LCCI Welcomes CBN's MPR Cut to 23% for Economic Growth

The Lagos Chamber of Commerce and Industry (LCCI) announced that the Central Bank of Nigeria (CBN) has reduced the Monetary Policy Rate (MPR) to 23%, a decrease of 350 basis points. Dr Chinyere Almona, the Director General of LCCI, welcomed this decision, emphasizing its potential to support private-sector investment and economic activity, especially for micro, small, and medium-sized enterprises (MSMEs) that have faced challenges due to high credit costs.

Dr Almona noted that while a lower policy rate could reduce the cost of funds and improve credit conditions, it should not be seen as an automatic decrease in credit availability. She highlighted that the lending environment remains difficult, with businesses facing significant pressures from high energy costs, logistics expenses, exchange-rate risks, and infrastructure deficiencies.

Furthermore, insecurity and political uncertainties in Nigeria could affect business confidence and lenders' risk assessments, impacting financial institutions' willingness to extend credit, particularly to SMEs.