The Lagos Chamber of Commerce and Industry has welcomed the decision of the Monetary Policy Committee of the Central Bank of Nigeria to reduce the Monetary Policy Rate by 50 basis points to 26.50 per cent.
The Chamber described the move as a significant shift from aggressive monetary tightening toward a stabilisation phase anchored on disinflation, exchange rate convergence and improving supply-side conditions. It said the rate cut represents a cautious but positive step in the right direction.
According to the LCCI, inflation has moderated for 11 consecutive months to 15.1 per cent in January 2026. The Chamber attributed the decline to the impact of recent macroeconomic reforms and improved policy discipline.
While other monetary parameters were retained, signalling that liquidity conditions remain tight, the LCCI said the rate cut sends a critical confidence signal to the Organised Private Sector and establishes a pathway toward a gradual reduction in the cost of capital.
However, it stressed that businesses still require tangible relief in financing costs to restore production, expand capacity and preserve jobs.
The Chamber noted that the decision reinforces Nigeria’s transition from reform-induced adjustment to stabilisation-driven expansion.
It called for improved policy predictability, stronger real return expectations and support for medium-term investment planning, especially in manufacturing, agro-processing, local drug production and export-oriented industries.
The LCCI warned that high reserve requirements on banks, weak credit transmission and structural rigidities could limit the impact of monetary easing on real-sector activity.
The Chamber urged continued efforts to address constraints in the business environment and attract foreign direct investment into renewable energy, transport logistics, agro-processing and oil and gas.
It also emphasised the need to expand local refining capacity and build durable industrial systems that outlast political administrations.
The LCCI expressed optimism that the recently launched digital single window by the Nigerian Customs Service would ease port transactions and improve trade efficiency.
In addition, it called for a calibrated but sustained easing cycle anchored on inflation outcomes and real-sector performance, alongside accelerated reforms in power supply, transport logistics, agriculture and the regulatory environment.
The Chamber added that higher allocations from the Federation Account Allocation Committee, following the recent Executive Order on direct revenue remittance by the Nigerian National Petroleum Company Limited, should translate into increased investment in critical infrastructure.
It also urged continued transparency in the foreign exchange market and stronger support for local refining in both the oil and gas and solid minerals sectors.
“With firm coordination between monetary and fiscal authorities, the Nigerian economy will make good progress towards achieving a GDP growth rate above five per cent in the short term,” the Chamber stated.
