Coleman CEO Advocates for Rate Cut to Boost Lending

George Onafowokan, Managing Director/Chief Executive Officer of Coleman Technical Industries Limited, described the Central Bank of Nigeria's recent adjustment in the monetary policy rate as a "reset" to align with market realities. He noted that commercial lenders were already offering loans at rates between 22 to 23 percent, lower than the previous 26.5 percent policy rate.

Onafowokan attributed this shift to the recapitalization of Nigerian banks, which increased their equity and lending capacity. He explained that banks were required to raise their capital bases significantly, enhancing liquidity and prompting competition that lowered lending rates.

He expressed confidence that the effects of the rate adjustment would manifest in the economy within two to three months, potentially influencing treasury bill yields and foreign portfolio investment decisions. Onafowokan also called for a reduction in the Bank of Industry's lending rates to better reflect its development-finance mandate.

He cited positive economic indicators, including over four percent growth, declining inflation, and naira stability.