Business
CPPE cautions CBN against monetary tightening ahead of the MPC meeting
The Centre for the Promotion of Private Enterprise (CPPE) has warned the Central Bank of Nigeria (CBN) against excessive monetary tightening ahead of the 305th meeting of the Monetary Policy Committee (MPC).
The group cautioned that higher interest rates could weaken economic growth, private-sector investment, industrial productivity, and employment.
The warning came in a statement signed by the Chief Executive Officer of CPPE, Muda Yusuf, on Sunday.
At the February MPC meeting, the committee reduced the borrowing rate by 50 basis points to 26.5 per cent, and scheduled the 305th meeting for 19 and 20 May.
CPPE said expectations ahead of the MPC meeting should be viewed in the context of growing domestic macroeconomic pressures, geopolitical tensions, and rising fiscal liquidity risks.
According to the think tank, escalating geopolitical tensions involving the United States, Israel, and Iran have already triggered volatility in the global energy market, with implications for inflation, energy costs, and business operations in Nigeria.
“Of immediate significance are the escalating geopolitical tensions involving the United States, Israel, and Iran, which have triggered renewed volatility in the global energy market.
“The resulting surge in crude oil prices is already transmitting into higher domestic energy costs, with significant implications for inflationary pressures, production costs, transportation, logistics, and overall business operating conditions within the economy,” CPPE said.
Concerns
CPPE also raised concerns over increasing liquidity injections linked to political activities ahead of the 2027 general elections, warning that rising political spending and improved Federation Account Allocation Committee (FAAC) disbursements to states could worsen inflationary pressures.
“At the domestic level, early signs of election-related liquidity injections ahead of the 2027 electoral cycle are also becoming increasingly evident.
“Rising political spending by aspirants and political parties, increased election-related expenditures, and substantially improved Federation Account Allocation Committee [FAAC] disbursements to subnational governments present material risks to liquidity management and inflation containment,” the group stated.
It said recent engagement by the CBN with state governments on inflationary risks associated with fiscal injections reflects growing official concerns over excess liquidity in the economy.
CPPE noted that the MPC may therefore adopt a cautious tightening stance or maintain its current restrictive monetary policy position to manage inflation expectations and sustain investor confidence.
“Accordingly, there is a strong possibility that the Committee may be inclined towards a cautious tightening bias or a prolonged retention of the current tight monetary stance in order to contain inflation expectations, reinforce policy credibility and sustain investor confidence,” CPPE said
Warning
The CPPE warned that additional monetary tightening could significantly hurt the productive sector and undermine economic recovery.
“The Nigerian economy remains fragile and structurally constrained. Further tightening of monetary conditions could significantly weaken credit expansion, dampen investment appetite, and undermine the fragile momentum of the real-sector recovery.
“Excessively elevated interest rates also heighten the risks of loan defaults, weaken the financial sustainability of businesses, and exacerbate sovereign debt service pressures,” it said.
The think tank argued that Nigeria’s inflation challenge remains largely structural and supply-side driven, making aggressive monetary tightening less effective in addressing the root causes of inflation.
“It is equally important to recognise that the current inflationary pressures are predominantly cost-push and supply-side driven. The major inflation drivers remain energy costs, transportation expenses, logistics bottlenecks, and structural inefficiencies within the production environment.
“Monetary tightening is generally more effective in addressing demand-pull inflation arising from heightened aggregate demand and liquidity expansion. Its effectiveness in addressing supply-side inflation shocks is considerably more limited,” the group explained.
According to CPPE, further tightening under current economic conditions could raise the cost of capital, weaken manufacturing competitiveness, suppress SME growth, constrain household consumption, and slow investment expansion.
“Further tightening under prevailing conditions, therefore, risks imposing disproportionate costs on the productive sector without necessarily delivering commensurate gains in inflation moderation.
“Higher interest rates would increase the cost of capital, weaken manufacturing competitiveness, suppress SME growth, constrain household consumption, and slow investment expansion at a time when the economy urgently requires productivity-enhancing investments and job creation,” CPPE stated.
Advocacy
The think tank called for a balanced, carefully calibrated monetary policy framework that supports growth while maintaining macroeconomic stability and controlling inflation.
“The CPPE therefore advocates a carefully calibrated and balanced monetary policy stance that preserves macroeconomic stability while avoiding excessive tightening capable of undermining economic recovery and private sector resilience.
“The overarching policy priority should be to sustain investor confidence, support productive investments, stimulate output growth, and strengthen the economy’s supply-side capacity while maintaining vigilance on inflation management.”
READ ALSO: CPPE speaks on capital importation surge, raises structural concerns
The statement concluded that Nigeria’s long-term disinflation process would depend more on structural reforms and productivity improvements than on aggressive monetary tightening.
The group urged the monetary authorities to avoid excessive reliance on monetary policy orthodoxy in managing what is fundamentally a structurally-driven inflation environment.
“Sustainable disinflation in Nigeria will depend far more on improvements in productivity, energy security, logistics efficiency, exchange rate stability, domestic petroleum refining capacity, and overall supply-side reforms than on aggressive monetary tightening,” CPPE stated.
Business
Supreme Court Upholds APP’s Registration, Ends Deregistration Battle Ahead of 2027 Elections
BY NKECHI NAECHE-ESEZOBOR—The Supreme Court has brought an end to the legal dispute over the status of the Action Peoples Party (APP), affirming that the party remains duly registered and eligible to take part in the 2027 general elections.
The apex court struck out Appeal No. SC/CV/248/2026 after the appellant, Mr Blessing Elujiuba, voluntarily withdrew the case, bringing the challenge to a close.
This decision leaves intact earlier judgments delivered by both the Federal High Court and the Court of Appeal, which had upheld the party’s legal recognition.
The ruling was delivered on May 12, 2026, by a five-member panel of the Supreme Court led by Justice John Inyang Okoro, who noted that the matter was withdrawn without objection from other parties.
The court subsequently dismissed the appeal following its withdrawal, formally ending the proceedings at the apex level of the judiciary.
The case involved the Independent National Electoral Commission (INEC), the Action Peoples Party (APP), and the party’s National Chairman, Uche Kingsley Nnadi.
The initial legal action had sought to force INEC to remove APP from its register on the allegation that it failed to meet constitutional requirements under Section 225A of the 1999 Constitution.
However, earlier rulings had found that APP met the necessary legal conditions for continued registration, citing evidence of electoral participation and victories at local government level.
The courts also upheld the interpretation that fulfilling any of the conditions outlined in Section 225A is sufficient for a political party to retain its registration status.
With all tiers of the judiciary aligned in its favour, APP’s legal standing remains intact, clearing the party to continue preparations for the 2027 elections without any outstanding court challenge.
The post Supreme Court Upholds APP’s Registration, Ends Deregistration Battle Ahead of 2027 Elections appeared first on Business Today NG.
The Director General of the International Atomic Energy Agency (IAEA), Rafael Grossi, said discussions on Nigeria’s nuclear power programme remain alive, amid continuous technical engagements with concerned authorities in the West African country.
Mr Grossi disclosed the progress made on the nuclear power arrangement with Nigeria while responding to a PREMIUM TIMES’ enquiry at an IAEA programme in Vienna, Austria.
The IAEA DG said the agency continues to work with Nigeria on its nuclear power plan and IAEA officials had held visits and technical meetings with relevant stakeholders to actualise the dream.
In May 2024, while on a visit to Nigeria for a seminar on ‘Promoting Cancer Awareness and Advocacy Programmes’, Mr Grossi expressed the agency’s readiness to support Nigeria’s efforts to develop a nuclear power programme during meetings with senior government officials, including the Secretary to the Government of the Federation, George Akume.
Speaking during the visit, he described Nigeria’s pursuit of nuclear energy as “a logical move for a country of your (Nigeria’s) size and importance.”
When this newspaper asked Mr Grossi about the progress of the discussions and technical meetings since the visit two years ago, the IAEA DG reassured that discussions are still ongoing.
“We have continued working with Nigeria, I have to tell you. It’s not that after that visit, things stopped. We have continued at technical levels, some visits, and technical meetings,” the IAEA DG said.
He noted, however, that no final decision has been taken on the programme, adding that Nigeria’s status as a big crude oil-producing nation makes its situation quite different from other economies.
“There hasn’t been a decision yet. There is like a pre-decision to explore the alternative. Of course, your country (Nigeria) is a big oil producer country, an exporter, etc. So the discussion in your country is different from that in other countries,” the DG said.
The IAEA boss insisted that the conversation around the programme is still alive, but Nigeria’s energy options are quite diversified.
“It’s a matter of diversification more than a matter of need, maybe. But the conversation space is pretty much alive, I must say,” Mr Grossi said.
Nigeria’s nuclear energy programme operates under the guidance and safety standards of the International Atomic Energy Agency (IAEA), aiming to add clean, stable nuclear electricity to the national grid. The programme is managed primarily by the Nigeria Atomic Energy Commission (NAEC) and is said to be advancing through the foundational infrastructure phases and planning stages.
READ ALSO: Survival logic of nuclear deterrence: The Iranian, Israeli, and American conundrum, By Jacob Edi
Earlier in September 2023, Nigeria signed its Country Programme Framework (CPF) for the period of 2024–2029 on the margins of the General Conference. A CPF is the frame of reference for the medium-term planning of technical cooperation between a Member State and the IAEA and identifies priority areas where the transfer of nuclear technology and technical cooperation resources will be directed to support national development goals.
Nigeria has been an IAEA Member State since 1957 and, according to the agency, its 4th CPF covering the period 2024 – 2029 identifies five priority areas, such as nuclear and radiation safety and security; food and agriculture; health and nutrition; water and environment; as well as energy planning and development.
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