Abuja — The Nigeria Employers’ Consultative Association (NECA) has appealed to the Central Bank of Nigeria (CBN) to urgently lower interest rates in line with recent inflationary declines, warning that high borrowing costs continue to strangle businesses and stifle job creation.
Speaking on behalf of the association, NECA Director-General Adewale-Smatt Oyerinde emphasized that while inflationary pressures are easing, monetary policy has not adjusted sufficiently to reflect the new realities. He argued that the gap between reduced inflation and the still-high interest rate environment risks weakening industrial productivity, discouraging investment, and driving more businesses into distress.
Oyerinde urged the apex bank to act decisively, saying: “Now is the time to align interest rate policy with inflationary trends to provide relief for businesses and households. Affordable credit is essential if we are to grow production, encourage SMEs, and stimulate employment.”
The group further warned that unless lending rates are cut, the economy may not benefit fully from the CBN’s reforms or the government’s renewed push for economic growth. NECA also highlighted the rising cost of raw materials and energy as compounding challenges for employers already struggling to keep operations afloat.
The CBN is expected to review its monetary stance at its next Monetary Policy Committee (MPC) meeting, where the calls for reduced interest rates will be a major focus.
