The Centre for the Promotion of Private Enterprise (CPPE) has hailed the Central Bank of Nigeria’s latest monetary policy adjustments, describing them as a strategic shift that could energise private sector growth and investment.
In a statement on Tuesday, CPPE’s Chief Executive Officer, Dr. Muda Yusuf, said the new measures by the Monetary Policy Committee (MPC) signal a transition from aggressive tightening to growth support, after months of policy actions aimed at taming inflation.
At its 302nd meeting in Abuja, the MPC reduced the Monetary Policy Rate (MPR) from 27.50% to 27%, and lowered the Cash Reserve Ratio (CRR) for commercial banks to 45% from 50%, while maintaining it at 16% for merchant banks. The Liquidity Ratio was retained at 30%, with the asymmetric corridor adjusted to +250/-250 basis points from +500/-100.
“These decisions, if sustained and backed by fiscal and structural reforms, would stimulate economic expansion, create jobs, boost private sector competitiveness, and ultimately broaden government’s tax base,” Yusuf said.
He noted that the policy shift comes as inflation has slowed for five consecutive months, evidence that previous tightening measures were effective in stabilising the macroeconomic environment.
According to Yusuf, high interest rates in recent quarters had squeezed credit, increased borrowing costs, and stifled business growth. “The CBN’s easing is therefore a deliberate move to improve liquidity, reduce financing costs, and unlock capital for productive sectors,” he added.
The CPPE boss emphasised that while monetary easing is a welcome development, fiscal authorities must consolidate efforts to sustain macroeconomic stability, enhance investor confidence, and invest in critical infrastructure to reduce the high cost of production and logistics.
He also called for stronger institutional reforms and better security architecture to improve the investment climate and boost productivity across rural and urban economies.
