January 29, (THEWILL) — Growing signs of macroeconomic stabilisation in Nigeria are fueling calls from economists, business leaders, and financial market analysts for the Central Bank of Nigeria (CBN) to begin easing its tight monetary policy stance to support economic growth.
After months of aggressive interest rate hikes aimed at curbing inflation and stabilising the naira, recent indicators suggest improving conditions. Inflation has shown early signs of moderation, foreign exchange liquidity has strengthened, and the naira has recorded gains at the official market, easing pressure on import-dependent businesses.
Market participants argue that while high interest rates helped restore investor confidence and attract foreign inflows, they have also increased borrowing costs for companies, slowed credit growth, and constrained small and medium-sized enterprises.
Manufacturers and real sector operators say lending rates above 25 percent have made expansion plans difficult, with many firms postponing investments due to high financing costs.
Analysts note that with external reserves rising and fiscal reforms improving revenue collection, the economy is entering a more stable phase that could allow for cautious monetary easing.
However, some experts urge the CBN to proceed carefully, warning that inflation remains elevated and premature rate cuts could reignite price pressures and currency volatility.
As the Monetary Policy Committee prepares for its next meeting, scheduled to be held February 23-24, 2026, expectations are rising that policymakers may begin signalling a shift toward gradual rate reductions, balancing inflation control with the need to stimulate economic activity.
Ogochukwu Onwaeze
