The Tinubu Media Support Group (TMSG) has described the Central Bank of Nigeria’s (CBN) decision to reduce the Monetary Policy Rate (MPR) from 26.5 per cent to 23 per cent as a fresh catalyst for economic growth.
The group said the 350-basis-point reduction would help deepen the impact of recent macroeconomic improvements on Nigerians, particularly by reducing the cost of capital and encouraging investment in the productive sectors of the economy.
In a statement issued by its Chairman, Emeka Nwankpa, and Secretary, Dapo Okubanjo, TMSG said the rate cut had become necessary following several months of declining inflation.
It noted that the latest reduction was the first cut in the benchmark interest rate this year and brought the MPR to its lowest level since February 2024, describing the move as evidence of the CBN’s cautious approach to monetary policy.
TMSG said the decision also came amid lower foreign exchange pressures, improved current account surplus and stronger external reserves, which it said had risen to their highest level in 18 years.
The group further noted that the rate cut followed a sustained decline in headline inflation over three consecutive months.
While acknowledging concerns in some quarters, TMSG said it aligned with the position of the Centre for the Promotion of Private Enterprise (CPPE) that a lower benchmark interest rate could reduce the cost of capital, stimulate investment and strengthen productive capacity in the real sector.
The group, however, stressed that the impact of the policy would take time, noting that CBN Governor, Olayemi Cardoso, had described the decision as an operational adjustment aimed at improving monetary policy transmission.
TMSG also welcomed the Memorandum of Understanding (MoU) signed by the CBN and the Ministry of Finance to strengthen coordination between fiscal and monetary policies in the effort to control inflation.
The group urged Nigerians to remain confident in the economic reform process, saying the policies being implemented by the President Bola Tinubu administration were aimed at building a more resilient and progressive economy capable of achieving the $1 trillion economic target by 2030.
