The Centre for the Promotion of Private Enterprise (CPPE) has welcomed the Central Bank of Nigeria’s choice to keep the Monetary Policy Rate unchanged at 26.50%, arguing that the decision supports Nigerian companies while signaling a more measured approach to managing inflation pressures.
Key takeaways
- CPPE endorsed the Central Bank’s decision to hold Nigeria’s Monetary Policy Rate at 26.50%.
- CPPE described the interest-rate pause as pragmatic and beneficial for business activity.
- The group said the move reflects the central bank’s improved grasp of Nigeria’s current inflation drivers.
- CPPE argued that tightening further could hinder productivity, industrial recovery, investment, and job creation.
- The CPPE position ties policy restraint to stronger economic management amid global uncertainty and rising geopolitical risks.
CPPE praises the rate hold as a business-friendly stance
In a statement from CPPE’s chief executive officer, the group said the Monetary Policy Committee’s decision to maintain interest rates represents a pragmatic step that would be “good for Nigerian businesses.” It added that the central bank’s approach shows an increasingly sophisticated understanding of the inflation dynamics facing the Nigerian economy.
CPPE also highlighted that the rate decision comes at a time when international conditions remain unsettled and geopolitical tensions are intensifying. In that context, the group said the MPC’s choice would serve as a strong signal of policy maturity, strategic restraint, and confidence in the direction of Nigeria’s macroeconomic management.
Concerns over excessive tightening and its economic consequences
CPPE warned that further tightening at this stage could reduce economic activity in ways that would be difficult to reverse. The organization said aggressive increases in borrowing costs could choke productivity, weaken industrial recovery, limit the appetite for investment, and ultimately undermine efforts to expand employment.
The group also emphasized a broader economic point: it argued that growth does not come from high interest rates. Instead, it said economies expand through productivity improvements, stronger enterprise activity, investment confidence, and consistent policy coordination—elements CPPE views as critical for Nigeria’s economic outlook.
