On September 23, 2025, Nigeria’s Central Bank (CBN) cut its benchmark interest rate by 50 basis points (0.50%) for the first time in five years, bringing the Monetary Policy Rate (MPR) to 27%.
Why it matters:
-
This move follows a period of consistently high rates intended to control crippling inflation, which has been slowly easing.
-
Lower rates could reduce borrowing costs for businesses and individuals, potentially boosting investment and consumption.
-
It signals a shift in monetary policy, from tightening to possible easing, if inflation continues to decline.
Potential implications:
-
Positive for small businesses and entrepreneurs who rely on loans — could breathe some life into sectors squeezed by high finance costs.
-
If inflation doesn’t keep falling, the move could also risk destabilizing price expectations.
-
Investors — domestic and foreign — will watch how this affects Nigeria’s macroeconomic stability
You must be logged in to post a comment.