LAGOS, July 24, 2025
The Nigeria Employers’ Consultative Association (NECA) and prominent economists have expressed support for the Central Bank of Nigeria’s (CBN) continued tight monetary policy stance, even as the Lagos Chamber of Commerce and Industry (LCCI) raised concerns over its impact on businesses.
The CBN, earlier this week, retained the Monetary Policy Rate (MPR) at 27.5 percent for the third consecutive time, citing a need to consolidate gains in the battle against inflation. While the move was hailed as a bold step to stabilise the economy, concerns persist over its implications for the productive sector.
Speaking on the development, NECA’s Director-General, Adewale-Smatt Oyerinde, lauded the apex bank’s resolve, noting that the tight monetary policy helps to tame inflationary pressures and protect the naira. He, however, stressed the urgent need for accompanying structural and fiscal reforms to ensure lasting macroeconomic stability.
Also weighing in, a development economist, Dr. Kelechi Ugwu, stated that while the high interest rate curbs liquidity and inflation, it should be complemented with policies that stimulate local production, ease supply chain constraints, and create jobs.
On the other hand, the LCCI President, Gabriel Idahosa, lamented that the persistent high MPR continues to pose a heavy burden on businesses, especially small and medium-sized enterprises (SMEs). He called for a more balanced approach that would prioritise investment-led growth and ease access to finance.
The consensus among stakeholders is that the monetary tightening, though necessary in the short term, must be matched with strategic reforms in power, transport, and industrial policy to drive sustainable economic growth.
