The Centre for the Promotion of Private Enterprise (CPPE) has expressed concerns over the Central Bank of Nigeria's (CBN) recent decision to maintain the interest rate at 27.50 percent, describing it as creating difficult financing conditions for investors in the real economy.

Dr. Muda Yusuf, Chief Executive of CPPE and a renowned economist, made these remarks on Tuesday in response to the Monetary Policy Committee's (MPC) decision to hold all monetary policy parameters steady.

"CPPE welcomes the decision of the monetary policy committee to pause the tightening of rates," Yusuf stated. "However, the CPPE is concerned that both the cash reserve ratio and the monetary policy rate were already very high, creating difficult financing conditions for investors in the real economy."

The CBN's MPC not only maintained the interest rate at 27.50 percent but also retained the cash reserve ratio (CRR) at 50 percent for commercial banks and 16 percent for mortgage banks. The asymmetric corridor around the monetary policy rate remains at +500/-100 basis points.

According to Yusuf, while holding rates amid global economic uncertainty triggered by disruptive tariff regimes and geopolitical dynamics is understandable, he emphasized that "fiscal and monetary policy coordination remains a critical imperative for macroeconomic stability" in Nigeria.

The CBN's decision comes after April's inflation declined to 23.7 percent, according to the National Bureau of Statistics consumer price index released last week. This marks the second consecutive time the apex bank has maintained the interest rate, with the first pause occurring in February 2025.

Economic analysts are closely watching how this monetary policy stance will impact Nigeria's business environment, particularly as the country continues to navigate challenging economic conditions and work toward sustainable growth.