IMF Interest Hikes in Nigeria: CPPE Rejects Call for Further Rate Increases

|By Babatunji Wusu – The Centre for the Promotion of Private Enterprise (CPPE) has strongly opposed IMF interest hikes in Nigeria, arguing that further increases in borrowing costs could damage businesses and slow economic growth.

The group’s Chief Executive Officer, Muda Yusuf, made the position known in a statement on Sunday while reacting to the International Monetary Fund’s recent assessment of Nigeria’s economic reforms.

Although CPPE welcomed the IMF’s recognition of progress made under President Bola Tinubu’s economic reforms, it stressed that economic stability alone is not enough. According to the organisation, the success of reforms should be measured by their impact on ordinary Nigerians.

The think tank warned that IMF interest hikes in Nigeria could make credit more expensive for businesses. Consequently, firms may struggle to expand operations, create jobs and attract investments.

“The cost of credit in Nigeria has reached levels that are becoming increasingly prohibitive for productive investment,” CPPE said.

Furthermore, the organisation argued that exchange rate stability and stronger reserves must translate into lower food prices, better incomes and improved living standards.

CPPE also questioned the continued emphasis on cash transfer programmes. Instead, it urged the government to channel more resources into agriculture, healthcare, education, transportation and infrastructure.

On development finance, the group insisted that targeted funding remains necessary for key sectors such as agriculture, manufacturing, housing and infrastructure. It argued that commercial lending alone cannot bridge Nigeria’s financing gap.

In addition, CPPE criticised the IMF for paying limited attention to the role of state governments. The organisation noted that increased allocations have strengthened the ability of states to support food production, healthcare, education and security.

Ultimately, CPPE maintained that IMF interest hikes in Nigeria could undermine inclusive growth and worsen the challenges facing businesses and households across the country.