The Governor of the Central Bank of Nigeria, Olayemi Cardoso, has signalled that lending rates may drop in the coming months as inflation begins to slow, raising fresh hopes for cheaper credit and stronger investment inflows.

He gave the assurance during a fireside chat at the European Business Chamber (Eurocham Nigeria) C-Level Forum in Lagos on Saturday, 6th September, 2025, according to a statement released by the CBN on Sunday.

CBN governor explained that while inflation remains elevated, its recent downward trend could pave the way for lower borrowing costs once price stability is firmly anchored. “There is substantial potential for interest rates to decrease in the future as inflation continues to decline and as markets become more efficient in allocating capital,” the statement quoted him as saying.

Cardoso acknowledged that high interest rates had placed a heavy burden on businesses but stressed that the Bank’s priority had been to restore confidence, stabilise the naira, and strengthen the financial system.

He pointed to the ongoing bank recapitalisation programme as vital to safeguarding the sector, while highlighting fintech expansion, financial inclusion, and stronger coordination with fiscal authorities as key elements of Nigeria’s reform drive.

Businesses across the country have consistently ranked high lending rates as their most severe operational constraint. In its June 2025 Business Expectations Survey, the CBN found that interest rates scored higher than insecurity and poor power supply as top challenges.

The Bank had raised its Monetary Policy Rate six times in 2024, from 18.75 per cent to a record 27.5 per cent, but has since paused hikes in 2025. Market watchers now look to the next MPC meeting on September 22–23 for signals of a possible policy easing.

The Governor stressed that Nigeria’s size and location give it a unique role in West Africa’s economy, warning that domestic stability is crucial amid global uncertainties.

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