CPPE Backs CBN’s 50 Basis-Point Rate cut
Last update: February 25, 2026
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CPPE backs CBN’s 50 basis-point rate cut to 26.5%, saying improved macroeconomic indicators support growth, but warns weak transmission may limit lending impact.
The Centre for the Promotion of Private Enterprise (CPPE) has commended the Central Bank of Nigeria (CBN) for reducing the Monetary Policy Rate (MPR) by 50 basis points to 26.5 per cent, describing the move as supportive of economic growth.
In a policy brief issued in Lagos, CPPE said the decision by the Monetary Policy Committee, announced by CBN Governor Olayemi Cardoso, reflects improving macroeconomic conditions and a cautious shift away from aggressive monetary tightening.
The organisation mentioned sustained disinflation, stronger external reserves, improved trade balance and relative exchange-rate stability as factors that created room for monetary easing.
CPPE noted that the rate cut could enhance investor confidence and stimulate private-sector expansion. However, it warned that weak monetary transmission mechanisms might limit the impact on lending rates.
According to the group, high cash reserve requirements, elevated lending rates, government borrowing and structural banking costs remain significant constraints.
Chief Executive Officer of CPPE, Muda Yusuf, stressed the need for stronger policy coordination and improved transmission mechanisms to ensure that lower policy rates translate into affordable credit for businesses.
CBI News reports that he also underscored the importance of fiscal consolidation, highlighting high public debt, persistent budget deficits and rising debt-service obligations as potential risks to macroeconomic stability.
Yusuf added that if complemented by structural reforms and disciplined fiscal management, the current policy direction could unlock stronger investment flows and more sustainable economic growth.
