The Lagos Chamber of Commerce and Industry (LCCI) has called for a sustained reduction in the Monetary Policy Rate (MPR) to stimulate Nigeria’s private sector, which it says is currently burdened by high borrowing costs and weak investment incentives.
The call was made by the immediate past President of the LCCI, Mr. Gabriel Idahosa, in the chamber’s 2025 Annual Report presented at its 137th Annual General Meeting held in Lagos.
Idahosa noted that the Monetary Policy Committee (MPC), during its fourth meeting in the third quarter of 2025, reduced the MPR by 50 basis points to 27 per cent in September from 27.50 per cent in July. He described the move as indicative of a gradual shift toward an expansionary monetary policy aimed at stimulating economic growth.
“During the third quarter of 2025, the MPC met for the fourth time. The MPR was lowered by 50 basis points to 27 per cent in September from 27.50 per cent in July. All the fundamentals around the moderation in the rate indicate an expansionary policy direction to stimulate the economy and boost growth,” Idahosa said.
He stressed that the private sector remains under pressure due to elevated interest rates, adding that further reductions in the MPR would improve credit availability and lower borrowing costs.
“The private sector is currently plagued with increased borrowing costs and reduced investment incentives. Expansionary monetary policy is therefore expected to stimulate the private sector by lowering interest rates, improving access to credit and reducing the cost of borrowing,” he added.
Idahosa said the call for sustained easing of monetary policy is supported by the continued moderation of inflation since January 2025. According to him, headline inflation declined by 846 basis points between January and October 2025, falling to 16.05 per cent from 24.5 per cent.
Looking ahead, he projected that inflation would maintain a downward trend, driven by improved food supply, stabilising commodity prices, relative calm in the foreign exchange market, stable energy costs, and improved policy and regulatory consistency.
He also disclosed that an assessment by LCCI’s financial services group showed positive money market trends, improved oil production, and exchange rate stability. According to the report, Nigeria’s external reserves have risen to $41.3 billion, while the Purchasing Managers Index (PMI) indicates expansionary business activity.
