The Director-General of the Nigeria Employers’ Consultative Association (NECA), Mr. Adewale-Smatt Oyerinde, has welcomed the Central Bank of Nigeria’s (CBN) latest policy shift, describing it as a step in the right direction for businesses and households.
Thank you for visiting The Vestigator, don't forget to share!
At its 302nd Monetary Policy Committee (MPC) meeting, the CBN announced a 50 basis-point cut in the Monetary Policy Rate (MPR), bringing it down to 27 percent. The MPC also adjusted the Cash Reserve Ratio (CRR) to 45 percent for Deposit Money Banks, retained 16 percent for Merchant Banks, introduced 75 percent CRR on non-TSA public sector deposits, kept the Liquidity Ratio at 30 percent, and realigned the Asymmetric Corridor to +250/-250 basis points.
Mr. Oyerinde noted that the decision comes at a time when inflation is finally slowing, with headline inflation dropping to 20.12 percent in August 2025, down from 21.88 percent in July, according to the National Bureau of Statistics.
“For over five months, we’ve seen inflation ease. This gives policymakers some breathing space to balance price stability with the urgent need to drive growth,” he said.
While praising the modest rate cut, the NECA DG stressed that its true impact depends on how effectively it translates into affordable credit for businesses.
“If lending costs come down, businesses will have better access to finance, expand their operations, and create jobs. But with CRR and other liquidity constraints still high, the benefits may be limited,” he cautioned.
He, however, expressed concern over persistently high food inflation at 21.87 percent, which continues to strain households and reduce disposable income.
“Macroeconomic stability only matters if Nigerians actually feel relief in their daily lives—especially through lower food and living costs,” he emphasized.
On the business front, Oyerinde noted that rising operating costs from raw materials, energy, and logistics remain a major challenge for local enterprises. Without affordable credit and structural reforms, he warned, many businesses will struggle to grow or even survive. For foreign investors, he underlined the need for policy consistency, macroeconomic credibility, and transparent reforms to restore confidence in Nigeria as an attractive investment hub.
He urged the government to build on the MPC’s decision with broader measures such as stabilizing the exchange rate to curb imported inflation, improving security in farming areas, scaling up mechanized agriculture, and addressing energy, transport, and regulatory bottlenecks.
Concluding, Mr. Oyerinde reiterated that Nigeria’s economic revival requires more than just monetary tweaks.
“It’s time to pair price stability with deliberate actions to stimulate growth. Nigerians need to feel real relief from the cost-of-living crisis, and international investors are also watching closely for credible, sustained reforms that will create an enabling environment for inclusive growth,” he said.
