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Tag: @Dr. Muda Yusuf

  • CPPE Hails FX Stability As Key Economic Gain

    CPPE Hails FX Stability As Key Economic Gain

    The Centre for the Promotion of Private Enterprise (CPPE) has identified foreign exchange market stability as the most visible macroeconomic achievement of Nigeria’s economy in 2025.

    CPPE’s Chief Executive Officer, Dr. Muda Yusuf, made the assessment on Sunday while presenting the organisation’s review of the economy in 2025 and its outlook for 2026.

    According to the private-sector think tank, the naira traded largely within the N1,440 to N1,500 range against the United States dollar for most of the year, reflecting relative stability in the foreign exchange market.

    CPPE said the steadier currency, supported by periods of marginal appreciation, helped to boost investor and business confidence during the year under review.

    The group also noted that exchange-rate stability contributed to a significant moderation in inflation, which declined from 24.48 percent in January 2025 to about 14.45 percent by November.

    “Exchange-rate stability emerged as the most visible achievement,” Yusuf said. “Periodic marginal appreciation strengthened business confidence, eased imported inflation, and restored predictability to pricing, contracting, and investment planning.”

    The think tank added that improved currency stability helped reduce uncertainties associated with trade and investment decisions.

    Market data showed that before the Christmas holiday, the naira closed at N1,443.38 at the official market and about N1,490 at the parallel market.

  • Nigeria’s Net Domestic Credit Falls 12.8%

    Nigeria’s Net Domestic Credit Falls 12.8%


    Nigeria’s Net Domestic Credit (NDC) fell by 12.8% year-on-year (YoY) in August 2025, reaching N98.97 trillion, according to the latest Central Bank of Nigeria (CBN) money and credit report. The NDC, which measures total bank credit to both public and private sectors, reflects the impact of monetary policy easing amid a continued drop in inflation.

    Analysis showed that in August 2025, bank credit to government stood at N23.133 trillion, while credit to the private sector was N75.843 trillion, bringing the total NDC to N98.97 trillion. By comparison, in August 2024, credit to government was N39.391 trillion and credit to the private sector N74.072 trillion, totaling N113.463 trillion.

    Monthly trends in 2025 indicated fluctuations in NDC levels. It started the year at N102.406 trillion, rising 0.9% to N103.369 trillion in February, before dropping 34% to N68.177 trillion in March. In the second quarter, NDC rose 49.6% to N102.002 trillion in April, declined 1.03% to N100.955 trillion in May, and dropped further 3.13% to N97.787 trillion in June. After missing data for July, August saw a modest increase of 1.2%.

    Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), commended the CBN’s Monetary Policy Committee (MPC) for reducing the Monetary Policy Rate (MPR), describing it as “a welcome and timely intervention.” He noted that a lower MPR combined with a reduced Cash Reserve Ratio (CRR) could expand banks’ capacity to create credit, ease lending rates, and support business growth and job creation.

    However, Yusuf emphasized that monetary easing alone is insufficient, urging fiscal authorities to prioritize infrastructure, strengthen regulations, and maintain fiscal consolidation to ensure macroeconomic stability and boost investor confidence.

    David Adonri, analyst and Executive Vice Chairman at High Cap Securities Limited, expressed concern that the persistent contraction in credit could strain business funding, especially amid inflationary pressures, foreign exchange volatility, and weak consumer demand.

    He also highlighted a broader African trend, noting that central banks across the continent are easing policy as inflation cools. For instance, Ghana cut its policy rate by 350 basis points to 21.5%, while Kenya lowered its benchmark rate to 9.5% in mid-August. Nigeria’s MPR, however, remains among the highest in Africa, reflecting ongoing inflationary pressures.