The Central Bank of Nigeria (CBN) has been commended for restoring confidence in the financial system by improving transparency, credibility, and governance.
This applause came from the Centre for the Promotion of Private Enterprise (CPPE), which said the central bank, under the leadership of Mr Yemi Cardoso, has been fantastic.
However, the body, through a statement signed by its chief executive, Mr Muda Yusuf, said the gains recorded the bank’s reforms could be eroded if growth remains constrained by tight monetary policies.
CPPE highlighted the unification of the foreign exchange (FX) market, curbing excessive monetary financing, and strengthening bank recapitalisation measures as key milestones of the CBN under Mr Cardoso in the last two years.
Mr Cardoso, a former chairperson of Citibank Nigeria, became the central bank chief in September 2023. He came at a time public confidence in the central bank was weak. His tenure has coincided with broader reforms by President Bola Tinubu’s government.
“Transparency and credibility have improved, with the elimination of multiple FX windows reducing arbitrage and corruption,” CPPE stated in the statement.
However, it advised the apex bank to balance its fight against inflation with growth concerns, suggesting a gradual easing of rates and cash reserve requirements once inflationary pressures ease, which happened today at the Monetary Policy Committee (MPC) meeting, where the benchmark interest rate was slashed by 50 basis points to 27.0 per cent.
It also called for targeted interventions to close structural financing gaps, including credit guarantee schemes for small businesses and long-term capital for infrastructure and industry.
“The next phase of reform must focus on achieving a more balanced policy stance that supports growth while preserving macroeconomic stability,” the CPPE said, also stressing the importance of institutionalising governance reforms, safeguarding the CBN’s autonomy from political interference, and maintaining clear policy communication to build trust among market participants.
The organisation then said the reforms had created a stronger foundation but warned that unless structural financing gaps are addressed, sectors critical for inclusive growth may continue to struggle.