cent, appears overly optimistic, particularly in a pre-election year when higher government and political spending could expand money supply and intensify inflationary pressures.
   
He expressed deep concern about Nigeria’s historically weak budget implementation capacity, which he said is likely to be further strained by the effective operation of multiple budget cycles within a single year, including the 2024 Budget and Supplementary Budget alongside the 2025 and 2026 budgets. This he said, has important implications for fiscal coordination, transparency and effective project execution.
  
He added that the chamber has identified agriculture and agro-processing, manufacturing, infrastructure, energy, and human capital development as key growth drivers this year but unlocking these sectors will require decisive execution—scaling irrigation and agro-value chains, reducing power and logistics costs for manufacturers, accelerating infrastructure delivery through PPPs, sustaining oil and gas sector reforms, and aligning education and skills development with private-sector needs.
  
Expressing dismay over Nigeria’s rising public debt at ₦152.40 trillion, a year-on-year increase of ₦18.10 trillion (13.5%) compared to ₦134.30 trillion recorded in 2024, he urged fiscal discipline and reiterated the need to intensify efforts to expand non-oil revenue, improve tax efficiency and compliance as well as curb recurrent expenditure. 
  
“Strengthening fiscal discipline, closing leakages and enhancing public financial management will be crucial to sustainably funding national development priorities without excessive dependence on borrowing. A more strategic balance between revenue generation and prudent debt accumulation is essential to safeguarding economic stability and long-term growth,” he said.
   
The president added that while the global environment presents both risks and strategic opportunities; he said effectively leveraging these opportunities will require deliberate, coordinated policy actions, strengthened institutions and robust private-sector-led growth strategies to improve competitiveness, boost investment and foster inclusive and sustainable economic growth.
  
He stressed a strengthening of macroeconomic stability and policy credibility, FX stability, fiscal discipline and less reliance on deficit financing and deeper value addition on non-oil exports.
  
He urged the government to promote agro-industrial value chains, support export-oriented SMEs with finance, standards compliance and market access; strengthen export promotion institutions and trade intelligence and improve infrastructure governance and financing. 
  
To crowd in global capital, he said Nigeria must strengthen infrastructure governance, including transparent project selection and procurement, effective public-private partnership (PPP) frameworks, stronger accountability and project monitoring mechanisms as well as strengthen institutions and the business environment. 
  
He also urged the government to improve on ease of doing business and investor protection, improve trade facilitation, port efficiency, and customs processes; leverage the African Continental Free Trade Area (AfCFTA) to scale non-oil exports and develop industrial parks and special economic zones linked to export markets.