The Centre for the Promotion of Private Enterprise (CPPE) has commended the Central Bank of Nigeria for retaining key monetary policy parameters at the 305th Monetary Policy Committee meeting, describing the move as pragmatic and reflective of the country’s prevailing inflationary realities.
In a statement on Wednesday, CPPE Chief Executive Officer Muda Yusuf praised the MPC’s decision to hold the Monetary Policy Rate at 26.5 per cent, alongside the cash reserve ratio for merchant banks (15 per cent) and deposit money banks (45 per cent). The CRR for non-Treasury Single Account deposits was also kept at 75 per cent.
Mr Yusuf said the decision demonstrated policy maturity and strategic restraint amid growing global uncertainty and rising geopolitical tensions, particularly those involving the United States, Israel and Iran, which have affected international markets.
He noted that Nigeria’s inflationary pressures remain largely structural and externally induced rather than purely monetary in nature, with supply-side disruptions and volatility in global oil prices worsening the situation.
“Attempting to force down structural inflation solely through aggressive monetary tightening would amount to applying a monetary solution to a structural problem,” Mr Yusuf warned. He added that further tightening could suppress productivity, weaken industrial recovery, discourage private investment and undermine job creation.
The CPPE boss also commended the CBN for strengthening discipline in monetary management and sustaining relative stability in the foreign exchange market, which he described as a major anchor for macroeconomic confidence and improved investor sentiment. Exchange rate stability, he said, has helped moderate imported inflation, reduce market distortions and improve business planning.
Mr Yusuf further praised the federal government’s renewed commitment to fiscal consolidation and revenue generation, as well as the smooth implementation of the banking sector recapitalisation programme. He noted that the exercise had not triggered depositor panic or bank failures, and would enhance the sector’s capacity to finance industrialisation and infrastructure development.
He urged the CBN to maintain clear communication with banks still addressing recapitalisation requirements, adding that consistent stakeholder engagement would preserve depositor confidence and financial system stability.
The outcome of the MPC meeting, Mr Yusuf concluded, reflects a balanced policy approach designed to support investment, competitiveness, productivity growth and sustainable employment amid challenging global economic conditions.
