CPPE warns against prolonged monetary tightening, dependence on hot money
By Aboki Forex —
The Centre for the Promotion of Private Enterprise has warned that prolonged monetary tightening and Nigeria’s growing reliance on foreign portfolio inflows could hurt long term growth.
In a statement on Sunday, CPPE chief executive Muda Yusuf reacted to the IMF’s latest Article IV Consultation Report on Nigeria. He acknowledged progress in stabilising the economy and restoring investor confidence. But he said policymakers must ensure that macroeconomic gains translate into investment growth, job creation and better living standards.
CPPE said the IMF’s assessment correctly reflects the progress made. But it argued that greater policy balance is needed for sustainable growth.
The organisation expressed concern over the IMF’s continued support for tight monetary conditions. It noted that the current interest rate environment is becoming too restrictive for businesses and productive investment.
“Capital in the form of Foreign Portfolio Investments, also known as hot money, is not a reliable foundation for long term economic stability,” CPPE said.