By Victor Ahiuma-Young
The Nigeria Employers’ Consultative Association (NECA) has lauded the Central Bank of Nigeria’s Monetary Policy Committee (MPC) for maintaining its tight monetary stance during its July 2025 meeting, describing the decision as a “critical intervention” that is beginning to yield results.
However, the association warned that significant risks still lie ahead, calling on the federal government to remain vigilant and strategic.
In a statement issued in Lagos, NECA’s Director-General, Mr. Adewale-Smatt Oyerinde, commended the MPC’s decision to retain the Monetary Policy Rate (MPR) at 27.5%, alongside the Cash Reserve Ratio (CRR) and Liquidity Ratio. He described the decision as “a necessary step to consolidate Nigeria’s modest economic progress and ensure long-term macroeconomic stability.”
“Inflation has eased from 24.48% in January to 22.22% in June 2025, capital inflows have improved, and the exchange rate has shown marginal appreciation. These indicators, though encouraging, remain fragile,” Oyerinde noted. “The MPC’s data-informed and steady approach is commendable and sends a reassuring signal to investors and the private sector.”
While acknowledging the improvements, NECA expressed concern over lingering inflationary pressures. “With a 19.9% year-on-year increase in money supply and ongoing banking sector recapitalization, inflation risks remain significant,” the Director-General cautioned. “A premature policy easing could unravel the delicate progress we’ve made and endanger economic stability.”
Oyerinde urged the government to strengthen its policy buffers against global headwinds such as rising international interest rates and volatile commodity markets.
NECA also reiterated its earlier call for a technical adjustment to the asymmetric corridor around the MPR, arguing that such a move could help inject targeted liquidity into the real sector—especially to support small and medium-sized enterprises (SMEs) and manufacturers—without compromising inflation control.
According to the NECA boss, “It is essential to complement monetary tightening with policies that promote investment, job creation, and sustainable growth. This includes expanding targeted credit schemes, reducing regulatory bottlenecks, and improving foreign exchange access for manufacturers.”
He concluded by affirming NECA’s continued support for the MPC’s prudent stance, while urging readiness to support the productive sector if disinflation continues and global risks abate.
“As we approach the third and fourth quarters of the year, we encourage the MPC to remain consistent while being flexible enough to adjust policies in support of the real economy. The goal should be sustained stability and inclusive growth,” Oyerinde stated.
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