Nigeria: LCCI Calls for Continued Lowering of MPR to Stimulate Private Sector

The Lagos Chamber of Commerce and Industry (LCCI) has called for sustained lowering of Monetary Policy Rate (MPR) in order to stimulate the private sector that is currently plagued with increased borrowing costs and reduced investment incentives.

This view was expressed by the immediate past President of LCCI, Mr. Gabriel Idahosa, in the 2025 Annual Report he presented during the chamber's 137th Annual General Meeting in Lagos.

Idahosa said: "During the third quarter of 2025, the Monetary Policy Committee (MPC) met for the fourth time. The MPR was lowered by 50 basis points to 27 per cent in September from 27.50 per cent in July. All the fundamentals around the moderation in the rate indicate an expansionary policy direction to stimulate the economy and boost growth."

He added: "The private sector is currently plagued with increased borrowing costs and reduced investment incentives; therefore expansionary monetary policy is expected to stimulate the private sector by lowering interest rate rates, which improves credit availability and reduces borrowing costs."

The call for sustained lowering of the MPR is supported by the continued moderation of inflation rate since January 2025.

Idahosa said that headline inflation declined by 846 basis points between January and October 2025, falling to 16.05 per cent from 24.5 per cent.

"Looking ahead, inflation is expected to maintain its downward trajectory, supported by improved food supply, stabilising commodity prices, relative calm in the foreign exchange market, stable energy costs and enhanced policy and regulatory consistency," he said.

He said that assessment of the money market trends, oil production, and exchange rate stability by the financial service group of the LCCI showed that the Naira has remained stable, the external reserves improved to $41.3 billion and the Purchasing Managers Index indication an expansionary business activity.

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