The Centre for the Promotion of Private Enterprise (CPPE) has urged the Central Bank of Nigeria (CBN) to adopt more flexible monetary policies that can improve access to credit for small businesses and key sectors of the economy.
In a policy advisory issued on Sunday, CPPE Chief Executive Officer Dr. Muda Yusuf argued that while the CBN’s tight monetary stance is aimed at curbing inflation, it has also limited affordable lending to households and enterprises. He recommended lowering both the Cash Reserve Ratio (CRR) and the Monetary Policy Rate (MPR) in line with recent signs of easing inflation.
“Calibrate CRR and MPR downward as inflation moderates to create a more enabling credit environment. Complement monetary tightening with supply-side measures to address structural inflation drivers,” the statement said.
Beyond rate adjustments, CPPE called for new financing tools to close Nigeria’s SME funding gap. The group proposed credit guarantee schemes and concessionary loan programmes for priority areas such as agriculture, manufacturing, and renewable energy. It also recommended expanding development finance instruments and strengthening the domestic bond market to mobilize long-term capital for infrastructure.
Yusuf emphasized that SMEs remain the backbone of Nigeria’s economy and cannot thrive without affordable financing. He said targeted interventions would boost productivity, reduce unemployment, and enhance economic resilience.
At the same time, CPPE commended CBN Governor Yemi Cardoso for reforms that have improved transparency and stability in Nigeria’s financial system. The group cited the unification of the foreign exchange market as a major achievement, noting that the elimination of multiple FX windows has reduced arbitrage and corruption opportunities.
The CBN recently held its 301st Monetary Policy Committee (MPC) meeting, where members unanimously voted to keep the MPR at 27.5 percent. Analysts, however, expect a modest cut of 25 to 50 basis points at the upcoming 302nd meeting, citing stable exchange rates, easing inflation, and global monetary trends as supporting factors.
