By Muhammad Mamman
The Central Bank of Nigeria’s (CBN) recent easing of credit conditions has drawn praise from business leaders, though experts caution that the benefits may not be felt immediately.
The Centre for the Promotion of Private Enterprise (CPPE) described the move as a timely intervention to stimulate growth after years of tight monetary policy. Its Director, Dr Muda Yusuf, commended the introduction of a 75% Cash Reserve Ratio (CRR) on non-TSA public sector deposits, noting that it would curb liquidity risks and safeguard recent gains in price stability.
Similarly, the Association of Small Business Owners of Nigeria (ASBON) welcomed the Monetary Policy Rate (MPR) cut from 27.5% to 27% — the first in three years — saying it signalled a shift towards balancing inflation control with economic growth. However, its president, Dr Femi Egbesola, warned that lending costs remain high and meaningful relief will only come if the downward trend continues alongside reforms in power, infrastructure and the business environment.
Market analyst David Adonri of Highcap Securities added a note of caution, highlighting concerns about insecurity and global commodity volatility that could undermine the sustainability of the CBN’s policy shift.
