CBN Rate Cut Bodes Well for Nigeria’s Economy — TMSG By Raymond Enoch
The Tinubu Media Support Group (TMSG) has described the Central Bank of Nigeria’s (CBN) decision to reduce the Monetary Policy Rate (MPR) from 26.5 per cent to 23 per cent as a fresh catalyst for economic growth and investment.
The group said the 350-basis-point reduction, the first cut of its kind this year, could help translate recent gains in macroeconomic stability into more tangible benefits for Nigerians.
In a statement signed by its Chairman, Emeka Nwankpa, and Secretary, Dapo Okubanjo, the group said the decision had become necessary following sustained improvements in key economic indicators, particularly the decline in inflation.
TMSG noted that the new benchmark rate was the lowest since February 2024, stressing that the CBN had maintained a cautious approach to monetary policy despite reducing the rate by 50 basis points in February.
The group said the latest reduction also came amid easing foreign exchange pressures, improved current account balances and stronger external reserves, which it said had reached their highest level in 18 years.
“It is also coming against the backdrop of a sustained decline in headline inflation for three consecutive months in recent times,” the statement added.
While acknowledging reservations in some quarters, TMSG said it aligned with the position of the Centre for the Promotion of Private Enterprise (CPPE) that a lower benchmark interest rate could reduce the cost of capital, stimulate investment and strengthen productive capacity in the real sector.
The group, however, cautioned that the impact of the policy adjustment would take time to fully materialise.
“It is the beginning of a long process and that is why the CBN Governor, Mr Olayemi Cardoso, emphasised that the decision should be seen as an operational adjustment to improve monetary policy transmission,” it said.
TMSG also welcomed the reported signing of a Memorandum of Understanding (MoU) between the CBN and the Ministry of Finance aimed at strengthening coordination between fiscal and monetary policies in the fight against inflation.
The group urged Nigerians to remain confident in the ongoing economic reform process, saying the policies being implemented by the President Bola Tinubu administration were aimed at building a more resilient and productive economy.
It said the administration’s long-term vision of growing Nigeria’s economy towards the $1 trillion mark by 2030 would require sustained policy coordination, investment and economic reforms.
