CPPE Applauds CBN’s Policy Easing, Raises Fiscal Concerns

The Centre for the Promotion of Private Enterprise (CPPE) has commended the Central Bank of Nigeria (CBN) for easing credit conditions in the economy, describing the move as a timely shift towards growth after months of monetary tightening.

At its latest meeting, the Monetary Policy Committee (MPC) reduced the Monetary Policy Rate (MPR) by 50 basis points, from 27.5% to 27%. It also adjusted the asymmetric corridor to +250/-250 basis points and cut the Cash Reserve Ratio (CRR) for commercial banks from 50% to 45%. The CRR for merchant banks was retained at 16%, while the liquidity ratio stayed at 30%.

A new policy measure introduced is the 75% CRR on non-Treasury Single Account (TSA) public sector deposits.

According to the apex bank, this is to prevent excess liquidity risks that could arise from fiscal operations and to safeguard recent gains in price stability.

The CPPE responded to the development noting that the easing comes on the back of five consecutive months of declining inflation, showing that previous tightening measures have been effective.

It added that high interest rates in recent quarters had constrained private sector credit, raised borrowing costs and slowed business expansion.

“With lower MPR and CRR, the CBN is working to improve liquidity conditions, reduce borrowing costs and unlock capital for productive sectors,” CPPE’s Chief Executive Officer, Dr. Muda Yusuf, said in a statement.

The group outlined several expected benefits, including improved credit access for businesses, stronger investment inflows, and enhanced financial intermediation.

It also described the move as a prudent balance between stimulating growth and maintaining stability.

However, the CPPE stressed that fiscal policy must complement monetary easing as it urged government to sustain fiscal consolidation, invest in infrastructure, strengthen institutions, improve the business environment, and tackle insecurity, which it identified as a major obstacle to private sector investment.

“The MPC’s decision is a strategic and well-timed shift from stabilization to growth acceleration,” Yusuf said. “If sustained and complemented with fiscal reforms, it will stimulate growth, create jobs, improve revenues and moderate inflation sustainably in the medium to long term.”

The MPC meeting was held on Tuesday, September 23, 2025.