Nigeria’s Central Bank Hints at Lower Lending Rates in 2025

The Nigeria Central Bank Governor, Olayemi Cardoso, recently shared optimism about lowering lending rates soon, as inflation shows signs of slowing.

Speaking at a business forum in Lagos on September 6, 2025, he outlined plans to strengthen Nigeria’s economy and attract more investment.

Easing Inflation Opens Doors

Cardoso noted that inflation, though still high, is starting to drop. This could allow the Central Bank of Nigeria (CBN) to reduce lending rates, making it easier for businesses to borrow money. Lower rates could lead to more investment and growth, creating a healthier economy.

Focus on Stability

The CBN is working hard to keep the financial system strong. Cardoso emphasized that protecting this stability is a top priority while also tackling inflation.

He said, “We’re committed to a system that supports business growth and encourages investment.”

Strengthening Banks

The CBN is pushing a bank recapitalization plan to make banks stronger. This plan requires banks to hold more capital, helping them handle economic challenges and support bigger projects. Cardoso believes this will make Nigeria’s financial system more reliable.

Technology and Inclusion

Cardoso highlighted the importance of technology in improving access to financial services. By supporting fintech and innovation, the CBN aims to help more people, especially in rural areas, access banking. This could reduce poverty and close financial gaps across Nigeria.

Teamwork with Government

The CBN is collaborating with government bodies, like the Ministries of Finance and Trade, to keep reforms on track. Cardoso said this teamwork is key to long-term economic success and making Nigeria a top destination for investors.

Nigeria’s Global Role

Cardoso pointed out Nigeria’s unique position as a gateway to West Africa and beyond.

“Our size and location make us a key player,” he said. Keeping the economy stable is vital to seize these opportunities, especially amid global changes.

Challenges for Businesses

High lending rates, now at 27.5%, have been tough on businesses.

A recent CBN survey from June 2025 showed that high rates are the biggest challenge for companies, outranking issues like power shortages. Business leaders are eager for rate cuts to ease the burden.

What’s Next?

The CBN has paused rate hikes in 2025, keeping the lending rate at 27.5% since December 2024.

The next policy meeting on September 22–23, 2025, could signal whether rates will stay steady or start to drop as inflation improves.

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