Nigeria needs stronger monetary transmission to unlock gains of monetary easing — CPPE

The Centre for the Promotion of Private Enterprise (CPPE) has cautioned that the Central Bank of Nigeria’s (CBN) shift toward monetary easing may fail to stimulate the real economy unless monetary transmission is strengthened to ensure lower lending rates for the real sector and credible fiscal consolidation is advanced to safeguard macroeconomic stability.

Muda Yusuf, the Chief Executive Officer of the CPPE, stated this in a policy brief issued to journalists on Tuesday. He commended the CBN for its measured and data-driven policy adjustment, noting that the easing reflects strengthening macroeconomic performance, including declining inflation, growing reserves, an improving trade balance, and enhanced FX stability.

He however noted that if supported by structural reforms and disciplined fiscal management, the current policy direction could unlock a stronger investment cycle and more durable economic growth.