The Nigeria Employers’ Consultative Association (NECA) has commended the Central Bank of Nigeria’s Monetary Policy Committee (MPC) for maintaining a tight policy stance in July 2025.
NECA’s Director-General, Mr Adewale-Smatt Oyerinde, said on Tuesday that the move was necessary to consolidate economic gains and support long-term macroeconomic stability.
Oyerinde noted that the MPC retained the Monetary Policy Rate (MPR) at 27.5 per cent, while keeping the Cash Reserve and Liquidity Ratios unchanged.
He said the decision aligned with current economic realities and reaffirmed the Bank’s resolve to sustain macroeconomic discipline.
He described the move as timely and critical, aimed at safeguarding progress in inflation control, currency stability, and restoring investor confidence.
“Inflation eased from 24.48 per cent in January to 22.22 per cent in June 2025. Capital inflows rose, and the Naira recorded marginal appreciation.
“These improvements, though positive, are still fragile. The MPC’s steady, data-informed approach offers reassurance to investors and the private sector,” Oyerinde stated.
He, however, cautioned about persisting risks, including a 19.9 per cent year-on-year rise in money supply and ongoing banking sector recapitalisation.
“A premature policy loosening could reverse recent progress and endanger broader economic stability,” he warned.
Oyerinde stressed the need to strengthen policy buffers against global threats, such as rising global interest rates and unstable commodity prices.
He renewed NECA’s call for a technical adjustment to the asymmetric corridor around the MPR to improve credit conditions.
According to him, such an adjustment could inject liquidity into key sectors like SMEs and manufacturing without compromising inflation control.
He urged the CBN and MPC to adopt a dual approach: preserving price stability while boosting access to credit for productive enterprises.
“It is vital to pair monetary tightening with investment-friendly policies, including job creation and sustainable economic growth,” he said.
He added that this should involve expanding credit schemes, easing regulatory burdens, and improving forex access for manufacturers.
Oyerinde reaffirmed NECA’s backing of the MPC’s cautious stance, while encouraging future support for the real economy.
“As we enter Q3 and Q4, we urge policy consistency and readiness to act if disinflation continues and global threats recede,” he said.
