Maintaining MPR at 27.50 per cent, beginning of better deal for business —LCCI

THE Lagos Chamber of Commerce and Industry (LCCI) has commended the latest decision by the Monetary Policy Committee of the Central Bank of Nigeria (CBN) to retain the Monetary Policy Rate (MPR) at 27.50 percent, describing it as the beginning of a better deal for the business community, regarding credit cost.

The Chamber, in a statement issued by its Director General, Dr. Chinyere Almona, tagged: ‘Beyond The Numbers: Ensuring Real Economic Relief for Nigerians’,  noted that high interest rates have continued to torment businesses seeking to leverage credit for their operations and expansion. 

It, therefore, called for a persistent focus on fighting the fundamentals contributing to rising inflation, and which, in turn, had occasioned rates hike, as a form of response. 

LCCI noted that while the recalibration of the Consumer Price Index (CPI) methodology, by the NBS, had resulted in a notable statistical decline in inflation, dropping from 34.80 percent in December 2024 to 24.48 percent in January 2025, many businesses and households still grapple with high costs of goods and services.

It argued that though the rebasing provides a more updated and reflective measure of economic conditions, it, however, does not necessarily translate into immediate relief from inflationary pressures in practical terms.

“Keeping the Monetary Policy Rate (MPR) unchanged provides some form of policy stability, which enhances investor confidence and aids economic planning, at least in the short term.

“This decision also aligns with a gradual approach to managing inflation, helping to contain price increases without introducing abrupt shocks to borrowing costs, especially in an environment where access to credit is already limited,” it stated.

The Chamber however identified some notable challenges associated with the decision, such as high interest rates, which sustain elevated borrowing costs, and therefore make it difficult for small and medium-sized enterprises (SMEs) to access affordable credit, which can hinder economic expansion and job creation. 

The Group therefore called on the government not to get comfortable with a rebased inflation figure, but should rather sustain  the fight against inflationary pressures. 

“The fundamental variables that have driven inflation upwards for months, like insecurity, high cost of energy, burdening cost of logistics and imports, and a volatile FOREX market, must be kept under close watch for targeted interventions,” it added.

The Chamber also urged the CBN and relevant authorities to ensure that monetary policy decisions remain responsive to the realities of businesses and consumers. 

LCCI stated further that, though statistical adjustments provide a clearer picture of economic performance, concrete measures  must, however, be taken to reduce inflationary pressures in real terms, support enterprise development, and drive inclusive economic growth. 

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