The Lagos Chamber of Commerce and Industry (LCCI) has called for sustained efforts to remove impediments in Nigeria’s business environment and attract foreign direct investment (FDI) into critical sectors of the economy.
The demand came following the Central Bank of Nigeria’s (CBN) recent reduction of the benchmark interest rate.
In a statement, the Chamber’s Director General, Chinyere Almona, welcomed the Monetary Policy Committee’s rate cut decision by 50 basis points to 26.50 per cent.
She described the reduction as “a cautious, positive step in the right direction.”
According to Almona, the move signals “a significant shift from aggressive monetary tightening toward a stabilisation phase anchored on disinflation, exchange rate convergence, and improving supply-side conditions.”
She noted that inflation has moderated for 11 consecutive months to 15.1 per cent in January 2026, reflecting the impact of recent macroeconomic reforms and improved policy discipline.
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“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,” Almona said.
She said the decision reinforces Nigeria’s transition “from reform-induced adjustment to stabilisation-driven expansion” and strengthens real return expectations for medium-term investment planning, particularly in manufacturing, agro-processing, local drug production and export-oriented industries.
She cautioned that 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 Chamber boss stressed that beyond monetary policy adjustments, authorities must intensify reforms aimed at improving the overall business climate and drawing in foreign capital.
“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,” Almona said.
The LCCI also called 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.
It also expressed expectations that the recently launched digital single window by the Nigerian Customs Service would ease transactions at the ports.
“We see the rate cut as a bridge from reform to results,” Almona said. “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 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.”
She added that with firm coordination between monetary and fiscal authorities, the Nigerian economy would make good progress toward achieving a GDP growth rate above five per cent in the short term.
On Tuesday, February 24, the apex bank after its two-day MPC meeting cut the benchmark rate by 50 basis points to 26.50 per cent.
The decision has generated similar calls for the apex bank to address structural bottlenecks in the financial system and push for stronger fiscal discipline to ensure that the benefits of its latest monetary easing are fully realised, Pinnacle Daily earlier reported.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
