A financial expert and the Chief Executive Officer of SD & D Capital Management, Gbolade Idakolo, has urged the Central Bank of Nigeria to reduce the country’s interest rate, which stood at 27.50 percent despite the inflation rate dropping to 22.97 percent in May 2025.
Idakolo said this in an exclusive interview with Media Talk Africa on Tuesday.
This comes as the country’s headline and food inflation dropped for the second time to 22.97 percent and 21.14 percent in May.
Reacting, Idakolo attributed the nation’s inflation decline to the stabilisation of the naira against the dollar in the foreign exchange market and the reduction in the prices of some staple foods.
Nigeria’s food inflation drops for the second time to 21.14% in May
“The inflationary trend cooling off for the second month in a row to 22.97% is as a result of the stabilisation of the Naira against the Dollar as well as a decline in prices of staples,” he told Media Talk Africa.
He, however, said the CBN Monetary Policy Committee should ease interest rate, unlike in May, when it maintained the MPR at 27.50 percent.
According to him, easing of monetary tools would have a ripple effect on productivity and thereby further drive inflation down.
“The CBN maintained a hold decision on interest rates in the last MPR meeting, which further extended gains for the economy.
“The next CBN’s MPC should critically look into reducing the MPR to ease the burden on critical sectors affected by high interest rates and the cost of doing business.
“The MPR is the base rate that banks consider before giving out loans to customers, and the rate affects the cost of servicing the loan, which has a ripple effect on productivity.
“Reducing the MPR can increase productivity, which will further drive down inflation,” he stated.
