The Centre for the Promotion of Private Enterprise (CPPE) has warned the Central Bank of Nigeria (CBN) against excessive monetary tightening ahead of the 305th meeting of the Monetary Policy Committee (MPC), scheduled for May 20-21, 2026. The CPPE cautioned that higher interest rates could stifle economic growth and worsen the cost of borrowing for businesses.
According to a statement from the CPPE, the group urged the CBN to consider the impact of further rate hikes on the private sector, which is already grappling with high inflation and currency volatility. The CPPE recommended a cautious approach to avoid deepening economic challenges.
The MPC meeting comes amid ongoing efforts by the CBN to curb inflation, which stood at 24.8% in April 2026, according to the National Bureau of Statistics. The CPPE's warning reflects concerns that aggressive tightening could slow economic recovery and increase unemployment.
