LCCI STATEMENT ON MPR FEBRUARY 2026
CAUTIOUS RATE CUT SIGNALS NIGERIA’S SHIFT TO STABILIZATION AND INVESTMENT-LED GROWTH
The Lagos Chamber of Commerce and Industry (LCCI) welcomes the decision of the Monetary Policy Committee of the Central Bank of Nigeria to reduce the Monetary Policy Rate (MPR) by 50 basis points to 26.50 per cent. This move signals a significant shift from aggressive monetary tightening toward a stabilization phase anchored on disinflation, exchange rate convergence, and improving supply-side conditions. It is a cautious, positive step in the right direction.
The Chamber notes that inflation has moderated for eleven consecutive months to 15.1 per cent in January 2026, reflecting the impact of recent macroeconomic reforms and improved policy discipline. While retaining other monetary parameters suggests that liquidity conditions remain restrictive, the rate cut sends a critical confidence signal to the Organised Private Sector (OPS) and establishes a pathway toward a gradual reduction in the cost of capital. However, businesses still require tangible relief in financing costs to restore production, expand capacity, and preserve jobs.
For domestic and foreign investors, this decision reinforces Nigeria’s transition from reform-induced adjustment to stabilisation-driven expansion. Beyond this action, we expect to see improved policy predictability, strengthened real return expectations, and support for medium-term investment planning, particularly in manufacturing, agro-processing, local drug production, and export-oriented industries. Nonetheless, high reserve requirements on banks, weak and slow credit transmission, and structural rigidities may continue to blunt the impact of monetary easing on real-sector activity.
The LCCI stresses that there is a need to continue to focus on addressing impediments in the business environment and attract the necessary foreign direct investment into critical sectors such as renewable energy, transport logistics, agro-processing, and oil and gas. We must sustain our efforts to expand local refining capacity and build lasting industrial systems that outlast political administrations.
The Chamber therefore calls for a calibrated but sustained easing cycle anchored on inflation outcomes and real-sector performance, alongside accelerated reforms in power supply, transport logistics, agriculture, and the business regulatory environment. We expect the recently launched digital single window by the Nigerian Customs Service to ease transactions at the ports.
We see the rate cut as a bridge from reform to results. We want to see more credit to the private sector for productive activities, more investment in critical infrastructure (with the expected higher allocations from FAAC due to the recent Executive Order on direct revenue remittance by the NNPC), government commitment to a continued transparency in the FOREX market, and strong support to building our local refining capacity in both the oil and gas and solid minerals sectors. With firm coordination between monetary and fiscal authorities, the Nigerian economy will make good progress towards achieving a GDP growth rate above 5% in the short term.
Dr. Chinyere Almona, FCA
Director General
Lagos Chamber of Commerce & Industry
Tuesday 24th February 2026
