CPPE Warns Against Further Monetary Policy Tightening

The Centre for the Promotion of Private Enterprise (CPPE), led by Chief Executive Officer Dr. Muda Yusuf, has expressed deep concerns regarding the Central Bank of Nigeria's (CBN) potential for further monetary policy tightening.

In a press statement regarding the 305th Monetary Policy Committee (MPC) meeting, the CPPE highlighted that additional tightening could adversely affect economic growth, private sector investment, and employment generation. They pointed out that the Nigerian economy is currently fragile, facing structural constraints, and that further tightening could weaken credit expansion and dampen investment appetite.

The CPPE noted that rising crude oil prices have already led to increased domestic energy costs, contributing to inflationary pressures. They argued that the current inflation is predominantly driven by supply-side factors, particularly energy costs and logistical bottlenecks, rather than demand-pull inflation.

The organization advocates for a carefully calibrated monetary policy stance that balances price stability with growth support to avoid undermining economic recovery.