The Lagos Chamber of Commerce and Industry has projected a reduction in interest rates in the coming months, as inflation shows signs of easing.

Speaking at a press briefing for the chamber’s 2025 outlook on Thursday in Lagos, LCCI President Gabriel Idahosa noted that the Monetary Policy Committee of the Central Bank of Nigeria is likely to adopt an easing posture soon.

“While we project that the MPC may begin to ease interest rates within the next few months on the back of a likely lower inflation rate, we must caution the government against shifting its focus away from curbing inflationary pressures,” Idahosa said.

The Chamber expressed concern over the impact of high interest rates on the private sector, which it described as the backbone of Nigeria’s economy.

The current 27.5 per cent monetary policy rate, according to the LCCI, has driven up borrowing costs, discouraged investments, and diverted funds to government treasuries.

“Rate hikes alone will not curb inflation without addressing the challenges in the real sector,” Idahosa emphasised, urging the government to tackle inflation by supporting agriculture and manufacturing.

On inflation, which rose to a near 30-year high of 34.8 per cent in December 2024, Idahosa attributed the increase to insecurity, transport costs, and climate change.

However, he remains optimistic about ongoing policy reforms. “If the government harmonises its fiscal and monetary instruments to tackle agricultural production costs and insecurity, inflationary pressures may soon begin to abate,” he added.

The Chamber also criticised the country’s floating exchange rate regime, noting the naira’s 40.9 per cent depreciation against the dollar in 2024.

Idahosa attributed the decline to speculative activities and a mismatch in foreign exchange supply and demand. He urged the government to boost forex inflows and ensure transparency in the market to stabilise the naira.

While commending the 2025 ‘Budget of Restoration,’ the LCCI called for robust implementation to meet its ambitious targets. The N34.82tn revenue projection, Idahosa said, underscores the need for improved tax reforms, digital transparency, and the integration of the informal sector into the tax net.

The Chamber also recommended reforms in agriculture, manufacturing, and the Micro, Small and Medium Enterprises sector to enhance productivity. “MSMEs remain the backbone of Nigeria’s economy. We urge the government to expand access to credit at concessionary rates and introduce technology-driven lending platforms,” Idahosa said.

LCCI’s optimism for 2025, however, hinges on the government’s ability to implement targeted interventions, address structural bottlenecks, and foster alignment between monetary and fiscal policies. “With proactive reforms, Nigeria can navigate its economic challenges and unlock sustainable growth,” Idahosa concluded.

The Chamber reiterated its commitment to advocating a stronger economy and a more business-friendly environment, urging the media to continue amplifying its policy recommendations.