Abuja: The Abuja Chamber of Commerce and Industry (ACCI) has commended the decision of the Central Bank of Nigeria (CBN) to reduce the Monetary Policy Rate (MPR) to 26.5 per cent. The chamber described the development as a cautious step to ease pressure on businesses and support economic recovery. Chief Emeka Obegolu, President of the chamber, expressed his views on the apex bank’s decision to reduce the rates during a recent event in Abuja.
According to News Agency of Nigeria, the Monetary Policy Committee of the CBN made the decision at its 304th meeting. Obegolu highlighted that the 50-basis-point reduction signalled growing confidence in Nigeria’s disinflation path and macroeconomic stability. He noted that easing headline inflation and improved exchange rate stability provided a supportive backdrop for the policy shift.
Obegolu emphasized that the reduction in MPR, along with the lowering of the Cash Reserve Ratio (CRR) for commercial banks, will help moderate borrowing costs, improve access to credit, and stimulate investment, particularly for Micro, Small and Medium Enterprises (MSMEs). He acknowledged the MPC’s concerns over excess liquidity in the banking system, stating that the introduction of a 75 per cent CRR on non-Treasury Single Account (TSA) public sector deposits was a necessary liquidity management measure. Although this move might temporarily tighten liquidity for some banks, it will strengthen monetary policy transmission and support price stability.
Obegolu described the adjustment of the asymmetric corridor as a technical reform aimed at improving interbank market efficiency and policy effectiveness. He noted that the policy mix is expected to reduce financing costs, improve credit availability to the real sector, support private sector expansion and job creation, sustain exchange rate stability, and boost investor confidence. These measures would also encourage prudent fiscal liquidity management and transparency.
While commending the CBN for its balanced approach, the ACCI president called for sustained coordination between monetary and fiscal authorities to ensure that improved financial conditions translate into real sector growth. He urged for targeted credit interventions, infrastructure development, and regulatory reforms to reduce the cost of doing business. Obegolu reaffirmed the ACCI’s commitment to working with policymakers and stakeholders to ensure that the evolving monetary environment delivers tangible benefits to businesses, investors, and households.