The Centre for the Promotion of Private Enterprise (CPPE) has released a review of the past two years of Yemi Cardoso’s leadership as Governor of the Central Bank of Nigeria (CBN).
According to the report, singned by the CEO CPPE, Dr. Muda Yusuf, Cardoso’s tenure has been marked by significant reforms aimed at restoring confidence, strengthening governance, and repositioning the financial system to support inclusive and sustainable economic growth.
He noted that the CBN has undertaken comprehensive reforms to address historical challenges, including foreign exchange market distortions, weak corporate governance, excessive monetary financing, and limited access to affordable credit.
These issues, according to the report, have contributed to macroeconomic instability, inflationary pressures, and suboptimal economic performance.
“Under Cardoso’s leadership, the CBN has achieved significant progress in foreign exchange reform, institutional strengthening, financial system stability, and inflation and macroeconomic stability.” The report noted.
The CPPE also highlighted that liberalization and unification of the foreign exchange market have improved transparency and credibility, eliminated multiple FX windows, and reduced opportunities for arbitrage and corruption.
“The CBN has also made progress in improving governance and autonomy, with strengthened oversight mechanisms and reduced political interference in policy decisions.
“The bank has maintained confidence in the financial system through banking sector resilience measures and improved risk management frameworks.” The report read.
However, the report highlights emerging concerns, including aggressive monetary tightening, which has pushed up the cost of funds and suppressed private sector borrowing.
CPPE noted that the current stance is highly restrictive, with policy rates at 27.5% and Cash Reserve Ratio (CRR) at 50%.
The report also stated that the fully market-based approach has not addressed structural financing gaps, particularly for small and medium enterprises (SMEs) and long-term projects in infrastructure, agriculture, and real estate.
To address these concerns, the CPPE recommends a balanced policy stance that supports growth while preserving macroeconomic stability.
The report suggests gradual easing of CRR and monetary policy rate (MPR) as inflation moderates to create a more enabling credit environment.
The CPPE also recommends developing credit guarantee schemes and concessionary financing programs for SMEs and critical sectors, promoting development finance instruments, and deepening the domestic bond market to mobilize resources for infrastructure.
Furthermore, the report emphasizes the need to sustain governance and transparency gains by entrenching corporate governance standards and strengthening legal frameworks that protect the CBN’s autonomy.
The CPPE review highlights the significant transformation of Nigeria’s financial system under Cardoso’s leadership.
The Center stressed that the next phase of reform must focus on achieving a more balanced policy stance that supports growth while preserving macroeconomic stability and addressing structural financing gaps.
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