Experts Seek Stronger Fiscal Measures To Complement CBN’s Policies

The Central Bank of Nigeria, CBN, has been urged to introduce more business-friendly policies aimed at easing the challenges of doing business and addressing the prevailing economic hardship in the country.

The call was made by guests on Perspectives, a current affairs programme on Kapital FM, Abuja, during a discussion on the topic: “Will the Current CBN Monetary Policy Ease Nigerians’ Economic Challenges?”

A Lecturer in the Department of Accounting at the Federal University of Lafia, Nasarawa State, Dr. Mohammed Jibril, attributed the decision of the Central Bank of Nigeria to retain the Monetary Policy Rate, MPR, at 26.5 percent partly to the successful recapitalisation of commercial banks and ongoing efforts to stabilise the nation’s financial system.

According to him, the apex bank’s policy direction may help in curbing inflation and strengthening confidence in the banking sector, but more deliberate efforts are needed to stimulate economic growth and support businesses.

“The retention of the Monetary Policy Rate reflects the CBN’s cautious approach towards stabilising the economy, especially following the recapitalisation drive in the banking sector. However, government must also focus on reducing the cost of borrowing and creating policies that will encourage productivity and investments,” Dr. Jibril stated.

Also speaking on the programme, a former staff of the CBN, Dr. Chidi Odu, described the apex bank’s measures to control money in circulation as appropriate under the current economic realities.

Dr. Odu, however, stressed the need for a balance between monetary tightening and economic productivity, warning that high borrowing costs could negatively impact businesses and limit economic expansion.

“While controlling inflation remains important, lending rates should not outweigh public spending and productive activities in the economy. There must be practical measures that will ease the burden on businesses and ordinary Nigerians,” he said.

He further cautioned against the rising rate of inflation and called on government at all levels to urgently implement strategic action plans capable of reducing economic hardship and improving citizens’ living conditions.

The discussants agreed that although the current monetary policy framework could contribute to long-term economic stability, there was an urgent need for complementary fiscal measures to support businesses, attract investments, boost local production, and provide relief for citizens struggling with the high cost of living.

They also emphasised that sustained collaboration between fiscal and monetary authorities would be critical in addressing Nigeria’s economic challenges and restoring public confidence in the economy.

MON/Risi, Eugene, Uju, Chikezie