- Safiu Kehinde
The Presidency has described the Central Bank of Nigeria’s (CBN) ease of interest rate as validation of President Bola Tinubu’s economic reform.
CBN had at the 302nd meeting of the Monetary Policy Committee (MPC) held yesterday announced a drop in the country’s Monetary Policy Rate (MPR) from 27.5% to 27%.
This according to the committee, saw the MPR reduced by 50 basis points.
The MPC also announced the adjustment of the Cash Reserve Ratio (CRR) to 45% for Commercial Banks while Merchant Banks’ CRR stands at 16%.
It however introduced a 75% CRR on non-TSA public sector deposits.
Reacting to the development in a statement issued on X on Wednesday, the Special Adviser to the President on Media and Public Communications, Sunday Dare, disclosed that this is the first time since 2020 that the CBN would cut the MPR.
The MPR drop, according to Dare, means cheaper loans and lower debt servicing costs for government.
The Presidency held that the development showed that the Tinubu’s reforms are yielding results.
The statement read; “The Central Bank of Nigeria’s decision to cut the Monetary Policy Rate to 27% is a direct validation of the Tinubu administration’s bold economic reforms.
“With GDP growth strengthening and inflation on a steady downward path, the CBN now has the confidence to pivot towards supporting businesses, households, and job creation.
“The last time the Central Bank of Nigeria (CBN) cut the Monetary Policy Rate was in September 2020, when it lowered the MPR from 12.5 % to 11.5 %..
“The cut means cheaper loans for entrepreneurs, more affordable credit for families, and lower debt servicing costs for government — freeing up resources for infrastructure and social investments.
“It also signals to investors at home and abroad that Nigeria’s economy is stabilizing and set on a growth trajectory.
“This is the clearest sign yet that the tough decisions taken in the early months of the administration — from fuel subsidy removal to tax and revenue reforms — are now yielding results.
“The easing of monetary policy is not just a technical move; it is a vote of confidence in Nigeria’s economic direction under President Bola Tinubu.”