Nigeria Employers’ Consultative Association, NECA, has lauded the Central Bank of Nigeria, CBN’s decision to reduce the Monetary Policy Rate, MPR, by 50 basis points, bringing it down to 27 per cent at the 302nd meeting of its Monetary Policy Committee, MPC.
The Director-General of NECA, Mr Adewale-Smatt Oyerinde, who made the commendation in a statement, said the modest reduction was a welcome move considering the sustained decline in inflation, which eased to 20.12 per cent in August 2025 from 21.88 per cent in July, according to the National Bureau of Statistics (NBS).
“For over five months, inflationary pressures have eased. This provides critical space for policymakers to balance the pursuit of price stability with the urgent need to stimulate growth,” Oyerinde said.
While praising the MPC’s move, Oyerinde warned that the benefits would only be felt if the decision translated effectively into the real economy.
The NECA boss stressed that food inflation, which stood at 21.87 per cent, had continued to place enormous strain on households and erode disposable incomes.
He further highlighted that local businesses were still grappling with high operating costs from raw materials, energy, and logistics, which threatened their sustainability, and argued that without affordable credit and structural reforms, enterprises would continue to struggle to expand.
For international investors, he noted the importance of policy stability and credibility, saying, “Improved macroeconomic fundamentals and transparent reforms are essential to position Nigeria as a competitive investment destination.”
He urged the government to complement the MPC’s decision with broader interventions such as stabilising the exchange rate to curb imported inflation, improving security in farming communities, expanding mechanisation to drive agricultural productivity, and addressing bottlenecks in energy, transportation, and regulation.
Oyerinde emphasised that it was time for the government to match price stability with deliberate growth measures.
