NECA Says CBN’s Rate Cut Could Ease Business Borrowing Costs

The Nigeria Employers’ Consultative Association has welcomed the Central Bank of Nigeria’s reduction of the Monetary Policy Rate from 26.5% to 23%, describing it as a measured easing after a long period of tight monetary conditions. NECA said the cut may gradually lower lending rates and improve access to working capital and investment finance, especially for manufacturers and small businesses. However, it cautioned that cheaper credit is not automatic, as banks’ lending rates will determine the real impact. The association noted that the Cash Reserve Requirement remains high at 45%, while manufacturers still face costly energy, logistics, inputs and foreign exchange pressures. It urged further measures to make financing more affordable for businesses.

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