CPPE Faults IMF on Nigeria’s Interest Rates and Cash Transfer Advice

The Centre for the Promotion of Private Enterprise has criticised parts of the International Monetary Fund’s latest advice on Nigeria, especially on interest rates and cash transfers.

CPPE made the position known in a Sunday statement by its chief executive officer, Muda Yusuf, while reacting to the IMF’s recent Article IV Consultation Report on Nigeria.

The group acknowledged that the IMF gave a positive assessment of some of President Bola Tinubu’s economic reforms, including moves aimed at restoring macroeconomic stability.

However, CPPE said stability alone is not enough if reforms do not translate into lower living costs, stronger incomes, better jobs and more affordable credit for businesses.

The policy group warned that continued monetary tightening and high interest rates are making loans too expensive for productive investment. It said businesses need access to reasonably priced credit to expand, invest and create jobs.

CPPE also questioned the emphasis on conditional cash transfers, arguing that public resources would have stronger long-term impact if directed into agriculture, transportation, healthcare, education and infrastructure.

The group said targeted development finance remains necessary for sectors such as agriculture, manufacturing, housing and infrastructure because market-based financing alone cannot close Nigeria’s structural funding gaps.

The statement adds a private-sector policy response to the wider debate over inflation control, poverty relief and the cost of borrowing in Nigeria.

It also reflects concern among businesses that tight monetary policy can slow production even when it helps policymakers fight inflation and defend stability.

Sources: Daily Post, Nairametrics