Drop in January inflation fuels expectations of CBN monetary easing
The Federal Government, yesterday, reaffirmed its commitment to strengthening the Micro, Small and Medium Enterprises (MSME) ecosystem through closer inter-agency collaboration, expanded financing access and technology-driven incubation, as key officials projected fresh waves of job creation across the sector.
 
Meanwhile, Nigeria’s softer inflation print for January strengthened expectations of an imminent interest rate cut, with market analysts and economic policy experts describing the latest data as a clear signal of improving macroeconomic stability.
 
Fielding questions after a meeting chaired by Vice President Kashim Shettima at the Presidential Villa, Abuja, the Minister of Information and National Orientation, Mohammed Idris, expressed optimism over recent developments, describing progress in the MSME space as clear evidence that broad-based economic reforms were gaining traction.
 
On the specifics of the high-level engagement attended by government officials, development partners and industry players, Idris said the forum offered a comprehensive overview of ongoing initiatives and reflected growing synergy among institutions driving small-business growth.
 
He commended the Office of the Special Adviser on MSMEs for what he termed renewed coordination and visible enthusiasm among participants, noting that Nigeria’s MSME ecosystem generated about 250,000 jobs last year, with projections that another 300,000 could be added “if present momentum is sustained”. 
 
While acknowledging that the figures remain modest compared to national demand, he stressed that consistent progress would significantly deepen financial inclusion and economic participation.
 
The minister also pointed to increasing international recognition of Nigeria’s reform agenda, citing engagements with global financial institutions and improving ratings assessments as indicators of renewed investor confidence. 
 
He added that Nigeria’s expanding presence in continental enterprise underscores its leadership role in promoting sustainable prosperity across Africa.
 
Echoing the call for stronger institutional synergy, the Special Adviser to the President on MSMEs, Tola Adekunle-Johnson, said President Bola Tinubu had directed all federal agencies to operate within a unified framework to accelerate job creation and improve funding access for small businesses.
 
Adekunle-Johnson explained that agencies, including the Industrial Training Fund (ITF), Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Nigerian Export Promotion Council (NEPC) and Nigerian Investment Promotion Commission (NIPC), “are working as a single team” to deliver measurable results. 
 
He noted that the coordinated approach was expected to lower lending rates for MSME loans, widen market opportunities and streamline institutional support.
 
According to him, joint interventions over the past year contributed to the creation of about 250,000 jobs, while partnerships with state governments facilitated the establishment of de-risking and matching funds designed to guarantee single-digit interest rates of between nine and 10 per cent for entrepreneurs. 
 
He added that the Vice President had further directed SMEDAN to intensify engagement with more state governments to broaden participation in funding initiatives and NEPC continues to enhance export market access for small businesses.
 
On his part, Director-General of SMEDAN, Charles Odii, said the agency was widening collaboration across government and the private sector to cut unemployment and expand opportunities for entrepreneurs, stressing that “job creation cannot be achieved in isolation.”

Senior Market Analyst at FXTM, Lukman Otunuga, yesterday, said the unexpected slowdown in inflation to 15.10 per cent year-on-year provided strong justification for monetary easing by the Central Bank of Nigeria (CBN).
 
According to him, the moderation, down from 15.15 per cent in December and significantly lower than market projections reflectseasing price pressures, particularly from food, and strengthens the case for lower borrowing costs.
 
Otunuga noted that with the naira appreciating by about eight per cent against the dollar year-to-date and inflation trending lower, “the question is not if, but how much” the apex bank will reduce rates at its next policy meeting.
 
He added that a rate cut could further stimulate economic activity, improve credit conditions and bolster investor sentiment, provided inflation remains contained.
 
Similarly, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, described the January Consumer Price Index (CPI) outcome as evidence of “real disinflation” rather than temporary price volatility.
 
Yusuf emphasised that the broad-based moderation across food and core components signals a meaningful macroeconomic transition.