The Nigeria Employers’ Consultative Association (NECA) has expressed concern over the Central Bank of Nigeria’s (CBN) continued reliance on monetary policy tightening, following the Monetary Policy Committee’s (MPC) decision to retain the Monetary Policy Rate (MPR) at 27.50%.
While the latest data from the National Bureau of Statistics (NBS) indicates a marginal decline in headline inflation from 24.23% in March 2025 to 23.71% in April 2025, and a reduction in food inflation to 21.36%, NECA asserts that these movements, though positive, have yet to translate into real relief for households and the productive sector.
Mr. Adewale-Smatt Oyerinde, Director-General of NECA, while speaking on the MPC outcome, stated: “The decision to retain the MPR, CRR and other policy instruments highlight the CBN’s intention to control inflation.
However, monetary tightening, in isolation of other critical considerations cannot deliver the comprehensive economic stability the country urgently needs. Businesses continue to suffer under the weight of exorbitant borrowing costs, even when other economies are progressively reducing the cost of borrowing to stimulate growth, high exchange rate, weak consumer demand and strangulating regulatory environment.
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“There is an urgent need to address the contradictions in the economy that continue to manifest in the huge profits in the financial sector while the real sector continue to grapple under the weight of low margins.”
Speaking further, the DG noted that while headline inflation figures offer a glimmer of hope, they mask the more deep-rooted structural challenges facing the Nigerian economy.
“The marginal drop in inflation must not obscure the deeper structural constraints, particularly in food production and energy supply. The cost of doing business remains alarmingly high, and without urgent reforms, the productive sector will continue to struggle
“NECA reiterated the urgent need for a coordinated policy response that goes beyond rate adjustments. Strategic fiscal interventions, such as increased investments in transport infrastructure, power supply, and agricultural value chains would reduce production costs and ease inflationary pressures from supply side.
“The government must act decisively to secure farming communities, improve access to quality agricultural inputs and mechanisation, and address logistics bottlenecks. These steps are essential to improving supply-side resilience and unlocking productivity,” he added.
