The Director-General of the Nigeria Employers’ Consultative Association (NECA), Adewale-Smatt Oyerinde, has applauded the Central Bank of Nigeria’s (CBN) decision to lower the Monetary Policy Rate (MPR) by 50 basis points to 27 percent, describing it as a timely move to stimulate economic growth.
The decision was reached at the 302nd meeting of the CBN’s Monetary Policy Committee (MPC), which also introduced a series of adjustments. These include:
- Raising the Cash Reserve Ratio (CRR) for Deposit Money Banks to 45 percent,
- Retaining 16 percent for Merchant Banks,
- Introducing a 75 percent CRR on non-TSA public sector deposits,
- Keeping the Liquidity Ratio at 30 percent,
- Revising the Asymmetric Corridor to +250/-250 basis points around the MPR.
Oyerinde noted that the move comes as inflationary pressures ease. According to the National Bureau of Statistics (NBS), headline inflation slowed to 20.12 percent in August 2025, down from 21.88 percent in July.
“For over five months, inflationary pressures have eased. This provides critical space for policymakers to balance price stability with the urgent need to stimulate growth,” Oyerinde said.
He described the modest MPR reduction as “commendable,” but warned that its real effect would depend on its ability to lower credit costs.
“If credit costs are lowered, businesses can access affordable financing, expand investments, and create jobs. However, the persistently high CRR and other liquidity restrictions risk limiting these intended outcomes,” he cautioned.
