AKINWALE ABOLUWADE
Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has hinted that lending rates could decline in the coming months as inflation begins to ease, raising hopes for improved access to credit and increased investment inflows.
Cardoso gave the assurance on Saturday during a fireside chat at the European Business Chamber (EuroCham Nigeria) C-Level Forum in Lagos.
In a statement issued on Sunday, the CBN reiterated its commitment to macroeconomic stability, strengthening the banking sector, and positioning Nigeria as a top investment destination.
Cardoso noted that while headline inflation remains elevated, it has started to slow, opening the door for possible rate cuts once price stability is further consolidated.
According to him, such an environment would naturally support stronger corporate lending and higher levels of investment.
Admitting that high lending rates have strained businesses, he highlighted progress on the ongoing bank recapitalisation exercise, describing it as critical to safeguarding the financial sector.
He explained that the new minimum capital requirements would produce stronger institutions capable of withstanding shocks and financing broader economic growth.
Cardoso also underscored Nigeria’s size and strategic location, saying they gave the country a unique role to play in West Africa and beyond.
The CBN raised its benchmark lending rate six times in 2024, pushing the Monetary Policy Rate (MPR) from 18.75 per cent in January to 27.50 per cent by December.
Meanwhile, the Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Chinyere Almona, has warned that retaining the MPR at 27.5 per cent poses a significant burden on businesses.
