Rep Lauds CBN’s Decision to Retain Interest Rate at 27.50% …Speaks On an Alleged Budget Insertion By Saheed Badmus
Rep Lauds CBN’s Decision to Retain Interest Rate at 27.50%
…Speaks On an Alleged Budget Insertion
The Chairman of the House of Representatives Committee on National Planning and Economic Development, Rep Gboyega Nasiru Isiaka (APC, Ogun) has welcomed the recent decision by the Central Bank of Nigeria (CBN) to retain the Monetary Policy Rate (MPR) at 27.50%, describing it as a balanced move that reflects current economic realities.
Speaking in an interview at the National Assembly Complex, Abuja on Wednesday, the lawmaker said while the CBN has a constitutional mandate to fight inflation, the legislature is equally committed to ensuring that monetary policies do not stifle growth, employment, and business expansion.
“We owe it a duty to Nigerians to observe what’s happening and offer input,” he said. “The CBN has raised the MPR multiple times consecutively, but this time, we advised they be more accommodative. I believe that is what they have done.”
He acknowledged the CBN’s efforts to manage inflation, which has shown signs of moderation, with the month-on-month rate reportedly dropping to 1.86% from 3.9%. “We expect the trend to continue. That will put the apex bank in a better position to eventually consider reducing the MPR,” he noted.
While highlighting the positive impacts it has for the Ordinary Nigerians the committee chair explained that the decision to hold the rate steady offers a measure of relief, especially for businesses and households dependent on credit.
“When interest rates are high, borrowing becomes more expensive. With the MPR unchanged, we don’t expect commercial banks to raise their lending rates either. That should mean some stability in prices and hopefully, over time, a downward trend,” he explained.
He added that improved borrowing conditions could help businesses grow and gradually lead to increased employment.
On the Committee’s Broader Agenda, the Ogun state federal legislator also revealed ongoing efforts by his committee to enhance economic planning and policy evaluation. “Just last week, we engaged with the National Bureau of Statistics and passed a report to amend the Nigerian Planning Commission Act,” he said.
According to him, the committee is also reviewing the country’s budget planning framework, with particular attention to complaints about the ‘envelope system’ used in recent budget cycles.
He stressed the committee’s resolve to collaborate with key government agencies to enhance fiscal discipline and ensure efficient resource deployment across Ministries, Departments, and Agencies (MDAs).
Commenting on a recent report by BudgIT alleging a N6.9 trillion ‘insertion’ into the 2025 budget, the chairman said, “From my understanding, the budget comes as an estimate from the President. Committees then engage ministries and make lawful adjustments. If there’s any allegation of insertion, the burden of proof lies with those making the claim.”
He also emphasised the importance of data for effective national planning, calling for the acceleration of Nigeria’s delayed national census. “We can’t plan without knowing how many we are. Thankfully, President Tinubu has set up a committee led by the SGF to fast-track this process with the National Population Commission.”
He expressed optimism that the forthcoming census, supported by new technologies, would yield more accurate data to inform policies and development plans.
The lawmaker concluded by reiterating the committee’s commitment to strengthening institutions and frameworks guiding Nigeria’s economic and development trajectory.
