NECA Urges CBN to Cut Interest Rates as Inflation Eases, Calls for Relief for Nigerian Businesses and Households
The Nigeria Employers’ Consultative Association (NECA) has applauded the steady decline in Nigeria’s inflation rate, saying it offers a rare chance to re-ignite growth. According to the latest Consumer Price Index from the National Bureau of Statistics, headline inflation slowed for the fifth consecutive month to 20.12 per cent in August 2025, down from 21.88 per cent in July. The group says this trend signals a potential turning point for the economy — but only if the Central Bank of Nigeria (CBN) acts decisively.
NECA’s Director-General, Adewale-Smatt Oyerinde, urged the Monetary Policy Committee (MPC) to reconsider its tight monetary stance, which has kept borrowing costs high. “Lower interest rates will not only stimulate enterprise competitiveness but also boost access to credit, investment, and job creation,” he said. Oyerinde added that without a rate cut, the benefits of falling inflation will remain muted for businesses and households alike.
Despite the headline improvement, food inflation remains stubbornly high at 21.87 per cent, continuing to squeeze families across the country. Oyerinde stressed that ordinary Nigerians are yet to feel the impact of macroeconomic gains because staple prices have not fallen significantly. “For Nigerians to truly experience relief, the decline in inflation must translate into lower food costs and improved living standards,” he noted.
Businesses are also under pressure. Rising costs of raw materials, energy, and logistics threaten sustainability and reduce competitiveness. Meanwhile, persistent inflation continues to erode disposable incomes, weaken consumer demand, and hinder job creation. Oyerinde called on the government to complement monetary easing with targeted interventions — from strengthening the exchange rate to curb imported inflation to investing heavily in agriculture and addressing bottlenecks in energy, transport, and regulation.
According to NECA, the current inflation trend presents a compelling case for the MPC to balance price stability with growth. Oyerinde concluded that easing interest rates would give enterprises room to thrive, create jobs, and deliver real relief to Nigerians still grappling with a cost-of-living crisis.
source: leadership