The Lagos Chamber of Commerce and Industry (LCCI) has urged the Central Bank of Nigeria (CBN) to pursue a forward-guided, data-driven approach to monetary easing, warning that a premature reduction in interest rates could destabilize investor confidence and threaten macroeconomic recovery.
The Chamber’s reaction followed the Central Bank’s decision to maintain current monetary policy parameters, despite a modest decline in headline inflation to 23.71 per cent.
Dr. Chinyere Almona, Director General of the LCCI, emphasized that economic conditions remain fragile, with persistent inflationary pressures fueled by foreign exchange volatility, rising energy costs, disruptions in food production, and deep-rooted structural challenges.
Almona noted that while holding the Monetary Policy Rate (MPR) reflects a cautious and balanced stance, the CBN must now provide forward guidance that clearly outlines conditions for future easing.
She stated that any move toward interest rate reduction should be predicated on sustained macroeconomic improvements, including a consistent trend of disinflation, improved FX liquidity and stability, and tangible signs of recovery in the real economy—particularly in sectors dependent on credit access.
The LCCI expressed serious concern about the prolonged high interest rate environment, which it said continues to hinder private sector development. Micro, small, and medium-sized enterprises (MSMEs), which account for a significant portion of Nigeria’s employment and economic activity, are being disproportionately impacted by the high cost of borrowing.
Without access to affordable financing, the Chamber warned, these businesses are unable to grow, remain competitive, or contribute meaningfully to national economic development.
The Chamber also highlighted the limited capacity of monetary policy alone to address inflation that is primarily structural and supply-driven.
The LCCI argued that addressing insecurity, infrastructure deficits, food supply disruptions, and other foundational issues will require coordinated action between the monetary and fiscal authorities.
The Chamber called for consistency in policy implementation and urged government institutions to align their efforts toward expanding domestic production, improving FX market stability, and enhancing investor confidence.
According to Almona, supporting the real sector should remain central to Nigeria’s economic strategy.
She emphasized the need to improve transparency in commercial lending practices, strengthen development finance interventions in high-impact sectors such as manufacturing, agriculture, renewable energy, and power, and increase support for development finance institutions, including the Bank of Industry, Development Bank of Nigeria, NEXIM Bank, and the Bank of Agriculture.
The Chamber concluded by reaffirming its readiness to collaborate with the CBN and other relevant stakeholders to promote policies that balance inflation control with inclusive, long-term economic growth.
“The path forward must balance inflation containment with bold, strategic support for Nigeria’s productive economy,” Almona said. “Now is the time for careful, evidence-based monetary signaling and proactive engagement with the real sector to ensure sustained recovery and resilience.”
