The Centre for the Promotion of Private Enterprise says economic reforms implemented by the Central Bank of Nigeria deserve commendation.
Muda Yusuf, CPPE’s chief executive officer, said this in a statement on Sunday, titled ‘Two Years of Yemi Cardoso as CBN Governor: Achievements and Emerging Concerns’.
Mr Yusuf noted that within two years, the comprehensive transformation agenda had been geared toward restoring confidence. He also stated that the reforms had helped strengthen governance and reposition the financial system to support inclusive and sustainable economic growth.
According to him, the CBN governor, Olayemi Cardoso, under his leadership has significantly transformed Nigeria’s financial system, delivering gains in transparency, credibility, and stability.
“The next phase of reform must focus on achieving a more balanced policy stance that supports growth while preserving macroeconomic stability.
“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,” Mr Yusuf said.
He examined the achievements, challenges, and strategic priorities for the CBN moving forward.
Mr Yusuf explained that Nigeria’s financial system had historically faced challenges, including foreign exchange market distortions, weak corporate governance, excessive monetary financing, and limited access to affordable credit.
“These issues contributed to macroeconomic instability, inflationary pressures, and suboptimal economic performance. The Cardoso-led CBN has sought to address these problems through bold reforms, focusing on transparency, stability, and credibility,” he said.
The CPPE boss highlighted Mr Cardoso’s interventions in foreign exchange reforms, which introduced transparency and credibility to the FX market, thereby improving liquidity and market efficiency.
He added that the apex bank has made progress in improving governance and autonomy, as well as financial system stability, banking sector resilience, inflation, and macroeconomic stability, among other notable achievements.
Mr Yusuf, however, warned against emerging concerns on aggressive monetary tightening, adding that, while necessary to combat inflation, the current stance was highly restrictive.
Mr Yusuf said the Monetary Policy Rate at 27.5 per cent and the Cash Reserve Ratio at 50 per cent had pushed up the cost of funds.
He said elevated lending rates had suppressed private sector borrowing, particularly in manufacturing, SMEs, and other productive sectors. According to him, there is a growing risk that private investment can be displaced by high-yield government instruments.
He urged the CBN boss to strike a balance between price stability and growth, address structural financing gaps through targeted interventions, sustain gains in governance and transparency, and enhance policy communication.
(NAN)
