Nigeria Needs Stronger Monetary Transmission to Benefit from Rate Cuts — CPPE

The Centre for the Promotion of Private Enterprise (CPPE) has cautioned that Nigeria needs stronger monetary transmission mechanisms to fully benefit from the Central Bank of Nigeria's recent shift toward monetary easing.

The CPPE warned that without effective transmission of policy rate cuts to the real economy, businesses and consumers may not feel the intended benefits of the CBN's accommodative stance.

Monetary transmission refers to how changes in the central bank's policy rate flow through to lending rates charged by commercial banks, ultimately affecting borrowing costs for businesses and households.

The think tank called for structural reforms to ensure that reductions in the monetary policy rate translate into lower lending rates, increased credit availability, and ultimately, economic growth.