The Centre for the Promotion of Private Enterprise (CPPE) has called on the Central Bank of Nigeria (CBN) to adopt more flexible monetary measures aimed at stimulating credit availability, particularly for small and medium-sized enterprises (SMEs) and other critical sectors of the economy.
In a policy advisory released on Sunday, CPPE’s Chief Executive Officer, Dr. Muda Yusuf, urged the apex bank to recalibrate its monetary stance by reducing the Cash Reserve Ratio (CRR) and the Monetary Policy Rate (MPR). He noted that recent signs of moderating inflation provide room for a shift in policy direction.
“The CBN should calibrate CRR and MPR downward as inflation moderates to create a more enabling credit environment,” Yusuf said. “It is also important to complement monetary tightening with supply-side interventions that address structural drivers of inflation.”
Yusuf explained that the current high-interest-rate regime has made borrowing extremely difficult for businesses, stifling investment and hindering economic growth. He stressed that SMEs, which account for a large share of jobs and production in Nigeria, are the worst hit by restrictive credit conditions.
The CPPE further argued that while tight monetary policies may help stabilize prices, they risk suppressing private sector growth if not balanced with measures that stimulate productivity and ease financing pressures.
The group urged the CBN to prioritize interventions that will unlock access to affordable funding, strengthen real sector growth, and position Nigeria’s economy on a more sustainable path.
The advisory comes as businesses continue to grapple with rising operational costs, weakened consumer demand, and foreign exchange challenges, even as government reforms aim to stabilize the macroeconomic environment.
