The Director-General of the Nigeria Employers’ Consultative Association (NECA), Adewale-Smatt Oyerinde, has hailed the Central Bank of Nigeria’s (CBN) decision to cut the Monetary Policy Rate (MPR) by 50 basis points to 27 percent, describing it as a strategic step towards stimulating growth.
The decision was taken at the 302nd meeting of the CBN’s Monetary Policy Committee (MPC), which also adjusted the Cash Reserve Ratio (CRR) to 45 percent for Deposit Money Banks, retained 16 percent for Merchant Banks, introduced a 75 percent CRR on non-TSA public sector deposits, held the Liquidity Ratio at 30 percent, and revised the Asymmetric Corridor to +250/-250 basis points around the MPR.
Oyerinde noted that the policy shift comes against the backdrop of moderating inflation. According to the National Bureau of Statistics, headline inflation eased 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 the pursuit of price stability with the urgent need to stimulate growth,” Oyerinde said.
He described the modest MPR reduction as “commendable,” but stressed that its real impact would hinge on how effectively it translates into cheaper credit.
“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.
