Even though it is a logical response to the prevailing conditions of liquidity management and the Central Bank of Nigeria’s current net borrowing status, the apex bank’s retention of Monetary Policy Rate (MPR) at 27.5 per cent is disappointing for industry players, the National President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Dele Kelvin Oye, has said.

Oye, who doubles as Chairman of the Organised Private Sector of Nigeria (OPSN), said the repercussions of the policy, particularly in the form of elevated interest rates, inhibit industry’s ability to secure loans at single-digit rates that are essential for sustainable growth and the alleviation of poverty.

The CBN had, at the end of the 300th meeting of its Monetary Policy Committee on Tuesday, retained the MPR at 27.50 per cent, the second hold in a row in 2025 after six consecutive hikes in 2024 – a decision that reflected its conservative policy stance.

The apex bank also held the Asymmetric Corridor at +500/-100 basis points around the MPR, Cash Reserve Ratio (CRR) at 50 per cent for Deposit Money Banks and 16 per cent for Merchant Banks, and Liquidity Ratio at 30 per cent.

But Oye, in a statement on Thursday, said while it was right to applaud the CBN for its strides toward improved transparency and inflation targeting, the pressing need for accessible financing through fiscal policies, particularly for the private sector, must be addressed.

“The CBN’s recent financial disclosures reveal a complex interplay of modest gains in reserve buffers and a troubling escalation in liquidity management costs. The resurgence of orthodox monetary policies signifies an intention to restore market discipline and enhance the credibility of monetary interventions,” Oye said.

“Yet, as we applaud these strides toward improved transparency and inflation targeting, it is imperative to address the pressing need for accessible financing through fiscal policies, particularly for the private sector, especially against the background of the World Bank’s recent warning on Nigeria’s growing poverty.”

The NACCIMA boss noted that businesses are grappling with high borrowing costs that stifle growth and innovation, saying the CBN’s strategy, characterized by a retreat from direct financing of fiscal deficits, has been a necessary recalibration.

“However, the repercussions of this policy, particularly in the form of elevated interest rates, inhibit the industry’s ability to secure loans at single-digit rates that are essential for sustainable growth and the alleviation of poverty,” he said.

Oye said the CBN’s report of notable repayment figures signalled that the collective advocacy for reduced public sector borrowing at the subnational level has yielded tangible results, thus underscoring the importance of fiscal discipline, “yet it also points to the urgent need for a synchronized approach between monetary policy and economic growth”.

He said the CBN’s commitment to restoring fiscal prudence must be accompanied by measures that create conducive environment for private sector investment and growth.

“While the CBN’s financial results showcase an incremental improvement in its asset composition, they also reveal a precarious situation marked by spiralling liquidity management costs and significant losses from derivative settlements. These challenges threaten to obscure the hard-won gains achieved through the recent policy shift.

“As the economic landscape evolves, we anticipate that the CBN will leverage the potential of the projected 2024 trading surplus to transition to a net saving position. In so doing, it may facilitate a reduction in the MPR, thereby alleviating the current pressures on businesses seeking reasonably priced loans,” he said.

Oye restated NACCIMA’s readiness to collaborate closely with the CBN and government at all levels to contribute private sector insights that can enhance the monetary and fiscal climate.

“Our objective is to establish an investment ecosystem that not only supports reasonable access to capital but also promotes educational financing essential for developing a skilled workforce,” he said.

While acknowledging the strides made towards a more orthodox monetary framework, he urged the CBN to remain vigilant against the strains of past interventions.

“A harmonious alignment of fiscal and monetary policies is imperative to ensure a stable economic trajectory. Only through proactive dialogue and collaboration with the private sector can we navigate the complexities of our economic environment to enhance sustainable growth and prosperity for all stakeholders,” he said.