Lagos, Nigeria | September 22, 2025
The Centre for the Promotion of Private Enterprise (CPPE) has called on the Central Bank of Nigeria (CBN) to review and ease its current tight monetary policy, stressing that high interest rates are stifling growth and limiting access to credit for Small and Medium Enterprises (SMEs).
In a statement issued on Sunday, CPPE Director-General Dr. Muda Yusuf said while the apex bank’s monetary tightening helped to curb inflationary pressures, the prolonged high policy rate has created a credit squeeze that threatens the survival of many businesses.
“The current regime of elevated interest rates has slowed down credit flows to the private sector, especially SMEs that are the backbone of the Nigerian economy. If this continues, we risk eroding industrial capacity, worsening unemployment, and undermining economic recovery,” Yusuf warned.
He advised the CBN to strike a balance between stabilising prices and stimulating growth, adding that targeted interventions and lower policy rates would improve access to affordable finance for businesses, particularly in manufacturing, agriculture, and trade.
According to CPPE, Nigeria’s SMEs account for over 90 percent of businesses and contribute nearly 50 percent of GDP, yet they face structural barriers, including high borrowing costs, multiple taxation, and inadequate infrastructure.
Dr. Yusuf recommended that the CBN work with development finance institutions and commercial banks to expand single-digit interest loan schemes, strengthen credit guarantee programmes, and promote financial inclusion.
He emphasised that supporting SMEs with accessible financing would not only spur productivity but also reduce poverty, boost job creation, and help stabilise the naira through increased domestic productions
