Align Monetary Policy With Business, Consumer Realities, LCCI Tells CBN

The Lagos Chamber of Commerce and Industry has called on the Central Bank of Nigeria (CBN) to ensure that monetary policy decisions reflect the realities of businesses and consumers, following the apex bank’s decision to maintain the Monetary Policy Rate (MPR) at 27.50 per cent.

LCCI Director General, Dr. Chinyere Almona, who welcomed the move, acknowledging its role in providing short-term policy stability, however warned that high interest rates continue to pose significant challenges for businesses, particularly small and medium-sized enterprises (SMEs), by limiting access to affordable credit and stifling economic growth.

“While the decision to keep the MPR unchanged enhances investor confidence and aids economic planning, it does not alleviate the burden of high borrowing costs faced by businesses.

“The government must complement monetary policy with targeted fiscal and structural reforms to address inflationary pressures and promote economic resilience,” Almona stated

The LCCI noted that the recent rebasing of Nigeria’s inflation calculation by the National Bureau of Statistics (NBS) resulted in a drop from 34.80 per cent in December 2024 to 24.48 per cent in January 2025.

However, it emphasized that this statistical adjustment does not translate to immediate relief for businesses and households grappling with high costs of goods and services.

“The government must not become complacent with a rebased inflation figure,” Almona cautioned. “Fundamental drivers of inflation—such as insecurity, high energy costs, expensive logistics, and forex volatility, must be addressed through targeted interventions.”

The LCCI further stressed the importance of improving local production, enhancing supply chains, and implementing economic policies that lower operational costs for businesses.

It urged authorities to prioritize infrastructure development, energy sector reforms, and trade facilitation to create a more enabling environment for economic growth.

As Nigeria navigates inflation control and economic recovery, the Chamber reaffirmed its commitment to engaging with policymakers to ensure that both monetary and fiscal policies align with the broader goal of sustainable economic development and improved living conditions for Nigerians.

Align Monetary Policy With Business, Consumer Realities, LCCI Tells CBN is first published on The Whistler Newspaper