The Centre for the Promotion of Private Enterprise (CPPE) has commended the Central Bank of Nigeria (CBN) and its Monetary Policy Committee (MPC) for easing credit conditions in the Nigerian economy.
The MPC’s decision to reduce the Monetary Policy Rate (MPR) from 27.5% to 27% and cut the Cash Reserve Ratio (CRR) of commercial banks from 50% to 45% is seen as a timely intervention to support growth and investment.
The CPPE notes that the combination of lower MPR and reduced CRR should expand banks’ capacity to create credit, lowering lending rates and making financing more accessible for businesses, especially SMEs. This move is expected to stimulate output growth, job creation, and investment.
The MPC’s decision to impose a 75% CRR on non-TSA public sector deposits is considered as a prudent measure to prevent excessive fiscal-driven liquidity injections from destabilizing the financial system.
While the monetary easing is a welcome development, the CPPE emphasizes that fiscal policy must play a complementary role to fully unlock growth potential.
The Centre urges the fiscal authorities to sustain fiscal consolidation, prioritize critical infrastructure investment, strengthen the regulatory and institutional framework, and address security challenges decisively.
The CPPE regards the MPC’s decision as a step in the right direction toward building a more resilient, inclusive, and growth-oriented Nigerian economy.
The Centre is confident that If sustained and complemented by appropriate fiscal and structural reforms, these measures will stimulate economic growth, improve private sector performance, boost government revenues, and moderate inflation sustainably in the medium to long term.
The CPPE’s Director/CEO, Dr. Muda Yusuf, believes that the MPC’s decision represents a strategic and well-timed policy shift from a phase of stabilization to a phase of growth accelerator.
He expressed the hope that with the right complementary measures, Nigeria’s economy can achieve sustainable growth and development.
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