CPPE urges Nigeria development finance overhaul

The Centre for the Promotion of Private Enterprise (CPPE), a Nigerian private-sector advocacy group, released a policy brief on Sunday calling for a comprehensive overhaul of Nigeria's development finance architecture to address an estimated financing gap of over N50 trillion in the real sector. CPPE's Chief Executive Officer, Muda Yusuf, argued that the gap reflects structural market failures, including maturity mismatches, information asymmetry, and sovereign crowding-out, rather than a simple liquidity shortage. The brief highlighted that agriculture, which contributes over one-fifth of GDP, receives less than five percent of bank credit, and that manufacturers and MSMEs struggle with high interest rates, short loan tenors, and stringent collateral requirements. CPPE acknowledged the Nigeria — Central Bank of Nigeria's monetary tightening has improved credibility and moderated inflation, but argued that price stability must be complemented by targeted, transparent, and non-inflationary development finance. Recommendations include recapitalising the Bank of Industry and Agricultural Bank of China, expanding credit guarantee schemes, establishing long-tenor refinancing windows, mobilising pension and insurance funds, and reducing government borrowing. CPPE stressed that properly designed development finance can expand supply and ease structural inflation, and rejected a return to discretionary intervention funds.