The Nigeria Employers’ Consultative Association (NECA) has welcomed the continued decline in Nigeria’s inflation rate, calling on the Central Bank of Nigeria’s Monetary Policy Committee (MPC) to begin loosening its tight monetary stance to stimulate growth.
This comes after the National Bureau of Statistics (NBS) reported that headline inflation fell for the fifth consecutive month, dropping to 20.12% in August from 21.88% in July.
NECA’s Director-General, Adewale-Smatt Oyerinde, said while the downward trend is encouraging, its positive impact on households and businesses will remain limited unless the MPC strategically reduces the Monetary Policy Rate (MPR).
“Lower interest rates will drive enterprise competitiveness, improve credit access, boost investment, and accelerate job creation, key factors for inclusive growth,” Oyerinde stated.
He, however, expressed concern over persistent food inflation, which still stands at 21.87%, keeping pressure on household budgets. “For Nigerians to truly feel relief, falling inflation must translate into lower prices for staple foods,” he added.
Oyerinde also warned that businesses continue to face high operating costs, with expensive raw materials, energy, and logistics threatening their sustainability. He urged government to complement monetary easing by stabilising the exchange rate, investing in mechanised agriculture, securing farming communities, and fixing structural bottlenecks in power, transport, and regulation.
“The current trend in inflation offers a compelling case for balancing price stability with policies that unlock growth,” he said. “Enterprises must be enabled to thrive so they can create jobs and help ease the cost-of-living crisis.”
