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Economic think-tank, Centre for the Promotion of Private Enterprise (CPPE) has warned that though the Central Bank of Nigeria (CBN), has improved market efficiency through its foreign exchange reforms, critical structural financing gaps remain unaddressed.
The CPPE stated this in a review of the two-year administration of the CBN under the leadership of Olayemi Cardoso as the apex bank’s governor.
The Chief Executive Officer of the think-tank, Dr Muda Yusuf, said in the report that Cardoso has done well in restoring credibility, enhancing governance, and stabilising the macroeconomic environment.
He said: “The leadership of Mr. Yemi Cardoso has brought about a significant transformation of Nigeria’s financial system, with 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”.
The economic think-tank called on CBN under Cardoso to introduce credit guarantee schemes and concessional funding for Small and Medium Enterprises (SMEs), as well as the promotion of long-term development finance instruments to address the gaps.
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To support sustainable growth, he advised the CBN to begin a gradual easing of monetary policy as inflation slows to create a more enabling credit environment.
He noted that the current Monetary Policy Rate (MPR) of 27.5 percent and Cash Reserve Ratio (CRR) of 50 percent were major constraints on credit availability.
“Calibrate the CRR and MPR downward as inflation moderates to create a more enabling credit environment.
“Complement monetary tightening with supply-side measures to address structural inflation drivers, ” Yusuf stated.
By:Babajide Okeowo
The post Financing gaps unaddressed despite CBN’s forex reform – CPPE appeared first on Latest Nigeria News | Top Stories from Ripples Nigeria.
