Members of the Organised Private Sector (OPS) have raised concerns that Nigeria’s rising inflation could derail expectations of a long-awaited interest rate cut by the Central Bank of Nigeria (CBN).
The latest data from the National Bureau of Statistics (NBS) revealed that headline inflation climbed to 24.23% in March 2025, up from 23.18% in February, marking the first increase since the Consumer Price Index (CPI) rebasing in January. That rebasing had initially pushed inflation down to 24.48%, a notable drop from 34.80% in December 2024.
With the CBN’s next Monetary Policy Committee (MPC) meeting scheduled for May 19–20, OPS members had hoped for a downward review of the benchmark interest rate, currently set at 27.5%. However, the recent spike in inflation has cast doubt on the possibility of any rate reduction.
Key OPS stakeholders, including the Manufacturers Association of Nigeria (MAN) and the Lagos Chamber of Commerce and Industry (LCCI), expressed worry over the compounding effect of high inflation and high interest rates on businesses, particularly manufacturers. They also flagged the risk of renewed global trade disruptions, which could further worsen inflationary pressures.
In a statement, MAN Director-General Segun Ajayi-Kadir noted that manufacturers faced commercial bank lending rates of up to 35.5% in 2024, directly linked to the high Monetary Policy Rate, which he described as one of the six highest globally.
OPS leaders are urging the CBN to strike a balance between inflation control and economic growth support, emphasising the need for a more growth-oriented monetary policy to ease the pressure on businesses and stimulate job creation.
