ACCI Applauds MPC Rate Cut, Seeks Continued Backing for Business Expansion

By Chief Emeka Obegolu, SAN, PhD

The Abuja Chamber of Commerce and Industry (ACCI) has commended the decision of the Central Bank of Nigeria’s Monetary Policy Committee (MPC) to lower the Monetary Policy Rate (MPR) to 27.0 percent, describing the action as a cautiously positive move aimed at reducing financial strain on businesses and fostering economic recovery.

As the leading voice of the business community in the Federal Capital Territory and surrounding areas, the Chamber observes that the 50-basis-point cut reflects increasing confidence in Nigeria’s disinflation path and broader macroeconomic stability. The moderation in headline inflation and greater exchange rate stability create a favourable environment for this monetary adjustment.
ACCI maintains that the reduction in the MPR, alongside the decrease in the Cash Reserve Ratio (CRR) for commercial banks, is expected to ease borrowing costs, enhance credit access, and boost investment—particularly for micro, small, and medium enterprises (MSMEs), which form the backbone of Nigeria’s productive economy.
Nevertheless, the Chamber acknowledges the MPC’s concerns regarding excess liquidity within the banking system and understands the justification for introducing a 75 percent CRR on non-TSA public sector deposits as a liquidity control measure. Although this step may temporarily constrain liquidity for certain banks, it is projected to enhance monetary policy transmission and reinforce price stability.
ACCI also highlights that the modification of the asymmetric corridor, though technical in nature, represents a significant reform designed to improve interbank market efficiency and strengthen overall policy effectiveness.
Implications for Businesses
The Chamber expects that the policy combination will: • Lower financing costs and enhance credit access for the real sector
• Promote private sector growth and employment generation
• Maintain exchange rate stability and boost investor confidence
• Encourage disciplined fiscal liquidity management and transparency
Call for Complementary Reforms
While applauding the CBN’s balanced strategy, ACCI calls for sustained collaboration between monetary and fiscal authorities to ensure that improved financial conditions translate into tangible growth in the real sector. The Chamber further advocates for targeted credit programmes, infrastructure development, and regulatory reforms aimed at reducing the cost of doing business.
ACCI reiterates its readiness to partner with policymakers and relevant stakeholders to ensure that the evolving monetary landscape delivers meaningful benefits to businesses, investors, and households across the Federal Capital Territory and Nigeria as a whole.
Signed
Chief Emeka Obegolu, SAN, PhD
President, Abuja Chamber of Commerce and Industry (ACCI)