By Atoyebi Nike
The Central Bank of Nigeria (CBN) has been advised to delay any relaxation of its benchmark lending rate, the Monetary Policy Rate (MPR), despite recent signs of easing inflation.
Speaking on Channels Television’s Politics Today, Dr. Paul Alaje, CEO of SPM Professionals, commended the apex bank’s reforms but described the latest inflation figures as “outliers” that do not provide a strong enough basis for policy changes.
Relaxing MPR shouldn’t be now. We need a full year cycle of data before we can consider easing the rate,” Alaje said.
He also cautioned that the run-up to the 2027 general elections could destabilize the economy if politicians misuse foreign exchange for campaign spending. According to him, any reckless handling of forex would trigger immediate volatility in the naira, worsening import costs and undermining recent gains.
The CBN, led by Governor Olayemi Cardoso, recently retained the MPR at 27.5% at its July 301st Monetary Policy Committee meeting. Cardoso has projected a future decline in rates, citing easing inflation and improved capital allocation.
Nigeria’s headline inflation eased slightly to 21.88% in July 2025, down from 22.22% in June, according to the National Bureau of Statistics (NBS). Year-on-year, the figure was 11.52% lower than July 2024, which stood at 33.40%.
Alaje stressed that sustaining reforms, curbing political abuse of forex, and waiting for consistent inflation trends were crucial to avoid reversing Nigeria’s fragile economic progress.
