By Victor Ahiuma-Young

The Nigeria Employers’ Consultative Association (NECA) has expressed concern over the Central Bank of Nigeria’s (CBN) continued reliance on monetary policy tightening, following the Monetary Policy Committee’s (MPC) decision to retain the Monetary Policy Rate (MPR) at 27.50 percent.

According to the umbrella body of employers in the country, while the latest data from the National Bureau of Statistics (NBS) indicates a marginal decline in headline inflation—from 24.23 percent in March 2025 to 23.71 percent in April 2025—and a reduction in food inflation to 21.36 percent, NECA asserts that these movements, though positive, have yet to translate into real relief for households and the productive sector.

Speaking on the MPC outcome, the Director-General of NECA, Mr. Adewale-Smatt Oyerinde, said: “The decision to retain the MPR, CRR, and other policy instruments highlights the CBN’s intention to control inflation. However, monetary tightening, in isolation from other critical considerations, cannot deliver the comprehensive economic stability the country urgently needs.

Businesses continue to suffer under the weight of exorbitant borrowing costs, even as other economies are progressively reducing the cost of borrowing to stimulate growth.

“High exchange rates, weak consumer demand, and a strangulating regulatory environment further compound the challenges. There is an urgent need to address the contradictions in the economy that allow huge profits in the financial sector while the real sector continues to grapple with low margins.

“The marginal drop in inflation must not obscure the deeper structural constraints, particularly in food production and energy supply. The cost of doing business remains alarmingly high, and without urgent reforms, the productive sector will continue to struggle.”

NECA reiterated the urgent need for a coordinated policy response that goes beyond rate adjustments. Strategic fiscal interventions—such as increased investments in transport infrastructure, power supply, and agricultural value chains—would reduce production costs and ease inflationary pressures from the supply side.

“The government must act decisively to secure farming communities, improve access to quality agricultural inputs and mechanisation, and address logistics bottlenecks. These steps are essential to improving supply-side resilience and unlocking productivity. With over 80 percent of Nigeria’s labour force engaged in the informal and agrarian sectors, neglecting the structural side of inflation only exacerbates existing inequalities and stunts inclusive growth.”

NECA urged stronger collaboration between the monetary and fiscal authorities to promote policies that reflect the realities faced by businesses, workers, and households.

“A holistic and inclusive approach is necessary—one that stimulates investment, fosters job creation, and ensures that the fight against inflation does not inadvertently become a brake on development,” the association added.