LCCI Welcomes CBN’s Interest Rate Cut, Advises on Protection of Jobs, Industries
- The LCCI welcomed the CBN’s decision to reduce the Monetary Policy Rate (MPR) by 50 basis points to 26.50 per cent
- The chamber cautioned that high reserve requirements and weak credit transmission may limit the impact on businesses
- It also projected that coordinated monetary and fiscal policies could help Nigeria achieve a GDP growth of over 5% in the short term
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The Lagos Chamber of Commerce and Industry has welcomed the decision of the Monetary Policy Committee of the Central Bank of Nigeria to reduce the Monetary Policy Rate (MPR) by 50 basis points to 26.50 per cent.
Source: UGC
In a statement signed by its Director General, Chinyere Almona, and shared with Legit.ng the chamber described the move as a cautious but positive signal of Nigeria’s transition from aggressive monetary tightening to a stabilisation phase driven by disinflation and improved macroeconomic conditions.
According to the LCCI, inflation has declined for eleven consecutive months to 15.1 per cent as of January 2026, reflecting the impact of recent reforms and tighter policy discipline.
“While retaining other monetary parameters suggests that liquidity conditions remain restrictive, the rate cut sends a critical confidence signal to the Organised Private Sector (OPS) and establishes a pathway toward a gradual reduction in the cost of capital,” the statement read.
The chamber, however, noted that businesses still require meaningful reductions in financing costs to restore production levels, expand capacity and protect jobs.
New rate sends positive signal to investors
The LCCI said the policy shift also sends a positive signal to domestic and foreign investors, suggesting that Nigeria is moving from a reform-driven adjustment period to stabilisation-led expansion.
It called for improved policy predictability, stronger real return expectations and support for medium-term investment planning, especially in manufacturing, agro-processing, pharmaceutical production and export-oriented sectors.
Despite the rate cut, the chamber cautioned that high reserve requirements for banks, slow credit transmission and structural constraints in the economy could limit the impact of monetary easing on real-sector growth.
The group urged the government to address bottlenecks in the business environment and attract foreign direct investment into critical sectors such as renewable energy, transport logistics, agro-processing and oil and gas.
It also emphasised the need to expand local refining capacity and strengthen industrial systems beyond political cycles.
LCCI seeks reforms in power sector, others
The LCCI called for a calibrated but sustained easing cycle tied to inflation trends and real-sector performance, alongside accelerated reforms in power supply, transport infrastructure, agriculture and regulatory processes.
It expressed optimism that the newly launched digital single window platform by the Nigerian Customs Service would simplify port transactions.
The chamber further advocated increased private-sector credit for productive activities and greater investment in infrastructure. It noted that higher allocations from FAAC, following the recent Executive Order on direct revenue remittance by the Nigerian National Petroleum Company Limited, could support this push.
Source: Getty Images
It also emphasised the need for sustained transparency in the foreign exchange market to strengthen investor confidence and economic stability.
With stronger coordination between monetary and fiscal authorities, the LCCI projected that Nigeria could achieve short-term GDP growth above five per cent.
Key parameters retained as CBN cuts interest rate
Legit.ng earlier reported that the CBN slashed the benchmark interest rate to 26.5%. But despite the rate cut, the Monetary Policy Committee opted to keep other monetary settings unchanged.
The asymmetric corridor was maintained at +50/-450 basis points around the MPR. The Cash Reserve Ratio stayed at 45 per cent for Deposit Money Banks and 16 per cent for Merchant Banks, while the Liquidity Ratio was retained at 30 per cent.
By holding these parameters steady, policymakers signalled that while easing has begun, caution remains central to their strategy.
Source: Legit.ng
