2 days ago
25
The Lagos Chambers of Commerce and Industry (LCCI) has appreciated and commended the decision by the Monetary Policy Committee of the Central Bank of Nigeria (CBN) to maintain the Monetary Policy Rate (MPR) at 27.50%.
The Chambers said that it is taken as the beginning of a better deal for the business community regarding the cost of credit
LCCI in a statement by its Director General Dr. Chinyere Almona,pointed out that inrecent months, the rising and high interest rates have tormented businesses seeking to leverage credit for business operations and expansion.
“We look forward to seeing a persistent focus on fighting the fundamentals that have contributed to rising inflation that has occasioned the hiking of rates as a form of response.
She stated that while the recalibration of the Consumer Price Index (CPI) methodology by the NBS has resulted in a notable statistical decline in inflation, dropping from 34.80% in December 2024 to 24.48% in January 2025, the reality remains that many businesses and households continue to grapple with high costs of goods and services.
“The rebasing provides a more updated and reflective measure of economic conditions but does not necessarily translate into immediate relief from inflationary pressures in practical terms.
According to the Chambers, keeping the Monetary Policy Rate (MPR) unchanged provides some form of policy stability, which enhances investor confidence and aids economic planning, at least in the short term.
“This decision also aligns with a gradual approach to managing inflation, helping to contain price increases without introducing abrupt shocks to borrowing costs, especially in an environment where access to credit is already limited.
LCCI however stated that there are notable challenges associated with this decision, that high interest rates sustain elevated borrowing costs, making it difficult for small and medium-sized enterprises (SMEs) to access affordable credit, which can hinder economic expansion and job creation.
“Moreover, while the rebased inflation rate appears statistically lower, it does not translate to a tangible reduction in the cost of living, as many Nigerians still struggle with high prices for essential goods and services.
The statement further urged the government not to get comfortable with a rebased inflation figure and lose the fight against inflationary pressures, stressing that the fundamental variables that have driven inflation upwards for months, like insecurity, high cost of energy, burdening cost of logistics and imports, and a volatile FOREX market, must be kept under close watch for targeted interventions.
“The decision to hold the MPR steady underscores the need for complementary fiscal and structural reforms to support monetary policy efforts. The government must prioritize measures that enhance local production, improve supply chains, and boost economic resilience. Policies that address energy costs, infrastructure development, and trade facilitation will be key in ensuring that businesses can thrive while dealing with prevailing macroeconomic challenges.
“While inflation rebasing is a technical necessity for better statistical accuracy, the real test lies in how economic fundamentals improve over time. The private sector looks forward to continued engagement with policymakers to ensure that both monetary and fiscal interventions are aligned toward sustainable economic growth and improved living conditions for Nigerians.
The Chambers therefore urged the CBN and relevant authorities to ensure that monetary policy decisions remain responsive to the realities of businesses and consumers. “While statistical adjustments provide a clearer picture of economic performance, concrete measures must be taken to reduce inflationary pressures in real terms, support enterprise development, and drive inclusive economic growth.
LCCI stated that it remains committed to engaging stakeholders to advocate for policies that foster a more robust and resilient Nigerian economy.
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