Dare Babalola
The Centre for the Promotion of Private Enterprise (CPPE) has lauded the Central Bank of Nigeria’s (CBN) decision to ease credit conditions, describing it as a “welcome and timely intervention.”
According to the CPPE Director/CEO, Dr. Muda Yusuf, in a statement he signed personally on Tuesday, the move marks a significant policy shift towards supporting growth and investment.
“The Monetary Policy Committee’s (MPC) decision represents a strategic and well-timed policy shift from a phase of stabilization to a phase of growth accelerator,” he said.
The CPPE believes that the decision will improve credit conditions, boost investment, and stimulate economic growth.
“If sustained and complemented by appropriate fiscal and structural reforms, these measures will stimulate economic growth and job creation, improve private sector performance and output, boost government revenues through an expanded tax base, and moderate inflation sustainably in the medium to long term,” Yusuf added.
However, the CPPE emphasised the need for complementary fiscal measures to fully unlock growth potential.
“Fiscal policy must play a complementary role to fully unlock growth potential,” Yusuf noted, highlighting the importance of sustaining fiscal consolidation, prioritising critical infrastructure investment, and strengthening the regulatory and institutional framework.
Earlier, the CBN began a gradual easing, cutting its benchmark interest rate, known as the Monetary Policy Rate (MPR), for the first time in five years by 50basis points to 27 per cent.
The Governor of CBN, Olayemi Cardoso, disclosed this during a press briefing on Tuesday after the 302nd MPC meeting in Abuja saying the decision was based on sustained disinflation in five months to support the effort of the economic recovery.
