CPPE React to CBN’s Rate Decision: More Measures Needed

The Central Bank of Nigeria’s (CBN) decision to pause interest rate hikes has been commended by the Centre for the Promotion of Private Enterprise (CPPE).

However, the CPPE’s Chief Executive Officer, Dr. Muda Yusuf, emphasized that more action is needed to support economic growth.

The CBN’s Monetary Policy Committee (MPC) retained the Monetary Policy Rate (MPR) at 27.50% and the Cash Reserve Ratio (CRR) at 50%.

While the CPPE appreciated the rate pause, it expressed concerns about the high CRR, which is the highest globally.

Dr. Yusuf noted that the CRR should be reduced, citing Turkey’s CRR of 25% as a more reasonable benchmark.

He also emphasized the need for a gradual reduction of the MPR and a relaxation of the CRR during the next MPC meeting in May.

The CPPE’s concerns are rooted in the potential impact of high interest rates on businesses and economic growth.

With inflation rates declining to 24.48%, Dr. Yusuf argued that it’s time to relax the tightening measures and support economic recovery.