Nigeria’s central bank reduced MPR to 27%, sparking mixed reactions from economists, analysts, and small businesses over growth prospects.
The Central Bank of Nigeria cut the Monetary Policy Rate (MPR) by 50 basis points to 27% at its 302nd meeting, a move seen as cautious but significant. Economists like Dr. Paul Alaje welcomed the decision as a “very good development,” noting Nigeria now records its first positive real interest rate in years. He argued that rates should drop closer to 15% to truly drive growth and GDP expansion.
Others, including Dr. Adam Abudu, argued the high rate still stifles SMEs, limiting access to credit and job creation. Entrepreneurs in Abuja voiced frustration, saying loan costs remain unaffordable and could force more businesses to shut down.
Meanwhile, the Centre for the Promotion of Private Enterprise praised the move as “strategic and well-timed,” stressing that sustained reforms could unlock growth, investment, and inclusive development.
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