Members of the Organised Private Sector (OPS) have unanimously hailed the Central Bank of Nigeria (CBN)’s decision to cut lending rate.
Specifically, CBN at its 302nd Monetary Policy Committee (MPC) meeting in Abuja, yesterday reduced its Monetary Policy Rate (MPR) or lending rate by 50 basis points, settling at 27 per cent from 27. 5 per cent. It also adjusted the asymmetric corridor to +250/-250 basis points around the MPR.
In addition, the MPC cut the Cash Reserve Ratio (CRR) of commercial banks by 500 basis points, from 50 per cent to 45 per cent, while retaining the CRR for merchant banks at 16 per cent and maintaining the liquidity ratio at 30 per cent.
A notable new measure was the introduction of a 75 per cent CRR on non-TSA public sector deposits, aimed at containing excess liquidity risks that could arise from fiscal operations.
Reacting to the development, the private sector group including, the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Manufacturers Association of Nigeria (MAN), Lagos Chamber of Commerce and Industry (LCCI), Centre for the Promotion of Private Enterprise (CPPE) and others, explained that the decision marked a significant policy shift toward supporting growth and investment, following an extended period of aggressive monetary tightening to rein in inflation.
They stated that the decision represented a strategic and well-timed policy shift welcomed this transition as a signal of a more predictable and investor-friendly environment. The reform is designed to enhance competitiveness, encourage capital inflows, and deepen local participation across the energy value chain.
To this end, the 14th edition of the Practical Nigerian Content (PNC) Forum Themed “Securing Investments, Strengthening Local Content, and Scaling Energy Production,” will convene senior government officials, regulators, industry executives, financiers, and service providers to explore how these structural changes and enabling policies can be harnessed to drive sustainable growth.
Taking place from in Yenagoa, Bayelsa, the Forum will Commenting on the proposed launch, the Chief Risk Officer and Chairman of the FirstBank Sustainability Committee, Patrick Akhidenor, said: “Everyone deserves access to financial services whether physically or digitally. We recognise this, and we are providing financial services that are both accessible and affordable to visually impaired and physically challenged customers at all our touchpoints.
We are making it possible for them to manage their accounts independently and securely.” The initiative will be implemented in phases across all subsidiaries and locations of the FirstBank Group. Transaction documents will be made available in braille, audio, large print, and digital formats.
ATMs will be upgraded with high-contrast screens and voice-prompt commands, while cards issued will feature tactile motifs and braille inscriptions for easy recognition. from a phase of stabilization to a phase of growth accelerator if sustained and complemented by appropriate fiscal and structural reforms.
Speaking with New Telegraph yesterday in Lagos, the Director-General of MAN, Mr. Segun Ajayi-Kadir, said that the MPC’s decisions were some of the positive expectations of MAN. According to him, MAN has been agitating for the MPC to cut lending rate that is supported by a robust fiscal policy framework capable of facilitating improved access to long term loans, enhanced productivity and sustained economic growth.
Similarly, LCCI DG, Dr. Chinyere Almona, explained that members of the private sector group had been concerned about the skyrocketing inflation rate and also the lending rate, saying that the reduction presented a forward-looking and pragmatic position on the future of interest rates in Nigeria.
In his submission, the Director/Chief Executive Officer of CPPE, Dr. Muda Yusuf, pointed out that the policy easing came at a time the Nigerian economy had recorded five consecutive months of declining inflation, signaling that previous tightening measures were yielding results.
According to him, having restored a measure of macroeconomic stability and slowed inflationary pressures, the MPC’s pivot toward growth is both logical and timely. He added that high interest rates in recent quarters had significantly constrained private sector credit, increase the cost of funds, and weighed on business expansion.
