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The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has signalled that lending rates may begin to decline in the coming months as inflation continues to ease, raising hopes for improved access to credit and stronger investment flows.

Cardoso gave the assurance during a fireside chat at the European Business Chamber (Eurocham Nigeria) C-Level Forum in Lagos on Saturday.

In a statement issued by the Bank on Sunday, the CBN reaffirmed its commitment to macroeconomic stability, a stronger banking sector, and positioning Nigeria as a top investment destination.

According to Cardoso, headline inflation, though still elevated, has begun to slow, creating the possibility of lower lending rates once price stability is further consolidated.

“There is a substantial potential for interest rates to decrease in the future as inflation continues to decline and as markets become more efficient in allocating capital,” he said.

He explained that such an environment would boost corporate lending and investment.

“That is the environment in which stronger corporate lending and higher levels of investment will naturally follow,” he added.

Cardoso acknowledged that high lending rates have weighed heavily on businesses but stressed that restoring stability was the Bank’s first priority.

“We will protect the stability that has been re-established in the financial system with the utmost zeal,” he said. “Our primary objective is to maintain that stability while simultaneously addressing inflation and ensuring that the financial system is sufficiently resilient to facilitate corporate lending and investment.”

The Governor also highlighted progress in the ongoing bank recapitalization exercise, describing it as vital for safeguarding the financial system.

“The new minimum capital requirements will produce stronger institutions that can withstand shocks and finance broader economic growth,” he explained.

He further noted that technology-driven solutions and financial inclusion remain central to the CBN’s strategy.

“Expanding access to fintech platforms and supporting innovation will play a central role in tackling poverty and bridging financing gaps,” Cardoso stated.

On Nigeria’s economic policy outlook, he pointed to improved coordination with fiscal authorities.

“Our collaboration with the Ministry of Finance, the Ministry of Trade and Industry, and the Budget Office will enable the country to sustain reforms and achieve long-term stability,” he said.

Speaking on Nigeria’s global positioning, Cardoso stressed the urgency of domestic reforms.

“The urgency of addressing our own affairs is underscored by the ongoing geopolitical changes,” he observed.

He added that Nigeria’s size and location make it strategically important.

“Nigeria is a market that is both large and appealing in its own right, and it is also situated at the entrance to the broader continent and West Africa. This underscores the importance of maintaining stability at home,” the statement noted.

Earlier, Eurocham President Yann Gilbert praised the dialogue as vital for building trust between European businesses and Nigerian policymakers.

“This forum is an important platform for fostering long-term partnerships in Nigeria, particularly in the areas of job creation and sustainable investment,” Gilbert said

The CBN raised its benchmark lending rate six times in 2024, taking the Monetary Policy Rate (MPR) from 18.75 per cent in January to 27.50 per cent by December—the steepest tightening in recent history. The move was aimed at curbing runaway inflation and stabilising the naira.

However, the Bank has so far paused further hikes in 2025, holding the rate steady at 27.50 per cent in February, May, and July meetings.

Businesses have consistently ranked high interest rates as their most severe challenge. The CBN’s June 2025 Business Expectations Survey, which polled 1,900 firms, showed lending rates topping the constraint index with 75.6 points, ahead of insecurity (75.2) and insufficient power supply (74.3).

The Director-General of the Lagos Chamber of Commerce and Industry, Dr. Chinyere Almona, had earlier voiced concern.

“We must restate that the interest rate at 27.5 per cent remains a depressing burden on businesses. We therefore desire to see a reduction in the Monetary Policy Rate,” she warned.

The next Monetary Policy Committee meeting is scheduled for September 22–23, 2025, according to the Bank’s official calendar

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