The Centre for the Promotion of Private Enterprise (CPPE) has commended the Central Bank of Nigeria (CBN) under Governor Yemi Cardoso for restoring transparency, liquidity, and credibility in the financial system, particularly through the liberalisation and unification of the foreign exchange market.
According to CPPE CEO, Dr. Muda Yusuf, the reforms have improved governance, strengthened oversight, and reduced opportunities for arbitrage, attracting more FX inflows and stabilising the market. He also noted progress in banking sector recapitalisation, inflation management, and reduced political interference in monetary policy.
However, Yusuf warned that the CBN's aggressive monetary tightening — with the Monetary Policy Rate at 27.5% and Cash Reserve Ratio at 50% — is driving up borrowing costs, squeezing credit to manufacturers, SMEs, and other productive sectors. He cautioned that high-yield government instruments could crowd out private investment.
Read also,
To support growth, CPPE urged the CBN to gradually ease interest rates, develop credit guarantee schemes, expand concessionary financing for SMEs, and deepen the bond market to provide long-term funding for infrastructure and industry.
Yusuf stressed the need for policies that balance price stability with economic expansion, ensure stronger corporate governance, and safeguard the CBN's autonomy to sustain reforms beyond the current leadership.
No comments:
Post a Comment