The President of the Capital Market Academics of Nigeria (CMAN), Professor Uche Uwaleke, has urged the Central Bank of Nigeria (CBN) to gradually reduce interest rates and revive development finance through specialized institutions.
He warned that persistently high borrowing costs are currently hurting critical sectors of the economy by stifling productive investment, hindering business expansion, and limiting job creation.
Speaking at a world press conference organized by CMAN in Abuja, Uwaleke argued that Nigeria’s inflation has become increasingly structural and cost-push in nature.
Consequently, the prominent economist maintained that the nation’s price instability can no longer be effectively tackled through repeated increases in the Monetary Policy Rate alone.
Uwaleke’s appeal comes at a time when the CBN, under the leadership of Governor Olayemi Cardoso, has intentionally shifted away from direct intervention lending.
The apex bank has instead focused its strategy on restoring price stability and boosting investor confidence, holding the benchmark interest rate at 26.5 percent during its May 2026 monetary policy meeting.
While acknowledging the apex bank’s focus on its primary mandate, the CMAN president noted that the current high-interest-rate environment heavily penalizes the private sector.
He emphasized that the true measure of economic reform lies in the welfare of citizens and access to affordable credit, rather than just rising stock prices or improving foreign reserves.
To bridge the gap, Uwaleke advised the CBN not to entirely abandon targeted financing for productive sectors like agriculture, manufacturing, and housing. Instead of administering these programs directly, he recommended that the apex bank route strategic financial support through existing Development Finance Institutions that possess the proper expertise to manage them.
