Abuja chamber of commerce, industry reacts to MPC rate cut, urges sustained support for business growth

The Abuja Chamber of Commerce and Industry (ACCI) has welcomed the decision of the Central Bank of Nigeria’s Monetary Policy Committee (MPC) to reduce the Monetary Policy Rate (MPR) to 27.0 percent, describing the move as a cautiously optimistic step toward easing financial pressures on businesses and supporting economic recovery.

As the voice of the business community in the Federal Capital Territory and its environs, the Chamber notes that the 50-basis-point reduction signals growing confidence in Nigeria’s disinflation trajectory and macroeconomic stabilization.

This was contained in a statement on Wednesday by Chief Emeka Obegolu, SAN, PhD, President, Abuja Chamber of Commerce and Industry (ACCI).

The easing of headline inflation and improved exchange rate stability provide a supportive backdrop for this policy shift.

The ACCI believes the reduction in the MPR and the lowering of the Cash Reserve Ratio (CRR) for commercial banks will help moderate borrowing costs, improve access to credit, and stimulate investment, particularly for micro, small, and medium enterprises (MSMEs), which remain the backbone of Nigeria’s productive sector.

However, the Chamber also recognizes the MPC’s concerns about excess liquidity in the banking system and understands the rationale for introducing a 75 percent CRR on non-TSA public sector deposits as a liquidity management safeguard.

While this measure may temporarily tighten liquidity for some banks, it is expected to strengthen monetary policy transmission and support price stability.

ACCI further notes that the adjustment of the asymmetric corridor is a technical but important reform aimed at improving interbank market efficiency and strengthening policy effectiveness.

Implications for Businesses

The Chamber anticipates that the policy mix will:
• Reduce financing costs and improve credit availability to the real sector
• Support private sector expansion and job creation
• Sustain exchange rate stability and investor confidence
• Encourage prudent fiscal liquidity management and transparency
Call for Complementary Reforms

While commending the CBN for its balanced approach, ACCI urges continued coordination between monetary and fiscal authorities to ensure that easing financial conditions translate into real sector growth. The Chamber also calls for targeted credit interventions, infrastructure improvements, and regulatory reforms that lower the cost of doing business.

ACCI reaffirms its commitment to working with policymakers and stakeholders to ensure that the evolving monetary environment translates into tangible benefits for businesses, investors, and households across the Federal Capital Territory and Nigeria at large.