The Centre for the Promotion of Private Enterprise (CPPE) has hailed the Central Bank of Nigeria’s (CBN) latest monetary policy actions as a “strategic and well-timed” shift from economic stabilization to growth acceleration.
A statement by Dr. Muda Yusuf, CEO of CPPE, noted that if sustained and complemented by fiscal and structural reforms, the move could unlock significant opportunities for investment, job creation, and inclusive economic expansion.
At its most recent meeting, the Monetary Policy Committee (MPC) announced a 50-basis-point cut in the Monetary Policy Rate (MPR) from 27.5% to 27%.
The committee also reduced the Cash Reserve Ratio (CRR) for commercial banks by 500 basis points to 45%, while retaining the CRR for merchant banks at 16% and maintaining the liquidity ratio at 30%.
In addition, the MPC introduced a new 75% CRR on non-TSA public sector deposits, a measure designed to contain excess liquidity risks from fiscal operations and safeguard recent gains in price stability.
The policy pivot comes as Nigeria records five consecutive months of moderating inflation, an outcome of earlier aggressive tightening.
With price stability improving, the MPC’s move to ease liquidity conditions is being viewed as both logical and necessary to stimulate growth.
According to CPPE, high interest rates in recent quarters have constrained private sector credit, raised borrowing costs, and slowed business expansion.
The reduction in the MPR and CRR is expected to ease credit conditions, expand banks’ lending capacity, and improve access to finance for businesses, particularly small and medium enterprises (SMEs).
Analysts at CPPE believe the easing cycle could catalyze new investments, enhance capacity utilization, and strengthen financial intermediation. Lower borrowing costs should provide relief to enterprises, stimulate output growth, and support job creation.
“This decision signals a deliberate effort to shift focus from stabilization to accelerating growth,” the CPPE said in its assessment.
“If supported by complementary fiscal measures, it could unlock the economy’s full potential.”
While welcoming the MPC’s move, CPPE stressed the importance of aligning fiscal and structural reforms with monetary policy.
It urged fiscal authorities to sustain fiscal consolidation, prioritize infrastructure investments, and improve the regulatory framework to attract more domestic and foreign capital.
The group also called for decisive action on security challenges, which continue to weigh heavily on private sector investment and rural productivity.
“The MPC’s decision represents a strategic shift,” the CPPE concluded. “If sustained and matched by fiscal discipline, infrastructure delivery, and stronger institutions, this policy direction could position Nigeria on a path toward sustainable, inclusive, and resilient economic growth.”
“The MPC’s decision represents a strategic shift,” the CPPE concluded. “If sustained and matched by fiscal discipline, infrastructure delivery, and stronger institutions, this policy direction could position Nigeria on a path toward sustainable, inclusive, and resilient economic growth.”