The Centre for the Promotion of Private Enterprise (CPPE) has commended the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) for its decision to maintain current interest rates, aligning with the organization’s expectations. However, the CPPE is calling for future rate reductions and a review of the Cash Reserve Ratio (CRR).
Dr. Muda Yusuf, Chief Executive Officer of CPPE, expressed satisfaction with the MPC’s decision to hold the Monetary Policy Rate (MPR) at 27.50%. He noted that the recent rebasing of inflation, now at 24.48%, below the MPR, justifies the pause to prevent further strain on businesses and consumers.
“Given the decline in inflation, retaining the rates is sensible to avoid exacerbating interest rate pressures. Going forward, we should see a moderation in rates and a relaxation of these tightening measures,” Dr. Yusuf stated.
The CPPE emphasized that maintaining an MPR higher than the inflation rate places undue pressure on investors. Dr. Yusuf urged the CBN to begin a gradual reduction of the MPR and ease the CRR during the next MPC meeting in May.
“The inflation outlook appears better, and we expect the CBN to relax some of these rates by the next MPC meeting,” he added, citing the recent drop in prices of key commodities like energy and pharmaceuticals.
However, the CPPE expressed significant concern over the CRR, currently at 50%, the highest globally. “There is no justification for maintaining such an outrageous CRR level. Our economic situation does not warrant it. The closest to Nigeria’s CRR is Turkey’s, at 25%. Going forward, the CRR needs to be reduced,” Dr. Yusuf asserted.
The CPPE also criticized the wide asymmetric corridor of +500/-100 basis points, arguing it could disconnect the financial system from the real economy, hindering growth.
“If the MPR is already at 27.5%, an asymmetric corridor at +500 basis points is not healthy. Continuing on this trajectory could practically disconnect the financial system from the real economy, which would seriously impact economic growth,” Dr. Yusuf explained.
The MPC, during its 299th meeting, retained the MPR at 27.50%, the asymmetric corridor at +500/-100 basis points, and the CRR for Deposit Money Banks at 50%. The CPPE is urging the CBN to re-evaluate these tightening measures in future meetings.
About CPPE:
The Centre for the Promotion of Private Enterprise (CPPE) is a leading advocacy organization dedicated to promoting a conducive business environment and fostering private sector growth in Nigeria.
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By John Audu.

The house of representatives has fixed February 26 for a public hearing on the tax reform bills.

At the plenary session on Tuesday, Tajudeen Abbas, speaker of the house of representatives, constituted a 36-member special committee for the public hearing, The Cable News

Abiodun Faleke, a lawmaker from Lagos, is the chairman of the committee, while Saidu Abdullahi, from Niger state, is the deputy chairman.

Both lawmakers serve as the chairman and deputy chairman of the house committee on finance, respectively.

Other members include Alhassan Ado-Doguwa, Sada Soli, Nicholas Mutu, and Fred Agedi, among others.

Last week, the four bills—the Nigeria Tax Bill, the Tax Administration Bill, the Joint Revenue Board Establishment Bill, and the Nigeria Revenue Service Bill — scaled the second reading at the green chamber after an extensive debate by lawmakers.

OBSERVERS TIMES recalled that on October 3, Tinubu urged the national assembly to pass the tax reform bills, which the senate approved for the second reading in November.

The bills initially faced opposition from the national economic council (NEC) and northern governors, who argued that the proposed laws could harm the region’s interests.

They urged the national assembly to reject the bills, demanding fair and equitable implementation across all regions.

However, in January, the Nigeria Governors’ Forum (NGF) endorsed the bills after agreeing on an “equitable” VAT-sharing formula.

By Anastasia John E.

At the Inaugural Economic Policy Conference for Emerging Market Economies, organised by the Ministry of Finance, Saudi Arabia, and the International Monetary Fund (IMF) Regional Office in Riyadh, CBN Governor, Mr. Olayemi Cardoso emphasised the need for stronger economic ties with the Middle East and the Nigerian Diaspora community in the region.

Speaking on Policy Challenges Amid Structural Shifts in the World Economy, Governor Cardoso highlighted Nigeria’s ongoing economic reforms and the CBN’s commitment to macroeconomic stability. He reinforced the importance of policy consistency and long-term resilience in ensuring sustainable growth for Nigeria’s economy.

Governor Cardoso also accentuated digitalisation as a key driver of financial inclusion in Nigeria. Through mobile money services and tech-driven solutions, the CBN aims to expand financial access to underserved communities, particularly women. “Digitalisation is key to Nigeria’s financial inclusion efforts,” he stated.

Additionally, the Governor reaffirmed the CBN’s recapitalisation mandate, stressing that it is strengthening Nigeria’s financial sector and ensuring that banks are well-positioned to handle future economic shocks.

“Nigeria’s tough but necessary policy decisions are paying off,” he concluded.

By John Audu.

The Central Bank of Nigeria (CBN) conducted another successful Open Market Operation (OMO) auction on February 13, 2025, attracting total subscriptions worth N1.915 trillion. Although demand was lower compared to the previous auction in January, the CBN increased the total volume of successful bids, selling N1.395 trillion worth of OMO bills.

The auction featured two tenors: a 355-day bill and a 362-day bill, both with an initial offer size of N300 billion. Investor interest was stronger for the longer-duration 362-day bill, with total subscriptions reaching N1.499 trillion. The CBN responded by allotting N993 billion for this tenor, while the 355-day bill saw N402.85 billion allotted.

Compared to the January auction, the February auction saw lower stop rates, with the 355-day bill clearing at 21.3249% and the 362-day bill at 21.45%. This decline in stop rates indicates that investors are willing to accept lower yields, possibly due to expectations of monetary policy easing or improved liquidity conditions.

The CBN’s decision to increase the amount sold despite lower subscription levels suggests that it is actively managing the money supply, likely in response to inflationary trends or foreign exchange market pressures. The decline in stop rates also suggests that market participants are anticipating a stable interest rate environment, with reduced expectations of further monetary tightening by the central bank.

The strong demand for longer-duration instruments, such as the 362-day bill, indicates a preference for locking in relatively high yields for an extended period, potentially as a hedge against future market volatility. As the CBN continues to manage liquidity and inflation, investors will be watching closely for signs of monetary policy direction and its impact on the economy.