Nigerians could soon begin to feel the benefits of macroeconomic stability as the Tinubu Media Support Group (TMSG) has welcomed the Central Bank of Nigeria’s (CBN) decision to cut the benchmark interest rate from 26.5 percent to 23 percent, calling it a fresh catalyst for economic growth.
In a statement signed by its Chairman, Emeka Nwankpa, and Secretary, Dapo Okubanjo, the group said the rate reset became necessary after inflation fell for several consecutive months.
According to the group, the CBN’s decision to lower the Monetary Policy Rate (MPR) by 350 basis points is the first reduction this year.
“That the benchmark interest is the lowest since February 2024 shows that the CBN had been cautious with its monetary policy even after it cut the rate by 50 basis points in February this year,” the statement said.
The group noted that the move comes at a time of reduced foreign exchange pressures, a result of economic policies that have improved the current account surplus and lifted external reserves to their highest level in 18 years.
It added that the cut also follows a sustained decline in headline inflation for three consecutive months.
“Although there are still misgivings in some quarters, we align with the position of the Centre for the Promotion of Private Enterprise (CPPE) that the cut in benchmark rate could reduce the cost of capital, stimulate investment and strengthen productive capacity in the real sector of the economy,” the group said.
TMSG stressed that the reduction marks the beginning of a long process, which is why CBN Governor Olayemi Cardoso described the decision as an operational adjustment aimed at improving monetary policy transmission.
The group also expressed delight that the CBN and the Federal Ministry of Finance have signed a memorandum of understanding (MOU) to strengthen coordination between fiscal and monetary policies in order to control inflation.
TMSG urged Nigerians to keep faith in the process being steadily institutionalised by President Bola Tinubu’s administration, whose vision is to build a resilient and more progressive economy that reaches the $1 trillion mark by 2030.
