Urgent Policy Needed to Boost Nigeria's Private Sector Credit

Capital Market Academics, represented by CMAN President Prof. Uch Uwalek, have urged for immediate policy interventions to address the declining credit to Nigeria's private sector, which is vital for sustaining economic growth.

During a press conference in Abuja, Uwalek highlighted the importance of private sector investment over mere financial sector expansion. He commended the economic reforms initiated by President Bola Tinubu's administration, contrasting them with previous governments that failed to execute similar policies.

Uwalek pointed out the adverse effects of fuel subsidy removal and the need for a unified foreign exchange market to correct existing distortions. He praised the leadership of Professor Taiwo Oyeleke, the Minister of Finance, for his efforts in tax reform, which culminated in the enactment of the Nigerian Tax Act 2025.

Despite improvements in the macroeconomic environment, Uwalek noted that access to affordable credit remains limited, particularly for small and medium enterprises, which are crucial for job creation. He also raised concerns about Nigeria's public debt, projected to exceed N159 trillion by the end of 2025.