The Centre for the Promotion of Private Enterprise has called on the Central Bank of Nigeria to adopt a more balanced policy stance as small and medium enterprises continue to face difficulty accessing affordable credit.
The Chief Executive Officer of CPPE, Dr Muda Yusuf, stated on Sunday, in a review of the two years of Yemi Cardoso as CBN Governor, that while the apex bank had made progress in stabilising the financial system, its restrictive policies had worsened the credit constraints of businesses.
Yusuf said, “The Monetary Policy Rate at 27.5 per cent and the Cash Reserve Ratio at 50 per cent have considerably pushed up the cost of funds. Elevated lending rates have suppressed private sector borrowing, particularly in manufacturing, agriculture, SMEs, real estate, and other sectors.”
He noted that although the Cardoso-led CBN had undertaken reforms that strengthened governance, promoted transparency, and restored credibility to the financial system, structural financing gaps remained unresolved.
“Small and medium enterprises face limited access to affordable credit. Infrastructure, industrial, agricultural, construction, and real estate projects lack patient capital and affordable long-term funding mechanisms,” he added.
The CPPE boss praised the CBN’s progress in liberalising the foreign exchange market, strengthening corporate governance, and introducing recapitalisation measures to enhance banking sector resilience. He also acknowledged that the apex bank had contributed to a deceleration in inflation through monetary tightening and liquidity management.
However, he cautioned that “a fully market-based approach, while improving efficiency, has not addressed structural financing gaps,” stressing the need for targeted interventions.
Yusuf recommended that the CBN calibrate its policies downward as inflation moderates to create a more enabling credit environment. He urged the apex bank to develop credit guarantee schemes and concessionary financing programmes for SMEs and critical sectors, as well as promote development finance instruments to support infrastructure.
He also called for the institutionalisation of governance reforms, stronger legal frameworks to protect CBN’s autonomy, and clear policy communication to manage market expectations.
“The next phase of reform must focus on achieving a more balanced policy stance that supports growth while preserving macroeconomic stability,” he said. “Addressing structural financing gaps and sustaining governance reforms will be critical for unlocking the financial sector’s full potential as a driver of inclusive economic development.”
