The Centre for the Promotion of Private Enterprise (CPPE) has urged the Central Bank of Nigeria (CBN) to adopt a more balanced policy direction that will make credit more affordable for small and medium enterprises (SMEs) and other critical sectors of the economy.
The Chief Executive Officer of CPPE, Dr. Muda Yusuf, made the appeal on Sunday in a review of the two years of Mr. Yemi Cardoso as Governor of the apex bank. He said while the CBN had achieved progress in stabilising the financial system, its current restrictive stance had worsened the credit challenges of businesses.
According to Yusuf, the current Monetary Policy Rate (MPR) at 27.5 per cent and Cash Reserve Ratio (CRR) at 50 per cent have made funds more expensive and difficult to access. He explained that high lending rates had discouraged private sector borrowing, particularly in manufacturing, agriculture, real estate, SMEs, and construction.
“The impact of elevated interest rates is being felt across the economy,” he said. “Many businesses that require long-term capital, including industrial and agricultural projects, cannot access affordable credit. SMEs, which are the backbone of the Nigerian economy, are the worst hit by these policies.”
He, however, acknowledged some achievements of the Cardoso-led CBN. These include reforms that improved transparency, strengthened governance, and restored credibility to the financial system. He noted that the liberalisation of the foreign exchange market, recapitalisation moves in the banking sector, and measures to improve liquidity had also boosted confidence.
The CPPE boss praised the CBN’s efforts in slowing inflation through monetary tightening and liquidity management, but warned that the benefits of a purely market-based approach had not been evenly spread. He stressed that while efficiency had improved, structural financing gaps remained unresolved.
“Small and medium enterprises still face limited access to affordable credit,” he noted. “Sectors such as infrastructure, agriculture, construction, and real estate require patient capital and concessionary funding mechanisms. These are not adequately available under the present framework.”
Yusuf called on the CBN to adjust its monetary stance downward as inflation begins to moderate, saying that would create a more enabling credit environment for businesses. He also recommended targeted programmes to provide affordable loans to SMEs and vulnerable sectors.
“The CBN should consider credit guarantee schemes, development finance instruments, and concessionary financing initiatives that can ease the burden on businesses,” he advised. “The focus should not only be on stabilisation but also on growth and job creation.”
He added that governance reforms at the CBN should be institutionalised and backed by stronger legal frameworks to protect the autonomy of the bank. Clear communication of policy intentions, he said, would also help build market confidence and reduce uncertainty.
“The next stage of reform must prioritise balance,” Yusuf explained. “The economy needs a CBN that continues to preserve stability but also ensures that the financial sector becomes a true driver of inclusive growth. Without addressing structural financing gaps, Nigeria’s economic recovery and development will be slow.”
The CPPE boss further warned that prolonged restrictive monetary policies could deepen the struggles of local manufacturers and SMEs, many of which are already battling rising operating costs. He said access to affordable credit was essential for businesses to expand, create jobs, and compete in the global economy.
He concluded that while stabilisation efforts under Governor Cardoso had achieved notable results, the CBN must now design its next set of reforms to support growth and reduce financing barriers faced by entrepreneurs.
