CBN’s retention of 27.50% interest rates offers relief to Nigerians – Reps
The House of Representatives Committee on National Planning and Economic Development has said the recent decision by the Central Bank of Nigeria (CBN) to retain the Monetary Policy Rate (MPR) at 27.50 percent offers relief to Nigerians, particularly in terms of borrowing and business operations. Chairman of the Committee, Rep. Gboyega Nasiru (APC-Ogun), in an […]
The House of Representatives Committee on National Planning and Economic Development has said the recent decision by the Central Bank of Nigeria (CBN) to retain the Monetary Policy Rate (MPR) at 27.50 percent offers relief to Nigerians, particularly in terms of borrowing and business operations.
Chairman of the Committee, Rep. Gboyega Nasiru (APC-Ogun), in an interview yesterday noted that the apex bank’s decision reflects a more accommodative stance after months of consistent rate hikes aimed at curbing inflation.
Weekend Trust reports that the committee had last week warned the Central Bank of Nigeria (CBN) against further increase in the interest rates during its MPC meeting.
Rep Nasiru said, “Inflation has been dropping month-on-month, from about 3.9 percent to around 1.86 percent. That shows progress, and we commend the CBN for recognising this and choosing to hold the rate. It signals stability and should encourage more business activity.”
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The lawmaker explained that retaining the MPR helps prevent further hikes in commercial lending rates, thereby allowing businesses and individuals greater access to credit facilities.
“Most commercial banks peg their lending rates on the MPR plus additional margins. If the MPR had increased again, it would have meant higher borrowing costs for everyone,” he stated.
He stressed that stabilising borrowing costs would support business growth, employment generation, and overall economic recovery.
“Businesses can now plan better and leverage existing resources to expand. As borrowing becomes less burdensome, we should start seeing a gradual increase in job creation and productivity,” he added.
The committee chair also assured that the National Assembly will continue to engage relevant institutions to ensure monetary and fiscal policies work in tandem to achieve national development goals.
He said the Committee is already strengthening collaborations with agencies such as the Nigerian Bureau of Statistics and is reviewing existing laws, including the Nigerian Planning Commission Act, to improve economic planning and resource allocation.
Speaking on Nigeria’s data challenges, he stressed the importance of conducting a national census, describing it as “the foundation of meaningful planning.”
“The president has already set up a committee involving key ministries to work with the National Population Commission. With technology, the next census should give us accurate population data, which is essential for budgeting, infrastructure planning, and social interventions,” he noted.
On the allegation by BudgIT of a N6.9 trillion insertion into the 2025 budget, the lawmaker said, “To the best of my knowledge, the budget comes to the National Assembly as estimates. Lawmakers have the right to engage MDAs and make lawful adjustments. If anyone alleges insertions, they should provide the evidence.”
The chairman reaffirmed the Committee’s commitment to ensuring that national planning is data-driven, transparent, and aligned with the country’s development aspirations.