LCCI Backs CBN Rate Cut, Urges Sustained Reforms to Lower Business Costs

The Director-General of the Lagos Chamber of Commerce and Industry LCCI , Chinyere Almona, has commended the Central Bank of Nigeria for trimming the Monetary Policy Rate by 50 basis points to 26.5 percent. She described the move as a timely confidence boost for the organised private sector and a signal that borrowing costs may gradually ease.

Speaking in Lagos, Almona noted that the decision reflects a shift from prolonged monetary tightening toward a more stabilising policy stance. According to her, the moderation of inflation to 15.1 percent in January 2026 for eleven consecutive months suggests improving macroeconomic conditions.

However, she cautioned that other monetary parameters remain tight, limiting liquidity within the financial system. Businesses, she stressed, still need meaningful reductions in financing costs to scale operations, increase output and protect jobs.

Almona said the rate adjustment reassures both domestic and foreign investors that Nigeria is transitioning from reform-driven corrections to growth-focused stability. Nevertheless, she warned that high reserve requirements, weak credit transmission and structural bottlenecks could dampen the intended impact of policy easing on the real sector.

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The Chamber also called for stronger policy consistency and improved returns to encourage medium-term investments, particularly in manufacturing, agro-processing, pharmaceuticals and export-led industries. Almona emphasised the importance of attracting foreign direct investment into renewable energy, logistics, oil and gas, and other strategic sectors.

She further urged sustained reforms in power supply, transport infrastructure and regulatory processes, noting that long-term industrial development must extend beyond political cycles.